Gen Z students and professionals are coming into their own as a generational cohort, already commanding $360 billion in disposable income.1 As more and more Gen Zers enter the market, they are beginning to form brand loyalties and shopping habits that will last a lifetime. These factors have made them one of the most important groups for advertisers, yet they are often misunderstood.
Gen Z is a vague term, generally agreed to range between the ages of 12 and 27. For the purposes of this blog, we’ll simply focus on Gen Z adults within the ages of 18-27.
No matter their specific age, this new generation’s viewing habits have been the subject of endless conjecture within the TV advertising industry. According to some, Gen Z is completely unreachable via TV advertising; it’s believed they only watch TikTok and Netflix and will do anything to avoid ads.
Yet, insight into certain trends reveals their true viewing behaviors and provides clues into how best to reach them. Let’s examine a few of these popular Gen Z viewing myths and uncover how they watch TV.
Myth 1: Gen Z Only Watches Social Media
Though non-TV content sources like TikTok and YouTube have become a large part of this group’s life, adult Gen Zers still watch more TV content than non-TV content.2
While adult Gen Zers spend more than half of their viewing time watching professionally produced TV content, their methods for watching these shows have changed.
Myth 2: When They Watch TV Content, Gen Z Only Watches Netflix (and Other Paid Streaming Services)
Yes, streaming is Gen Z’s home entertainment of choice. Gen Zers 18-24 years old spend 59% of their TV screen time with streaming.3 However, this does not mean they aren’t watching ads.
Historically, streaming has been dominated by ad-free subscription-based services like Netflix. However, as subscription prices rise, some Gen Z users are dropping off in favor of free ad-supported streaming television (FAST). FAST services like Xumo, Tubi, and Pluto TV show signs of immense growth, with 63% of Gen Z adults (18-24) indicating a likelihood of engaging with FAST in the next year.4
Not only are these services popular with audiences, but they also contribute tremendously to a campaign’s reach. According to Effectv’s TV Viewership Report, 88% of the highest-reaching campaigns included FAST in their strategy.5 Moreover, FAST adds an average of +9% incremental reach to linear campaigns6 and is 6.3 times more likely to be seen within light and no-TV households than traditional TV.7 So, even within streaming, Gen Z is still viewing ad-supported content.
Myth 3: Gen Z Only Watches on Their Phones
As with the average American adult, the TV screen is the device of choice for watching content among adults 18-24.4 More than half of Gen Zers say they watch professionally produced TV content, including streaming, on their TV screens (while around a third watch on their smartphones).8
TV ads have been shown to produce a halo effect for digital advertisements, providing a +12% lift in brand attitude.9 Additionally, the TV screen acts as a brand legitimizer, increasing the likelihood of a purchase from digital video or social media platforms.
Myth 4: Gen Z is Unreachable via TV Advertising
Gen Z does watch TV, but advertisers need to meet them where they are. When it comes to TV, Gen Z spends more time than average with entertainment genre channels like Cartoon Network, Adult Swim, and VH1.
To reach this group, consider prioritizing entertainment. Also, consider running a targeted TV campaign that allows you to reach your desired audience regardless of what they’re watching.
Myth 5: Gen Z Hates Ads
Gen Zers’ entertainment focus holds true in their advertising preferences. They don’t hate advertising; in fact, 67% say they like it. But they prefer ads to resonate, reflect their values, and entertain.10 Over half of Gen Zers say that advertisements that make them smile are the most memorable, and funny ads appeal to them the most.11
Targeted advertising can also help with this by delivering ads directly to people likely to be in the market for their business. When in-market viewers see a creative message from an advertiser, they are +75% more likely to like the brand and +155% more likely to consider purchasing from that advertiser.12
Ultimately, Gen Zers want ads to be unique, relevant, and authentic while not interrupting their viewing experience. This means brands should value creativity over the ordinary and targeting over frequency.
Conclusion
The TV advertising landscape has shifted, and advertisers are beginning to change with it. If your goal is to reach Gen Z, a multiscreen approach is essential.
With Effectv, you can deliver targeted impressions to specific audiences across TV, VOD, and streaming – all within a single campaign. You can even target by content or deliver messaging directly to segments likely to include adult Gen Zers with growing disposable income. This makes delivering your message to your desired audience easier than ever.
Whatever your strategy, Effectv is here to make it work.
Sources:
1. Forbes. “As Gen Z’s Buying Power Grows, Businesses Must Adapt Their Marketing.” 2022.
2. Nscreenmedia. “Will Gen-Z viewing habits change to embrace TV-style content?” 2023.
3. Nielsen NPOWER Time Period Ratings Analysis Report, Live+7. (9/1/22 – 10/31/22). Nielsen National TV Panel Data augmented by Streaming Platform Ratings, Demographic: Adults 18 -26, Total US. Comparison based on 9/1/23 – 9/30/21. Includes both ad-supported and non-ad-supported viewing source, excludes MVPD/vMVPD.
4. Comcast Advertising Streaming Insights study conducted by Cint. September 2023. N = 1,739.
5. Comcast Aggregated Viewership Data combined with Ad Exposure Data from TV + Effectv Streaming campaigns (1H ‘23). Filtered to the 1,000 highest reaching campaigns. Extracted from the 1H 2023 TV Viewership Report.
6. Comcast Aggregated Viewership Data combined with Ad Exposure Data (7,300+ campaigns including both linear TV & any combination of FAST services: Xumo, Pluto & Tubi; Local Market Advertisers; Jan-Oct 2023)
7. Comcast Aggregated Viewership Data combined with Ad Exposure Data from TV + Effectv Streaming campaigns (2H ‘23).
8. Tv Tech. “Survey: Gen Z Embraces Long-Form TV Content.” 2024.
9. ‘TV Builds Brand Equity’ Consumer Survey. TV Advertising Research by Mediascience for Effectv. September 2019.
10. Super Awesome.“Gen Z’s Digital Discovery: Strategies for Brands to Connect.” 2023.
11. Civic Science. “Which Types of Ads Resonate With Gen Z?” 2023.
12. Creative analysis using three distinct commercial messages (Survey conducted by Lucid; Q4 2021; In Market vs Never In Market Viewers; N=1,500)
