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Insight of the Day: Study Finds Gen Z Sceptical Of Personalisation

Writer's picture: InsightTrendsWorldInsightTrendsWorld

Why is it Trending?

The topic is trending because it challenges the widely held belief that personalization is key to engaging Gen Z. The study reveals that Gen Z actually prefers personal recommendations over algorithmic ones and values authenticity, transparency, and real-life experiences more than hyper-personalization. This counter-intuitive finding is significant for brands and marketers targeting this crucial demographic.

Overview

A study by Connect by Live Nation surveyed 4,656 Australians, including 1,217 Gen Z consumers, and found that Gen Z is skeptical of personalization. They prefer personal recommendations, value "realness" and "authenticity," and prioritize transparency from brands. Despite being digital natives, they crave "In Real Life" (IRL) experiences, especially those related to music, and are driven by nostalgia and a need for connection.

Detailed Findings

  • Preference for Personal Recommendations: Two-thirds of Gen Z prefer personal recommendations for music, fashion, and culture over algorithmic suggestions.

  • Value Authenticity and Realness: 86.2% of Gen Z cite "realness" and "authenticity" as most important in their lives.

  • Low Brand Trust: Only one in four Gen Z consumers trust brands.

  • Transparency is Key to Trust: 58.2% believe "transparency" (in production, pricing, sourcing) is the most important attribute for brand trust, followed by "authenticity" and "consistency."

  • Musicians as Role Models:  Gen Z trusts musicians more than any other generation, after family and friends.

  • Craving IRL Experiences: 92.3% of Gen Z desire "In Real Life" experiences, particularly around music.

  • Music Central to Identity: 87.9% say music shapes their identity and helps them navigate life's uncertainties.

  • Gen Z Superfans: 67% identify as "superfans" of music genres like country, Asia Pop, and musicals, seeking deep connection and shared experiences within these communities.

  • Welcome Brand Support in IRL: Gen Z welcomes brand involvement in live experiences if it's functional (charging stations), experiential (activations), or offers practical benefits (presale tickets) and sustainability efforts.

  • Nostalgia Trend: 93.5% of Gen Z seek "comfort and connection" in nostalgia, even for eras they haven't lived through.

Key Takeaway

The key takeaway is that authenticity, transparency, and real-life experiences are more effective in engaging Gen Z than hyper-personalization and algorithmic targeting. Brands need to prioritize building trust through genuine actions and facilitating real-world connections, especially around shared passions like music.

Main Trend

Gen Z Authenticity Over Personalization.

Description of the Trend (Gen Z Authenticity Over Personalization)

This trend describes Gen Z's growing skepticism towards hyper-personalization and algorithmic recommendations. Instead of valuing tailored digital experiences, they prioritize authenticity, transparency, and genuine human connection. This generation seeks "realness" in brands and experiences, preferring personal recommendations and valuing brands that are transparent, consistent, and true to their values.

What is Consumer Motivation?

Consumer motivation for Gen Z is rooted in a desire for genuine connection and trust in a digital and often overwhelming world. They are motivated by a need to discern what is real and authentic amidst constant online noise and curated online personas. They seek brands and experiences that feel trustworthy and transparent, not just personalized to their data profile.

What is Driving the Trend?

This trend is driven by:

  • Digital Overload: Gen Z, as digital natives, are experiencing digital fatigue and skepticism towards overly curated online experiences and algorithms.

  • Privacy Concerns:  Growing awareness of data privacy and algorithmic manipulation may be contributing to distrust in personalization.

  • Desire for Real Connection: In a digitally connected but often isolating world, Gen Z craves genuine human connection and real-life experiences.

  • Value of Authenticity:  Gen Z highly values authenticity and can easily detect inauthenticity or "corporate speak," leading them to favor brands that are transparent and genuine.

  • Influence of Role Models:  Gen Z places high trust in figures like musicians, who are often seen as authentic voices, further reinforcing their preference for personal recommendations.

What is Motivation Beyond the Trend?

Beyond the immediate trend, the underlying motivation is Gen Z's search for meaning and stability in an uncertain world.  As the "most anxious generation," they seek comfort and connection, often turning to nostalgia and shared experiences as anchors. Authenticity and transparency become crucial for building trust and navigating this uncertainty.

Description of Consumers Article is Referring To

The article refers to Australian Gen Z consumers, specifically:

  • Age:  Gen Z (born approximately between 1997 and 2012, though the article doesn't specify the exact age range used in the study).

