Insights: The purchasing power of Gen Z is growing

In recent years, we’ve witnessed a blurring of the line between ‘virtual’ and ‘reality’ as marketers and consumers. The possibilities for connectedness and freedom thinned during the pandemic, with the digital space becoming more pervasive in our everyday lives. Non-fungible  tokens, or NFTs, cryptocurrencies, gaming, artificial intelligence and the metaverse are a testament to how we have propelled light years ahead into the tech age, and Gen Z is at the forefront of these developments.

Generation Z, or Gen Z, comprises those aged between 10-25. Compared to Millennials, their predecessors, who remember life before high technology, Gen Zers are digital natives and are avid online content consumers.

Often dubbed the “TikTok” generation, Gen Zers popularised the platform and redefined the potential of content creation and consumption. Whether it’s the newest social media challenge or a popular new “trend”, best believe there’s a flock of Gen Z rallying behind the hype. Due to their disruptive, opinionated, and unabashed nature, both offline and especially online, Gen Zers are effective influencers who can pivot brand and marketing strategies.

With the shortest recorded attention span of eight seconds, Gen Zers are predominant on TikTok (56  percent of TikTok users are Gen Zers as of 2021) and Instagram Reels (61 percent of TikTok Gen Zers are active on Instagram Reels). This is due to the platforms’ short-form yet high entertainment content. Recognising the increasing prominence of Gen Z, it is essential to engage this burgeoning genus of consumers in the Middle East as part of brands’ content strategy through easily digestible, catchy, and visually creative content.

The purchasing power of Gen Z is growing
More Gen Zers are entering the workforce each year. Hence, on top of influencing their family’s purchases, Gen Z can now purchase from their own pockets. Set to be an economic powerhouse within the next decade, Gen Z already boasts a combined spending power of over $100bn globally. However, attracting Gen Z to purchase is trickier than older audiences. This pragmatic generation is likely to skip ads and engage with more subtle product placements through content that resonates with them, so it’s vital for marketers to partner with brands with a strong understanding of Gen Z if they wish to appeal to them effectively and implement a robust strategy for audience social targeting.

From a regional standpoint, the focus of Gen Z seems to be growing. Compared to previous years, we have seen a significant increase in requests from our partner brands to tailor promotional activities toward the Gen Z audience, a demand we foresee will increase over time.

Gen Z will push brands to grow
Having grown up in the saturated media space, Gen Z is constantly on the hunt for something new. Originality is valuable for Gen Z, and brands that push boundaries while staying true to their core grab their attention. But just attracting Gen Z is not enough; a brand must be progressive and inclusive to gain Gen Z’s loyalty.

As Gen Z becomes increasingly significant as target audiences, catering to their radical consumer behaviour will encourage brands to break moulds and evolve.

Layla Tamim heads Ad Sales and Digital Commercial at Fatafeat.