Understanding Gen Z, Brand Strength, and Cultural Relevance

by Kathy Sheehan

For brands that wish to grow their share and look for future growth, capturing younger consumers is essential. We’ve done significant research around the drivers of brand strength and the correlation between brand strength, consumer behaviors, and ultimately, topline performance. Our research clearly demonstrates that brand strength is highly correlated with revenue growth, and relevance and momentum contribute to brand strength. Relevance is defined as presence, affinity and distinction, while Momentum is comprised of advocacy and vibrancy. (Learn more about Burke’s approach and philosophy on Brand Strength.)

Relevancy drives brand strength for Gen Z.

For example, Apple has one of the highest measures of brand strength in our model. And Apple is stronger for Gen Z than other generations – more so than any other brand in our study. On the other extreme, Facebook has the least appeal to Gen Z compared to other generations. Amazon has strong appeal for both Gen Z and non-Gen Z consumers, and showed no significant difference in its relevancy score from other generations in our study.

Understanding relevance for Gen Zs is not easy.

To be really relevant to Gen Zs, brands must have a deep understanding of this generation within a broader cultural context. Gen Z is the most diverse, global, and dynamic generation in history. Like the generational cohorts that have proceeded them, the marketing community continues to seek out information to better understand who they are and what makes them tick. How will this cohort impact products, brands and communications not only now, but into the future? While there are many characteristics that unite Gen Z, like other generational cohorts, they are not monolithic. Gen Z is full of paradoxes and evolving quickly.

They have their own vocabulary and own unique humor (“dipped in irony with a healthy dose of absurdity” notes one recent observer. ) An understanding of how Gen Zs fit within current brand strategy, innovation, and customer experience frameworks is critical for business as they seek to optimize new ideas, define growth strategies and deliver remarkable customer experiences.

EXPLORING THE PARADOXES

Paradox 1: Connected & Disconnected

Often dubbed “the mental health” generation, one of the major themes of Gen Z is the lack of connection and isolation that many feel in various aspects of their lives – socially, mentally and physically. In 2023, the US Surgeon General sounded the alarms on this and issued a health advisory on the “Epidemic of Loneliness and Isolation.” While he wrote that loneliness was impacting all demographics, he called out Gen Z as particularly vulnerable, given their use of technology and their age during the Covid-19 pandemic. Forty-four percent of high school students report feeling persistently sad or hopeless during the past year.

These feelings of isolation and disconnection have direct implications for brands. With a declining sense of connection comes a corresponding lack of trust with many institutions, including businesses (e.g., 40% of Gen Zs say they have “very little” trust in large technology companies.)

A majority of Gen Zs feel that marketing messages do not speak to them, and do not see themselves reflected in advertising. Much of advertising, messaging, communication and content is thus falling on deaf ears—or even worse—perceived as so woefully out of touch it engenders a negative response. Yet, Gen Zs have a strong desire or connection. More than a third of teens feel that they have too little face-to face time with their friends. A majority (55%) want to see more focus on friendships in film and TV. Seventy-two percent of teens who play video games say that a reason why they play them is to spend time with others – with 47% reporting that they have made friends while gaming.

Paradox 2: Fixed & Fluid

Gen Zs have a strong affinity to their membership in Gen Z, and will take offense to being characterized as belonging to either the Millennial or Gen Alpha cohorts. When asked about Gen Alpha (the generation coming up after them), they will tell you that this generation has it harder than them. Often, they demonstrate an “us against them” mentality, as exemplified by the 2019 meme “OK, Boomer”. Yet despite a strong generational affinity, their individual identities are much more fluid, ephemeral and inclusive. Fifty-nine percent of Gen Zs agree that forms and profiles should include other options than just male and female (compared to 37% of Boomers). Many Gen Zs reject traditional definitions of self—and are less likely to think of themselves by demographics such as gender, race and ethnicity, rather defining themselves based upon things like their personal style and their hobbies. Making matters more complicated, all of these definitions are seen as temporary and subject to change—you can be a foodie on Monday, a nerd on Tuesday, and a gamer on Wednesday.

Paradox 3: Aspirational & Pragmatic

Gen Zs are highly aspirational. A recent headline that received a lot of media attention looked at how much money Gen Zs say they need to be considered successful. Gen Zs said that they need an average salary of $588K and net worth well over $9 Million as their definition of financial success, higher than everyone else.

Fifty-seven percent of Gen Zs say that they want to be a professional Influencer as a career. Even though they may not yet have their own disposable income, the upcoming “Great Wealth Transfer” from Baby Boomers to younger generations is forecasted to be $72 trillion going to heirs and another $12 trillion to charities.

Paradoxically, anyone who has studied Gen Z to any extent will know their aspirations are often accompanied by a deep sense of pragmatism. In many cases, Gen Z have very modest expectations. Sixty percent say that they don’t ever expect to be able to purchase their own home and as many as half of Gen Zs say they will not be able to afford to start a family. Only 43% say that they expect this generation to do better than their parents, a hallmark of upward mobility and a pillar of the American Dream. This is the generation that feels many of the world’s problems have been thrust upon them, such as climate change, global instability and political polarization—how can one dream big within this context?

IMPLICATIONS

These three paradoxes speak to how being relevant must be viewed within a broader generational and cultural context.

Isolation and mistrust are pervasive within Gen Z, yet there is a strong desire for connections. How might your brand foster more meaningful connections?

Identity today is increasingly malleable and fluid. How might your brand acknowledge and empower this desire to flex as an individual, yet remain connected to the broader generational identity?

Gen Zs have high aspirations, met with an often-healthy dose of pragmatism. How might you acknowledge both aspirations and constraints together?

Let’s make a connection.

Our team of experts is here to help you build your brand’s strength through Relevance + Momentum™! Are you looking to improve your brand’s connection with Gen Z? Do you want to understand your brand’s position on our matrix and why it stands out with Gen Z, or leverage our expertise to enhance your connection if your brand isn’t on the matrix? Contact us – we’d love to help you tackle your toughest brand challenges!