Facebook IQ: Digital Research and InsightsFacebook IQ: Digital Research and Insights

Build Better Brand Connections With Gen Zers and Millennials

Explore how Gen Zers and Millennials interact with brands across media channels, the importance of brand values and the types of brand engagements these younger generations value most.

TABLE OF CONTENTS

    Connecting online is second nature for younger generations, both with their friends and family as well as with brands. For Gen Zers and Millennials—who are projected to represent 30% of total retail sales in the US by next year1—this requires personalized digital connections and communications.

    To understand the brand engagement behaviors of Gen Zers (ages 18–24) and Millennials (ages 25–38) in a shifting media landscape, we examined trends across two vertical categories, food and beverage, which typically involves shorter engagements, and retail banking, which tends to have a longer brand consideration cycle. We found that regardless of the vertical studied, younger generations tend to prefer connecting with brands online. But simple connection is not enough: They also expect brands to understand their values and deliver tailored experiences. A BCG study found that incorporating more curated levels of personalization online increases the chances that consumers will promote a brand and can significantly boost revenue—in some cases by 10%.2

    In our analysis, we focus on channel effectiveness for younger generations, what drives deeper connections with them and differences in Gen Z and Millennial personalization preferences.

    Finding the right channels to brand build among Gen Zers and Millennials

    Finding the right channels to brand build among Gen Zers and Millennials

    It’s no surprise that digital channels are important for younger generations. At the end of 2018, people under 35 spent a total of 21.1 billion hours on mobile compared to 16.0 billion hours consuming live TV content.3 And Gen Zers specifically now spend over four hours a day on mobile versus less than 1.5 hours per day in front of linear or streaming TV.4 Given this channel behavior, it makes sense that mobile is a strong driver of the brand relationship with younger generations.

    Within the digital realm, Gen Zers and Millennials are also more likely to say Facebook plays a role in their interactions with brands.5 For example, based on research we commissioned from Accenture, Gen Zers in the European countries studied are two times as likely as the average consumer to say that Facebook products influence their brand awareness and motivations, including activities like advocating for a brand in their own network online.

    Facebook products drive brand awareness and motivation for younger generations6

    Source data: “Global CPG/FMCG Consumer Journey Study” and “Global Financial Services Consumer Journey Study” by Accenture (Facebook-commissioned study of 14,830 people ages 18+ in CA, FR, DE, UK and US), Jun–Jul 2018.

    Connecting with younger generations through brand values

    Connecting with younger generations through brand values

    For younger generations, authenticity and staying true to one’s values are important. These traits also extend to how they feel about brands and how they represent themselves and their values. As we’ve seen in other research, Gen Zers in particular expect brands to live their values and also contribute to society.

    One way a brand can build impactful connections with younger generations online is by being open about what it stands for. For example, after learning about a brand’s values, Gen Z consumers in North America and select European countries are more likely than the average consumer to say they would encourage others to discover a brand; they are also up to 1.5 times more likely to encourage others to discover a brand on social media after learning about its values.7

    For Gen Zers and Millennials in North America and Europe, brand values can have a positive impact on brand discovery and advocacy8

    Average index vs. general population for awareness and motivation by channelAverage index vs. general population for awareness and motivation by channel
    Creating a more effective personalized brand experience

    Creating a more effective personalized brand experience

    Tactics focused on personalizing and customizing experiences for Gen Zers and Millennials are especially effective, but the generations differ in what they prefer.

    For example, while Gen Zers in North America tend to prefer customer support through messaging, Millennials tend to favor direct interaction on a brand’s page. Along similar lines, the types of data they are most open to sharing in order to get personalized brand experiences also vary.

    Personalization matters, but younger generations differ in what type they value and what data they’d exchange for it9

    NORTH AMERICA

    EMEA

    What it means for marketers

    What it means for marketers

    • Optimize your channel strategy to build your brand with younger generations.

      Younger generations are increasingly spending more time interacting with brands on mobile. To connect your brand effectively with Gen Z and Millennial consumers, revisit your channel strategy and meet them where they’re more likely to be looking for you. This may mean combining effective traditional and digital channels, such as Facebook and OOH and Facebook and TV.

    • Bring authenticity to your brand—online and offline.

      Recognize the power of a brand personality by detailing your values. For example, reflect your community and social involvement on a Page and in your creative. By expressing what you stand for, you can build stronger, longer lasting bonds with younger consumers who value authenticity in many aspects of their online and offline lives.

    • Build a nuanced strategy to connect with younger generations.

      Gen Z and Millennial consumers have come to expect sophisticated, personalized marketing experiences online. Ensure that you understand what personalization means to different generations and focus on the types of engagements that are most meaningful to your target audiences, such as Messaging and interactive Stories.

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