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Street Corner Protestors

Why we exist

Generation Z 
Attitudes to
Digital Advertising

What is the state of generation z trust in ads?

The second section of this foundation explores the sentiment generation z feel toward cookie-full digital advertising. Broken down into three subsections, the first characterises generation z as a consumer base. Secondly, we explore industry research that indicates the current state of trust in digital advertising for these generation z consumers. And lastly, we explore Lush as a case study who are working unconventionally to leverage generation z trust online. Since the research question underlying the creation of Social Bubble derives from rebuilding generation z trust in brands, mapping the current behaviours and attitudes provides context to the later explored first-hand research.

What do we know about generation z?

The curious, yet pragmatic generation z

The target group explored in relation to trust are those born between 1997 and 2012, also classified as generation z. Considered the most ethnically and racially diverse, and best-educated generation yet, this group are progressive and see societal change as a positive thing[1]. Currently placed in an early stage of their careers or working through their education, the post-millennial generation are characterised by an unidentified ID and a curious, yet pragmatic approach to life[2].

Generation z is considered more "saving-savvy", whereby economic instability, including the 2008 financial crisis occurring during early development, impact attitudes toward financial risk
[3]. Despite this, generation z is invaluable to brands accounting for 40% of total US consumers and “[represent] up to $143 billion in buying power”, according to Forbes[4]. Not only this, but their influence as competent techies amongst their families means they hold influential household buying power too.

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50%

over

gen z are using a form of ad blocking

Social Bubble Prototype (5).png

82%

admit to
skipping ads

The digital narrative generation z

Favouring clothing and sports goods, food deliveries, and tech, this group is fulfilling their 'digital narrative' stereotype, predominantly online shopping via their smartphones[5] and increasingly games consoles[6]. Living in the information age where Googling something is knowledge, and Deliveroo is a new dinner tradition, generation z understand how technology can positively augment their busy lives. Despite this, advertising within these digital spaces fails to bring the same degree of pleasure to generation z, who value their privacy having grown up surrounded by "technology and connection"[7].

Generation z has a "less bothered" attitude toward advertising "as long as they're getting free content"
[8]. However, just because they are not bothered, doesn't necessarily correlate to being interested in, or actively seeking digital advertising. As over 50 per cent of generation z are using a form of ad blocking and 82 per cent admit to "skipping ads whenever they can while using social platforms", it's not surprising they view advertising as invasive and time-wasting[9]

The digital detox generation z

To be expected from the cohort that grew up on Facebook, 94 per cent of generation z are using social media[10]. Additionally, 95 per cent are watching YouTube-style content, with 92 per cent using instant messaging services[11]. As such, the digital space is undeniably relevant to the group and should not be underestimated as an effective digital advertising opportunity. Despite this, generation z sentiment toward social media and the internet more generally has taken a notably negative shift.

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Hill Holliday's 2019 report found that 33 per cent of generation z are permanently quitting social media, with 61 per cent taking breaks motivated by time-wasting, privacy concerns, and over-commercialisation[12]. Considering these findings and despite the negatively growing sentiment, the COVID19 pandemic has inorganically encouraged this generation to spend more time online when forced into a lockdown. Reports have shown "young adults between 18 and 24 spent the longest time online, averaging five hours and four minutes per day" during the pandemic[13].

Generation Z 
Trust in Digital Advertising 

Generation Z hold brands accountable

As 70 % of people say trusting a brand is more important than ever before[14], the fact that only 39% of the US generation z population say they trust brands to keep their data safe shows a disconcerting pessimism which can only be damaging to brand trust[15]. With this being the lowest confidence rate of all cohorts, generation z is asserting their scepticism and critical eye, not afraid to shine a spotlight on seemingly unethical behaviour. This perception is particularly relevant for a group that defined its stance as ethical changemakers.

Generation z are proactively holding multinational corporations responsible for their environmental and social practices, willingly ‘cancelling’ those who fail to sacrifice shareholder satisfaction for social justice. Rolling Stone highlight these consumers purchase according to trust, explaining "the company has to be about more than making a profit...they need to believe in your product as well as your purpose"
[16].

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"the company had to be about more than making a profit...
they need to believe in your product as well as your purpose" 

for generation z

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Generation Z hold brands accountable

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trusts people in power to do
the right thing given the crises we face

20%

forbes-logo.png

While generation z is 72 per cent "more likely to buy from a company that contributes to social causes", the space the brand presents its purpose within is also extremely significant[17]. As fake news continues to distort our online reality, it also runs the risk of destroying trust for brands operating within these compromised spaces. Forbes' 2021 report adds weight to these findings, marking a 20 per cent decrease in generation z "that trusts people in power to do the right thing given the crises we face"[18]. This proves failing trust is not singularly an advertising problem, instead, it has encroached as a consequence "from the police to the courts, the military, news media, Hollywood" etc[19]. For advertisers regaining trust with generation z is arguably a more complex challenge than anticipated, due to susceptibility of influence from its uncontrollable online environment and wider societal actors[20]

Generation Z prefer traditional advertising

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positive receptivity
for mobile
browser ads 

30%

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find digital
ads annoying

55%

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Correspondingly, research suggests generation z prefer more traditional advertising mediums. There was only a 30% positive receptivity for ads displayed on a mobile browser, with outdoor attracting the best response[21]. While mitigated trust relating to purpose can partially explain these findings, backlash from an oversaturation of digital advertisements intruding private consumer spaces and simply failing to entertain them provides alternative explanations. Where generation z's lives have become inseparable from their mobile devices, the inability to disconnect from the advertising world indicates why ad blockers are downloaded, and ads skipped at the soonest possible opportunity.

