Connecting with Gen Z through IPs
Gen Z is rapidly emerging as a pivotal segment within the entertainment industry. Despite being in the early stages of their wealth-building journey, their distinctive sociodemographic characteristics drive substantial investment in entertainment activities. Their entertainment consumption is notable mainly because 78% of Gen Z participated in out-of-home entertainment in the past year, significantly higher than the national average of 68% in the United States. This high engagement, coupled with their promising economic outlook, positions Gen Z as an important audience for industry stakeholders.
However, capturing the attention of Gen Z is challenging due to the information overload they experience. Constantly bombarded with information and advertising, innovative strategies are required to connect effectively with this dynamic and discerning audience.
The power of intellectual properties
Intellectual properties (IPs) are a strong leverage in the entertainment industry, providing a foundation for creating emotional bonds with consumers. Examining the current landscape of the entertainment market in the U.S., there is a notable rise in IP-based experiences. IPs are a significant revenue driver, exemplified by the success of major film franchises. In 2021, 79% of the revenue from the top 100 films at the U.S. box office was generated by franchises. Also, IPs enhance consumer appeal, reducing the inherent risks in this unpredictable and highly competitive industry. 43% of musicals on Broadway are based on IPs, underscoring their widespread appeal and strategic importance.
Key factors for successful IP experiences
Not all IPs are considered equal, and this is where the Habo IP Index provides valuable insights. The Habo IP Index — our powerful tool that reveals the commercial potential of various IPs — shows that IPs are great assets to engage young audiences due to their strong attachment. Selecting an IP that resonates with them offers experience producers an opportunity to connect with this audience. In fact, Gen Z uniquely prefers immersive experiences. They are 60 times more likely than other generations to have attended an immersive experience in the past year, underscoring the importance of IP-led immersive experiences in capturing their interest.
By understanding the specific factors that make certain IPs more appealing to Gen Z, producers can tailor their creative concepts and operational strategies to meet the high standards of this audience.
What makes a strong IP?
Key Findings on Gen Z and IPs
The Habo IP Index revealed that Gen Z and Millennials are the most attached to top US IPs. On average, 16% of Gen Z identify as fans of these IPs, compared to 2% for the Silent Generation and 3% for Baby Boomers. Despite being created before they were born, these IPs resonate strongly with them, often due to nostalgia and emotional connection.
The top 10 IPs among Gen Z
Despite the level of interest, to maximize the commercial potential, IP owners and producers should consider the motivators of this generation while creating and producing their offerings. To effectively engage Gen Z, these key observations must be considered:
Timeless Appeal: The top IPs among Gen Z have successfully transcended generations. Many originate from the late 1990s and early 2000s, maintaining popularity through sequels, spin-offs, and extensive merchandising. Examples include The Lion King, The Simpsons, Star Wars and Titanic.
Nostalgic Connections: Nostalgia plays a significant role in Gen Z’s attachment to these IPs. Responses often highlight the impact of growing up with iconic characters and stories, such as SpongeBob SquarePants and Spider-Man.
Variable IP Rankings: IP rankings can improve due to trends and current events, reviving interest. For example, external factors like Johnny Depp’s lawsuit and the passing of Chadwick Boseman, the lead actor from Black Panther, have influenced Gen Z’s perceptions of related IPs.
Social Media Impact: Given Gen Z’s deep connection to social media, tapping into current trends can attract short-term attention. However, creating lasting, impactful experiences requires careful consideration of an IP’s long-term relevance to this audience.
Strategic Consideration: Balancing creative concept and operational execution
Beyond selecting an IP, the creative concept and operational elements are equally essential. Through multiple studies, we’ve identified key factors that Gen Z considers when choosing an entertainment experience, especially IP-based ones.
Incorporating intellectual properties into entertainment experiences presents numerous opportunities for success. The Habo IP Index highlights the potential of reaching Gen Z through the top U.S. intellectual properties. However, meeting their expectations requires a nuanced approach. The creative concept and operational execution must resonate with this audience. Marketing creation, production, and strategy need to align with Gen Z’s high standards to ensure engagement and satisfaction. While IPs are valuable, they must be thoughtfully integrated to avoid a one-size-fits-all approach, ensuring relevance across different market and consumer segments.
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