  • Gender: Not specified in the article, assumed to be a representative sample of Gen Z across genders.

  • Income: Not specified in the article, assumed to represent a broad range of income levels within the Australian Gen Z demographic.

  • Lifestyle: Digital natives, active on social media, value music and culture, seek IRL experiences, and are described as "anxious but optimistic" ("Poptimistic"). They are "superfans" of various music genres and seek community and connection.

Conclusions

The study concludes that brands seeking to connect with Gen Z must prioritize authenticity, transparency, and real-life experiences over hyper-personalization.  Building trust through genuine actions, transparent communication, and facilitating real-world connections, especially around shared passions like music, is crucial for long-term engagement and loyalty with this generation.

Implications for Brands

  • Re-evaluate Personalization Strategies: Brands should move beyond purely algorithmic personalization and focus on building genuine connections and transparent communication.

  • Prioritize Authenticity and Transparency:  Be transparent about sourcing, pricing, and production processes. Stay true to brand values and avoid chasing trends superficially.

  • Invest in IRL Experiences: Create and support real-life experiences, especially around shared passions like music and culture, where Gen Z can connect with brands and each other authentically.

  • Leverage Trusted Voices: Partner with authentic voices and role models that Gen Z trusts, such as musicians, for genuine endorsements and collaborations.

  • Focus on Community Building: Facilitate community and shared experiences around brand values and interests.

Implication for Society

This trend signals a potential shift away from purely digital and algorithm-driven interactions towards a greater appreciation for authenticity and real human connection in society. It suggests that even digital natives recognize the limitations of hyper-personalization and crave genuine experiences. This could lead to a re-evaluation of online interactions and a renewed focus on real-world communities and relationships.

Implications for Consumers

For Gen Z consumers, this means empowerment in demanding more authenticity and transparency from brands. It also reinforces the value of real-life experiences and personal recommendations over algorithmic suggestions. This trend could lead to a more conscious and discerning approach to brand engagement, prioritizing genuine connections over superficial personalization.

Implication for Future

In the future, we can expect to see a blend of digital and real-life strategies from brands targeting Gen Z. Personalization will likely become more nuanced, focusing on providing relevant and helpful experiences without feeling intrusive or inauthentic. Brands that successfully integrate genuine human connection and transparency into their strategies will be best positioned to resonate with Gen Z and build lasting loyalty.

Consumer Trend

  • Name: Authenticity-Seeking Gen Z

  • Detailed Description: Gen Z consumers are actively seeking authenticity and transparency from brands and experiences. They prioritize "realness" over curated perfection and value brands that are genuine, transparent in their practices, and consistent in their values. They are skeptical of superficial personalization and prefer genuine human connection and recommendations.

Consumer Sub Trend

  • Name: IRL Experience Preference

  • Detailed Description: Despite being digital natives, Gen Z strongly prefers "In Real Life" (IRL) experiences, especially those centered around shared passions like music and culture. They see IRL experiences as more valuable for building genuine connections and community than purely digital interactions.

Big Social Trend

  • Name: The Authenticity Movement

  • Detailed Description:  A broader societal shift towards valuing authenticity and transparency in all aspects of life, from personal relationships to brand interactions. This movement is driven by a desire for genuine connection and trust in an increasingly digital and often inauthentic world.

Worldwide Social Trend

  • Name: Global Distrust of Algorithms

  • Detailed Description:  A growing global skepticism towards algorithms and purely data-driven personalization. Consumers worldwide are becoming more aware of the potential biases and limitations of algorithms and are seeking more human-centric and transparent approaches to technology and brand interactions.

Social Drive

  • Name: Need for Trust and Real Connection

  • Detailed Description: The fundamental social drive is the human need for trust and genuine connection. In an age of digital overload and potential misinformation, this need becomes even more pronounced, driving consumers to seek out authentic brands, experiences, and relationships they can trust.

Learnings for Brands to Use in 2025

  • Humanize Brand Interactions: Focus on human-to-human connection rather than algorithm-driven interactions.

  • Show, Don't Just Tell Authenticity:  Demonstrate authenticity through transparent actions and consistent values, not just marketing slogans.

  • Facilitate Real-World Communities:  Invest in creating and supporting IRL experiences that foster community and shared passions.

  • Partner with Authentic Voices: Collaborate with individuals who genuinely resonate with Gen Z values and are seen as authentic role models.

  • Embrace Imperfection:  Authenticity includes acknowledging imperfections and being transparent about challenges and processes.

