Gen Z broke the marketing funnel

Gone are the days of traditional consumer funnels, new research shows how world-building experiences will engage with younger audiences. Plus: one year from Bud Light’s disaster campaign and lessons learned.

The Engagement Rate

An industry bulletin for marketing pros.

We are less than two weeks away from the clocks going back!! Once I: 

put in the hours to hone in on that skill

remember to do the thing I'm supposed to

work on that thing I've been meaning to

reply to those email I need to 

and find an appropriate sleeping schedule 

It’s really over for you!

How Gen Z has re-written the marketing funnel playbook

New research by US youth culture agency, Archival, and industry experts have revealed some interesting insights into how the consumer path to purchase is in completely different territory when it comes to a Gen Z audience. Here’s some key takeaways: 

👉RIP old consumer funnels 

Gone are the days of ‘awareness’ > ‘interest’ > ‘desire’ > ‘action’ style funnels. Gen Z simply does not live in the old world of linear consumer funnels. Rather than viewing a funnel as a straight line, think of an infinite loop of ‘inspiration’, ‘exploration’, ‘community’ and ‘loyalty’. The brands really hitting home runs right now have touch-points across all four parts of this loop. 

👉World building feel 

Hitting all touch-points often requires a sense of world-building to create this seamless customer experience. Young consumers are always looking for inspiration, learning about new brands through YouTube (57%) and TikTok (53%) predominantly. 

👉Delivering inspiration in the right way 

Yet the challenge for most brands is to deliver this world-built, seamless experience cloud of inspiration in the right way. Gen Z’s digital literacy is top tier so there should be trepidation for brands thinking they can rush out an after-thought experience. 

👉In real-life experiences

Yet despite the digital nativeness of Gen Z, 74% think IRL experiences are more important than digital ones. In store purchases are of higher preference in comparison to just 27% of Gen Z who like to shop on social media. 

👉Research and trust

It’s clear that Gen Z consumers are not buying products as impulsively, meaning they are not converted consumers at the inspiration phase. Research is a heavily important stage for young people to develop brand trust, with 70% of Gen Z only trusting a brand after carrying out their own research. 56% of Gen Z consumers are skeptical about brand’s ratings and in fact find it more difficult to trust brands with only glaringly suspicious 5 star reviews. 

👉UGC 

And this is a perfect segue to user-generated content - which can be the perfect way to educate consumers on the brand’s products. 

Read more about the report via Archival here 

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Lessons learnt from Bud Light one year on

Where were you last year when Bud Light’s influencer marketing campaign with Dylan Mulvaney went completely awry? One year on from one of the most chaotic and poorly handled campaigns, we reflect on some key lessons learnt… 

👉The balance between creative control and brand identity 

As much as we’ve encouraged creative control for influencers as they can often target audiences with more authentically delivered messaging, brands must heed caution to never fully relinquish control over messaging to their talent. Letting go of that responsibility abandons a final review on the wider brand parameters and optics that lies on you, not the influencer. 

👉Assess collateral damage

Alienating an existing consumer base can have significant negative repercussions for a brand, highlighting the importance of thorough assessment before implementation is crucial before executing any marketing campaign. 

👉Pretest creative

Despite the inconvenience, pretesting creative content can help identify potential pitfalls and prevent damaging outcomes.

👉Be prepared for online outrage 

Brands must anticipate online backlash, regardless of the message's alignment with political ideologies. Plus, it helps to prepare multiple responses to manage the brand reaction in a way that maybe isn’t as tone deaf as Bud Light’s fight or flight response was. 

👉Differentiate boycott from brand estrangement

Not all negative reactions equate to boycotts; sometimes, consumers simply disassociate from a brand due to shifting perceptions.

Brand wins of the week 🏅

💀Elite aqua  

Liquid Death, the popular canned water brand, has attracted significant investor attention, recently raising $67 million, including contributions from notable figures like actor Josh Brolin, NFL star DeAndre Hopkins, and "Chapelle Show" Co-Creator Neal Brennan, as well as Live Nation Entertainment Inc., with its valuation reaching $1.4 billion and reporting $263 million in retail scanned sales in 2023.

Royally pampered 

Bath & Body Works partnered with Netflix for a new collection inspired by the "Bridgerton" series, featuring body care products, candles, soaps, and sanitizers, which fans eagerly anticipate ahead of the Season 3 premiere.