Gen Z is quickly gaining ground in the workforce and economy, and it can be a struggle for brands to keep and reach them effectively.
To better understand this ever-evolving demographic, we compiled a guide exploring their preferences and habits based on Epsilon Pulse research and third-party sources. We explored:
“Looking at customers and prospects by generation is a simple way to get a deeper understanding of consumers beyond what they are buying and uncover differences in behaviors, engagement, preferences and motivators," said Gillian MacPherson, Vice President of Product at Epsilon. "Starting to segment by generation lays the groundwork to have a better view of each individual, allowing you to reach them with an impactful message that resonates in the channels they use."
Let's take a look at some of the high-level insights from the research.
Gen Zs grew up fully immersed in the internet. With that digital fluency comes an inherent ease with AI and learning new tools, but Gen Z still might struggle to evaluate whether AI outputs are wrong or inappropriate, especially in the workplace.
At work, 32% of Gen Z adults say they use AI tools or technology for professional tasks. Compared to other generations, Gen Z has fewer concerns about the technology, but 15% of Gen Z minors and 35% of Gen Z adults worry about privacy and data security. Eight percent of Gen Z minors and 25% of Gen Z adults also said they're concerned about losing jobs to AI.
As AI takes on more prominence in the workplace, companies will need to update policies, infrastructure and processes to meet the demands of the new workforce.
Key stat: 36% of Gen Z use AI every day. They mainly leverage AI for tasks like shopping, navigation and idea generation.
The takeaway: Don't be afraid to test emerging channels, trends and technology when trying to reach younger audiences. Edina Kalamperovic, Epsilon’s Senior Vice President of Client Team Leadership, recommends, “Brands should lean into employees and creators as authentic ambassadors, and then use AI to amplify, edit and scale that content without losing the human signal. As AI scales content creation and automates the mundane, human connection becomes more valuable, not less."
Our research shows that more than half of Gen Z sometimes subscribes to a streaming service just for a specific show or movie—they especially value having access to live sports. For sports and news, Gen Z prefers cable, but for shows and movies, it’s all about streaming services.
Key stat: 52% of Gen Z say they use another device “always” or “often” while watching content.
The takeaway: To connect with Gen Z, marketers and brands need to understand how to reach this demographic across channels—and that includes FAST Channel platforms.
“If you’re trying to reach Gen Z via CTV, incorporate the whole landscape of services into your media plan, including FAST Channel delivery on platforms such as Pluto TV, Tubi and the Roku Channel. They mimic the cable TV format but in a streaming environment and can reach a substantial number of younger viewers and cord-cutters while keeping your CPMs down,” says Joshua Simons, a Senior Product Manager at Epsilon.
At least 25% of Gen Z use at least seven different social media platforms, but they use TikTok, YouTube and Instagram the most.
How they engage with each platform varies significantly. On YouTube, Gen Z is more open to watching long-form videos, while on Instagram, they prefer short-form videos. Gen Z is more likely to engage with other people’s content than create their own, and only 40% report posting or sharing a status update on social media.
Key stats: This generation spends more than six hours consuming media every day (the highest of any generation). When searching online, almost 50% of Gen Z uses social media first.
The takeaway: “To reach Gen Z on social media, brands need to speak their language—and it might not be in traditional channels like display. Brands need to create original content and leverage influencers because that’s what Gen Z is seeing and interacting with on social media," says Rachel Cascisa, Vice President of Platform Adoption and Analytics at Epsilon.
Despite having such a large digital footprint, Gen Zs still yearn for in-person connection. “They’re not looking to hide behind screens; they’re actively seeking opportunities to build interpersonal skills and meaningful professional relationships. This generation has a sophisticated understanding of when technology helps and when it hinders real connection,” Janet Dell, the CEO of Freeman, an event marketing company, told CNBC.
We see that trend carry over for shopping preferences, too, as 31% of Gen Z minors and 26% of Gen Z adults see shopping as a social activity—higher than any other generation. This is likely due to the fact that third places are disappearing at an increasing rate and most nightlife options don't cater to minors or adults under the age of 21.
Key stats: 86% of Gen Z adults use their smartphones when shopping online. Laptops are the second most popular device for online shopping.
The takeaway: Gen Z still values in-store shopping for tactile experiences and immediacy. To better serve this generation, brands should offer hybrid shopping experiences, like buy-online-pick-up-in-store, immersive retail spaces and fast shipping options, and marketers need to know which customers to target with the right messaging no matter where they shop.
Taking an average of 2.8 trips per year, Gen Z prefers destinations that offer a good balance of affordability and experience and often seek out budget-friendly travel options. They tend to travel domestically, but 38% do some international travel.
81% of Gen Z travels with friends or family, and one in four typically take adults-only trips. Gen Z plans most of their travel online and frequently read reviews for restaurants and activities.
Key stats: 64% of Gen Z travelers prefer hotels, while 39% prefer vacation rentals like Airbnb or VRBO.
The takeaway: “Gen Z expects a seamless digital experience—and that extends to how they're researching and booking travel. They want to easily compare options while seeking peer input, from hotels and accommodations to flights, ground transportation and experiences. Travel brands need to make it easy for consumers to book as many elements of their trip as possible, supported by user-generated content and reviews," says John Adamo, the Vice President, Travel & Hospitality Portfolio Lead at Epsilon.
As the Gen Z consumer base continues to grow, brands need to find unique way to meet them where they're at. Download the full report for more insights.
