How Gen Z is Monetizing Mindshare Differently
By Sarah Jane Callendar & Melanie Mohr
In 2019, Generation Z, those born after 1995, are expected to outnumber millennials.
GenZ will Outnumber Millennial
According to Bloomsberg Analysis of United Nations data, Gen Z will comprise 32% of the 7.7 billion global population compared to 31.5% of millennials.
But what marks the difference between Gen Z and their predecessors?
Gen Z grew up in the digital age. As early users of social media, voice technologies like Alexa and Google Assistant and proud advocates of digital entrepreneurship, this generation is seemingly more creative, adaptable and enjoy a personal, catered service.
Their views on cryptocurrencies and word-of-mouth video is forward-thinking. They also believe in a more democratic monetization of mindshare, trusting platforms that facilitate how influencers can gain a following and are rewarded for their video storytelling and active participation.
Gen Z Has New Playgrounds
For Gen Z, social media outlets are becoming less popular in favour of video-native apps like House Party and Tik Tok. Analysts believe that the video first vibrancy and interactivity of such apps give them a mobile edge with GenZ. Unlike the limiting chatting abilities of Facebook and Skype or settling for Google Hangouts or one-on-one conversations through Apple’s FaceTime feature, Gen Z is turning to apps like House Party.
The House Party app allows users to chat up with up to 8 people and Tik Tok, a leading short video platform in Asia, allows users to watch, shoot, edit and add special effects short music clips. Due to its immense popularity, Tik Tok has produced numerous viral trends and various public figures around the world. Tik Tok (called Douyin in China), had 150 million DAUs as of the June, 2018.
In search of more reliable, digital and personal services, Gen Z are moving towards interactive and consumer-focused apps. YEAY, a fashion and social commerce platform where users can share video content to showcase and shop the latest clothing and accessory trends is becoming increasingly popular. Preferring personal advice from “real” people, YEAY’s innovative and social approach appeals to Gen Z, allowing users to socially video share their latest outfit — the perfect platform for these natural content creators!
More so than millennials and baby boomers, Gen Z are increasingly socially conscious, holding brands to high moral and ethical standards. Following the disillusionment of traditional social media outlets — think the horrific Snapchat redesign, the Facebook and Cambridge Analytica scandal and Instagram’s jaded and tired content, it is no wonder why Gen Z are moving to these new digital channels which offer personalised and tailored services to their consumer.
YouTube Vloggers
Video doesn’t stop there! Testament to the creativity, resilience and digital entrepreneurship of Gen Z, this generation can make money and establish powerful voices from their own rooms. From the likes of Zoella, a fashion and beauty vlogger from England to PewDiePie, a Swedish YouTuber and video game commentator, the power and popularity of video content is striking for Gen Z.
Take fashion and beauty vloggers as an example, they are buying clothing and merchandise which they like and for themselves. Gen Z is interested in connecting with real people rather than with external and distant companies.
Twitch Live-Streamers
Similar to YouTube, Twitch is a live-streaming video platform which primarily focuses on video game live-streams and is extremely popular with Gen Z. As of May 2018, Twitch now has 2.2 million broadcasters monthly and 15 million daily active users.
Fortnite streamer, “Ninja”, has an estimated $500,000 a month from streaming his gameplay on Twitch.
This week, Twitch has decided to remove ad-free viewing to the dismay of many users, saying that: “advertising is an important source of support for the creators who make Twitch possible.”
The company also stressed that this change would “strengthen and expand that advertising opportunity for creators so they can get more support from their viewers for doing what they love.”
Perhaps Twitch’s decision to remove ad-free viewing could be a part of its bigger plan to woo creative Gen Z’s to its service.
New Video Game Communities
The innovative and visionary minds of Gen Z know no bounds and are even changing the video gaming industry as we know it. Alex Binello is the co-creator and face of “MeepCity”, a free to play game boasting 15 million monthly active players.
Notably, “MeepCity” is one of the largest games on Roblox, a video game platform with 64 million users. It paves the way for entrepreneurial opportunity for its young consumers, even turning a select few into millionaires.
Unlike Minecraft and Fortnite, which have taken the gaming world by storm, Roblox is entirely generated by its users, with 4 million developers behind the creation of 40 million games on the platform, including “MeepCity”.
Central to the Robloxian economy is Robux, a premium currency that the company sells to users for real money. “MeepCity” for example charges its gamers for premium features such as an in-game boom box or additional decorations for their virtual home.
Emergence of the Gen Z Consumer’s Importance
The eldest GenZ, born in 1995 are now 23, and are entering the “sweet spot” for retail brands and apparel fashion. This is where the YEAY app comes in, where teens and 20-somethings share style ideas and fashion brand inspiration in looks of the day from all over the world in short videos.
Whilst there is a limit to generational marketing, the pace of innovation and emerging technologies indicate that Gen Z are in fact different, shifting establishing consumer and marketing norms.
As digital natives, Gen Z are unique in the way that they have never known life without digital technology such as smartphones and social media. Advocates of personal, authentic and video-style content, Gen Z poses new challenges and a shift in established marketing strategies.
As the CEO of the WOM Protocol, I recently attended and spoke on a panel at BlockShow.
The WOM Protocol is therefore uniquely positioned to sync with Gen Z digital creators and creatives in bringing the power and reach of word of mouth to the blockchain. GenZ want to be in control of their destiny and a self-sovereign marketing approach appeals to them.
