App usage has been skyrocketing in 2020 and TikTok has been a major player in this rise. In the past few months, there has been much discussion over the possibility of the app being banned in the United States due to the White House’s concern over its security. Although TikTok was set to be removed from app stores on Sunday, a deal was approved and the app is still available. Meanwhile, a study revealed that Gen Z consumers can recall ads better than other age groups. Learn all about the study and the update on TikTok in this week’s Mobile Monday!
TikTok and WeChat Bans Have Been Averted
TikTok downloads were set to be banned in the United States starting at midnight on Sunday, but that has now been averted. Tech company Oracle and Walmart partnered to form a new entity named TikTok Global to save the hugely popular app. President Trump gave preliminary approval to the deal involving Walmart and Oracle late on Saturday evening. According to a report from Bloomberg, the preliminary deal will see Oracle take a 12.5% stake in the new TikTok Global company, while Walmart will buy 7.5% of the entity. Oracle will host all U.S. data and focus on user privacy and security.
Meanwhile, a ruling on Sunday morning saved WeChat from also being banned. As reported by Reuters, U.S. Magistrate Judge Laurel Beeler in San Francisco blocked the Commerce Department order. Judge Beeler said in an order that WeChat users who filed a lawsuit “have shown serious questions going to the merits of the First Amendment claim, the balance of hardships tips in the plaintiffs’ favor.” The Commerce Department has already delayed the ban by a week following the aforementioned TikTok deal, but this order will delayed the ban indefinitely as the details play out in court.
Gen Z More Likely to Recall Ads Compared to Older Group
According to a study by Snap and Kantar, Gen Z consumers are more likely to recall ads compared to older age groups even when they spend less time watching content that could be skipped. Kantar tested ad recall and 59% of Gen Z respondents were able to recall skippable video ads. Millennials were a little behind at 57% while 47% of Gen X participants were able to recall the ads.“This study proves that Gen Z audiences are far faster at processing information than we might have given them credit for,” said Andy Pang, head of international measurement & insight at Snap Inc. “This faster speed of cognitive processing means that brands who want to engage Gen Z need to tailor their video creative and focus on communicating brand and product messages as early as possible.”
More than half of Gen Z (55%) respondents who viewed skippable ads for fewer than two seconds correctly remembered it, compared to 46% of millennials and 26% of Gen X or baby boomers. Gen Zers also showed higher rates of brand preference, with 65% of younger consumers saying brands help them to express themselves, compared with 40% for Gen Xers and baby boomers. Gen Z’s proclivity for certain brands demonstrates a key opportunity for marketers to connect with this valuable audience. Family and friend recommendations influence 60% of Gen Z when it comes to their favorite brands while its a factor for 52% of millennials.
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