Watch out for Generation Z

THE NEXT GENERATION HAS LANDED

Youth Forum Releases Unique Research Defining “Generation Z”

Move over Baby Boomers, enough of Generation Y, a new influential generation ‘Generation Z’ has been identified at a forum today held by Multi Channel Network (MCN), Habbo Australia, and Channel V at the Sydney Opera House.

The Next Generation forum, hosted by Jason Davis aka “Jabba”, gave fresh insight to advertisers and marketers about the characteristics, values and media and brand consumption habits of Australian youth in the 13 and 24 year-old demographic. However, the focus of the forum was on the previously undefined teen demographic of 12 – 18 year olds who are part of Generation Z.

Speakers at the event included; Paul MacGregor, top Australian bloggerand MCN youth strategist; Jeff Brookes, Asia Pacific Director,Habbo.com.au and Sulake; Shaun James, General Manager, Music Channelsfor XYZ Networks.

Comprehensive online research on thousands of teens in Australia andaround the world demonstrates there is a sub generation of youths withmarkedly different characteristics and value systems to that of theirGen Y predecessors. The findings are part of nine separate surveys,each of which included an average of 3,000 participants aged 12 to 18years-old released today by Habbo,Australia’s most popular online playground for teenagers with 359,817unique visitors a month. The research was conducted by Habbo Australiaand developed and analysed by Launch Group.

Some of the major findings around advertising included:

·       More than three-quarters (82%) of Australian teens surveyed like advertising – not only tolerating it, but welcoming it,

·       Advertising adds value – almost half (42%) of the teenrespondents thought advertising improved their experience with aproduct, game, social networking site etc., by making it moreentertaining,

·       Advertising is successful – 61% of teens acknowledge that advertising makes them purchase products,

·       More than three-quarters (79%) of teens will go to a websitefor further information about a product after watching an advertisementon TV, and around half of the teens (53%) surveyed will purchaseproducts online.

Damian Keogh, National Sales & Marketing Director, MCNsaid Generation Z is emerging as a youth demographic to pay closeattention to. “Whilst it’s still early days for Generation Z, we areseeing some distinct attitudinal differences emerging that impactadvertising decisions to youth audiences. This generation of teenagersin Australia is already influencing the purchasing choices of theirparents and will soon be powering our nation financially,environmentally and of course socially.

“There’s been much debate around media use for youth, but perhapswhat’s more interesting is that it’s the quality of the entertainmentcontent, rather than the platform which attracts both Generations Y andZ.  Both generations respond to having a live community to connect with- knowing their friends are on the platform at the same time,” Keoghsaid.

Habbo.com.au and Sulake AsiaPacific Head, Jeff Brookes said: “We’ve heard a lot about the fame andfortune quest of Generation Y. However, Generation Z seems to have alot less to prove than the previous Generation – and they also seem tobe more consistent about their likes and dislikes, and potentially lessfaddish. It’s possibly too early to tell whether this develops intodeeper brand loyalty but it’s an interesting trait to watch. They alsoseem to be more likely to purchase with their hearts rather than theiregos.

“That’s not to say they can’t be persuaded. Like Gen Y, Generation Zare brand savvy and they like advertising. This Generation has not onlygrown up within a digital playground, they are completely used toadvertising as part of life – and they like it,” Brookes said.

The research also identified further Generation Z characteristics:

·       Altruistic (if you thought Gen Y wants to save the world, wait until you see Gen Z);

·       Appears to care less about fame and fortune than Generation Y, and to care more about what their parents think;

·       May return to more traditional values, and are focused on social justice issues;

·       Prefer brands that align themselves with their value systemsaround the environment, as well as their strong spirit ofhumanitarianism.

·       Generation Z has a deep connection with Australia – they seekto understand and comment on national issues and they are proud ofAustralia’s multicultural nation status.

·       Favour platforms and medium that they can mould – they do nothave set patterns for viewing/ listening. Therefore advertisers shouldlook past traditional prime time.

·       Prefer humour in advertising above other characteristics

·       Having a sense of community is paramount to Generation Z.  Theygravitate towards media which provides a sense of LIVE community.

Shaun James, General Manager, Music Channels for XYZ Networks said thedesire to be entertained is powerful amongst this generation – themajority of whom say they couldn’t live without music. “Channel V andthe XYZ Music Channels are delighted to be part of the Next Generationforum.  Our V brand is one of the most significant in the youth spaceand the insights contained in Habbo’s most recent research areparticularly relevant to advertisers and audiences alike.  We haveknown for some time the relevance and importance music has in the lifeof the majority of young audiences.  As Australia’s leading musicbroadcaster, continuing a relevant, engaging conversation with thismarket remains a priority.  The confirmation that Generation Z delightin consuming media across a number of platforms, in particulartelevision, is a positive confirmation of this strategy we have inplace.”

Paul MacGregor, MCN Youth Strategist and top Australian bloggersaid: “Generation Z has definite preferences when it comes to theirfavourite media platforms, viewing times and what they want advertisingto give them. As discerning consumers, they will follow good content,whether this falls on TV, online or even mobile is of no consequence.Media savvy Australian teens don’t see platforms, they see gateways toentertainment. One of the key findings of this new research showed therelationship between TV and online and how they worked in tandem witheach other, sometimes consumed at the same time, almost alwayscross-referenced when they wanted to learn more.” 

Habbo’s Brookes concluded: “We have been conducting research on ourusers for quite some time now, because we have noticed both nationallyand globally that today’s teenagers have opinions and values that donot align with what people are referring to them as, which isGeneration Y.  There are some interesting factors that separate thisgeneration from others. For example unlike the career gypsies inGeneration Y, Gen Z don’t necessarily want to have up to ten careerchanges in their lifetime and they don’t need to live overseas.  Whenthey think about their future careers, the majority of Gen Z favouredfactors such as fairness – and the absence of discrimination on thebasis of race, religion, gender or sex
uality. Believe it or not, moneyand fame are way down on their priority lists – happiness is one theirmain priorities in life.”

DOWNLOAD: Generation Z research encompassing nine surveys of Australian teens; this is split up into six different segments including overall trends, lifestyle habits, advertising and purchasing habits, social networking, internet and mobile habits, music, and sport.

Generation Z presentation May 2009 7pm.pptx

DOWNLOAD: Habbo’s Global brands survey which took place in over 30 countries and had more than 112 000 respondents. Almost 3000 of these respondents were from Australia. The aim of the survey is to gain deeper insight on teens’ opinions about brands.

GHYS Brands 2009 Australia (2).ppt