Gen Z’s entry into adulthood will be the main source of growth in US social media users over the next five years. While there are some parallels with millennials, this is a generation that has long been immersed in social media and has come up with its own rules to navigate it. They are self-aware, quick to adapt, and ready to push back on the standards set by their predecessors.

What were the three biggest ad-related takeaways from Meta’s stellar Q2 2023 earnings report? Reels’ revenues, AI ad products, and a return to ad growth in Europe.

On today's episode, in our "Retail Me This, Retail Me That" segment, we discuss what TikTok's flywheel looks like, its latest efforts to build out its own shopping platform, and what the social network has that Meta doesn't. Then, for "Pop-Up Rankings," we rank our top four existing TikTok copycat apps. Join our analyst Sara Lebow as she hosts analysts Sky Canaves and Jasmine Enberg.

The majority of US Gen Zers are now adults, according to the US Census Bureau. The cohort is more diverse than any other generation and has a distinct identity shaped by its digital dependency during the pandemic. Gen Z has emerged with a distinct “me mentality,” prioritizing mental health and individuality after a childhood behind screens.

With the rise of TikTok and all its copycats, there’s a lot to keep track of in terms of paid advertising. Creators frequent TikTok, Reels, Shorts, and Spotlight in some capacity, but the ad ops on each platform vary. Here’s a quick guide to what’s available on each platform.

Meta accounts for 19.5% of US digital ad spend, despite US adults spending only 7.6% of their time with digital media on the platform, according to our forecasts.

Meta is one of the two most successful ad publishers in history (along with its duopoly rival, Google), but its ad dominance does not come in tandem with an equally dominant hold over consumers’ time. In fact, Meta’s share of ad revenues is surprisingly out of step with how much time people actually spend on its platforms, particularly when compared with competitors like YouTube and TikTok

Snap has weaker Q2 but makes progress: The company posts a smaller loss, demonstrates a 14% increase in DAUs, and sees strides in innovation.

The greatest amount of growth will come from Gen Zers as they enter adulthood, but millennials are still a force to be reckoned with due to the sheer size of their user base.

Netflix will remain on top despite a shaky 2023. Estimates for Hulu and the other sub OTT services were not affected by the writers strike.TikTok and YouTube are in a close fight for short- and medium-length video viewing time.

TikTok's new phase: The platform now supports text posts, further broadening its creative canvas beyond short-form videos.

UK retail sales are performing better than expected, with consumers still spending despite high inflation—but ecommerce will lose further share this year as shoppers continue returning to stores and cut nonessential spending.

Consumers (particularly Gen Zers) increasingly turn to social media to begin their shopping searches because of its highly visual, creator-driven content. To capitalize on this behavior, social platforms are building out search ad capabilities. But it’s still early days, so don’t dump Amazon or Google just yet.

Most consumers use online marketplaces to find products, but the number who are browsing in-store or on social media is growing. Retailer websites are where customers go for product research. And when it comes to purchasing, price and delivery options are the most important factors.

TikTok is using creator payouts to boost Shop adoption: The platform is offering some influencers cash incentives for reaching sales or livestream goals.

With 13.4% YoY user growth in 2023, Snapchat will briefly overtake TikTok (12.7%) as the fastest-growing social media platform worldwide, according to our forecast. TikTok will regain the title come 2024.

Brands can expand their customer bases without starting from scratch by participating in conversations that are already happening on TikTok via “edutainment,” or informational content, Colleen Conkling, CMO of stationary company Papier, said at The Lead Innovation conference in New York City last week.

YouTube’s ad business has posted losses for the past three quarters—an unprecedented slide following years of double-digit gains. This underperformance has forced the video giant to sharpen its focus in the two areas where it has the best shot at attracting ad spending and restoring growth: connected TV (CTV) and short-form video.

US cosmetic and beauty sales are expected to grow over 10% this year—more than three times the 2.9% rate of the overall retail market, according to our forecast. It’s a sign of the “lipstick effect,” said our analyst Sky Canaves on our “Behind the Numbers: Reimagining Retail” podcast.

Following three consecutive quarters of ad revenue losses, YouTube faces an urgent need to restore growth. This could present marketers using YouTube with opportunities to target audiences on both connected TVs and smartphones.