Brands need to pay attention to the shifting habits of young people in order to fully understand new consumer behaviours.

This was the ethos behind The Kite Factory’s recent event, which was rooted in the agency’s new research, undertaken in partnership with Source Nine Insights.

The event, which included speakers from Truant, Snapchat and Glomotion Studios, discussed how the next generation of consumers: Generation Alpha are reshaping marketing.

With talks spanning what they are interested in, where they spend their time, how brands can fit into their lives and  what their shopping habits might look like in future.

Born between 2010 and 2024, Generation Alpha is the biggest generation since Gen X. They are expected to have the spending power of £4.32tn by 2029. Arriving at a point where attitudes towards parenting are changing, they already have a significant influence on household spending.

As with every new generation of consumers, it is important for the industry to understand their behaviours, wants and needs. Ruby Carter, Cultural Strategist at Truant London, urged the audience to look beyond stereotypes. She explained: “Don’t turn away from what you don’t understand”.

Generation Alpha is arguably the first  generation of digital natives, which comes with benefits and challenges. Whilst some aspects of being online are facilitating self-expression and nurturing communities, there are also challenges. Young people are at the mercy of the consequences of social media on their mental health. At the same time the increase of ‘rage bait’ and  polarising content is leading some towards harmful online figures.

With almost two-thirds of 12-15 year olds preferring to skip ads, brands are left with the challenge of better understanding Gen Alpha, while being mindful of the potential harm that being so online can cause them.

The Gen Alpha Playbook

Lydia Martin, Strategy Director at The Kite Factory, introduced the agency’s research. She explained that attitudes around how children are raised are changing, as are their responses to authority and in turn, the media.

While 39.6% of the Silent Generation (defined as those born prior to 1946) agreed that ‘children should be able to express themselves freely’. However, this number jumps to 67.8% for Millennials (defined as those born between 1981 and 1996). And while the Silent Generation had top-down media with broadcast and mass communication, Generation Alpha have decentralised media, with democratic digital communications which are both personalised and on-demand.

Not only has there been an attitude and culture shift, Generation Alpha was also one of the most impacted by the Covid-19 pandemic. An experience which is leading to increased isolation. According to the research 19% of parents say their child has no friends or not enough friends. While 21% of parents say their kids struggle to make friends because of shyness.

The cause of this ‘lonely generation’ has been attributed to, in part, the lasting effects of the pandemic. Because of lockdown Gen Alpha was cut off from normal social interaction at pivotal growth and development stages. Not only did social isolation change how children were socialising, it also delayed their independence.

At the same time, Gen Alpha are digital natives, unlike most generations that have gone before them. Of their time online, 23% is spent on streaming services, and the same amount on YouTube. 17% is spent on TikTok, and 15% on Snapchat, with only 10% on TV. During this time, 64% of 12-15 year olds say they like 'technology that allows me to skip ads'. A truth which  poses a fundamental problem for the advertising industry.

Another key factor to consider when marketing to this next generation of consumers is the ever-shortening trend cycle. Previously, trends used to be between 20 and 30 years long, from rise to eventual death. However, according to TikTok the average shelf life of a TikTok trend is just 90 days. In this landscape, brand loyalty becomes more important than trend loyalty for marketers.

The Empathy Framework

Robert Harrison-Plastow, Founder & CEO of Source Nine Insights, explained how their research had developed an  ‘Empathy Framework’. A framework designed to support brands to better communicate to young people.

The framework identified the key emotional needs of Generation Alpha. These include: autonomy, connection, security, meaning and purpose, play, and peace. Harrison-Plastow explained, if we can understand why people behave the way they do, we can work to provide their core needs or help them to be met.

Shaping culture, shaping connections

Ruby Carter, Cultural Strategist at Truant London, identified three key stereotypes and suggested ways to avoid falling into the trap of painting a whole generation with the same brush. At its core, Carter’s presentation was about showcasing the complexities within this generation. There are huge differences amongst people of the same age group, and to reach these consumers marketers need to understand their complexity.

It has been said that Generation Alpha can save the world from climate change, or be our most progressive generation yet. But, as Carter explained, some of this cohort support the likes of far-right figures like Andrew Tate.

