Sports Business & Consumer Analytics Specialist, Bas Schnater took part in a panel discussion at the World Football Summit in Seville in late 2022. The conversation was initiated around Gen Z’s content consumption and distribution and how they want to experience modern sports. In this article he summarises how the sports industry could appropriately respond to changing demands of this generation.
The topic is one that is frequently discussed and is usually subject to many assumptions, often by people from older generations, making judgements about Gen Z’s behaviour without any research to back their opinions. Conversations are often based on conference-echoing: repeating what someone else once said at a conference. Fortunately, the large global consultancy firms do a lot of research around the characteristics of Gen Z.
Gen Z characteristics
Although some overlap between generations is possible, generally Gen Z is born after the mid 90’s until the beginning of 2010’s. Therefore, people in Gen Z are roughly between 13 and 25 years old at the time of writing. They are generally more highly educated than their parents so logically their income is often significantly higher.
An interesting observation has been made around Gen Z’s interests in sport in the last decade as well. The European Club Association’s Fan of the Future report states that Gen Z have far less interest in football compared to previous generations. One of the reasons mentioned is that the competition for attention from other entertainment sources is fierce and thus Gen Z needs to make choices.
The New York Times reported that only 23% of Gen Z said they were passionate sports fans compared to 42% of Millennials. In fact, 27% said they disliked sports altogether. This provides a problem as sports fandom is formed in the early years. If an interest in sports is not triggered during these years, it is likely to never be formed. Therefore, a strategy targeted to Gen Z is a strategy for future interest.
Gen Z in general
Sports organisations typically use a technology-based “spray-and-pray” approach to engage with Gen Z, whether it’s via the metaverse, NFT’s or esports, but additional research could drastically increase the scope and focus of efforts in engaging Gen Z, since their mindset differs substantially from those of preceding generations. Needless to say, Gen Z’s fully globalised mindset has resulted in them gaining full access to all the world’s problems. Since Gen Z is ‘always-on’ and is in constant connection with the latest news (50% of the news consumptions happens via social media of which 15% via TikTok), they have many reasons to be worried.
From a customer experience perspective, Gen Z is also more loyal to brands and companies, they expect a mobile experience first and show higher feelings for design. This explains many characteristics of Gen Z which are fundamental to understand if you, as a sports organisation, wish to engage with this fan segment.
Psychological well-being
For Gen Z, health goes further than gym visits and healthy eating habits. Mental health hygiene is also a key well-being consideration. All reports agree that Gen Z suffers from severe mental health issues. This ranges from worries about the financial situation, the environment and even their own careers. As EY states: “Gen Z carries the weight of the world on its shoulders”.
What helps Gen Z in addressing mental-health is having role models. Top athletes like gymnast Simone Biles, and tennis player Naomi Osaka have publicly spoken out having suffered from mental health issues. While professional athletes may get professional guidance in solving their problems, this is not the case for everyone. In fact, Gen Z is quite unlikely to seek professional help to solve their issues regarding mental health and substance disorder issues due to affordability. Gen Z falls into the least engaged segment of health-care consumers compared to other generations. Instead, they seek out for self-diagnosis methods and cures via social media and other digital tools.
How to respond as a sports organisation
Knowing that Gen Z suffers from mental health issues and are more likely to self-diagnose, a huge opportunity exposes itself to sports organisations – create more relevant content.
Be a resource for tackling mental health issues. Many sports clubs or federations have sports psychologists employed. Their knowledge can be used to create a series of short-form content tackling issues Gen Z are passionate about. The result: improved fan attraction and retention since they show far more brand loyalty
As the ECA report suggests, Gen Z is more likely to follow football players than clubs, so use key players or academy players to reach out. Find out who they follow and make them the club’s main social media representative
Political
Gen Z makes up 16% of the population and will grow to a staggering 30% in 2030, making it the largest consumer cohort alive. That also means they are not yet the voting majority which means their democratic political influence is limited. Yet, they are the generation who are expected to take care of the aging population, to fight the worsening environmental conditions and to cope with increasing financial and political instabilities. But this has made Gen Z stressed and frustrated.
