Generation Z Marketing Strategies for Small Businesses

For small business owners, reaching the next wave of customers is essential to long-term success. But attracting younger consumers often requires recalibrating your marketing approach— specifically social media marketing. What resonates with baby boomers, Gen Xers or even millennials can look very different from what Generation Z expects.

Generation Z (ages 15-30) already wields an estimated $9.8 trillion USD in global spending power and is projected to drive nearly 20% of global consumer spending by 2030. To earn their loyalty, businesses must understand Gen Z’s values and buying behaviors. Not only are they the first true digital natives—raised entirely in the age of smartphones and constant connectivity—but they’re also passionate about social causes, diversity and personalization. All this plays a role in how they discover, evaluate and shop.

Here’s what small businesses need to know to stand out in a crowded market and to meet Gen Z where they are.

Key takeaways

• Gen Zers want the brands they buy to prioritize sustainability, transparency and social responsibility.
• Personalization and inclusivity drive loyalty, with Gen Zers responding best to brands that reflect their diverse needs and speak to them as individuals.
  
• AI can help small businesses succeed by enabling smarter targeting and creative content at scale.
  
• Social media is Gen Z’s primary discovery channel, making it an essential marketing tool for small businesses.
• Micro-influencers resonate with Gen Z more than celebrities, giving small business owners a more affordable entry point into influencer marketing.

Focus on brand values and social responsibility

Gen Z is often called the "sustainability generation," and with good reason. According to the World Economic Forum, 75% of those in this age group say sustainability is an important factor in their purchasing decision, ranking it even above brand name. They look closely at supply chains, track corporate ethics and want businesses to stand for more than profit.

"Gen Z conducts research and nurtures relationships with brands that are purposeful," says Mark Beal, assistant professor of professional practice at Rutgers University School of Communication and Information, whose research focuses on Gen Z. "They want to support and advocate on behalf of brands that are contributing to a better community, society and world."

That’s where small businesses have an opportunity. By combining sustainable practices with accessibility—such as offering affordable options, reducing waste in everyday operations or making it easier for customers to understand the impact of their purchase—you can help Gen Zers align their ideals with their actions.

Here are a few marketing ideas for small businesses:

• Show tangible impact—not just slogans. Avoid vague claims like "eco-friendly." Instead, share specifics: "Our bags are made from 80% recycled plastic," or "We reduced packaging by 30%." Gen Z values receipts of impact more than promises.
• Prioritize sustainable packaging. From refill stations to compostable labels, sustainable packaging is a visible signal of your values.
• Highlight your efforts. Use social media to spotlight sustainability moments, no matter how small—whether it’s a recycling initiative, a local partnership, behind-the-scenes sourcing or even just reducing waste in your store.
• Make it accessible. Help Gen Zers live their values by lowering the barriers. That could mean offering a resale rack in your boutique, providing a discount for customers who bring reusable containers or starting a simple recycling program. Small, affordable steps can make sustainable choices easier for everyone.

Personalize marketing—and be authentic

Gen Z is incredibly diverse—the most racially and ethnically diverse generation, in fact—which means generic marketing won’t cut it. Gen Zers want to see themselves in the brands they buy from, whether that’s through representation in ads, inclusive product offerings or the people leading the company.

"They are engaged by messaging that speaks to them as individuals, not as a cohort comprising millions of consumers," says Beal.

This also means authenticity matters more than polish. Gen Zers can quickly spot tokenism or staged perfection, and they reward brands that feel real. That includes diversity across race, gender, orientation, body type and more—plus a willingness to show the human side of your business.

Here are a few simple steps you can take:

• Use candid storytelling. Share real stories of your team, your craft or your inspiration. This makes your brand feel more human and relatable.
• Reflect your community. Feature diverse people in your visuals or carry products that resonate with underrepresented groups.
• Deploy targeting email campaigns. Use data (responsibly) to personalize outreach, like sending birthday discounts, recommending products based on past purchases or curating content for customer interests.
• Offer custom digital experiences. Simple touches like custom filters on social media, quizzes that guide shoppers to products or personalized recommendations on your website can strengthen engagement without requiring a massive budget.
• Use location-based marketing. Geo-targeted ads or promotions tied to local events let you reach Gen Z customers where they are—literally. For example, a café could send push notifications for a discount to students passing nearby during finals week.

Don’t be afraid of AI-powered marketing

Artificial intelligence is no longer a futuristic add-on. According to the U.S. Small Business Administration, AI tools can help small businesses become more efficient and competitive in an increasingly fast-paced market.

A 2025 national survey by Connected Commerce Council found that 64% of small business leaders believe AI helps level the playing field, while 52% say it’s critical to their current success. These numbers show that AI isn’t just a buzzword—it’s quickly becoming part of how small businesses operate and grow.

