Episode Transcript:
Marcus Johnson (00:00):
This episode is brought to you by TikTok for Business. Brat summer is over, but TikTok for Business is just getting started. Whether your marketing goals are brands, performance or full funnel related, leverage TikTok for Business' insights to drive business growth. You can learn more at tiktok.com/business.
Paola Flores-Marquez (00:20):
We'd use our phones for everything. And so, it is caught a lot of consuming content and consuming social media, and keeping in touch with people. But it's also that, is that it's a tool. It's what we use to pay. It's what we use to check our finances. It's what we use to look up places to eat. It's what we use to order food, so it's hard to detach from that.
Marcus Johnson (00:44):
Hey gang, it's Monday, October 7th. Paola, Jenny, and listeners, welcome to Behind the Numbers daily, an eMarketer podcast made possible by TikTok. I'm Marcus. Today I'm joined by two people, both in New York. One of them is our demographics analyst, it's Paola Flores-Marquez.
Paola Flores-Marquez (01:02):
Hello, Marcus. Thank you for having me back so soon.
Marcus Johnson (01:05):
Of course. We're also joined by our vice president of All Things Research. It's of course, Jennifer Pearson.
Jennifer Pearson (01:13):
Hi there.
Marcus Johnson (01:14):
Hello. So today's fact, where do you think is home to the youngest legal driving age in the world?
Jennifer Pearson (01:14):
Ooh, the world?
Paola Flores-Marquez (01:14):
Yeah, that's hard.
Marcus Johnson (01:14):
The whole world.
Paola Flores-Marquez (01:26):
I want to say Mexico, because my friends were driving at 12, but-
Marcus Johnson (01:26):
12?
Jennifer Pearson (01:26):
12?
Paola Flores-Marquez (01:31):
I don't think it was legal. I think it was just a country thing.
Jennifer Pearson (01:35):
That's not even remotely legal. Oh my goodness.
Paola Flores-Marquez (01:37):
Hey, it's the middle of nowhere. You have to get around, and it's a farm.
Marcus Johnson (01:39):
Okay, that sounds like-
Jennifer Pearson (01:42):
Yeah, [inaudible 00:01:42]-
Marcus Johnson (01:43):
I know. There's other ways.
Jennifer Pearson (01:44):
Yeah, somewhere really rural. Yeah.
Marcus Johnson (01:48):
It is America.
Paola Flores-Marquez (01:49):
What?
Marcus Johnson (01:50):
South of Dakota is home to the youngest... Now, there is technicality here. But South Dakota is home to the youngest legal driving age in the world at just 14 and a half years old. You have to wait to 16 to get your full license, but you can get behind the wheel with your learner's permit, adult supervision, at the age of 14 and change. However, in El Salvador, you can obtain a full driver's license at the age of 15, making it the country with the youngest legal driving age in the world.
Jennifer Pearson (02:25):
All right, cool.
Marcus Johnson (02:27):
That's too young.
Jennifer Pearson (02:28):
Yeah.
Marcus Johnson (02:30):
12's insane, but that's too young. Although I was looking into it, not that I'm going to be getting into babysitting, but there's no legal limit. There's no legal minimum age to babysit in basically every U.S. state, [inaudible 00:02:45]. So, to take care of a human life, no age limit.
Paola Flores-Marquez (02:48):
Yeah, that makes sense. Lashki kids took care of themselves. What do we make babies for?
Marcus Johnson (02:52):
Makes sense. It is madness. What's happening? Come on America, pull yourself together. Anyway, today's real topic, how each generation spends their digital time. So Paola, you just put together some research on digital habits by generation, looking at where and how they are spending their digital time shopping, using social media, watching video, et cetera. So, we're going to go through each of them. Let's start with the youngest cohort, Gen Z. So roughly... Although Jenny, you did send this to me before the recording. I didn't look. 12 to 26?
Jennifer Pearson (03:32):
12 to 27. Yeah, we're typing 12 to 27. Close enough.
Marcus Johnson (03:36):
Okay, [inaudible 00:03:36] do. So, 12 to 27 is the age range for the Gen Z cohorts. Paola, start with you. What was the most interesting finding from this Gen Z generation regarding how their digital behavior is changing?
Paola Flores-Marquez (03:50):
I wouldn't say changing. Digital video's still their top habit.
Marcus Johnson (03:54):
Okay, how it currently is.
