S M E I n c . O 2 1 2 . 9 2 4 . 5 7 0 0 F 6 4 6 . 4 3 9 . 9 0 7 1 w w w. s m e b r a n d i n g . co m Z a c h K e l ly , V P B r a n d S t r a t e g y Z ke l ly @ s m e b r a n d i n g . co m

WHAT’S NEXT FOR 2015?

5 WAYS TO BUILD YOUR BRAND FOR GENERATION Z

SEPTEMBER, 2014

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It is to be noted, by us and also TrendWatching.com, that: “With aspiration becoming increasingly globalized and age-agnostic,

demographic segments are becoming less meaningful predictors of consumption patterns.”

Always, “Think Adaptation”

TrendWatching - http://trendwatching.com/

WHO ARE GENERATION Z?

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Move over Millennials, we’re here to stay!

THE LARGEST GENERATIONAL GROUP IN THE U.S.

Source: U.S. Census Bureau, 2012 (via Mintel 2014)

UNDERSTANDING YOUR AUDIENCE

•  Born between 1995-2009

•  Make up a quarter of the American population

•  Are eager to build a better planet

•  Are always connected through mobile, digital and social mediums

•  Want anonymous and unrestricted communication

•  Love to curate their own content

•  Are economically and environmentally conscious

•  Hold little to no defined brand loyalty

•  Are influenced by social and digital personalities rather than traditional media celebrities

Generation Z…

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Compared to 39% of Millennials, 60% of Gen-Z are active volunteers who want to have an impact on the world

6 Source: Creative Artists Agency & Intern Sushi, 2014; U.S. Department of Labor, 2013,

Outside of school, Generation Z spends 41% of their time with computers or mobile devices

And 66% of kids 6-11 say online gaming is their main source of entertainment

http://www.sparksandhoney.com/ 7

Flickr Creative Commons Source: Mintel, Activities of Teens and Kids 2013, Entertainment software association 2013

Generation Z creates anonymous and secretive content through apps like Secret, Whisper, Yik Yak and Snapchat

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Sources – http://www.bloombergview.com/ http://www.sparksandhoney.com/ http://Digiday.com

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Content curation and the ability to build customized, playlists, selections of videos and edited / remixed tracks hold great appeal

for Gen Z

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57% of Generation Z would rather save their money than spend it

http://www.sparksandhoney.com/

And over 76% are concerned about the harmful impact humans have on the environment

Source: Unilever Project Sunlights How Children Inspire Sustainable Behavior in Adults, August 2013; JWT Intelligence Source: Centers for Disease Control and Prevention via vox.com; Cassandra Report: WebMD (CDC Survey 2014)

For Gen Z, product quality is more important than brand loyalty and they want to test products (either physically or virtually) before

making a purchase

11 http://www.forbes.com/

Source: http://businessinsider.com http://mwpartners.com/ http://www.piperjaffray.com/

A recent survey from Variety Magazine states that YouTube stars are more popular than mainstream celebs among

Generation Z

12 http://www.forbes.com/ Infographic & Study - http://www.variety.com/

HOW TO BUILD YOUR BRAND TO REACH THEM?

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Communicate Through Bold Visual and Digital Content

Interact and Engage Across Multiple Brand Platforms

Immediately Capture Their Attention

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Engage Their Entrepreneurial Spirit 4

Embrace Change 5

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1 COMMUNICATE THROUGH BOLD VISUAL AND DIGITAL CONTENT

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And they prefer to communicate in images, emojis, GIFs and Memes because it’s faster and more intuitive

The majority of Generation Z are connected within an hour of waking up every morning

http://www.sparksandhoney.com/ 16

Source: Pew Research, 2012

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Because Generation Z is accustomed to rapid communication, instant gratification prevails

Source: Pew Research, 2012

2 INTERACT AND ENGAGE ACROSS MULTIPLE BRAND PLATFORMS

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Generation Z multitasks across at least five screens: TV, phone, laptop, desktop and tablet… plus their wearable tech companion

19 Source: JWT Intelligence

We must create an immersive brand experience that continuously engages Gen Z across all platforms

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3 IMMEDIATELY CAPTURE THEIR ATTENTION

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Generation Z has an 8-second attention span

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So content should be in short, easily digestible, attention grabbing snippets

Disney Pixar

Source: National Center for Biotechnology Information, U.S. National Library of Medicine, The Associated Press

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Create platform specific content across Twitter, Vine, Instagram, Snapchat, YouTube and other digital channels to engage your audience

4 ENGAGE THEIR ENTREPRENEURIAL SPIRIT

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72% of high school students want to start a business someday and 61% would rather be an entrepreneur than an employee

25 http://www.sparksandhoney.com/

25 Source: Millennial Branding and Internship.com, 2014, Mintel 2014

26 Image: http://nytimes.com

Generation Z wants to have their opinion heard. Create a social brand dialogue that includes them in the conversation

5 EMBRACE CHANGE

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Generation Z is growing up in a constantly evolving world – they expect and are ready to embrace change

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Thus, the gap between early tech, product and trend adopters and the general public is shrink rapidly. It’s crucial to be on the verge.

BUILD YOUR BRAND FOR GEN Z WITH SME

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Your brand must be ready!

SOURCES Bloomberg View: http://www.bloombergview.com

Business Insider: http://www.businessinsider.com DigiDay: http://digiday.com Fast Company: http://www.fastcompany.com Forbes: http://www.forbes.com MaClean’s: http://www.macleans.ca Sparks & Honey: http://www.sparksandhoney.com New York Times: http://nytimes.com Variety: http://variety.com U.S. Census Bureau, 2012 (via Mintel 2014) National Center for Biotechnology Information, U.S. National Library of Medicine, e Associated Press Mintel, activities of teens and kids 2013, entertainment software association 2013 JWT Intelligence Pew Research, 2012

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