New research reveals Gen Z consumer patterns exploitable in Web3 advertising

This article briefly:

· Gen Z relies heavily on TikTok to discover products, which is very different from Baby Boomers' preference for TV.

· Influencer marketing takes center stage, with more than 75% of Gen Z making purchases based on recommendations.

· Brand ethos and personalized advertising play a key role in influencing Gen Z purchasing decisions.

The dramatic shift in consumer behavior is evident, and Web3 advertisers must be aware of it. As Gen Z consumers enter the economic pinnacle, their purchasing propensity is very different from previous generations.

Tinuiti's extensive research, spanning five surveys and more than 5,000 respondents, provides a window into this generation's buying habits and preferences in 2023.

A New Market for Web3 Ads

In an age of fast-paced information dissemination, Gen Z consumers are betting on social media, a very different medium than their predecessors.

Specifically, TikTok has become a mecca for Gen Z product discovery, spanning categories from investment opportunities to non-fungible tokens (NFTs). Data shows that when Gen Zers discover new products, they often attribute their discoveries to the platform.

In contrast, Baby Boomers still rely on TV to discover consumer products (CPGs).

Social media platform preferences. Source: Tinuiti

The implications for Web3 advertisers are huge. A granular understanding of platform preferences is critical. While TikTok became a cornerstone of Gen Z, baby boomers gravitated toward Facebook. Meanwhile, Instagram became the second most influential platform discovered by Gen Z.

Further research found that 64% of Gen Z daily internet users visit TikTok monthly. This affinity builds trust. Notably, 13% of them believe that TikTok can protect consumer privacy, while only 3% of baby boomers hold this view.

Social media platform preferences. Source: Tinuiti

This social media consumption doesn’t just stop at browsing. The role of influencers in Gen Z purchasing decisions is obvious.

More than 75% admit to making a purchase based on an influencer recommendation in the last year. Therefore, although influencer marketing was previously considered a supplementary channel, it may be the main channel for Gen Z wallets.

INNOVATIVE RESEARCH TECHNOLOGY FOR ADVERTISERS

Web3 brands looking to capture the Gen Z market must recognize that their product research habits differ from traditional methods.

For example, in-store behavior is worth noting. Gen Z consumers tend to conduct social media searches for specific brands or products, and are more likely to utilize QR codes for in-depth product information.

In-Sotre Operating Preferences. Source: Tinuiti

Gen Z’s purchasing decisions are driven not just by features and benefits, but by brand ethos. For 74% of them, a brand's values and beliefs greatly influence their purchasing choices, more than any other age group.

Their preference for visual elements on product detail pages, especially photos and videos, is significantly higher than Baby Boomers.

feature preference. Source: Tinuiti

An interesting finding is Gen Z's interest in personalized advertising. Unlike their older peers, who may shy away from intrusive ads, Gen Z prefer ads tailored to past behavior or demographic similarities.

Their receptivity to personalization reflects their willingness to allow tracking (they were three times as likely as Baby Boomers compared to Baby Boomers) in order to receive more relevant ads.

Gen Z consumers; this is further underscored by the propensity to avoid things like clearing the browser or using an ad blocker. However, they are not opposed to using a VPN for selective privacy.

Gen Z Preference and Loyalty Program

Email is the preferred communication channel for Gen Zers when it comes to interacting with businesses they are familiar with. However, they show an openness to sending personalized messages via text messages and social platforms that older generations can’t match.

Plus, loyalty programs have strong traction among Gen Z, with an astounding 75% participation. While inflation-induced discounts drive many to opt for these plans, Gen Z loyalty goes beyond financial perks.

Early access to products and the chance to win great prizes top its list of invaluable loyalty program features.

Loyalty program preferences. Source: Tinuiti

As Gen Z consumers reach the top of the economy, the imprint of their behavior in the market is becoming more and more visible. Their love of digital platforms, trust in influencers, and desire for personalized brand experiences run counter to traditional consumer patterns.

Brands and Web3 advertisers keen to capitalize on this growing market must realign their strategies to ensure they resonate with Gen Z's unique ethos and preferences.