Paola Flores-Marquez (03:55):
I think the way... Yeah, so 96% of them engaged in digital video. What I do think is interesting about them is that there are little to no barriers between the type of digital video that they consume. They feed off of each other, whether it's social or long-form media. It's cyclical. So, 60% of Gen Z'ers prefer user-generated content. So, we're talking people made videos and reels and TikToks over subscription video on demand, according to Deloitte. And part of that is because overwhelmed by the choice. Having to look through all these catalogs, having to sit through Netflix for what's entertaining. And so, they rely on their algorithm to point them in the right direction, because the algorithm's tailor to their desires and needs and interests. And so yeah, you're getting fan cams, you're getting clips from shows, you're getting memes referring to something. So, it is a different way of engaging with that content than previous generations where it was very siloed.
Marcus Johnson (04:47):
And a lot of what we consume now is video. So, it's a greater share of the pie. Particularly social media, it's driven that. I think it was one third of content on social media was digital video, four or five years ago. Now it's two thirds. And so, you used to have user-generated content, and then you had more pily produced Netflix type, studio type content. And then you have all the stuff on social media, the short clips, the longer clips. And so, there's just so much video in the world that it's almost impossible to not consume it as a young person.
Paola Flores-Marquez (05:20):
It's super interesting too, because Facebook predicted that a couple of years ago. In 2013, '14, and they started pushing everyone to pivot to video, and then it didn't really work and it killed a lot of independent sites. And then, TikTok figured it out and Vine figured it out, and here we are today.
Jennifer Pearson (05:36):
Yeah, I think what's so interesting about this, I was reading an Ipsos study that a lot of the younger generation Gen Z, is watching these videos alone on their device. So on a mobile phone, an iPad, a tablet. And that has shifted how this younger generation is consuming content in relation to social. And I'm not saying social media, just our social morasing and collective viewing habits, and getting together. And as Paol mentioned, so much of it is quick clips and user-generated content. But it's so interesting to think of it as a solitary media activity.
Paola Flores-Marquez (06:18):
Yeah, it silos interest too. So, you don't really get that shared experience that you used to get from quoting, incrementing each other, but-
Marcus Johnson (06:27):
Yeah, it's a great point.
Paola Flores-Marquez (06:28):
Yeah, we talked to Hasbro a couple of months ago, having this conversation about how sometimes Gen Z'ers are looking for a communal experience, which is one of the reasons things like Barbenheimer was so big, because it was an opportunity to participate in these mass scale events that are community oriented and have very low [inaudible 00:06:44] to access. So yeah, definitely that's missing from the current environment.
Marcus Johnson (06:48):
Yeah, that's a great point. One thing quickly for me before we move on to the next generation was, you had in your research. This, stunning. Gen Z'ers spend an average of six hours and five minutes on their phone every single day. Now, what's really interesting about that figure is the context. So, six hours and five minutes is 32% more time per day than the average American at four hours, 37. It's also that six hours and change, is 74% more time than Boomers spend on their phones, which is people in their 60s and 70s. And that's already at three and a half hours per day. So, it's very high. Put another way, Gen Z spend close to two days per week looking at their phones. And that's according to a 2023 Harmony Health IT survey. Two of the seven. What's happening?
Paola Flores-Marquez (07:42):
Yeah. I don't know. That's the state of the... We use our phones for everything. And so, it is caught a lot of consuming content and consuming social media, and keeping in touch with people. But it's also that, is that it's a tool. It's what we use to pay, it's what we use to check our finances. It's what we use to look up places to eat. It's what we use to order food. So, it's hard to detach from that. And a lot of industries have gotten rid of ways to contact people outside of staring at your screen. I tried to call so many companies and I get automated formats or asked to [inaudible 00:08:15] an email. So, we are also being pushed into that. And for Gen Z'ers who don't have the context of what it was like to live in a world before that happened, that is the only way they see it to be possible to reach these places.
Marcus Johnson (08:27):
Yeah. Great take. Millennials, they're next. These folks are late 20s to early 40s, 28 to 40-
Jennifer Pearson (08:27):
Three.
Marcus Johnson (08:37):
Three. Yes. Thanks, Jenny. Jenny with the assist. So these people, what jumps out to you most about them, Paola?
Paola Flores-Marquez (08:48):
Ooh, they're still on social. They're just not as visible as before, which I think we talked about last time too. So, 93% of Millennials are on social media, and their presence continues to be massive. They're just not posting as much. And Gen Z's about to overtake them on several platforms. They've already edged them out on YouTube. They're going to overtake them on Instagram by 2025, but they still rely on social media for communication, news, entertainment. And it's not as prevalent, I think, as it is with Gen Z, although I think it also depends on the person. There are definitely people who have made an active effort to distance themselves from it and other people who have just surrendered, or fully embraced it.
