Brands get ready Gen Z are growing up - Millward Brown · AdReaction – Gen Z are growing up AdReaction study has been conducted since 2001, delivering insights on consumers’ perceptions

Brands get ready – Gen Z are growing up

China Report May 2017

Engaging across generations

2

AdReaction – Gen Z are growing up

AdReaction study has been conducted since 2001, delivering insights on consumers’ perceptions on advertising, particularly in

digital world.

Y Z

GENERATION

1998 - 2001

Teenager

Grow up with phone

Focusing on study

GENERATION

X

1968 - 1982

Mature

Adapted with TV

Work-life Balance

1983 - 1997

Millennial

Grow up with Internet

Working

GENERATION

This year’s study focuses on the emerging

opportunities and challenges that advertisers

are facing with the growth of new generation

– Generation Z.

Gen Z, born after 1998, are growing up. They

are the future chief shopper and also the first

generation that has grown up with

smartphone in their hands. How radically

different are Gen Z’s media attitudes and

behaviours to people in the older generation

(Gen Y and Gen X)? And how much of a

challenge does this pose to marketers as

they plan media and creative?


• All interviewing conducted via online self-

complete questionnaire

• For each Gen: Male 50% and Female 50%

3

Methodology

39

23,900+

Countries

Respondents

Sample size in China:

Qualitative:

IDEABLOG online forums in China, 30

participants in total, all are Gen Z

Quantitative:

Gen Z (16-19 year olds) = 203

Gen Y (20-34 year olds) = 259

Gen X (35-49 year olds) = 228


4

1 2

Who are Gen Z – what’s their profile

and lifestyle?

How different are they in terms of

media behaviours and media

consumption?

What attitude they hold towards ads?

When and where is the most efficient

way to approach Gen Z?

What ad formats have higher receptivity

among Gen Z?

What creatives or messages can gain

more attention and avoid ad-skip?


GEN Z – WHO ARE THEY?

5


6

China is one of the countries with the largest

Gen Z population, 321 million.

With a global population of 7.5 billion, Generation Z accounts

for 27%, nearly 1/3 of the total population.

By 2020 Generation Z will take account of

40% of all consumers.

Whoa, There’s a Lot Of Teens

Brands need to be prepared for these upcoming

powerful consumers


7

Gen Z has aspiration toward bonding with a group of people having similar interest

The biggest difference Gen Z hold

against older generations is the

importance of peers. They seek and

want to connect with other out there

who has similar aspiration & interest

with them to feel a sense of

belonging

General attitudes on lifestyle

I like to spend time with people that have the same interests

and lifestyle as me 43X 37 34

I embrace diversity and individuality 37 36 35

I prefer to travel and enjoy life instead of putting my money in

a bank account 30 34 31

I feel that others opinions of me are as important as my own 23 19 23

General attitudes on media

Every time I have any kind of query I just Baidu it 40 38 35

I only enjoy content that feels honest and real 37 35 41

I like to share my activities, interests and hobbies online with

my friends. 30 29 30

I m very careful with the information I share in social media, I

really value my digital privacy 28 25 24

I love selfies 19 17 14

Gen Z Gen Y Gen X


What motivates Gen Z to use Social media is not only to follow or to be followed but also

to gain a sense of belonging.

1

25

14

47

13

High Low

Lo

w

Hig

h

Dig

ita

l in

flu

en

ce

Functionals Observers Connectors Leaders S. Leaders

4

20

15

46

15

High Low

Lo

w

Hig

h

Social engagement

1

22

9

50

18

High Low

Lo

w

Hig

h

Gen Z Gen Y Gen X

Leaders: the most digitally, and socially active of all the segments. They may be online as much as the

Observers, but they are highly social, creating and sharing content, and engaging with brands.

Super Leaders: within the leader segment – the most active and most social group of all. Likely to be the

earliest of adopters, the influencers and the trend setters.

Functionals: spend the least time online – either through choice, or lack of access. Will often use online where

there is a tangible advantage, but are the slowest to adopt new trends. The least social of all the groups

Observers: spend a lot of time online, but are less open to engaging with brands in a social space.

Connectors: spend a limited time online, but when they are, they are heavily social.


