How to Unlock Gen Z Spending Power

Gen Z has emerged as a powerful and unique group of consumers. In 2025, it will need to be a staple in your marketing plan to really future-proof your strategy. And with the current economy, budgets need to be spent more wisely than ever.

LTK recently conducted two studies to better understand Gen Z shopping habits and key characteristics to help brands make more informed decisions. Below are some of the key findings:

Economic Impact
Gen Z is the least impacted by inflation and has a more positive financial outlook.

• 86% of Gen Z report their household income has stayed the same or improved versus last year
• 58% are still watching their finances more closely vs. 64% for general population
  
  

Mobile Shopping and Social Channel Usage
Gen Z is influenced more than any generation through content on social media.

• Mobile shopping and social channel usage is highest among Gen Z
• Gen Z shops on their phones 12% more than the general population
• 71% of Gen Z shop from influencers - that’s 40% higher than the general population

Creator Influence
Creator is the most trusted digital media for Gen Z

• 90% of Gen Z follow Creators on social channels, with top social networks for following Creators being Tiktok, Instagram and YouTube
• Gen Z trusts Creators more than any other digital placement, outranking social media sponsored ads and celebrity posts
• Creators are a top 3 reason they visit social media
  
  

Video Content
Gen Z has shown short-form video is here to stay

• 99% of Gen Z watch video on social media, with top channels being YouTube, TikTok and Instagram
• Gen Z spends the most time consuming social video on Instagram, Facebook, TikTok and YouTube
• On LTK, video campaign content drives a 50% higher engagement rate than static content
  
  

Understanding Gen Z consumers can help your business create an optimal strategy for 2025. Click here to watch LTK’s Gen Z Shopper Whitepaper and check out our Ultimate Guide to Influencer Marketing for Retail Brands for even more insights now!

Interested in joining LTK, the #1 Influencer Marketing platform? Contact us today.

This post was originally published in November 2022 and updated in January 2025.