July 26, 2017, 2:29 am
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Young buyers harder to impress

Filipinos belonging to the so-called Generation Z – those aged 16 to 19 – are harder to impress in comparison to the older generations, a new AdReaction study from Kantar Millward Brown shows.

 The study, AdReaction: Engaging Gen X, Y and Z, is the first-ever comprehensive global study of Gen Z. It reveals the Gen Z have their own distinct behaviors, attitudes and responses to advertising.

The study, which analyzed key media consumption patterns, attitudes toward advertising and responses to specific creative approaches, is based on surveys of more than 23,000 consumers in 39 countries.

 The Gen Z population is approximately two billion globally.They make up 30 percent of the population in the Philippines.

 The study saidthe Gen Z in the Philippines as digital natives have grown up with digital technology and thus expect more from brand advertising, and are less easily impressed with new formats such as augmented reality or sponsored lenses than previous generations, favoring humor as the key characteristic of a successful ad.

The findings show within the digital space, the Gen Z are most positive towards mobile rewards video and skippable pre-roll (with net positive scores of 52 percent and 38 percent). Their least favorite formats are the invasive kind – for example pop-ups, which score -5 percent. 

Globally, the use of music and celebrities make Gen Z more receptive to advertising than other generations but in the Philippines, the difference is less pronounced.

Gen Y is the group that find these cultural aspects most appealing, with 62 percent agreeing that music makes them more receptive and 27 percent citing celebrities (compared to 47 percent and 23 percent for Gen Z, respectively).

The characteristic that makes Gen Z in the Philippines most positive towards ads is the use of humor, at 53 percent. However, this is still far lower than the scores for Gen X (65 percent) and Gen Y (67 percent).
 
Gen Z are heavy users of social platforms when it comes to the number of platforms they visit. These range well beyond Facebook and YouTube and include Instagram, Twitter and Snapchat. 

The study said 25 percent of Gen Z in the Philippines access Instagram several times a day and 13 percent access Snapchat at the same frequency. Gen Y is even more social, with 32 percent and 14 percent, respectively, while Gen X is less engaged on these social channels, with 18 percent and 5 percent, respectively.

“Having grown up in an on-demand world of infinite choice, Gen Z in the Philippines are harder to impress than previous generations. Gen X and Y are more receptive to novel formats such as sponsored lenses or native ads than Gen Z,”said Jane Ng, group account director for Technical & Innovation at Kantar Millward Brown in the Philippines.

“Brands that want to target Gen Z effectively need to concentrate on providing their audience with humorous executions that resonate with the interests and issues facing this younger, more sceptical generation,” added Ng.
 
Despite being the generation that grew up with mobile technology, Gen Z’s daily usage are lower than that of older generations. About 66 percent of Gen Z spend more than an hour a day on their mobile device, compared to 81 percent of Gen Y and 84 percent of Gen X.

However, TV, radio and print consumption are also all lower for Gen Z with just 49 percent of them watching an hour or more of TV each day, compared to 74 percent for Gen Y and 86 percent for Gen X.

“This means brands need to work hard to capture the attention of Gen Z when they are consuming media – either traditional or digital - or risk being missed altogether,” the study said.
 
Interestingly, Filipinos of all generations are happy to watch longer video formats. Globally, all generations prefer short videos, but in the Philippines all generations favor video ads of up to 20 seconds.
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