Marcus Johnson (09:26):
Yeah.
Jennifer Pearson (09:27):
It's also our largest generation, ever so slightly overtaking, now Gen Z, which is a large cohort. I honed in on-
Marcus Johnson (09:36):
Gen Z or Gen X?
Jennifer Pearson (09:38):
It's actually Gen Z is just behind Millennials in terms of share. Gen X is the smallest generation.
Marcus Johnson (09:47):
Okay, interesting.
Jennifer Pearson (09:47):
So, yeah. This millennial generation I find, just looking through a lot of the data. Second screening is such a popular activity. And so, I think the social coupled with watching something in the evening or a streaming or digital video while checking social, is a pretty popular media habit for this generation.
Paola Flores-Marquez (10:09):
Or if you're like me, you're checking IMDB because you love movie trivia.
Marcus Johnson (10:13):
I'm waiting for the research to come out where it's not just multi-screening, but it's how many screens. What share of people are using one, two, three, maybe plus, because I think we've gotten even to the point where now there are folks who are setting up, whether it's their phone with their laptop, with their TV, or their phone with their tablet, with their television, and there's multiple screens happening at one time.
Paola Flores-Marquez (10:39):
Let's dig in deeper. Let's see how many chats people have on there. We're running Spotify, we're running Zoom, we're running crossword puzzles. How much are we juggling?
Marcus Johnson (10:48):
And then on top of that, the screens being divided up into multiple windows. Sports is starting to introduce that more and more. The Olympics, you're able to watch four different events at one time. With football, with the NFL RedZone, you're able to watch four things at one time. And those are, at least NFL RedZone is ad free. But I wonder what that looks like in terms of advertising and advertising attention when you're able to flick back and forth between two screens. Because even if you're not multi-screening at the same time, the ability to, whilst ads are happening in one place, move over to a different device, do something quickly, and then move back when the ads finish, is really going to hit attention in terms of how much people are paying attention to the ads that are going on.
Paola Flores-Marquez (11:33):
I'm interested to see how sustained attitudes continue, because I read that Gen Z is more open to advertisements. That's just the price you pay for accessing the internet. Whereas Millennials for a long time, really are stuck by ad blockers and trying to bypass all those things, because they remembered a time before advertisements were on the internet. So, I'm wondering where the tipping point is going to be, if Gen Z's going to continue to have that attitude or if it's going to shift.
Marcus Johnson (12:01):
Last thing for me, quickly, I thought this was really a salient point that you make. At the end of each of these generations you have to have a so what, a takeaway, if you will. And the one for Millennials was, there are just so many more ways to reach Millennials than the two ones that most people know. Conventional wisdom tells you Facebook and Instagram. If you look at who makes up the largest shares of these platform by generation, Millennials have the largest generation on Facebook by a lot, 33%. And the largest group on Instagram, 36%. Only just, as you mentioned, you're going to have Gen Z overtaking them next year. But they're also the dominant cohort on other platforms. You mentioned Reddit, so Millennials make up 43%. All people, 43% of people on Reddit are Millennials. That's 14 points higher than second place, Gen Z.
Paola Flores-Marquez (12:48):
It's the same share that Gen Z'ers hold on TikTok, so they're-
Marcus Johnson (12:48):
Oh, interesting.
Paola Flores-Marquez (12:48):
Yeah, they dominate the platform.
Marcus Johnson (12:51):
So, is that in reverse?
Paola Flores-Marquez (12:55):
Yeah. Obviously it's a smaller scale, because Reddit is smaller users, but-
Marcus Johnson (12:59):
True. Good point.
Paola Flores-Marquez (13:00):
... but also, our Reddit number's only track logged in users too, so it's very possible that there's a lot higher degrees of use.
Marcus Johnson (13:08):
True. And then two other platforms, WhatsApp. 37% of people on WhatsApp are Millennials. That's 12 points higher than second place, Gen Z. And then, the other one you mentioned is LinkedIn, 36% of people on LinkedIn are Millennials. That's nine points higher than second place, Gen X, in this instance. Speaking of Gen X, let's get to them next. So, Jenny, help me out. Mid to late 40s and into their 50s.
Jennifer Pearson (13:32):
44 to 59.
Marcus Johnson (13:34):
Nailed it.