Another stereotype is that this will be the generation to do away with labels, and while this might be the case for traditional labels, labels in the form of fandom are intensely important to people in this age range.

As research from SuperAwesome found, ‘74% of young audiences feel more connected to brands that share their interests or engage with their passions in some way’.

The Third stereotype Carter unpacked was that Generation Alpha is the chronically online or tech generation.  90% of them have held a digital device since age one. However, Carter pointed to the rise of IRL  experiences and more meaningful connections. She shared that meeting friends in real life and playing video games that heavily involve communication with peers.

Carter urged the audience to ditch the stereotypes and instead adopt three key strategies to better connect with Generation Alpha. Firstly, she suggested that having an active interest in their world was key. Secondly, she reminded marketers not to turn away from what they don’t understand. While finally she reminded the audience that this audience is always evolving.

In a marketing ecosystem in which Generation Alpha won’t be the first or last generation to be stereotyped, Carter urged the audience to look beyond age and consider non-age based interests.

Innovating for the next generation: engaging youth through Snapchat

According to Snapchat, the app reaches 90% of 13-24 year olds in the UK, making this age group the ‘Snapchat Generation’. Aiden Rouse, Head of Mid-Market, UK and Nordics, at Snap, explained that this group are on the app as they are fed up with traditional social media.

He pointed to the findings of  one study from The Netherlands attesting that Snapchat is the only platform that positively impacts wellbeing. In addition, research has found that over 90% of Snapchatters feel comfortable, happy, and connected when they use Snap.

Rouse said that over half of Gen Z have ambitions to become a creator or influencer, with digital media having democratised influence. He also said that Gen Z are spending more on experiences than big buys like houses, because of the economic climate. They are also passionate about presenting their most authentic selves. The latter makes them very adept at identifying inauthenticity, with 62% of Gen Z shoppers prefering to buy from genuinely  sustainable brands.

They want brands who identify with their values, such as Patagonia. As many as 73% are willing to pay more for sustainable products. With 61% less likely to return an item that was bought after using Augmented Reality (AR) try-on, AR can assist with more sustainable shopping habits.

This audience also craves interactivity. According to Rouse, 91% are interested in interactive in-store experiences, 85% include friends in their shopping journey, and 81% want AR to enhance their in-store experience.

With Gen Z’s spending power expected to grow to $12 trillion by 2023, there are huge opportunities for brands to embrace and facilitate these buying preferences. This generation expects more from their shopping experiences. More of a seamless experience, more tech enhancements, more interactivity, and more brands being value-led. Rouse concluded that we might expect to see these trends progress even further with Gen Alpha.

Reimagining branded entertainment for Gen Alpha

Gen Alpha has grown up being able to skip ads, so advertisers are faced with new challenges. A shift which Chris Davis, Commercial Director at GloMotion Studio’s believes is driving a new era of entertainment-led marketing. “Don’t interrupt their entertainment, become it”, explained Chris Davis, Commercial Director at GloMotion Studios.

With more of this generation turning to YouTube for entertainment than traditional broadcast media, we are seeing that on-demand is becoming the go-to. Davis detailed that 45% of YouTube viewing occurs on TV screens, with one-third of trending videos on the platform lasting between 20 and 60 minutes, counter to the idea that demand is only for short-form content.

Part of this new habit is resulting in the creator economy becoming the new Hollywood. Stars for this generation often make their names online, by building a following. Fans have a more intimate relationship with these new era celebrities than previously with Hollywood stars, due to more frequent connection and personal content. Brands can embrace this connectivity by platforming creators and letting them drive content that really resonates with audiences.

Davis gave the example of streetwear retailer, FootAsylum’s YouTube presence. The brand has nearly 3 million subscribers and is on track to reach 1 billion views, as a result of creating free entertainment with creators that its audience likes, like its “Locked In” series. In this way, the brand doesn’t have to sell directly to consumers, a move which has led to double digit growth in revenue in the last year, which the CEO attributed to the brand’s digital content strategy. LEGO is another brand leading marketing with entertainment. It has been leaning into creators that are relevant to the space to migrate these audiences over to its platforms.

There are increasing opportunities for brands to adapt to reach this new generation of consumers. Influencer marketing and branded entertainment, when done right, is a way of seamlessly integrating a brand’s presence into Gen Alpha’s online experience.