But the applications aren’t limited to back-end efficiency. AI is also fueling new creative breakthroughs. A family-run tamale shop in Los Angeles, for example, went viral by using ChatGPT to script an impromptu ad in just 10 minutes—and gained more than 22 million views and tons of new customers. And Amarra, a wholesale dress company, uses AI to write unique, whimsical product descriptions, cutting content creation time by 60%.

Beyond marketing, AI is also helping small businesses strengthen their financial operations. Financial partners like Fifth Third integrate AI into payment optimization and fraud protection tools, giving owners greater control, smarter risk detection and peace of mind as they scale.

Here are a few ways small businesses can apply AI wisely to their marketing efforts:

• Personalize and target your ads. AI can analyze behavioral and demographic data to pinpoint high-intent customers and optimize ad spend for better return on investment. "It basically allows businesses of all sizes to evolve from mass marketing to personalized messaging," Beal adds.
• Automate follow-up. Platforms like HubSpot now offer AI "agents" that handle customer follow-ups, content creation and prospecting—freeing business owners to focus on meaningful human responses.
• Amplify creative reach. You can create video scripts, social posts or promotional campaigns faster and more efficiently. As demonstrated by the tamale shop, even a small brand can create powerful marketing content with AI storytelling tools.
• Lean into short-form video. Quick, interesting clips—like product demos, tutorials or "day in the life" snippets—perform especially well on TikTok, Instagram reels and YouTube shorts.
• Encourage user-generated content. Invite customers to share how they use your product or service and repost their content. Pair this with a branded or campaign-specific hashtag to make it easy to find and amplify posts. This not only builds trust but also helps your brand surface in feeds.
• Show behind-the-scenes. Remember that transparency and authenticity resonate with Gen Z. Share how products are made, the people who make them, what your team is working on or even a "fail to fix" moment.
• Engage actively. Reply to comments, jump into trending sounds or participate in lighthearted meme formats. According to Sprout Social’s 2025 Content Benchmarks Report, 73% of social users agree that if a brand doesn’t respond on social, they’ll buy from a competitor.
• Keep it platform-native. Content designed for TikTok will feel different than what belongs on Instagram or YouTube. Don’t just cross-post—adapt for each platform’s culture.

Get familiar with influencer marketing

Influencer marketing, where businesses hire people with lots of followers on social media to showcase their products and create trends, may also help you connect with Gen Z.

There are major influencers—celebrities and movie stars, for example—but there are also so-called micro-influencers, who have between 10,000 and 100,000 followers. These influencers can target niche and sometimes localized audiences. They can also cost less to work with.

Lucky for you and your brand, Gen Z actually prefers the authenticity and credibility of these micro-influencers to traditional celebrity endorsements, according to a recent study in the Journal of Brand Strategy.

Here’s how to get started:

1. Look beyond follower count. Choose influencers who share your values, engage frequently with their followers and talk authentically about products.
2. Build real relationships. Micro-influencers tend to produce more impactful content when they’re treated like collaborators, not billboards. Keep communication open and investments fair.
3. Tap into niche communities. Find micro-influencers who speak directly to your target audiences and their values—like sustainability, diversity, local craftsmanship or wellness. Their followers are already aligned with what you offer.
4. Track meaningful results. Use custom discount codes or trackable links so you can measure engagement, not just eyeballs. This helps ensure that partnerships are delivering real ROI.

Pro tip: "No one can produce and distribute content that will engage Gen Z more effectively than Gen Zers themselves," Beal says. So finding a micro-influencer who is in that cohort is a good place to begin.

Build relationships, even in a digital-first world

For Gen Z, a digital-first experience is the baseline. They expect businesses to have an online presence, e-commerce capabilities and quick, secure ways to pay—from accepting debit cards and credit cards to offering Point of Sale systems that simplify checkout and mobile banking tools that make transactions easy to manage.

Financial partners like Fifth Third deliver those seamless experiences through flexible merchant services, real-time payment solutions, mobile checkout options and diverse lines of credit that support growth. Fifth Third also offers Business Checking Accounts that make it easier to manage cash flow, payments an day-to-day operations all in one place.

"Gen Z is seeking transformational relationships. They will not respond to traditional push marketing like previous generations," says Beal. "They want to build long-term relationships with brands well beyond making a purchase."

That’s the opportunity for small businesses: to pair modern digital convenience with human connection. Whether it’s a smooth checkout, personalized communication or values that align with their worldview, Gen Zers want more than a transaction—they want to feel like they’re part of something.

Brands that deliver on both fronts will win their attention, loyalty and business.

What to do next

Gen Z expects seamless digital experiences and authentic connections—and Fifth Third offers tools to help your business deliver both. From expert insights on engaging Gen Z to flexible financial solutions that support growth and efficiency, these resources are designed to help you move forward with confidence. Explore how Fifth Third’s digital banking, small business loans, and merchant services can streamline payments, support change, and open new opportunities for your business.