Jennifer Pearson (13:36):
And yeah, when I think of Gen X, quite a few are parents. That's also true for Millennials at this point as well. And then, probably further along in their career actually. Sad to say, almost approaching retirement for the older Gen X. So, firmly in the career. And I think that's a good segue to Paol's favorite fun fact about this report. I'll let you share it.
Paola Flores-Marquez (13:59):
We were talking about it earlier. So I know, digital video is technically their top habit, which I do think we should touch on. But one of the things that I wanted to make sure to mention is that they have an impressive amount of LinkedIn usage. I know Millennials are the largest population on the platform, but I don't think Millennials leverage LinkedIn the same way that Gen X'ers leverage LinkedIn. So, one of the things to note is that LinkedIn, if we exclude YouTube, is one of the top three social platforms for Gen X'ers, which is so different from everybody else and doesn't even crack that on for many other generations.
(14:30):
And so, I think LinkedIn offered an opportunity for Gen X'ers to transfer their in-person networking skills to online, because they were in that specific point in time, starting the professional careers, understanding how to work with your network. It's not just about connecting with people. It's about who's in my alumni network, who knows who. How do I get a face-to-face interview? How do I get an introductory interview? And so, they have really thrived on that platform in the way that Millennials are still catching up on. Because so many people, their first introduction to social was from more of a casual perspective and more of a jokey perspective. It's definitely true of professional Gen X'ers. Not everyone's a professional Gen X-er, but it is quite impressive.
Marcus Johnson (15:13):
Yeah. Well, I guess what's interesting about LinkedIn as well is that it is one of the oldest social networks. A lot of Millennials when LinkedIn was founded, which is around 2002, they were high school age. It was actually founded a year before or after MySpace. And so, the fact that that's still around, that's the social network that a lot of... Speaking of growing up with social networks, is one that Gen X have grown up with.
[NEW_PARAGRAPH]So, the thing that jumps out to me with this generation was in your research, Paola, you have that basically once you get Gen X'ers in the digital video door, they're the most likely group to stick around. So, it has some data from the LendingTree, and it was saying that Gen X, the least likely to cancel their subscription. So, 66% versus 72% of the total population.
Paola Flores-Marquez (16:05):
Gen X'ers have historically been very utilitarian about their approach on the internet. They want stuff that's usable and is the most efficient way of accomplishing a habit. And so, I don't know, I think their YouTube use is really high. Their Netflix use is pretty high. Their Disney+ use is, they're third in place, which I think is not surprising given how voraciously Millennials and Gen Z'ers consume video. But as Jenny mentioned earlier, a lot of them are parents, so they're being attracted to platforms like Netflix and YouTube and Disney+, partially because of the needs of their children, which also an incentive not to cancel, but also because we were talking about the generation of Star Wars and Marvel. And people who have been hardcore Marvel fans since the 70s and 80s, there are many reasons for them to keep subscribing and staying on top. Also Sandman on Netflix, which is also from the 80s, is totally Gen X as well, and you don't want to cancel before the next season is out. I say that with no personal bias whatsoever.
Jennifer Pearson (17:06):
Also, TV viewing is still relatively popular on this generation. We're looking at some data from YouGov about where people get their news, and Gen X and Boomers, TV is the number one source. Our Gen Z and Millennials, it's social media at this point for news.
Paola Flores-Marquez (17:24):
Correct.
Marcus Johnson (17:25):
Interesting. Speaking of Boomers, let's move to our final group of people. Jenny folks in their sixties and seventies at this point?
Jennifer Pearson (17:32):
Yeah, 60 to 78-
Paola Flores-Marquez (17:33):
Nailed it.
Jennifer Pearson (17:34):
... are Boomers.
Marcus Johnson (17:35):
Yes, man. It's getting better and better. It's the only ages left is what happens, but it's very [inaudible 00:17:41] power. So Boomers, what jumps out to you most about these folks?
Paola Flores-Marquez (17:46):
Okay, so I have to say digital shopping is their top digital habit, which makes sense. It's been that way for a long time. It definitely sped up during the pandemic. Nearly two thirds of Boomers have made a digital purchase in the last 12 months, and some of the spending includes travel at higher rates than the rest of the population, because they have more leisure time and they have the money, which is great for them, very happy for them. Not jealous at all. But they're also picking up TikTok faster than any other platform. The increases that we're seeing on TikTok amongst that generation is pretty impressive. We can expect a 10.5% increase in the next year, and it'll continue to increase steadily through 2028, which-
Marcus Johnson (18:23):
That's a million new people. We spoke about this, I think last month-
Paola Flores-Marquez (18:25):
Yeah, at the last one, the last episode, which everyone should go back and listen to, because it was very fun.
