(VOVWORLD) - Generation Z (Gen Z) is generally defined as people born between 1997 and 2012 who grew up with the internet and other advanced technologies, making them "digital natives". With 2.6 billion people, about one third of the population, it is estimated that by 2030 this generation will have a spending power exceeding 33 trillion USD and control more than 25% of global income, so current and future sales and marketing trends will revolve around Gen Z.
 Gen-Z saying “meh” to social media (Photo: vcci.com.vn) |
A survey of Gen Z in Vietnam in the first quarter of 2023 showed that nearly half of respondents considered Facebook and TikTok the two essential apps, followed by YouTube, Zalo, and Instagram.
A boom in product reviews has clearly demonstrated how Gen Z and social media have shaped the advertising industry in recent years.
Nguyen Tra My, Deputy Managing Director and Chief Marketing Officer at Ogilvy Vietnam, said, “In order to calculate the return on investment, investors pay attention to the indicators social networks and other platforms provide.”
“Facebook, YouTube, Instagram, and TikTok report the number of views each day so we can track how many views an advertisement attracts in any period of time,” My added.
From an early age, Gen Z is continuously connected to social networks. They’re exposed to a diversity of races, skin colors, sexual preferences, and social customs, so they attach importance to the values and messages of brands as well as to product quality.
This is fertile soil for brands if they can follow the trends, keep up with the technologies used by e-commerce platforms, leverage the influence of key opinion leaders (KOLs), and engage in positive social activities.
According to Hoang Trong Sang, Director of Nhi Van Media Company, Gen Z are the ones who dare to spend money, so they will be the ones who dominate the economy. “Advertising strategies must be especially oriented toward Gen Z. What they want most is quality content and to keep up with new trends,” said Sang.
 A tour of Tam Giang Lagoon in Thua Thien-Hue Province to enjoy sunset becomes popular among Zen Gers following the sharing by influencers on social media. (Photo: sggp.org.vn) |
AI is playing a greater role in marketing for the young generation, which primarily receives information online, particularly social networks.
Huynh Thi Xuan Lien, Deputy President of the Chief Sales & Marketing Officer Association (CSMO), said, “AI has strongly influenced advertising and communications in the marketing field. It’s easy to see that a poster image can be created in a few seconds.”
“Although creative work has certainly been affected, we believe humans can control and efficiently use what AI tools are bringing to us in a constructive vision and mindset, a mindset of understanding where AI is heading, and a mindset of understanding where customers are heading. I think that AI should be understood as a powerful assistant,” said Lien.
47% of Gen Z consumers spend more on experiential activities such as dining out, traveling, and going to concerts, according to a new survey from Vero Advocacy, an advisory specializing in public policy advocacy and government relations, and market research agency Kadence International.
With about 15 million people, making up 15% of Vietnam's population and a quarter of Vietnam’s workforce, Gen Z contributes 40% of out-of-home spending. This is driven partly by rising incomes, partly by media effects, and partly by confidence in Vietnam’s economic prospects.
The survey was conducted late last year on more than 2,700 Gen Z and Millennials in 6 Southeast Asian countries, including 450 Vietnamese.
A report by Booking.com said 22% of Vietnamese Gen Z are ready to spend money on the activities they love, and 67% admit they are attracted to places mentioned in movies and media.