With Gen Z seeking bonding with peers, UGC is mentioned as their favourite sites/app as it provides space for them to connect

9 UGC -User-generated content

“ 我最喜欢的手机app是bilibili。因为B站是二次元爱好者的聚集地，氛围比较浓厚，比别的地方看动漫好。

I like bilibili app most. It is a place for people like anime culture to gather, there I can

feel a strong sense of community, better than other sites to watch animation”

我最喜欢的app应该就是bilibili了，bilibili是中国一个ACG相关的弹幕视频分享网站，一般叫它b站，画面很简洁，而且也可以在弹幕、评论你讲出你的想法，与up主共同交流。

Bilibili app is my favourite app, it is an ACG bullet curtain video site…. It has a clear

interface, and one can create bullet, comments, thoughts, and communicate with the

uploader”

(我最喜欢)映客，可以看直播，朋友圈好多人都去那里直播。

Inke, one could watch Live streaming video, many people on my Wechat go there and

create a live video.

“ “


10

Among different devices, mobile phone is the most popular media device

among Gen Z, on average 2.1 hours per day

Mobile PC TV

Gen Z Gen Y Gen X Gen Z Gen Y Gen X Gen Z Gen Y Gen X

Daily average hour using Internet on different devices (hr)

2.1 2 1.7

1.8

2.1

2.1

1.1

1.2

1.3


11

Gen Z are heavily reliant on their phones

Smartphone usage will continue

to grow among Gen Z than any

other generations as it hoovers

up more and more tasks.

去年处于高三冲刺阶段，学业比较重，现在比较清闲多用手机打发时间”

“I was in S.3 last year and focused on my study. Now I’m free to

use mobile phones to kill time”

他就像我的贴身管家，提醒我重要事情，准时叫我起床，交通出行也靠它，叫外卖也用它，与亲人朋友联系更是离不开它，是一个24

小时的贴身机器人。”

“Smartphone plays a role as my personal secretary who reminds

me of important things e.g. wake me up in the morning, transport

arrangement, call for food, communicate with family and friends.

It’s like a 24-hr serving robot of my own.”

“ “

2016 AdReaction study – China Quali part

What would your life be without mobile?

Gen Z


However, Gen Z are not only reliant on mobile, they also utilise multiple channels

12

One hour or

more per day Gen Z Gen Y Gen X

Mobile 72 71 72

Laptop 65 64 71

TV 46 52 54

Outdoor 44X 42X 33

Magazines 24YX 18X 12

Radio 20X 15 11

Newspapers 16X 17X 8

MC1AB. Total Hours Watching Television (not Online)

MC1AB. Total Hours Reading Magazines (not Online)

MC1AB. Total Hours Reading Newspapers (not Online)

MC1AB. Total Hours Listening To The Radio (not Online)

MC1AB. Total Hours Travelling Or Walking Out And About

MC1AB. Total Hours Using The Internet On A Laptop Or PC For Something Other

Than Email

MC1AB. Total Hours Using The Internet On A Mobile Device For Something Other

Than Email

Overall, Gen Z spend more time

on media than other generations.

In fact, Gen Z are the most

multichannel users amongst

three.


At home

Travelling

In a public building

In a public outdoor space

At school

At work

Commuting

At someone else’s home

13 Q: Where are you more positive toward ads?

61

31

30

29

24

17

15

11

64

29

22

25

12

14

18

6

69

18

22

21

2

14

15

4

Gen Z Gen Y Gen XTargeting Gen Z at the right moments through mobile and multi-channel is required

Beside home, Gen Z show higher

receptivity when they are on the

go – they like to constantly find

things to grab their attention.

To engage with Gen Z, marketers

need to tackle the occasions –

traveling and public space –

where Gen Z have the highest

chance to pay attention to their

ad on their mobile screen.

Z

X

X

X

X

X

X

X

Y

Y

Y

Location/Occasion


HOW WHO THEY ARE CHANGES GEN Z’S ATTITUDES TOWARDS ADS?

14


8

16

17

Gen Z are more active in choosing what ad to watch…

They skip often…..

Attitude: “I skip ads whenever I can ”

They are more willing to take action

to avoid ad, even pay for it…..

Attitude: “ I m willing to pay for premium

versions of websites to avoid ads”

49

39 42

Gen Z Gen Y Gen X

14

17

24 Gen Z

Gen Y

Gen X

Gen Z

Gen Y

Gen X

Desktop

Mobile


Q. What actions have you taken to block or avoid ads on your desktop computer/ in your web

browser/ on your mobile phone?

Technological Physical Advantage of Control Lack of Interest

Gen Z 16-19

Gen Y 20-34

Gen X 35-49

53

49

53

44

60

53

49

58

52

40

56

41

In action, Gen Z try all different methods to avoid ads

Gen Z are the one who avoid ads through multiple ways.. Gen Z are more likely to seek ad avoidance in both technological

and physical ways.