Marcus Johnson (18:29):
That was social media use by generation. And yeah, it's 10% and it's from a small base, but it does mean one million new Boomers will join TikTok by next year?
Paola Flores-Marquez (18:38):
Yeah. And it's impressive because people often write them off that they're not inclined to try new trends or sign on, or learn something new. And no, there is a cohort of Boomers who are very interested in keeping up. And a lot of them are also motivated by staying in touch with their loved ones who are on these platforms. So, we should not discount them as a very powerful cohort. Also, they have a lot of money, so there's that.
Marcus Johnson (19:01):
They do. Jenny, when you think about this Boomer generation, what jumps out to you about how they're using digital things?
Jennifer Pearson (19:07):
Right. A little tripe, but still firmly on Facebook, and our highest penetration for Facebook users there, for this... I think it still is that connectivity and connection to family and friends. So I do think, yeah, Facebook, not anything new. Not really a revelation here, but-
Paola Flores-Marquez (19:31):
Also, one thing to not discount too, is that Facebook is tying its platforms more closely together, and it's prompting people on Facebook to get Instagram and WhatsApp.
Marcus Johnson (19:31):
Oh, that's true.
Paola Flores-Marquez (19:42):
Yeah, so we're also starting to see an uptick of Baby Boomers on Instagram as well, just because it automatically does it for you, so why not?
Marcus Johnson (19:49):
Yeah. And isn't it the case where, they're on Facebook, but they're really on Facebook. Right, Paola? There's something in your research about how 90% or basically all of their social media time or use goes to that one platform?
Paola Flores-Marquez (20:04):
Yeah. If they're on social media, so I think it's only half of the generation that is on social media, they are most likely on Facebook. That is the number one platform, which makes sense, because that's where you're going to find out about your family the whole time, and you're going to post updates. And I've definitely anecdotally have seen people who write, "Today, Mary and I went out to the zoo and we did this and that," and then pretty much announcements for their community so that everybody can stay up to date on their life, which is lovely and very cute.
Marcus Johnson (20:04):
I need more Boomer friends. Posts I'm looking for.
Paola Flores-Marquez (20:36):
No, I was just going to be like, I'd rather focus on that than the gossip or the misinformation, but yeah.
Marcus Johnson (20:42):
Absolutely. The one thing that jumped out to me about this group was that they have a very... This is tied into their very heavy Facebook use or preferred Facebook use over other platforms. Boomers have a very short list of popular digital activities. So close to half, as you mentioned, Paola. Close to half of them are on YouTube and Facebook, but then you go down to one third who are on Netflix, and then it's a real sharp drop to fourth place, Pinterest and Instagram basically tied. Less than one in five Boomers on these platforms.
(21:13):
Whereas if you look at the Gen Z folks, it's like, I don't know, 60 to 80% of them are on five different platforms, from Millennials that similar share on four different platforms, and it keeps going down and down. And for Boomers, it's only two of them that are on YouTube and Facebook. Half of them are on YouTube and Facebook, and there's a significant drop off to third and a real far drop off to fourth, fifth, sixth, et cetera.
Jennifer Pearson (21:36):
We have a parallel with that with device usage as well, that we have some data from LRG group, usually just using a TV. A TV or a smartphone-
Marcus Johnson (21:46):
Interesting.
Jennifer Pearson (21:47):
... just a third, or watching video somewhere other than a TV. So, the majority. Then we have about eight in 10 Millennials or Gen Zs who are watching video on other devices other than a TV.
Marcus Johnson (21:47):
Using everything.
Jennifer Pearson (21:47):
Right.
Marcus Johnson (22:00):
Yeah. Smart whatever. Well, that's all we've got time for today's episode. Thank you so much to my guests for hanging out with me today. Thank you to Paola.
Paola Flores-Marquez (22:07):
Thank you so much, Marcus. It's always so much fun.
Marcus Johnson (22:09):
Yes, indeed. Thank you to Jenny.
Paola Flores-Marquez (22:11):
Thank you for having me.
Marcus Johnson (22:12):
Yep, absolutely. Thank you to Victoria. She edits the show. Stuart runs the team. Sophie does our social media. And thanks to everyone for listening in to the Behind the Numbers daily, an eMarketer podcast made possible by TikTok. Tomorrow, you can hang out with Rob Rubin, host of our banking and payment show where he'll be speaking with Grace Broadbent and Jacob Bourne, all about how to mitigate the threat of AI in the financial sector.
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