Snap has identified three key trends that will continue to shape how brands market to Gen Zs and millennials for the rest of the year, and the resulting implications for marketers.
As we round off the first quarter of 2022, it is an apt time for youth marketers to do a preliminary evaluation on the effectiveness of their strategy so far and tweak their plans accordingly to cater to the evolving needs of Gen Zs and millennials.
Research from VICE Media Group found that 68% of Gen Zs and millennials in APAC say the COVID-19 pandemic has changed their perspective on what is important in life, with 93% making lifestyle changes they plan on maintaining. These habits present marketers and brands with opportunities to connect with these youth consumers more meaningfully.
Snap has identified three key trends that will continue to shape how brands market to Gen Zs and millennials for the rest of the year:
- Augmented Reality (AR) will become a mainstream reality
As digital commerce increases, today’s creative technologies are a double-edged sword for retailers. While they can open up exciting new shopping channels, the online marketplace is an increasingly competitive one. Often, consumers will place more value on a convenient, personalised, and engaging retail experience than on a specific retailer or even a specific brand. Therefore, it both literally and figuratively pays to stand out from the crowd.
Within this context, today’s advancements in AR proves crucial in helping digital-savvy marketers win in the upcoming shopping season. These AR tools are far from just ad products — they are immersive and contextual experiences that can be part of a brand’s retail strategy.
Today, 100 million consumers are currently shopping with AR online and in-stores, out of which 94% agree that they will use AR the same or more in the next year. Advancements in AR will prove crucial in helping digital-savvy marketers effectively target Gen Zs and millennials. These AR tools are far from just ad products — they are immersive and contextual experiences that can be part of a brand’s retail strategy.
It’s not just a conjecture – we are already seeing how AR is optimising marketing campaigns. Marketers live and breathe in a competitive world dominated by data and the return on advertising spend (ROAS) metric provides a look at the bigger picture by offering greater insights into not only what’s leading to conversions, but also the amount of revenue the conversion actions are generating. At Snap, we offer the same level of data-driven measurement and management available for typical video ads for our AR ads as well. This makes it easy for brands to see how AR tools breathe life into their campaigns to achieve greater ROAS, compared to traditional tactics.
The uptake in AR by Gen Zs and millennials means that AR has become a must-have for brands keen to meet rising consumer expectations of seamless and immersive experiences. - People will spend more time with tech that makes them feel good
With an attention span of mere seconds and a wealth of apps accessible to them, engaging Gen Zs and millennials can be a challenge. Gen Zs in particular are deliberate with their social media use, with more than half surveyed in a McKinsey Asia study saying they think people overshare, and 49% of them are concerned about the use of their personal data.
The more apps become a part of our daily lives, the more important it is to gain insight into the role they play in how we behave and feel. Understanding how and when to turn to different platforms — and their individual impact — can help consumers and marketers make informed choices.
After the challenging years we have had, people want to spend time with tech that makes them feel good. Brands can drive a better ROI by reaching people in this positive mindset. - The third-party cookie will finally crumble
The COVID-19 pandemic has forced marketers to adapt and think differently. In 2022, advertisers face a new challenge: the retirement of third-party cookies, which is finally set to come to force in 2023.
2022 is a critical year for advertisers to pivot from their old model of reaching people in a context-agnostic way to a new model that’s focused on contextual advertising and better use of the cultural resonance of media, content, and platforms to make a stronger impact on the audience.
As a result, brands need to pay much more attention to the contexts in which their advertisements appear. Forward-thinking brands will realise how powerful adjacency and cultural context can be – and create a competitive advantage from it.
As younger audiences carry their behaviour into the older years, and the competition for attention increases, advertisers need to begin exploring additive platforms to target millennials and Gen Zs at the right channels in a purposeful manner. Marketers that are able to do so will be able to deliver personalised experiences and drive tangible business outcomes.