17 Q: How would you describe your attitude towards each of the following formats of online video advertising?

Net+ve% = top 2 (very positive + somewhat postive) – bottom 1 (very nagetive) Base: Without Doesn't know

Row Average Higher than row average Lower than row average Stat testing at 90% confidence level:

Net +ve % Gen Z Gen Y Gen X

Mobile app reward 49 44 45

Skippable mobile app pop-up 46 38 37

Skippable pre-roll 44 41 40

Skippable vertical video 43 36 36

In-banner click-to-play 34 36 29

View to play 34 36 31

Social click-to-play 31 35 32

Social auto-play 28 30 27

In-banner auto-play 24 21 23

Mobile app pop-up 17 16 21

Pre-roll 16 19 17

Gen Z want more control on what they see

Mobile app reward and Skippable

mobile ad pop-up ads are the

most popular ad formats among

Gen Z while ironically pre-roll, as

the most common ad format

currently in China, stays in the

least popular position.

China Net +ve Index 33% 32% 31%

Online video ad


18 Q: And how would you describe your attitude towards each of the following formats of online advertising?




Native ads 61 52 43

Sponsored filters 57 40 37

Sponsored lenses 56 44 40

Expandable ads 47 52 45

Take over ads 12 9 8

Innovative ad formats are generally viewed more positively among Gen Z

The younger people are, the

more they welcome disruptive ad

formats. New and fun ad formats

have big potential to grab the

attention among those who are

selective in ads to be seen.

Native ads, Sponsored filters and

lenses are top three most

appealing ad formats to Gen Z. China Net +ve Index 47% 39% 35%


Gen Z appreciate fresh contents and innovative ads format while boycotting invasive ads in digital channels


“ 现在户外广告的封面都还蛮不错蛮精彩的，有时在等公交或者等人的时候看着蛮让人放松的” “Ads on billboards are well designed and attractive. It’s a relaxing moment to see these ads while waiting for bus or

someone.” TRADITIONAL

电影院的广告大多会播放一些我们在电视上比较少看见的有趣生动的广告，感觉比较新鲜。而且电影院有时的广告除了商品外，有时也是关于接下来其他还未上映电影的介绍，会使我更多地了解到其他电影的资讯。” “Cinema ads are less likely shown on

TV channel and are more engaging and new to audience. Not only introducing products, movie ads include more of the coming movies.”

DIGITAL

“ 视频网站的广告真的是我所有广告中最反感的，因为有的广告只有秒还好，但是有的时候看一部动画片只有20分钟，广告却长达120秒，并且中间还有插入20秒广告，充会员才能免广告” “Video ads are the most disgusting among all. I have watched a 20-min animated video which contains an ad of 120s and one more 20s ad in between. Only registering to be member can skip that.”

原本该很好的刷刷微博了解了解新事物结果翻来翻去都是一大堆的广告，就破坏了原本的心情”

“Browsing Weibo is supposed to getting new information but turns out seeing lots of ads. This badly

influences my mood.”

Gen Z


20

CREATIVE DEVELOPMENT: WHAT KIND OF ADS WIN GEN Z’S HEART?


21

Music Fun Rewards Interactivity Empowerment

What kind of creative will make ads be ‘selected’ by Gen Z?


I am relaxed

I am looking to be entertained

I am looking for information

I am looking for something

interesting

I am just looking to pass the time

I am looking to share an

experience with other people

I am looking to educate myself

I am focused

I am bored

I am looking for escapism

22 Q: In which moods are you more positive towards ads?

Gen Z Gen Y Gen X

57

38

37

37

32

25

22

18

18

9

58

33

30

30

26

25

13

22

16

5

64

27

31

25

23

25

10

16

17

4

Mood Faced with fierce pressure like Gaokao, relaxing and entertaining content is appreciated by Gen Z

Relaxation is a shared emotional

state of all three generations on

ad receptivity. Ad tend to be less

interruptive when people are

looking for entertainments or

information.

Y

X

X

X

X

Y X


23

Ad with humour, music and interesting stories is what Gen Z are looking for

Content which can bring laugh

and happiness to consumer’s life

is always worth attention.

Also, music stands out with

teenagers. With Gen Z’s habit

with their earbuds in, music and

audio remain powerful ways to

capture their attention and

resonate with them.

Is funny or humorous

Has good music

Tells an interesting story

Features augmented reality

Uses special effects (like action

sequences, explosions, space

scenes)

Features a famous celebrity

Features an online/ social media

celebrity

57

55

54

42

39

26

23

55

39

51

40

33

23

23

49

40

42

42

32

27

17

Gen Z Gen Y Gen X

X

X

X

X

Y

Q: Which characteristics make you more positive towards ads?

