GENERATION Z

I found this article in www.trendwatching.com , i think its pretty interesting to find new markets to focus.

Sure, you’ve heard of baby boomers, of Gen X and of Generation Y, but what about the youngest of consumers: GENERATION Z? Comprised of youngsters born after 1 April 2006, GENERATION Z is both the most promising and the most ignored target audience in developed consumer societies. Even dedicated youth-marketing agencies prefer to focus on the (by now tired) 3–5 year old demographic (also known as GEN Y+), as their spending power, brand loyalty and influence on household’s purchasing decisions is roughly five times that of GENERATION Z. But don’t kid yourself: GENERATION Z is a marketer’s wildest fantasy waiting to happen.

First of all, no generation in the history of mankind can be made to embrace brands with such eagerness by exposing them to specific brand benefits. Consider this research nugget: a Swiss study has found that when sufficiently exposed to child-friendly brand jingles, tunes and spoken messages during pregnancy, up to 77% of all newborns not only recognize these brand markers, but develop a brand preference that could last until puberty, and probably into adulthood (final results are not yet available as the project only started two years ago). Furthermore, an astounding 23% of infant participants could indicate at least 9 out of 12 favorite brands using rudimentary hand signals. It's this kind of insightful research that inspired design company Atypyk to come up with an educational brand puzzle for 8-month olds. Who said innovation is dead?

Secondly, no other generation is as well-positioned to make the most of Web 3.0, 4.0 and even 5.0. Case in point: Belgian Foops!, the first social networking site for GENERATION Z. It has already signed up more than 12,000 members (both born and unborn), even though it’s still in private beta mode. On Foops! parents can place pictures or sonograms on behalf of their offspring, and assist tiny members in filling out their profiles (including favored brands for diapers, toys and apparel), after which they gain access to virtual playpens where members communicate, poke and twitter via visuals and symbols. Each playpen is extensively sponsored by multinationals, some of which have plunked down more than EUR 1 million (approximately USD 1.45 million) for the privilege to interact with infants 24/7.

Foops! is in the process of hiring up to 40 bilingual marketing specialists, who will closely monitor the symbiosis of these 'conversations' and the site's abundant sponsored content and ads. With Facebook recently valued at a cool USD 15 billion, experts expect Foops! to be worth at least EUR 365 million (approximately USD 530 million) before Q1 2008, if growth continues to soar in the next six months.






And yet, a March 2007 survey among more than 3,000 marketing directors in Spain, Canada, South Africa, France, Turkey, South Korea, Sweden, Argentina, Singapore, Dubai, Australia and New Zealand revealed that a mere 4% (!) of them is actively advertising to GENERATION Z. Even more alarming, 87% of all respondents indicated that although they are very interested in diverting significant portions of their advertising budgets to target unborn children and 1 year olds, they have no clue where to begin.

Sounds like an amazing opportunity to (at least!) start the first dedicated GENERATION Z ad agency. Or team up with sites like Foops! to get close to your youngest audiences. Or launch a local version if you reside outside Belgium. In 2008, ignore GENERATION Z at your own peril