蘑菇AV

On today's episode, we discuss the advertising industry's recent love affair with generative AI, what happens inside the minds of Gen Z consumers, why Spotify is pivoting, Twitter's new CEO writing the the company's next chapter, how podcast advertising is doing, how much people spend when they go to Las Vegas, and more. Tune in to the discussion with our director of forecasting Oscar Orozco and analysts Bill Fisher and Max Willens.

The focus on pop-up moments like AR vending machines and creator-centered events also aligns with how Gen Z prefers to engage with brands: through experiences they can co-create and share. Our take: Snapchat鈥檚 model stands out not by chasing scale, but by emphasizing depth of interaction.

Instead of text-based outputs or static visuals, Snapchat鈥檚 version of AI unlocks participation and shareability, especially among Gen Z. The big picture: Global ad revenues are on a steady upward path, rising from $3.73 billion in 2023 to a projected $5.69 billion in 2027, per our forecast鈥攏early 53% growth over five years.

If it feels impossible to keep up with Gen Z slang, that鈥檚 because it is. TikTok has turbocharged an already fast-moving content cycle, so you鈥檝e probably heard about trends that sound like gibberish. It鈥檚 tempting to give up on the spiraling influx of new language, but marketers need to understand at least some of the lexicon to avoid creating 鈥渃ringe鈥� content. Here are some terms marketers should know.

The caveat: We forecast that nearly 65% of Gen Zers ages 18 to 24 will use social platforms as primary shopping channels by 2027, making it difficult for Google Search and Shopping to gain market share. Our take: By integrating genAI and mixed reality, Google is simplifying the buying journey and reducing friction for both consumers and brands.

Marketers will increasingly promote D2C health services and products to Gen Zers and millennials via social media. Healthcare and pharma marketing spend on social media grew 16.4% in 2024 to $4.98 billion and will continue rising, according to our forecast. Among all generations, Gen Zers and millennials spend the most time on Instagram and TikTok.

What this means for banks: A recent RE/MAX survey found that 63% of Gen Zers and millennials want to buy their first homes but the prices are holding them back. They may not see a light at the end of the tunnel for accomplishing their goal of becoming first-time homeowners.

Major warehouse operators are enhancing their shopping experience and reinforcing their value focus to attract new members鈥攅specially Gen Z. Sam鈥檚 Club introduced technology to speed up checkout and ease store exits. Its membership income rose more than 12% in its fiscal Q4, according to Walmart鈥檚 February 20 earnings call. Costco is getting a lift from international expansion and ecommerce.

Key stats: 69% of millennials, 57% of Gen Zers, and 54% of Gen Xers worldwide prefer messaging apps like Skype and WhatsApp for customer service, per Genesys, indicating that the audience exists for Skype but Microsoft once more missed out on capitalizing on an  opportunity.

Instagram functions as an address book and messaging system for Gen Zers鈥攁nd Gen Alphas are likely to follow suit as they enter their teen years. Gen Alphas are already adopting social media trends typically associated with teens, such as a recent interest in skincare. Don鈥檛 discount YouTube Shorts.

Gen Z expects Apple Pay at checkout. Gen Zers鈥� payment preferences differ from those of older consumers. One of the biggest distinctions is their love of Apple Pay. In the past year, 34.2% of Gen Z social commerce buyers used it鈥攎ore than twice the proportion of buyers overall (16.4%), per our March 2024 survey. Catering to Gen Z is especially important given its heavy usage of social media.

Apart from open banking鈥檚 influence, Gen Zers and millennials will be major drivers of growth in digital-only bank account openings. These consumers are the most likely to switch where they bank in search of better digital experiences, per RFI Global.

Virtual influencers are perceived poorly in key demographics, with 1 in 3 Gen Zers feeling negatively about virtual influencers, per Pion鈥檚 Youth Trends Report. Research from Northeastern University found that brands will likely see more reputational damage if virtual influencers are involved in selling a product that consumers are unsatisfied with compared to human equivalents.

AI assistants and agents abound: 蘑菇AV half (51%) of US Gen Zers and 70% of millennials interact with an AI-powered assistant daily, per ThinkNow Research. Alexa+ needs to stand out in a crowded market that includes Apple鈥檚 Siri and AI agents such as OpenAI鈥檚 Operator. Operator and Anthropic鈥檚 Claude 3.5 can autonomously browse the web and handle multistep tasks.

But there鈥檚 even more to the strategy that could help banks build relationships with millennials, Gen Zers, and Gen Alphans, per Marketing-Interactive. The strategy: The savings pots are designed as digital pets鈥攕tarting as an egg, and growing into a mature character once the customer reaches their savings goal.

And in doing so, it might also give marketers a dynamic ad format that can reach millions of users. "200 million people monthly use the service, especially Gen Z," said Sellis. "This is how they gather. This is how they experience belonging. And our goal is to be the best place to talk and hang out and play before, during, and after gaming with your friends.".

Consumers' definition of value is evolving as they demand not just the lowest prices, but quality and convenience too. Gen Z beauty shoppers prioritize innovation and sustainability over price, grocery shoppers seek high-quality products at lower prices, and high fees deter online purchases. Loyalty programs should be tailored to offer consumers the kind of rewards they want most, but not at the expense of brand identity. Here are five key stats to help brands understand what consumers value and stay competitive.

The brand also works with creators who are parents, kids, and Gen Zers in between to reach an intergenerational audience. Music and pop culture partnerships. By aligning itself with popular artists and aligning merchandise with concert-going trends, Claire鈥檚 has managed to stay relevant, even as the pop culture trends themselves shift.

Gen Zers are even more likely than other users to trust health-related content on social media. More than half (53%) of TikTok users ages 18-29 say they trust health information on the platform at least somewhat, KFF鈥檚 Health Misinformation and Tracking Poll. One-third say TikTok is their main source of health advice, per Zing Coach.

Platforms must brace for regulation of algorithmic content: EU regulators are widening their net, which could restrict advertisers鈥� ability to target teens.

Young consumers are more optimistic: Bank customers are driven to financially succeed this year, but younger customers seem to be taking a more active approach to achieve it. 74% of Gen Zers and 75% of millennials think their finances will improve this year, versus 67% of Gen Xers and 50% of baby boomers. 59% of Gen Zers and 60% of millennials plan to change how they invest this year, far outpacing older