Generation Z: The new powerhouse of the creator economy

Meet Generation Z, the digital natives redefining the world of digital content. Born between 1995 and 2009, this group isn't just watching content—they're creating it. With 83% identifying as "creators" on platforms like YouTube, they're actively shaping trends and building careers. For brands, adapting to this dynamic is essential in the evolving digital economy.

The YouTube Culture and Trends report, based on research by media analytics firm SmithGeiger, underscores this shift, showing that today's youth are not just passive consumers but active contributors to the digital ecosystem.

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“Gen-Z isn’t only coming to YouTube to consume content, many particularly Gen Z are even coming to share their unique PoVs (point of views) and launch their own careers as creators," Ishaan John Chatterjee, director-India, YouTube, told Mint in an emailed response. “It’s one of the reasons why it has been so important that we support creators with multiple paths to build a living on YouTube.”

Investing in mobile-first experiences

Recognizing the mobile-first nature of Gen Z, YouTube has continuously adapted its platform to meet the needs of these digital natives. Chatterjee emphasized, “For a generation that grew up with smartphones and tablets, we continue to invest in our mobile creation tools. Shorts are also helping to capture the interest of mobile-first creators and viewers who only know life with a smartphone. Young creators from small towns and with big dreams are now able to unlock opportunities to express their creativity through Shorts."

The monetization of the Shorts feature, introduced last year and tailored to the consumption habits of younger audiences, has proven lucrative, generating an additional revenue for more than 25% creators that are a part of YouTube Partnerships Program (YPP). This mobile-friendly format has become a critical avenue for content creators, enabling them to reach audiences on the go. 

YPP is YouTube’s monetization program that lets creators earn through ads, subscriptions, community memberships and sponsored deals.

Brands engagement and fan culture

The report also highlighted that Gen Z's engagement with digital content extends beyond consumption. Eight in 10 Gen Z fans appreciate brands that interact with the content they love, signalling a shift that brands and content creators must embrace to remain relevant. 

“Today's viewers are screen-agnostic, seamlessly switching between devices throughout the day. They might watch a quick video on their phone during their commute, catch up on news on their laptop at work, and then settle in for a movie on their televisions at home. This new breed of viewer isn't just changing where they watch; they're creating their own 'video universe'. They’re actively looking for content that speaks to their unique and diverse tastes,” Chatterjee noted.

As Gen Z, aged 14-24, is set to comprise a quarter of the Asia Pacific (APAC) region's population by 2025, understanding and leveraging fan culture has become crucial. 

The YouTube report points out that brands and creators who tap into these dynamics gain a competitive edge. "As fandom increasingly shapes how content is created, content optimized to take advantage of these fan dynamics could have an advantage. International brands and top creators are already benefiting from this phenomenon by plugging into the fandoms their audiences, consumers, and fans are into," the report said.

Bridging cultures and audiences

Several brands and creators have successfully tapped into these trends. McDonald's, for instance, the report said, has capitalized on the global appeal of Japanese Anime by launching a campaign featuring the brand as "WcDonalds," a playful nod to its Anime portrayal. They also released an Anime Music Video (AMV) created by fans, showcasing the brand's cultural resonance.

Similarly, American YouTube star @MrBeast, or Jimmy Donaldson, who boasts 307 million subscribers worldwide, has adeptly catered to his international audience. By collaborating with local YouTubers, such as India's Mithilesh Patankar (@Mythpat), who has 15.3 million subscribers, MrBeast has localized his content, including a special video dubbed in Hindi.

Another example is American streamer Darren Jason Watkins Jr., known as @IShowSpeed, who has 27.5 million subscribers. Watkins sought to connect with his Indian audience by partnering with singer Daler Mehndi, whose music frequently features in Watkins' livestreams, creating a cultural bridge during his visit to India.

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The key takeaway for brands and creators is clear: to resonate with Generation Z, it's essential to engage authentically with their interests and passions. This approach not only fosters brand loyalty but also harnesses the creative energy of a generation poised to dominate the digital landscape.