Strategy Recommendations for Brands to Follow in 2025

  • Transparency Initiatives: Implement transparent practices across supply chains, pricing, and sourcing, and communicate these clearly to consumers.

  • IRL Experiential Marketing:  Develop and invest in real-life events and activations that align with Gen Z passions, particularly music and culture.

  • Authentic Influencer/Musician Partnerships: Collaborate with musicians and influencers known for their authenticity and genuine connection with their audience, rather than solely for reach.

  • Community-Building Programs: Create platforms and initiatives that foster real-world community and shared experiences among Gen Z consumers.

  • Human-Centric Digital Interfaces: Design digital interfaces that prioritize human connection and transparency, even within personalized experiences.

Final Sentence (Key Concept)

In 2025, genuine connection, transparency, and authentic real-life experiences will be more critical for brands engaging Gen Z than hyper-personalization.

What Brands & Companies Should Do in 2025 to Benefit from Trend and How to Do It

Brands should shift their focus from aggressive personalization to building trust and authenticity to benefit from this trend in 2025. Here’s how:

  • Invest in Transparency Marketing:  Actively communicate transparently about your brand's values, sourcing, production processes, and pricing. Use content marketing, social media, and website updates to showcase your brand's "realness."

  • Create Authentic IRL Experiences:  Sponsor or host events, particularly in music, arts, and culture, that facilitate genuine human connection and shared experiences. Design these events to be participatory and community-focused, not just brand-centric.

  • Develop Human-First Customer Service:  Prioritize human customer service interactions over purely automated systems. Train customer service teams to be empathetic, transparent, and empowered to resolve issues genuinely.

  • Partner with Micro-Influencers and Musicians: Collaborate with smaller, more authentic influencers and musicians who have genuine connections with Gen Z audiences, rather than solely focusing on mega-celebrities.

  • Co-create with Community: Involve Gen Z consumers in brand initiatives and product development. Seek their input and feedback genuinely, and co-create experiences and products that reflect their values.

Final Note:

  • Core Trend:

    • Name: Authenticity Trumps Algorithmic Personalization

    • Detailed Description: Gen Z increasingly values genuine brand authenticity, transparency, and real-life experiences over hyper-personalized, algorithm-driven marketing and interactions.

  • Core Strategy:

    • Name:  Human-Centric Brand Building

    • Detailed Description: Brands must prioritize building human connections, demonstrating transparency, and fostering real-world communities to resonate with Gen Z.

  • Core Industry Trend:

    • Name:  Experiential & Authentic Marketing Rise

    • Detailed Description: The marketing industry is shifting towards experiential and authentic strategies that emphasize real-life engagement and genuine brand values over purely digital and personalized campaigns.

  • Core Consumer Motivation:

    • Name: Trust and Genuine Connection

    • Detailed Description: Gen Z consumers are primarily motivated by a need for trust and genuine connection in their interactions with brands, seeking authenticity and transparency in an often overwhelming and digital world.

  • Final Conclusion:  The shift away from personalization and towards authenticity represents a fundamental change in how brands must engage with Gen Z, requiring a focus on genuine values, transparent practices, and real-world connections to build lasting loyalty.

  • Core Trend Detailed (Words on Core Trend): Authenticity-driven, transparency-focused, real-life experiences, human connection, personalization skepticism. Gen Z's core trend is a decisive shift towards authenticity and transparency, overshadowing the appeal of algorithmic personalization. They are skeptical of overly tailored digital experiences, instead valuing brands that demonstrate genuine values and consistent actions.  This generation prioritizes real-life experiences and human connection, seeking brands that are transparent in their practices and foster trust.  They are driven by a desire for "realness" and authenticity in a digital world often perceived as curated and artificial, making genuine connection and transparency key for brand engagement.

The "Gen Z Authenticity Over Personalization" trend will significantly impact the entertainment industry:

  • Live Experiences Boom: Expect a surge in demand for authentic, real-life music events and festivals, as Gen Z craves IRL connections.

  •   Authentic Artist Partnerships:  Musicians prioritizing genuine engagement and transparency with fans will thrive. Superficial celebrity endorsements will lose

  • Curated, Human-Led Content: Streaming services need to balance algorithms with human-curated playlists and shows that feel less automated and more genuinely recommended.

  • Transparency in Media:  Entertainment media will be scrutinized for authenticity. "Realness" in reality shows and artist portrayals will be paramount.

  • Nostalgia Marketing:  Nostalgia will be a powerful tool, but must be genuinely and respectfully integrated, not exploited.

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