Forrester: Gen Z and Millennials Embrace Ads but Remain Skeptical of Brands

A recent Forrester Research report reveals a notable shift in younger consumers’ tolerance for online advertising, with Gen Z and millennials becoming more receptive to ads across digital platforms. However, the report cautions that this increased receptivity should not be confused with trust, which remains low across all age groups.

The findings show that over one-third (34%) of surveyed Gen Z and millennials are comfortable with seeing ads while streaming on smartphones, significantly higher than the 19% of older consumers who share this sentiment. Younger audiences are also more tolerant of ads in mobile apps and games. Sponsored content from influencers and creators holds even greater sway, capturing the attention of nearly half of these younger consumers, compared to just 18% of older generations.

The rise in ad tolerance among younger demographics is largely attributed to changes in media consumption habits. Gen Z and millennials, raised in a digitally native environment, are accustomed to constant interaction with smartphones and social media platforms. On average, younger consumers spend 7.3 hours per week on social media, compared to 4.6 hours for older generations, many of whom remain attached to traditional television.

Platforms like TikTok have played a pivotal role in normalizing frequent ad exposure by blending sponsored content seamlessly into user feeds. TikTok’s algorithm-driven For You feed has popularized this model, making ads virtually indistinguishable from organic content. This approach has been widely adopted by other social platforms like Instagram and YouTube, which now focus heavily on short-form videos to keep users engaged.

Despite the growing acceptance of ads, younger consumers are still willing to pay extra to avoid them, with 34% indicating plans to upgrade to ad-free streaming services, compared to just 18% of older consumers. This suggests that while tolerance for ads is increasing, many would still prefer an ad-free experience if given the option.

While younger generations may be more receptive to ads, trust in these messages remains alarmingly low. The report highlights that only 22% of younger consumers trust ads on social media, and that figure drops to 12% among older users. Branded posts fare only slightly better, with 33% of young adults and 18% of older consumers expressing trust.

Concerns over misinformation, scams, and intrusive advertising practices continue to undermine consumer trust in digital advertising. While 90% of consumers report seeing ads on social media, only 37% actually pay attention to them. This disconnect between ad exposure and engagement suggests that many marketing dollars may still be going to waste.