Marketing to Gen Z with Abercrombie & Fitch, e.l.f. Beauty

Plus: What's next for Threads after its initial surge in sign-ups? [Insider Intelligence]( [Emarketer Daily]([Emarketer Daily]( Charts. News. Analysis JULY 19, 2023 | By Sara Lebow, Arielle Feger, and Becky Schilling Calling all speakers! We’re hosting our next virtual event on November 3 and we’re looking for speakers to participate on panel discussions about generative AI, retail media, or marketing to Gen Z. Please [fill out this form]( if you are interested. Was this email forwarded to you? Sign up [here](. TOP STORY [How Abercrombie & Fitch and e.l.f. Beauty stay relevant when marketing to Gen Z]( Marketing to Gen Z requires a different approach than marketing to millennials. Abercrombie & Fitch found this out the hard way as its millennial playbook became outdated for younger shoppers, earning it the title of “[most hated retail brand](” in the US in 2016 by the American Customer Satisfaction Index. Abercrombie & Fitch learned its lesson. The brand reinvented itself by refocusing its efforts to appeal to Gen Zers reaching adulthood. Here are some lessons from Abercrombie & Fitch, e.l.f. Beauty, and others on how marketing to Gen Z differs from reaching millennials. [Keep reading]( NEWS AND VIEWS [Marketers are spending more than $1 million on agency reviews]( Our view: Transparency remains a must—agencies should strive to communicate their fees better and justify the costs to their clients. The study also suggests avoiding reviews unless absolutely necessary. [Netflix abandons ad-free Basic tier in US and UK]( Our view: Netflix is pushing its lower-cost users toward Basic with Ads, rather than providing a no-ad alternative. After a successful account-sharing crackdown, the company aims to build up its ad business, leveraging those kicked off of shared accounts. [Microsoft brings Bing Chat to the enterprise]( Our view: AI chatbot search has gone mainstream. Bing Chat is also expanding its features with Visual Search. But the hype of Bing Chat’s OpenAI partnership potentially offering an advantage over Google has died down, and Bing still has a search ad business of $6.88 billion, compared with Google’s $140.97 billion, per our forecast. ANALYSIS [What's next for Threads after its initial surge in sign-ups?]( The metaphorical Zuckerberg-Musk cage match has started. Threads already poses a real threat to Twitter, but it still has a lot to prove once the hype dies down. Sign-up growth and engagement have already slowed—which was to be expected after the initial surge: On Tuesday and Wednesday last week, time spent per Threads user fell to 10 minutes, from 20 minutes the previous Saturday, according to Sensor Tower. Now, Threads must find its identity. And ads on Threads will hit Twitter where it hurts. [Keep reading]( THINGS TO KNOW 📱 [Social media trends: From literal fake lashes to Threads]( 🧵 [‘Top creators may not be flocking to Threads,’ writes Debra Aho Williamson]( 🦙 [Meta is giving away its AI tech to try to beat ChatGPT]( 🍋 [TikTok follow-up Lemon8 is flopping in the US]( 🟥 [Roblox to let developers offer subscriptions in their experiences]( PODCAST [Behind the Numbers: Reimagining Retail]( Prime Day campaigns that stole the show and new iterations of Prime Day we expect to see in the future. Tune in on [Apple Podcasts](, [Spotify](, or wherever you listen to podcasts. [Follow us on Instagram.]( [Listen in]( THE BIG QUESTION How low can you go: By what percentage have Twitter’s biggest advertisers cut ad spend on average? A) 11% B) 31% C) 51% D) 71% [Get the answer]( Email sent to: {EMAIL} If you cannot view the HTML newsletter, [please read it in your browser here](. [Become a Premium Subscriber]( | [Advertise with us]( [Manage your email preferences]( | [Unsubscribe]( | [Terms of Use]( | [Privacy Policy]( ©2023 Insider Intelligence, 11 Times Square, New York, NY 10036 [LiveIntent Logo]( [AdChoices Logo](