JCDecaux found 66 per cent of desktop users indicate ads interrupt a seamless internet experience, and 55 per cent simply find digital ads annoying
[22]. As such, Harvard Business Review explains consumers require control, justification, and trust for brands to acceptably personalise ads to consumers[23]. If brands want to raise the 42 per cent of generation z that claim to trust companies, empowering the intelligibility and resourcefulness of this group in the digital world and encouraging them to exercise control over private data protection may help to undo the trust lost[24].

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Lush:
Gen Z Trust Building 101

What is the state of generation z trust in ads?

To summarise the learnings from the second part of our foundation. Generation z has proven itself to be a sceptical crowd to please, avoiding digital advertising and signifying an overwhelming lack of trust, particularly with companies’ private data practices and more broadly their social and environmental impacts. However, there is an undeniable opportunity with generation z that brands like Lush are starting to pick up on and account for in their long-term strategies. While the example of Lush might be considered an extreme and an open-ended case study, it marks an interesting progression that plays into the trends of generation z removing themselves from social media in particular. Relating to the research question, this section has revealed an opportunity for brands to grow generation z trust with digital advertising but perhaps requires an overhaul of practices as we know them.

Now onto the third
and final piece of the puzzle...

[1] https://www.pewresearch.org/social-trends/2018/11/15/early-benchmarks-show-post-millennials-on-track-to-be-most-diverse-best-educated-generation-yet/

[2] https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/true-gen-generation-z-and-its-implications-for-companies

[3] https://startupsmagazine.co.uk/article-revealed-gen-z-most-saving-savvy-generation

[4] https://www.forbes.com/sites/jefffromm/2021/01/07/on-youtube-tiktok-and-ben--jerrys-five-undeniable-truths-about-marketing-to-gen-z/?sh=71df994b972e

[5] https://www.statista.com/statistics/1120014/gen-z-types-of-goods-purchased-online-in-great-britain/

[6] https://www.statista.com/forecasts/1120594/gen-z-internet-devices-uk

[7] https://www.genzinsights.com/the-rise-of-affinity-networks-why-marketers-need-to-engage-gen-zers-with-non-disruptive-ads.-

[8] https://www.statista.com/forecasts/1123903/gen-z-attitudes-to-online-advertising-uk

[9] https://www.genzinsights.com/the-rise-of-affinity-networks-why-marketers-need-to-engage-gen-zers-with-non-disruptive-ads.-

[10] https://www.prweek.com/article/1459149/gen-z-quitting-social-media-droves-makes-unhappy-study-finds

[11] https://www.statista.com/statistics/1119977/gen-z-internet-activities-in-great-britain/

[12] https://www.prweek.com/article/1459149/gen-z-quitting-social-media-droves-makes-unhappy-study-finds

[13] https://news.sky.com/story/coronavirus-people-spending-record-amount-of-time-online-during-lockdown-12013350

[14] Johnson, Z., Reader, S., (2021). Customer-centric advertising: delivering trust and loyalty at every interaction. Advertising Week Europe. [panel talk] virtual. 10 May 2021

[15] https://www.emarketer.com/content/gen-z-most-skeptical-about-brands-data-privacy-practices

[16] https://www.rollingstone.com/culture-council/articles/basics-marketing-gen-z-1241015/

[17] https://www.marketingdive.com/news/gen-z-wants-brands-to-be-fun-authentic-and-good-study-says/581191/

[18] https://www.forbes.com/sites/michaelstone/2021/05/18/gen-z-they-crave-stability-and-trust-so-give-it-to-them/

[19] https://www.forbes.com/sites/michaelstone/2021/05/18/gen-z-they-crave-stability-and-trust-so-give-it-to-them/

[20] https://www.ventureharbour.com/personalisation-fails/

[21] https://www.jcdecaux.com/blog/gen-z-and-advertising-its-complicated

[22] https://www.jcdecaux.com/blog/gen-z-and-advertising-its-complicated

[23] https://hbr.org/2018/01/ads-that-dont-overstep

[24] https://www.emarketer.com/content/gen-z-doesnt-trust-big-business

[25] https://companycheck.co.uk/company/04162033/LUSH-COSMETICS-LIMITED/companies-house-data

[26] https://weare.lush.com/lush-life/our-company/we-are-digital/

[27] https://weare.lush.com/lush-life/our-policies/lush-anti-social-media-policy/

[28]https://www.voguebusiness.com/consumers/lush-is-quitting-social-media-the-start-of-a-trend-facebook-instagram-snapchat-tiktok#intcid=_voguebusiness-uk-right-rail_bdb3569f-cde3-448d-83d1-6a51b57af415_popular4-1

[29]https://www.voguebusiness.com/consumers/lush-is-quitting-social-media-the-start-of-a-trend-facebook-instagram-snapchat-tiktok#intcid=_voguebusiness-uk-right-rail_bdb3569f-cde3-448d-83d1-6a51b57af415_popular4-1

[30]https://www.voguebusiness.com/consumers/lush-is-quitting-social-media-the-start-of-a-trend-facebook-instagram-snapchat-tiktok#intcid=_voguebusiness-uk-right-rail_bdb3569f-cde3-448d-83d1-6a51b57af415_popular4-1

[31] https://www.voguebusiness.com/companies/zero-party-data-the-new-marketing-frontline-for-luxury-brands

[32] https://www.statista.com/statistics/995275/lush-cosmetics-beauty-shopper-by-age-group-united-kingdom-uk/

[33] https://edition.cnn.com/2021/11/22/tech/lush-quits-social-media/index.html

[34] https://weare.lush.com/lush-life/our-company/we-are-digital/

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