Ad content


24 Q: Which of these types of surrounding content make you more positive towards ads?

Ads gain more positive feedback with comedy or movie context; Reality show is an additional element for Gen Z

Aligned with relaxing mood could

increase ad receptivity, ad in

comedy show or movie context

are more welcomed.

New context wouldn’t achieve

great impact on Gen Z.

Chinese Gen Z also expressed

their openness of ads on reality

show.

Comedy shows

Movies

Lifestyle program

Reality shows

Series

Music

Sports

News

Contests/Competitions

48

43

41

37

36

29

22

21

21

33

40

39

30

33

27

18

28

20

37

36

37

29

31

26

24

32

17

Gen Z Gen Y Gen X

Z Z

X

X

Y

Ad context


25

哈尔滨啤酒的广告，因为我觉得它的广告比较创新，它用了音乐的rap和哈尔滨啤酒完美的融合在一起，用rap

带动整个广告，感觉整个产品和我们年轻人的生活连接在一起，使产品年轻化了，让人感觉比较有创意。”

“I like the ad of Harbin Beer because I think it is

creative. The rap music fits well with the ad, and

bringing out the feeling. It makes me feel like the

product connects with young people like us. I can feel it

creativity, and it rejuvenates the brand.”

“

About Music About Humour


Gen Z Funny and humorous ads tend to work better with

Gen Z audience, esp. on digital channels

Fun and humor are important to attract them within

the first few seconds and make them “forgot about

skipping the ad”.

Harbin 2016 Summer ad McDonald’s 2016 萌萌哒 Snack Box ad


26

38

31

30

20

31

31

27

23

Gen Z Gen Y Gen X

31

30

29

24

25

26

26

22

Gen Z hold more passion for interactivity. Create a shared conversation with Gen Z rather than traditional pushed approach

Gen Z are active and curious. They

tend to be more participate.

Interactivity and content

collaboration help marketers to

gain young generations’ fleeting

attention.

Take decisions (about the ending, the story,

the characters)

Interact via an assignment (upload a photo,

create a video, gather likes or shares)

Choose my favorite among several options

Vote for something to happen

34

24

22

18

26

18

27

20

Q: Are you more positive towards ads when you can…?

Participant with ads

Net +ve Index 30% 28% 25%

Like, share or comment on the ad

View supplementary content (e.g. making of,

or longer version )

Contribute (e.g. online forum where I can read

about and discuss issues raised in the ad)

Join a conversation about the campaign (e.g.

via a social media campaign hashtag)

Participant after viewing

Net +ve Index 28% 25% 23%


27 Q: Who are you more likely to discuss advertising with?

If given with right content, Gen Z is more willing to share the ad than other generations

Gen Z like to share their thoughts

and emotions with their friends.

They are more peer-driven.

Marketer can compete for

attention by leveraging social

media and creating contents with

more viral potential and share-

ability.”

34

32

47

84

72

66

32

49

46

5

15

11

Gen Z

Gen Y

Gen X

Other members of your family Friends

Work colleagues None of these

YX

Z

ZY Z


28

Q: How would you describe your attitude towards each of the following kinds of branded content?




Branded events 51 52 51

Tutorials 51 42 44

Sponsored events 49 47 48

User reviews 47 48 47

Shopping content 47 45 47

Celebrity content 46 36 38

Magazine advertorials 45 43 39

Expert reviews 44 38 35

Social media feeds 43 39 40

Native articles 43 45 40

Brand information 41 38 44

Social media celebrity content 40 33 36

Brand contents like brand event and tutorial are also worthwhile to share by Gen Z – to appeal to Gen Z, celebrity can be considered in brand contents.

China Net +ve Index 46% 42% 42%

Global Net +ve Index 35% 35% 32%

Branded Content


29 2016 AdReaction study – China Quali part

Gen Z

Celebrity or Online Celebrity to Gen Z?

- For Gen Z, celebrity is not just idol but someone who they can be more role model;

- Participating in a fan group for the celebrity fulfills Gen Z’s needs of sense of belonging;

- Since Gen Z relate to each celebrity based on their interests, brands need to be very

selective and precise in deciding which celebrity to represent.

Online Celebrity Mass Celebrity

Brands get ready – Gen Z are growing up China Report April 2017

Documents

Brands get ready Gen Z are growing up - Millward Brown · AdReaction – Gen Z are growing up AdReaction study has been conducted since 2001, delivering insights on consumers’ perceptions