Is Gen Z really the ultimate ad-skipping generation? While 99% of 16-24 year olds reportedly hit “skip” whenever they can, it would be lazy to dismiss this elusive cohort with the thinking that they won’t engage with advertising at all. Though notoriously difficult to reach, are Gen Z really, truly put off by ads altogether, or should marketers be digging a little further in order to find out what’s really going to spark a connection? At ZBD, we recently surveyed 2,000 US Gen Z gamers to get the scoop on their likes and dislikes, and what they really think about brands, influencers and emerging technology. The results might surprise you…..

43% of Gen Z find ads in games so disruptive that they ruin the experience

However, this isn’t to say that it puts them off ads all together. What we have found when it comes to this digital native generation is that, while they have strong beliefs and values, they’re open to trade-offs when they see clear benefits. For example, Gen Z desires transparency, fairness, and agency in their digital interactions. So, when there is the possibility to balance disruption with direct rewards structures that compensate them for their time, ads are better received.

This concept is something that is already established in gaming with rewarded ads. 50% of Gen Z respondents said that ads are a little annoying but tolerable in free games. This model extends further and is even more effective when rewards go beyond in-game content. A number of companies now offer gift cards and other real-world rewards. In ZBD’s case, this is Bitcoin, and our survey identified that 47% of Gen Z believe that “Bitcoin is real money” and 74% would actually be more open to ads in games if rewarded with Bitcoin.

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Julia Spinola, Game Developer, Co-Founder Beyond Tomorrow Studios, provides some interesting insights when it comes to Gen Z and advertising. “Having grown up alongside technology, Gen Z has a unique relationship with gaming and marketing. Much like other generations, they do not want their gaming experiences interrupted. However, Gen Z is more eager to accept emerging technologies and more receptive to ads when incentivized with rewards like Bitcoin. This is reflected in my own observations about Gen Z, who have a higher likelihood than previous generations to be willing to spend on games.”

What marketers can learn from gaming

Sure, ads have historically been seen as annoying. But they don’t have to be! One of our partners, AdInMo has been focused on non-intrusive in-play gaming ads for years – think banners alongside a racetrack. Now, they use ZBD to make ads more than just unintrusive, but actually desirable, since they pay players actual Bitcoin just for seeing something that isn’t interrupting their experience in any way. This helps not only with ad viewability but is a tool for increasing engagement as rewards are granted during active gameplay, while players are engaged in activity that they would be doing anyway, rather than directly as a result of watching an ad.

The success of combining real-money rewards with ads extends beyond gaming, and even beyond mobile. There are a couple of innovators already shaking up traditional models by fusing real-time payouts into adtech. Slice is a browser extension that allows you to opt-in to view ads as you browse the web, but these ads pay you real-money rewards for each impression. Interestingly, Slice ads even work when the user is using an adblocker, proving that it’s not ads themselves that are the issue, but the value exchange on offer.

Key tactics for Marketers looking to engage Gen Z through Ads

1. Innovative Engagement

Gen Z’s dislike for traditional ads is due to their lack of innovation. They are not inherently against ads; they want ads that don’t disrupt their experience or offer something of value in return.

2. Rewards Based Incentives

Gen Z is comfortable with emerging tech and more willing to accept ads if there’s a tangible reward like gift cards or Bitcoin. These rewards don’t have to be huge to have a huge impact – but can be saved up over time or cashed out in small amounts with tech like ZBD.

3. Authenticity and Relatability

Gen Z doesn’t like bait and switch. Offering rewarded ad formats? Be clear on how much engagement is needed to unlock certain amounts of rewards, and how they can be withdrawn.

4. Non-Intrusive Ads

These ads don’t interrupt the user experience in any way, you’re just seeing them naturally as you play or browse. Typically these ads haven’t been considered for rewards for that very reason, but integrating them is doubly powerful, not only incentivising eyeballs but building goodwill too.

5. Branded Experiences

When is an ad not an ad? Well when it’s an entire virtual world or customisable character or experience. Brands are increasingly seeing the value in creating branded games (think Nikeland on Roblox) and avatars as a way to engage with Gen Z where they are spending so much of their time, uninterrupted and tapping into the much loved trend for personalization with branded skins or customizable accessories.

Gen Z doesn’t need to hate ads, but engaging them requires a shift from traditional advertising to more innovative, rewarding, and culturally relevant approaches. By understanding and adapting to their preferences, including looking at gaming as a very relevant piece in the broader omnichannel strategy,  marketers can create more effective campaigns that resonate with this dynamic generation. For brands and advertisers to truly make an impact when it comes to Gen Z, it’s time to turn traditional advertising models on their head.

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