According to EY, Gen Z is largely untrusting to the world around them as they have seen little change over the last decade. They’ve seen the world address many concerns but that has triggered very few solutions. For example, 72% agree that the gap between the richest and the poorest is widening. Also, only 11% believes that their country is highly committed to tackling climate change. Combined with the limited voting power Gen Z has during elections, it has left them largely distrusting institutions and society. This distrust has triggered an interesting characteristic: Gen Z shows high engagement to the local community by purchasing locally produced and sourced goods which houses important fan engagement opportunities for sports teams.
Fortunately, Gen Z is also ready to embody change needed to ensure a better tomorrow. They have inherited a world on fire but is passionate to take action. The majority of Gen Z (72%) thinks it is either very or extremely important to change what is wrong in the world.
How to respond as a sports organisation
Help by empowering them to drive positive change.
Speak up as a sports team against issues they are worried about.
Activism towards institutions is important. Economic inequality, climate change and racism are highly relevant so a sports team that helps combat these issues will receive significant sympathy from Gen Z
Facilitate Gen Z in helping the local community.
Environment
The environment is one of Gen Z’s main concerns. 75% believe the world is at a tipping point when it comes to responding to climate change. More worryingly, less than half (44%) are optimistic that the planet can be saved. It explains why almost 90% is making some form of effort to protect the environment. Simultaneously, 75% always recycle. Also, 60% finds it extremely important to buy from brands that take action to preserve the environment.
In summary, Gen Z shows what EY calls Intentional Consumerism. In a sports team context, it may be difficult to pick a new team, but it could partially explain why they are skipping stadium visits more often compared to previous generations.
When it comes to nutrition, Gen Z is also paying closer attention. 60% have changed what they eat with 20% having undertaken major changes to their eating habits.
How to respond as a sports organisation
Provide environmental-friendly food alternatives inside the stadium. This can be animal-friendly certified meat options or offer vegetarian/vegan substitutes.
Prioritise climate action as a key strategic pillar and empower staff and fans to do their part. Facilitate recycling inside the stadium, for example by collecting old sports clothes via a clothing sponsor.
Help fans and staff decrease their carbon footprint by providing public transportation solutions to/from stadium.
Get rid of single-use cups and other plastics in stadiums.
Help employees decrease their carbon footprint via logistics plans or a competition to reduce their carbon footprint.
Finance
Finances are also a major concern for Gen Z which has moved away from a mindset of fame-and-fortune but rather is motivated to work hard to shape a secure, stable, and impactful future. In general, 42% rate that becoming rich is either very or extremely important; a clear distinction is made here for Eastern markets (China and Japan).
Gen Z has become a lot more conservative: 77% believes it is very or extremely important to save money to buy or do things in the future. As EY states, this is producing a generation of savers. Deloitte concludes that finances are the top reason why they are so often feeling stressed, with concerns about the long-term financial future (47%) and day-to-day finances (42%) as main factors.
It seems that Gen Z is more willing to take financial risks to achieve financial success. Thanks to the recent gamification of trading and the rise of financial influencers, 43% of Gen Z has held cryptocurrency at some point – though, most have already stepped out.
Altogether, it seems like Gen Z is trying to find its way to financial literacy with a few challenges on its path. This can create great opportunities for sports clubs to help Gen Z to become more financially literate.
How to respond as a sports organisation
Support Gen Z’s struggling with economic uncertainty and financial stress. Provide flexible payment plans and financial support to employees
Provide financial fitness training. Use the knowledge in the academy and the finance department to train them on how to safely allocate income over assets like savings, investments, and spending
Tell the real story behind betting and crypto. Help Gen Z make the choice on some basic rules of investing
Conclusion
Overall, it is challenging to get Gen Z engaged. They are demanding and already want improvements yesterday rather than today. As the ECA concluded, Gen Z has to spread its time over many different entertainment sources, partially ditching it football interest. Unless clubs use the available information to drastically re-engage this generation, a permanent gap could occur. It will become increasingly difficult to get fans to the stadiums or engaged in the first place. Therefore, it would be wise to start setting up strategies around Gen Z now to keep them engaged. ●
Important note: all the research has been conducted before Russia invaded Ukraine in February 2022 which would significantly impact results like mental health and environmental issues.
Image: Ben Sweet – Unsplash