At Smithfield Agency, we’ve long believed that insight must drive action when it comes to marketing campaigns, especially when targeting a complex and evolving audience like Gen Z. Blindly targeting this group without a thorough understanding of their behavioural economics can lead to wasted resources and missed opportunities. We’ve seen firsthand how research and insights shape successful campaigns and dramatically improve effectiveness.

Our gold-winning campaign for Hospitality Rising is a prime example of this. We tackled the industry’s staff shortage crisis by focusing on what truly mattered to Gen Z – excitement, growth, and a fast-paced career. By leaning on insights and connecting with their values, we reached 50% of all 16 to 30-year-olds in the UK and generated 130,000 job applications.

So, what’s really going on with Gen Z? Sarah Coften and Garett Farell, Directors at Smithfield Agency, discuss the importance of understanding your audience and the nuances in their behaviour from a strategy and planning perspective.

The FOMO factor: Why Gen Z can’t log off

Many of us assume that Gen Z’s heavy use of social media is a sign of addiction or, at the very least, obsession. However, research shows that for a significant portion of this group, it’s not about love, but rather a fear of missing out (FOMO). Social media has become the modern-day town square, and opting out can feel like social isolation or self-sabotage.

Even those who find social media toxic continue using it to stay connected, informed, and relevant. It’s a digital necessity for maintaining friendships, networking, and staying current with trends.

Marketers must understand this nuance. While social media platforms provide endless opportunities to reach Gen Z, there’s a growing awareness within the generation that these platforms come with emotional baggage. For brands, this means crafting authentic, meaningful messages that offer value beyond the superficial dopamine hit of likes and shares.

The mental health toll

More concerning than just the time spent on these platforms is the effect they have on mental health. Over one-third of Gen Z respondents in a new study reported that social media has negatively impacted their emotional well-being, with a disproportionate effect on women and LGBTQ+ individuals. Issues such as body image distortion, anxiety, depression, and sleep deprivation have become widespread, partly fuelled by the constant exposure to unrealistic standards and addictive algorithms.

What does this mean for brands? There’s an opportunity here for responsible marketing. Brands that can show genuine care for the mental well-being of their audiences, and adopt non-exploitative engagement tactics, will find themselves resonating more deeply with Gen Z.

The role of behavioural economics in targeting Gen Z

Behavioural economics offers valuable insights into how Gen Z makes decisions, providing a framework for advertisers to influence their decision-making processes effectively. By understanding the key principles, brands can better align their strategies with Gen Z’s unique values and behaviours.

Here’s how behavioural economics applies to Gen Z audience targeting:

• Loss Aversion: Gen Z is particularly sensitive to FOMO (fear of missing out). Advertisers can tap into this by creating limited-time offers or exclusive content, emphasising scarcity in product availability, or highlighting potential losses from not engaging with a brand or product.
• Social Proof: Peer opinions and influencer recommendations are crucial for Gen Z. Showcasing user-generated content, partnering with micro-influencers, and emphasising positive reviews can enhance credibility and trust.
• Choice Architecture: Simplicity and efficiency matter to Gen Z. Offering clear, concise options, using default settings that align with their preferences, and providing easy comparison tools will help streamline their decision-making.
• Present Bias: Gen Z prioritises immediate gratification. Offering instant rewards or benefits, highlighting quick delivery, and creating urgency with time-limited promotions are effective tactics.
• Framing Effect: The way information is presented significantly impacts Gen Z’s perception. Frame messages positively, focus on gains, use visually appealing formats, and align messaging with their values such as sustainability and social justice.
• Anchoring: Gen Z’s perception of value can be influenced by initial information. Strategic pricing, comparison pricing to highlight savings, and anchoring brand messaging around key values important to Gen Z will resonate more effectively.
• Reciprocity: Gen Z appreciates brands that give back. Offering free trials, providing valuable content, and highlighting a brand’s social or environmental initiatives can foster a sense of reciprocity.

By applying these principles, advertisers can create more effective campaigns that connect deeply with Gen Z, aligning with their decision-making processes and values.

The power of DE&I in marketing

Alongside these shifts, one theme gaining importance across generations, but particularly with Gen Z, is diversity, equity, and inclusion (DE&I). Inclusive marketing isn’t just about representation; it’s about creating positive environments and embracing sustainable practices that resonate deeply with diverse audiences.

“Attending the Creative Equals RISE 24 conference earlier this year reaffirmed the power of DE&I in driving not only better representation but also stronger results. When brands weave inclusion into their strategies with compassion and authenticity, it enhances the emotional connection with audiences, especially underrepresented ones. This isn’t just about being ‘woke’ — it’s about fostering trust, loyalty, and long-term brand growth. Inclusive campaigns can have a tangible impact on ROI because they speak to a broader set of needs and values, creating deeper resonance across the board.” — Sarah Coften, Head of Innovation and Digital Strategy

The RISE 24 event also highlighted that successful brands consider both inclusion and the broader cultural impact of their campaigns. Compassionate, thoughtful marketing practices that address mental well-being, inclusive representation, and socially responsible narratives are no longer optional — they are essential for building sustainable relationships with consumers.

The takeaway for brands

If you’re a brand looking to engage with Gen Z, here’s what you need to know:

• Challenge Your Assumptions: Don’t assume that heavy social media use means a deep connection with these platforms. Gen Z is savvy, sceptical, and increasingly aware of the emotional and mental toll social media can take.
• Offer Authenticity: This generation values genuine connections. Brands that push authenticity, transparency, and real value in their messaging will cut through the noise.
• Mental Health Matters: Be part of the solution. Avoid manipulative marketing tactics that exploit FOMO or create unrealistic standards. Instead, champion well-being and positivity in your campaigns.
• Be Open to Change: With nearly half of Gen Z calling for reforms to the very platforms they use, brands should be prepared to adjust strategies as new regulations come into play. It’s not just about reaching them where they are but doing so in a way that feels responsible and forward-thinking.
• Embrace DE&I: Brands that commit to diversity, equity, and inclusion in a meaningful way will find themselves at an advantage. Creating campaigns that are inclusive, compassionate, and respectful of diverse audiences not only builds brand equity but can positively impact your bottom line.

“We can’t assume that every audience responds to media the same way. With Gen Z, for example, you might expect them to embrace social media wholeheartedly, but the reality is more complex. Our role as planners is to dig deeper, understand these nuances, and shape strategies that respect what different audiences truly want — not what we assume they want.” Garett Farell, Head of Planning

Conclusion: Navigating the new digital reality

Gen Z is not the social media-obsessed generation many marketers assume them to be. While platforms like Instagram and TikTok are central to their social lives, the growing sense of regret and dissatisfaction should serve as a wake-up call for brands. By focusing on meaningful, ethical engagement, brands can build trust with this influential generation while contributing positively to the conversation about social media’s future.

Moreover, the future of marketing depends on the commitment to diversity and inclusion — not only for ethical reasons but because it makes business sense. A more inclusive approach, backed by thoughtful representation and compassionate marketing, is the key to building sustainable relationships in an increasingly conscious and complex marketplace.

To talk to Sarah and Garett about how to reach your audience with the most up-to-date media strategy and planning, get in touch with us today.