Younger generations believe that online experiences are meaningful substitutes for in-person experiences: Deloitte

Online experiences are increasingly capturing consumers’ attention, especially younger generations, according to the Deloitte Digital Media Trends 2023 report. Half of Generation Z and Millennials believe that online experiences are meaningful substitutes for in-person experiences and say they spend more time interacting with others on social media than in the physical world. At the same time, only 20 percent of Generation X, Baby Boomers, and Matures share the same opinion and behaviour.

The top three favourite digital entertainment activities for consumers are watching TV shows or movies (30 percent of Generation Z and Millennials; 55 percent of Generation X, Baby Boomers, and Matures), listening to music (26 percent of Generation Z and Millennials; 22 percent of Generation X, Baby Boomers, and Matures) and watching user-generated content (19 percent of Generation Z and Millennials; 6 percent of Generation X, Baby Boomers, and Matures). The ranking is completed by playing video games (19 percent of Generation Z and Millennials; 6 percent of Generation X, Baby Boomers, and Matures) and listening to podcasts (4 percent of Generation Z and Millennials; 2 percent of Generation X, Baby Boomers, and Matures).

Younger generations turn to different kinds of digital activities to meet their need for social connection, underlines the report. Generation Z and Millennials feel most connected to a community while watching user-generated content (27 percent), playing video games (19 percent), watching TV shows or movies (18 percent), listening to music (17 percent) or to podcasts (10 percent). In contrast, 45 percent of Generation X, Baby Boomers, and Matures say they do not feel socially connected while performing these activities.

“We see the media and entertainment landscape become more interconnected and interdependent. The report shows that half of the consumers often watch shows or movies on video streaming platforms after learning about them on social media, frequently discover new music while playing video games, and wish that more of their favourite movies and TV shows were converted into gaming experiences. In this context, it becomes apparent that brands need to transform the way they connect with different categories of consumers, integrating all these new realities into the business strategies based on which they will develop and promote products and services,” said Andrei Ionescu, Consulting and Risk Advisory Partner-in-Charge, Deloitte Romania, and Leader of the technology, media, and telecommunications industry.

Although currently it is not the most popular online activity, viewing user-generated content is gaining ground. According to the study, consumers choose to watch this type of content because it is available for free (39 percent), relevant (35 percent), can be accessed anytime, from anywhere (30 percent), and always offers something new to see (28 percent). Moreover, for many people, content creators are not just entertainers, but influencers whose opinions they consider when trusting a brand and making purchasing decisions. No less than 64 percent of Generation Z, 57 percent of Millennials, followed by 41 percent of Generation X respondents and 16 percent of Baby Boomers and Matures say they are more likely to purchase a product after watching a review by a content creator or an influencer they follow.

Video games are another entertainment activity that offers consumers different benefits, the study also reveals. They can support the emotional needs of players, such as boosting their self-confidence (73 percent of Generation Z and Millennials; 47 percent of Generation X, Baby Boomers, and Matures) and improving their self-image (49 percent of Generation Z and Millennials; 19 percent of Generation X, Baby Boomers, and Matures). For consumers who regularly play video games, this activity also provides social benefits, as 75 percent enjoy playing games with their families, while 62 percent feel that meeting up with their friends in video games is an important way to spend time together.

The Deloitte Digital Media Trends 2023 report has been conducted on over 2,000 US consumers.