October 5, 2022
October 5, 2022
Snapchat Generation Economic Pulse
New research explores Gen Z and Millennials' attitudes and behaviors in the current economy.
In today’s economic climate, consumers across America are facing two opposing interests as they prioritize where to spend their income — they’re aiming to save money while still enjoying life. Although 85% of consumers are stressed about the economic challenges ahead, 69% feel that, with the global pandemic, they missed out on a lot over the last few years and need to make up for lost time.1 Gen Z in particular is focused on living life to the fullest and is less concerned about the impact of the economic climate on their lives.2
But, with shifting priorities and an evolving economic environment, life looks different than it used to. Consumers are in search of stability, comfort, and reassurance — and connecting with friends and family is what they turn to first. Snapchat is the ideal space for connection when these consumers need it most, with Snapchatters ranking the platform as the #1 place that enables them to feel more connected to friends and family when they’re going through challenging times.3
However, it’s not just close relationships that matter: Nearly 90% of consumers say they value brands that provide them with a sense of comfort, security, and trust.4
Currently, consumers’ number one concern is rising costs. And while they may be spending more cautiously, it hasn’t stopped them from spending on what’s important to them — with Snapchatters taking the lead. 90% of consumers are prioritizing their must-haves, including small treats, health and wellness products and activities, and creative hobbies and outlets. And 51% of Snapchatters are still spending the same amount or more on major splurges.5
As consumers decide where to spend, brands can build more meaningful connections with their audiences by providing products, services, and more that meet consumer needs. Building and maintaining brand loyalty is key — brands that adapt to these needs in times of uncertainty are poised to strengthen their consumer loyalty. Eight in 10 consumers say they consider themselves loyal to certain brands and feel so strongly about the brand that they would recommend it to others.6
We explored what drives consumers’ brand loyalty most, and 75% of consumers say they expect brands and companies to do more and show up for them during challenging economic times.7 Affordability, quality, and accessibility are the top factors driving loyalty. Providing offers and discounts and showing how products and services can last longer are also valuable to consumers. For Snapchatters in particular, innovative shopping solutions hold important value, with 80% of Snapchatters agreeing that AR makes the shopping experience easier8 — and that Snapchat is the #1 place where they engage with a brand that uses augmented reality.9
Despite current economic uncertainties, consumers are actively considering making major plans and purchases, offering brands a significant opportunity to establish deeper, long-lasting connections by appealing to their audience’s spectrum of needs. Brands that show up in a practical, meaningful way by providing quality products that last longer or fulfill multiple uses — while making it convenient and easy to access and purchase products — are the ones that will form lasting ties with consumers.
When brands help their audience feel more comfortable, consumers are more willing to spend money with that brand. And on Snapchat, these consumers feel comfortable authentically expressing themselves and connecting to those who are most important to them — and they see (and support!) brands on the platform doing the same. Right now, connection, innovation, and impact are key to consumers, and Snapchat is the ideal place for brands to reach them.
Snapchat can help your business grow.
Snapchat can help your business grow.
12022 NRG study commissioned by Snap Inc. | Base: Total (n=1,504) | Q: To what extent do you agree or disagree with the following statements?
22022 NRG study commissioned by Snap Inc. | Base: Younger Gen Zers (n=184), Older Gen Zers (n=279), millennials (n=754) | Q: To begin, please read each pair of statements and choose which you agree with more: “Right now, I am focused on living life to its fullest.” vs. “Right now, I am approaching life more cautiously.”
32022 NRG study commissioned by Snap Inc. | Base: Snapchatters (n=1,093) | Q: Which of the following platforms do you associate with each statement below? Please select all platforms that apply for each statement.
42022 NRG study commissioned by Snap Inc. | Base: Total (n=1,504) | Q: During challenging times, how valuable would it be to you if a brand were to do each of the following?
52022 NRG study commissioned by Snap Inc. | Base: Total (n=1,504) | Q: How are you or your family prioritizing spending in each area below? Please indicate if you feel each of the following is a “must have,” “nice to have,” or something you “could do without.”
62022 NRG study commissioned by Snap Inc. | Base: Total (n=1,504) | Q: Thinking about how you shop for brands right now, which of the following do you do?
72022 NRG study commissioned by Snap Inc. | Base: Total (n=1,504) | Q: Thinking about how you shop for brands right now, which of the following do you do?
82022 Ipsos Global Augmentality Shift Study commissioned by Snap Inc. | 2 Base Consumers: US AR users or future users (n= 1,251), Daily Snapchatters (n=578) | Q15. Which, if any, of these apps do you currently use? “Snapchat.” | Q36: One way AR could help you is by improving your shopping experience. Please tell us how much you agree or disagree that AR could assist you in the following ways. ‘AR makes the shopping experience easier’, ‘AR helps me shop in new and exciting ways‘ (NET: Strongly agree / Somewhat agree) | 1 Base Brands US: All US Brands n=214 | Q23, How much, if at all, do you agree or disagree with the following statements about Augmented Reality (AR). ‘AR offers engaging shopping opportunities’ (NET: Strongly agree / Somewhat agree).
92022 NRG study commissioned by Snap Inc. | Base: Snapchatters (n=1,093) | Which of the following platforms do you associate with each statement below? Please select all platforms that apply for each statement.