Fuse partner Bill Carter, one of the top experts on youth marketing, spent 40 minutes sharing insight into the lifestyle, experience and focus of Generation Z on Day 2 of the '15 Daytona Rising/NASCAR Motorsports Marketing Forum. Carter said his agency has culled data from more than 100 youth culture studies it has done in the last year. He noted that Gen Z, the demographic segment that includes people born in the years '95-'15, represents 26% of the population, second only to Baby Boomers as the largest generation by percentage of today’s population. Carter specifically talked about the teen segment within Gen Z, removing any focus on kids or young children. “When it becomes really critical is in 10 years, because of its sheer size,” he warned attendees. “It will be the largest section of the population by 2025. At that time, they will be college grads and new into the work force and making more money, becoming more important consumers to all of us.”
MARKETING FOCUS: In marketing to Gen Z, Carter said brands should follow the lead of young consumers. “They want a brand to use Instagram the way they use Instagram,” he said. “They have developed the rules of the road on social and they want brands to follow those rules.” Carter stressed the importance of a journey of experience in social media. “Successful brands are leading a teen consumer through a journey over a longer period of time,” he said. “It’s about laying a groundwork and telling a brand story over a period of time before they really become your customer.” He outlined a future in which social channels will be far different than today, especially pointing to Periscope. “I believe Periscope will be a very powerful channel,” he said. “Periscope will allow people to stitch together all their social video -- and people will be able to consume all news events through what people are capturing on site.” Carter also expects more brands to create their own channels as an extension of their marketing -- a la Red Bull TV. “Why wouldn’t brands just broadcast themselves?” he said.
Other data points:
* Carter outlined five brand traits that teens love:
-- High quality
-- Would recommend
-- Fits personality
-- Socially responsible
-- Shares interest
He listed five brands currently fit that criteria: Nike, Netflix, Sony PlayStation, Starbucks and Amazon.
* Looking ahead to '25, the median income of Gen Z in the working world will be about $32,000. The current 23-to-28 year old is making about $27,000.
* In '25, fewer than 20% of people in their 20s will be married and most will live in cities, as the mass migration to cities continues. Also, the marriage numbers are a major shift from previous generations, as 40% of baby boomers were married in their 20s.
* Gen Z has been marked by instability in lifestyle. In their life, they have seen significant terror attacks, three economic, and an unemployment rate for millennials, the slightly older peers and friends of Gen Z, that is double the national average. “That’s what Gen Z is seeing,” Carter said.
* Gen Z is determined to create a new path for themselves. Almost 60% are saving money and 45% say they can invent something that changes the world.
