Spotify released their second annual report, Culture Next: Global Trends Report 2020, and after going through the US and Canadian versions, I actually felt hopeful. According to Spotify, 62 percent of Gen Zs are ready to rebuild society from the ground up, and 65 percent plan to be their own boss. And while those are the two main stats they’ve highlighted on their website, there are a lot of insights within the report that are worth the consideration of anyone who is building, or looking to build, a company or product.
The 26-page report focuses on Gen Z (15-25) and millennial (26-40) behavior within the audio space and culture at large. It’s available for free on their website, as long as you provide some basic contact info. They used their own analytics, as well as conducted interviews and surveys with participants in 11 different countries.
It’s important to remember that the insights from this particular study may not be reflective of long-term trends. This year has been unlike any other in recent history. From a pandemic that has not only killed more than one million people globally and created a sharp political divide, to a wave of police brutality and subsequent Black Lives Matter protests, to the upcoming presidential election. And it’s been happening all at once. 2020 has completely changed how we interoperate, both physically and digitally. Innovation has been extremely focused this year to better help us adapt to this new normal, largely as it relates to remote work and school. Of course, there may be long term structural change that stays with us long after COVID-19 passes, whenever that may be, but it’s still too early to tell what exactly that will look like. With that disclaimer, let’s get into it.
Education
TL;DR: They are reconsidering college entirely
From student loan debt to wariness of big institutions, many Gen Zs and millennials feel that traditional higher education is no longer relevant. According to a 2019 TD Ameritrade study, the US, a whopping 89 percent of Gen Zs considered an education plan that didn’t involve a four-year degree after high school. In Canada, the number is much lower, but still 42 percent of Canadian Gen Zs are considering the same.
The cost of education differs pretty substantially between the two countries. As does student debt: In Canada it has topped $28 billion, while the US has reached $1.56 trillion. But the individual student loan debt is pretty similar with the average Canadian owing $28,000 and the average American owing $32,000.
A lot of lessons, by pure trial and error, will come out of this year’s remote learning set up. But it is safe to assume that with the advancement of online learning options and opportunities, we’ve already proven that full time physical presence, and prices for that matter, are no longer seen as the only way to learn.
The typical workforce and roles don’t interest them either. In July, more than half said they are more inspired to start a business post pandemic and 65 percent said they plan to be, or already are, their own boss. This is interesting when considering that bankruptcy rates have soared in the US post COVID and are on track to reach a 10-year high. Starting a business vs building a profitable and scalable one are, of course, two very different things. Not getting a four-year degree, and thus none of the associated debt, could give Gen Zs and millenials more financial freedom to start a company, but it also doesn’t guarantee they will have the necessary training and skills to make it a successful one.
Spotify’s Brand Takeaways
Most Gen Zs love understanding how ideas are born (90 percent in the US, 88 percent in Canada), and doing so makes them feel a part of the creative process.
- Speak to aspiring entrepreneurs
- Build campaigns around creators
- Get creative with audio
E&A Thoughts
According to Spotify, millennials make up 70 percent of the audience for podcasts like StartUp. For established brands, consider ditching social media ads, and focus on audio podcast ads. For those not looking to be their own boss, building out a more comprehensive ambassador type of training that sets them on a career path could completely change recruitment efforts.
Family-Focused Audio
TL;DR: Families want less screen time, but not less audio
This section was interesting. According to Spotify, there has been a 263 percent increase in Gen Z and millennials listening to kid-friendly and family podcasts on smart speakers. The pandemic, and government-mandated stay at home orders, unsurprisingly meant that they saw an increase in all playlist streams. For parents who turned into homeschool teachers overnight, leaning on smart speakers and virtual assistants makes total sense.
Spotify Free users who have children in the home are 94 percent more likely to listen on speakers compared to those without children, and that same group hit 21 million monthly minutes of family and parenthood playlist listening.
Parents (70 percent in Canada, 84 percent in US) said that technology has fueled their family’s discovery, though they didn’t really elaborate on what the word discovery means here. Parents see music as a way to bond their children (82 percent in Canada, 84 percent in the US) and Gen Zs say listening to their parents’ music gives them a better sense of who their parents are (60 percent in Canada, 70 percent in the US).
Spotify’s Brand Takeaways
Brands need to be considering audio in their marketing efforts. Specific tasks or moments like teeth brushing, dinner time or car rides can help guide new brainstorming ideas for ways to connect to your audience.
- Join the family
- Engage the theatre of the mind aka use audio in ways you can’t with video
- Find a distinctive voice
E&A Thoughts
Reconsidering some of your key personas as parents—and understanding that they are likely to be listening with kids present—could hugely increase your reach and success within some of those groups. While I’ve always considered parenthood as an element to highlight in individual personas, it’s the listening in front of kids that changes that specific sociographic, or the job to be done, point dramatically.
