A third of the world’s population is made up of Gen Z, whose influence across industries is starting to gain attention. Behind the scenes, brands have been working hard to comprehend, connect with, and engage with this generation of digital natives. Gen Z is complete digital natives because their formative years occurred at the same time as the emergence of technologies like the metaverse and web3, in contrast to Millennials, who experienced the debut of cell phones, social media, and the internet. They are often regarded as the most technologically sophisticated audience and spend a lot more time online than prior generations.
It’s clear that Gen Z enjoys playing video games. In fact, 87% of Gen Z members claimed to play video games on PCs, gaming consoles, or smartphones at least once every week. This creates a significant opportunity for businesses involved in in-game advertising, especially those that can connect with this demographic of players on an authentic level. Recent research has started to reveal Gen Z’s tastes and how they affect the global digital ecosystem.
Why Is the Gaming Industry So Appealing to Generation Z
Given that Gen Z’s tastes are so radically different from those of previous generations, they can change the entertainment landscape. They have a platform for self-expression, immersion, connection, and relaxation through gaming. Razorfish and Vice Media claim that Gen Z users spend twice as much time interacting socially in the metaverse.
Reach out to Generation Z
Gen Z players are significantly more likely to spend money in the gaming industry since they spend so much of their lives online. In the metaverse, Gen Z gamers make the same kinds of purchases that they would in the real world, according to a Razorfish and Vice Media study. With an average annual expenditure of $50, in-game purchases will account for 20% of Gen Z gamers’ “fun” budgets (money spent on entertainment, leisure, or recreation) during the next five years. Brands have a fantastic opportunity to connect with Gen Z gamers where they are as well as build long-lasting relationships with young consumers.
When it comes to creating a presence in the gaming industry, brands still lack expertise. Gaming is becoming more popular among Gen Z because of its social and community benefits. Before entering such a dynamic environment, brands must deliberately develop a clear strategy.
Recognize Generation Z
A key component of the puzzle is recognizing how Gen Z players prefer to be reached. 30% of Gen Z gamers were open to the concept of brands selling skins and apparel for their avatars, and one-third of Gen Z gamers wanted to see brands create virtual stores. Even though these statistics may only be significant for specific sectors of the economy, including fashion and lifestyle firms, they are encouraging for marketers looking to connect with Gen Z gamers. Many people were also amenable to the idea of businesses interacting with consumers through free goods and experiences (46%), branding online communities (23%), and traditional advertising (18%).
To engage Gen Z effectively, brands and agencies need to be aware of the subtleties in their media and entertainment preferences. In order to reach the heterogeneous Gen Z audience, there is no universal solution. One-half of Gen Z players regularly browse social media platforms or online gaming communities.