Dubai: After five years of chasing Generation Y (millennials, as they are more popularly known), brands and marketers are turning their attention to the Gen Z-ers.

“The interest in Gen Z in 2017 has been driven by the first small cohort of early Gen Z (born between 1995 and 2012) college graduates entering the job market,” according to a new report, ‘Global Intelligence 2018’, issued by media agency Zenith. “The most important life-defining event for Gen Z has been the proliferation of technology and the digital economy.”

But marketers and advertisers will be doing themselves a disfavour by focusing all their attention on the young and the millennials before them.

“Businesses tend to over-focus on Gen Z based on perceived brand potential, so show little interest in over-35s and treat over-55s as if they don’t exist, even though they are expected to represent 50-86 per cent of consumer spending growth,” the Zenith report notes.

“A key part of re-thinking targeting is about accepting the flexibility and fluidity of life-stage as people live longer. Empty-nesters are rediscovering the joys of youth and those who never had kids are still indulging.

“So we should target across generations perennially based on mindset and interests. This approach maximises relevant consumers at point of change and takes advantage of new digital targeting opportunities.”

But will brand owners be willing to take on this piece of sage advice? Or will the lure of a new generation and the potential they carry as consumers blind marketers to the realities?

The Zenith report calls on all to get their focus back.

“Rather than talk of demographic generations, we should also be thinking about how to maximise the perennial appeal of our brands based on what makes them meaningful,” it adds. “As people live longer these days, we also expect the narrative to encourage people to embrace the gift of [long] life.

“There will still be a lot of hype around Gen Z in 2018... but we believe the way the world has changed and is still changing in terms of media, marketing and society calls for us to fundamentally rethink the rules of targeting.”

Brands cannot wash their hands off politics or any trend that manages to get society’s attention. There were signs of this in 2016 and they were amplified last year. This year is hardly likely to be an exception.

Zenith recommends that brands can take action, or be seen to. “Standing for something meaningful is a powerful marketing tool as demonstrated by several key brands,” the report notes.

“In a world where consumers are attracted by causes that enable them to make a difference — rather than politics where they can’t — there are many ways brands can get competitive advantage by getting involved.”

And brands need not be explicit about where they stand, if that doesn’t suit them. Even then, “advertisers must recognise the implications of their communications in terms of wider society to ensure that they stay with the times and avoid any sudden onslaught of social media pressures.”

Big cities and big countries will dictate ad dollars

The global ad market should put in another 4 per cent growth in spending, according to Zenith. “But growth is highly concentrated — most new ad dollars are coming from big countries and big cities, and going to big digital platforms,” the report states. “Two countries — the US and China — will contribute 47 per cent of new ad dollars between 2017 and 2020. The five biggest markets — the US, China, Japan, the UK and Germany — will contribute 57 per cent.”

Television remained the most popular medium with consumers, accounting for 37 per cent of media consumption time in 2017. Across desktop and mobile devices, internet use accounted for 31 per cent of media time.