When Gen Z entered adult life, as consumers and workers, they did so under once-in-a-lifetime circumstances: the COVID-19 pandemic had completely shut down the world, leaving a cohort of teens and twenty-somethings to communicate and engage with businesses through the online world.
Five years later, brands are still grappling with marketing to the TikTok generation. Gen Z spending on discretionary items and experiences has grown at nearly twice the rate of the rest of the population, according to a recent report from the Bank of America Institute.
Like their millennial counterparts, Gen Z-ers tend to spend more of their discretionary funds on experiences and activities, rather than items. After covering necessities, like groceries and rent, 36% of Gen Z said they spend their income on dining out, followed by 30% on shopping, and 24% on entertainment.
In an effort to better understand the ways in which Gen Z-ers make decisions about spending on food and restaurants, the Gen Z research strategy firm dcdx dispensed with traditional survey models and began measuring user-generated content on TikTok to determine which brands attract the most attention from young consumers – while also identifying the pitfalls of viral marketing campaigns.
“Young people are four times more likely to make a decision based on [user generated content] than an influencer post,” said dcdx founder Andrew Roth. “Gen Z sees through the BS of a promoted post quicker than anything. Of course, we’re going to make a decision based on what our peers are saying online organically.”
Roth notes that while some restaurants do find success via a robust social media presence, being active on digital platforms isn’t actually a necessary part of generating online buzz. Chick-fil-A, for example, ranks in the top 10 most talked about restaurants on TikTok – while not having a significant social media presence of its own. Starbucks (SBUX) does have social media, but most of its TikTok engagement comes in the form of baristas posting about their workplaces, not corporate communications.
In some instances, attempting to connect with potential customers through viral trends can even have an adverse effect on a brand’s popularity. The problem comes when brands “activate without permission” explains Roth. He cited Papa John’s launching a garlic bath bomb, which failed to capture positive audience attention.
“Who was that for,” asked Roth. “Why did they need it? How did [Papa John’s] as a brand have permission to go into those places? If [they’re] not meeting those criteria, then [they’re] present without permission from the audience and they’re going to flop.”
Continue reading to see which brands did not flop – and instead are leading the internet in user-generated content, according to dcdx.
