Gen Z psychographics: Generational values, lifestyles, and more
Generation Z—generally defined as people born between 1997 and 20121—has become a major focus for marketers everywhere. Not only does Gen Z currently represent about 27% of the US population2, but they're also entering the workforce in spades, with the oldest members of this generation now in their mid-twenties. That means Gen Z has money to spend—and they're excited to get shopping.
In fact, Insider Intelligence recently noted that Gen Z has "stepped up its spending while other generations tighten their belts."3 What's more, 46% of Gen Zs say they "feel wealthy" based on what they earn.4 As digital natives with roots in the online world—and newfound spending power in the real one—Gen Z is a key cohort for brands who want to reach young, savvy audiences.
That said, like every generation, Gen Z is unique. From their buying behavior to the media they engage with and how they interact with companies online, these consumers have their own set of quirks. As an advertiser, the more you know about Gen Z, the better prepared you'll be to get—and keep—them engaged.
Fast facts about Gen Z
In order to understand who they are, how they behave, and what they believe, you first have to understand Gen Z psychographics. So what defines a Gen Z consumer? Here are some key facts and characteristics:
• Gen Z is currently the largest and most ethnically diverse generation5
• The average Gen Zer has had a smartphone since before their 12th birthday6 and spends almost half of their waking hours on screens7
• This demographic has $360 billion in disposable income8
• 29% of Gen Z still lives at home with their parents, while 27% live with a romantic partner and 13% live in a household with one or more roommates9
Gen Z psychographics: an overview
On the surface, Gen Z looks simple enough: a generation divided between teens who are ramping up to launch the next phase of their lives, and young adults already in the working world. But who are these young people, really? What do they believe? How do they spend their time?
This overview of Gen Z, their identity, and what matters most in their lives speaks volumes about what makes them tick.
1. Gen Z lifestyles, work, and spending
For young people, college counts. This cohort values higher education, with 83% of Gen Zs in a recent survey by Gallup noting they believe college is either "very important" or "fairly important."10
When they get out into the professional world, salary isn't the only factor that determines where Gen Zs choose to work. Research shows that Gen Z values salary less than all other generations, and prefers an interesting job over a boring one even if the former doesn't pay as well. As the most diverse generation, they look for careers where they feel they fit in.11
What do Gen Zs do with the money they earn? Studies show that 89% saved money on a purchase in 2023, which is more than any other generation. At the same time, three-quarters of them aren't opposed to splurging on an item they really want.12 Inflation is causing some stress, which means that even though 73% of Gen Zs feel they do a good job of managing their monthly bills, long-term financial security remains a concern.13
2. Gen Z values
Gen Z's values, including caring about things like racial justice and climate change, play a big role in how they live and what they buy.14 Gen Z has been called the "sustainability generation" because they routinely make purchases based on their social and environmental values. Sixty-two percent of Gen Z shoppers would rather buy from sustainable brands, and 73% are willing to pay more for sustainable products.15
Even so, they prioritize convenience and may favor brands that offer it. Mobile pay, app-based services, and friction-free online transactions are important to them.16
3. Activities, interests, and opinions
As the most diverse generation to date, Gen Z values different perspectives and honest debate. They may be young, but they're deep thinkers who are curious about culture and how to better themselves.
For example, 91% of Gen Z Spotify users say they use Spotify to dive deep into the music and podcasts they love.17 They are eager to learn more about topics that interest them and connect more deeply with the content they enjoy most. About half of them say podcasts "bring them closer to the zeitgeist of culture than any other form of media.18
“Culture’s a more fluid thing now. There’s traditional local cultures, and now there’s also this global youth culture that’s always changing."
—Lisa, 18, Raubling, Germany
How to leverage psychographics to reach Gen Z audiences on Spotify
Armed with these Gen Z psychographics, you can start thinking strategy. Digital audio is a good place to start. Our data shows that in the first half of 2023, Gen Z listened to more than 560 billion songs and more than 3 billion podcast episodes—a 76% increase over the year prior, making them our fastest-growing cohort in music and podcast listening.19
Here are a few tips to help you create a digital audio campaign that resonates.
