Demographic shifts are changing the nature of consumer spending. While Baby Boomers and Gen X still represent the money – in other words, they have the most disposable income to spend, Gen Y and Z represent the masses. Millennials are now the largest generation by population, but according to a 2022 report by research firm Wunderman Thompson, Gen Z has already eclipsed Millennials  in terms of their spending spending, being worth around $164 billion compared to Gen Y’s $108 billion.However, many brands still haven’t cracked the Gen Z market, which is quite different in its wants compared to generations that came before. “Gen Z is a unique demographic with distinct preferences for marketing,” Evan Tsaprounis, e-commerce lead at social media company Snap, told Inside Retail. “They don’t like traditional sales tactics, and instead look for brands that align with their values. It’s essential to ask: who are we as a brand? What values do our products embody? Being sincere and upfront resonates well with Gen Z.”Snap, which owns and operates the Snapchat platform, recently launched a report on Gen Z behaviour, which found that the way they interact with brands has been significantly shaped by the fact they have grown up with social media front and centre. Breaking through the noiseWith an endless stream of user-generated video content readily available through the likes of Snapchat, TikTok and Instagram, Gen Z has a relatively short attention span of around eight seconds, while Millennials’ sits at around 12 seconds, according to TikTok Europe’s head of product marketing Kris Boger.This means that if marketing isn’t properly tailored to capture consumers’ attention immediately, they’re likely to skip it. Dental care brand HiSmile, for example, creates new content on a weekly basis to keep its social media presence fresh, and as a result, it has experienced massive growth on Snapchat – with in-app conversions up 861 per cent in April compared to December 2022. Brands must also ensure their  messaging resonates with the Gen Z audience, otherwise, they won’t even consider it. “[Sustainability] matters, plain and simple. According to Snap’s research, 63 per cent of Gen Z feel a personal responsibility to contribute to a better world – but the key is sincerity,” Tsaprounis said. “If brands use sustainability or ethical credentials solely as a marketing ploy to grab Gen Z’s attention, they’ll see right through it. That’s not to say don’t do anything, but find a way that is authentic to your brand.”For brands that don’t currently have a strong track record of major sustainable initiatives, Tsaprounis recommends that they consider partnering with a charity that aligns with their brand identity, and run a fundraising initiative as a sales promotion. In saying that, Gen Z is actually less likely than other generations to cancel brands for harming the environment, according to data from Statista’s Gen Z & Sustainability report. Gen Z is more likely to support harsher regulatory punishments for businesses that break the law than they are to cancel them by collective action.Dwindling dollarsWhile Gen Z is willing to spend money on brands that resonate with their values, they aren’t immune from the broader economic environment, which has seen consumer spending decline amidst ongoing inflationary pressure. In saying that, Tsaprounis noted that both Gen Z and Millennial customers hold significant purchasing power in the global economy, and are surprisingly optimistic about their financial future. “Despite facing social, environmental and economic challenges, Gen Z has shown resilience, and our research tells us that many young Australians are actually feeling optimistic,” Tsaprounis said.