Gen-Z’s spending and online consumption patterns are radically different from any other generation’s, a new survey from Whop — America’s leading marketplace for digital goods — reveals. The findings provide key insights for online brands looking to connect with the 18-to-29 demographic, and its estimated $143bn of US buying power.
When it comes to social media, Gen-Z strongly favors algorithmically-generated timelines of photos and videos, with 29% naming TikTok as the social network they used the most. Instagram followed close behind, selected by 28% of respondents.
Additionally, Gen-Z was the sole cohort where Facebook (favored by 37% of millennials, 49% of people aged between 45-59, and 69% of those over the age of 60) wasn’t the most popular social network.
While you might suspect that this means Gen-Z is more inclined to follow the spending recommendations of influencers and creators, the survey found that age has less of an influence here than income. Roughly one-fifth (19.57%) of those earning over $100,000 said they were “very likely” to buy an influencer-endorsed product, compared to just 5.93% for everyone else.
The survey examined the preferred shopping platforms of each generation. With each age group, Amazon, Target, and Walmart were the three most popular e-commerce websites. Gen-Z, however, was the only cohort that was more likely to say they had shopped at Target.com in the previous six months (53%) compared to Walmart.com (52%).
With each age group, the preference for Walmart grows stronger, with 62% of over-60s having spent at Walmart.com and just 32% having bought something from Target.com.
Whop asked each generational group how they’d spend an unexpected $50,000 windfall. Again, Gen-Z displayed stark differences to other age groups here, and was the cohort most likely to say they’d put the money towards their education or professional development, and the group least likely to say they’d save the money towards their retirement. Just 15% of Gen-Z said they invest their money in a 401K or a Roth IRA, compared to 26% of those aged 45-60.
Gen-Z was also the age group most likely to say they’d use the money for high-risk investments, like cryptocurrencies (selected by 10% of Gen-Z respondents) and collectibles (chosen by 7.5%).
And yet, it was also the group more likely to favor the stability of a traditional 9-to-5 job over self-employment. Whop asked those surveyed if they’d rather earn $200,000 working for a company or $100,000 working for themselves. Gen-Z was the only group to select a company job, with 61% choosing that option. By contrast, 54% of those aged 45-60 said they’d prefer to earn less by working for themselves.
Cameron Zoub, co-founder at Whop said: “Our survey shows that Gen-Z is unlike any other generation out there. They represent a vast — and growing — portion of purchasing power, but they’re also unique in their spending habits, their aspirations and goals, and how they consume digital content.”
“If brands want to truly resonate with this segment of the population, they need to understand them. They need to go where they are, speak to their ambitions, and create content that engages and delights. As our survey shows, a cookie-cutter, one-size-fits-all approach just doesn’t work with Gen-Z,” they added.
To find out more, read the write-up here. Whop surveyed over 1,100 US consumers. Gen-Z accounted for 28%, millennials for 24%, and those aged between 45-60 for 25%. People aged over 60 accounted for 23% of the survey sample.