Community
TL;DR: Niche is in
The kids are embracing their inner weird and proudly identify as “weirdos” (more than half of Canadians and 69 percent of Americans). And while the definition of that word and why they’re classifying themselves as such is vague, niche interests could be the way to connect with younger audiences. When looking at self-discovery specifically, Gen Zs and millennials said it’s easier to feel connected to a community today because of digital platforms (71 percent in Canada, 70 percent in the US), and that music (65 percent in Canada, 76 percent in the US) and podcasts (71 percent in Canada, 68 percent in the US) fuel their self-discovery.
Spotify’s Brand Takeaways
Brands that help young people celebrate their unique identities are poised to create thriving communities.
- Tune into new targeting
- Live in the moment
- Reach passionate communities
E&A Thoughts
We’ve already told you to get as specific as possible with your personas, but include subgenres into these. If you’re not sure where to start, include your own niche interests or those of people on your team. It may not feel relevant at first, but cast a wide net and see what sticks. If you, or a colleague or employee, are passionate about something that is likely to influence your work in some way and some of your audience may already be picking on up that or have been led to you specifically because of it, whether or not you’ve considered it at all. We’ll go a bit deeper into this in the section below.
Purpose, Not Product
TL;DR: If you talk the talk, you need to walk the walk
George has been preaching this gospel for a long time, but he is by far no longer the only one. When Spotify asked Gen Zs and millennials what they want to see out of brands, 92 percent of Canadians and 93 percent of Americans chose “purpose” over “politics.” That’s not to say you can’t have a politically focused purpose, but they will want to see action.
According to the report, GoFundMe saw 14,000 small-business relief campaigns by late March. That same month, more than 30,000 creators joined Patreon and fans showed up to support creators directly. The status quo doesn’t include them, so Gen Zs and millennials aren’t interested in continuing it. Remember, 62 percent of Gen Zs are ready to rebuild society from the ground up. They are ready to work, and you better be too.
Spotify’s Brand Takeaways
Increase transparency into your business practices to show your communities what you stand for but beware, this generation knows how to spot a faker.
- Support movements, not moments
- Walk the walk
- Pass the mic
E&A Thoughts
This isn’t a new concept for us, and is an extension of the niche is in point above. All of the GHS models, and specifically Mirror of Desire, have long encouraged companies to focus on their purpose, not their product. By clearly defining this, an idealized version of your values will be reflected in your customers or audience as well. This year has put a lot of companies to the test—whether politically, racially or environmentally— people are looking for brands to speak up and take action. Posting a black square on social media isn’t enough, and hollow performative actions like that with nothing to back them up are easily exposed. Cancel culture, for better or worse, likely isn’t going anywhere; so define what matters to you, stick to it, and as Spotify says walk the walk.
Smarter Sound
TL;DR: Sound is so much more than noise
Being a young adult at the best of times is difficult, being a young adult today is a whole different story. When Spotify asked Gen Zs and millennials which qualities make sound most powerful, emotional, therapeutic and personal were their top choices. This supports their conclusion that sound is the most human of technological mediums. And honestly, I couldn’t agree more.
Podcasts have become a place to stay informed for 53 percent of Canadians and 54 percent of Americans, but they’ve also become an important medium for self care and mental health and wellness. One in five Canadians and one in four Americans listen to mental health-related podcasts.
Spotify’s Brand Takeaways
Streaming audio doesn’t just reach listeners in screenless moments; it allows brands to connect in far more personal contexts.
- Talk to your customer
- Soundtrack screenless moments
- Expand your reach with audio
E&A Thoughts
Whether or not we always accomplish it, we try to use the E&A podcast as a way to inform and educate our listeners about things we think can add value to their lives; we also just like talking about the things that matter to us. Whether it’s books or resources that have helped us in tough times or talking about the destigmatization of mental health or sexuality, the podcast for us is a way for our listeners to get to know us, and our values, on a much deeper level. We’ve definitely seen adding audio, in our case the podcast, as a way to reach a wider audience and connect with people about a broader range of topics than what we may choose to write about. Also, we just have a lot of fun doing it. Are there too many podcasts out there today? Probably. But it brings us joy, and if you can find that in your own work, why not just go for it?
Final Thoughts
Spotify closes their report with one final stat: 80 percent of people surveyed in July—which was still very much a time of heightened COVID stress, if not full social isolation—remain hopeful that this year will bring change for the better.
The only thing that I can add to that, is to encourage you to remember it. The next time you have a moment where you find yourself wondering what it’s all for, remind yourself that the world is filled with all kinds of people who know and believe that things can get better.
If you want the full report, you can download it on Spotify’s website. You’ll find the American version here and the Canadian here.
Photo by C D-X on Unsplash