Engage Gen Z with music
Brands seeking to reach Gen Z might want to consider learning about their playlist preferences, so they can deliver messaging that's just the right fit. Since our AI-powered DJ feature debuted on Spotify in February 2023, Gen Zs have used it to stream more than 1.5 billion minutes of music and recommendations globally.20 What's more, Gen Z made up nearly two-thirds (58%) of total US Blend playlist shares in the first half of 2023, connecting deeper with their friends.21
"Music is it's own language for me. You don't even have to understand it. But when you hear the music, you just feel it."
-Elianna, 21, Tokyo
Pique curiosity about your brand with podcast ads
Since Gen Z psychographics tell us they're committed to expanding their minds and immersing themselves in topics of interest, podcasts are another great way to connect. In fact, nearly three-quarters (72%) of Gen Zs in the US agree that podcasts take you deeper into any topic, bringing listeners to the core of any subject.22
Gen Z's podcast preferences vary across categories: In the US, listening in the Education category surged by 53% last year. We also saw increases in Religion/Spirituality (+67%), Health & Fitness (+81%), Government (+59%), and History (+36%), providing further evidence that Gen Zs like to dive deep.23 In addition, more than half of Gen Z podcast listeners in the US (53%) report they've learned about a community outside their own that they “probably wouldn't have learned about elsewhere" via podcasts.24
“Through podcasts, Spotify helps to drive cultural conversations on topics like social issues, pop culture, politics — all of that good stuff. And it enables diverse voices to be heard.”
-Marina, 20, Calgary, Alberta
Reach your audience where they are
Spotify Ad Studio makes it easy to target Gen Z listeners with creative ads that speak to their interests and needs—whether they're tuning into music or podcasts, thanks to automatic ad placement. And since 39% of Zs in the US say they trust ads more if they hear them on Spotify rather than see them on social media25, podcast ads are a great fit for performance-based campaigns.
It's also important to bear in mind that using video and audio ads together may be another effective way to reach this digitally native generation. Spotify's Video Takeover ads, delivered during a listening session, can drive engagement through customizable calls to action. And if you're using Ad Studio, take full advantage of Opt-In Video, which puts brands front and center in the app's Now Playing View screen, right beside the music listeners love.
Interested in learning more about Gen Z and connecting with them online?
Sources:1, 2. Generation Z News: Latest characteristics, research, and facts, Insider Intelligence. January 2023
- Gen Z's growing buying power pushes companies to innovate, Insider Intelligence. July 2023
- Charles Schwab Modern Wealth Survey 2023, Charles Schwab & Co. 2023 5, 6. Generation Z News: Latest characteristics, research, and facts, Insider Intelligence. January 2023
- Gen Z spends half its waking hours on screen time. Here's the good and bad news for Hollywood, Los Angeles Times. April 2022
- Gen Z Has $360 Billion to Spend, Trick Is Getting Them to Buy, Bloomberg. November 2021
- Cost of Living Crisis Spurs “Failure to Launch" among Gen Z, Intuit. June 2022
- Majority of Gen Z Consider College Education Important, Gallup. September 2023
- Understanding Generation Z in the workplace, Deloitte. 12, 13. Save, splurge, (don't) stress: How Gen Z is putting their spin on personal finances, USA Today. September 2023
- Generation Z News: Latest characteristics, research, and facts, Insider Intelligence. January 2023
- Gen Z Shoppers Demand Sustainable Retail, First Insight
- What is Gen Z? McKinsey & Company, March 2023 17, 18. Spotify Culture Next survey, June 2023
- Spotify First Party data, Q1-Q2 2023 vs. Q1-Q2 2022
- Spotify First Party Data, Q1-Q2 2023
- Spotify First Party Data, US Q1-Q2 2023
- Spotify Culture Next survey, June 2023
- Spotify First Party Data, Q1-Q2 2023 vs Q1-Q2 2022 24, 25. Spotify Culture Next survey, June 2023 </small></Footnote>