Why Gen Alpha is so brand-obsessed and how marketers can reach these savvy young consumers

In a Dec. 26 TikTok video, Stanley, the popular drinkware brand, showcased a variety of different consumers receiving its tumblers as Christmas gifts. The vast majority—or 11 of the dozen people whooping and jumping for joy who were featured—were children. “He got me a Stanley,” one girl exclaimed. It was clear from the video that not only were the young customers aware of the Stanley brand by name, but they had also requested it as a must-have on their lists for Santa. @stanleybrand Watch if you need a boost of joy! #StanleyBrand #stanleytumbler #StanleyQuencher #Holiday ♬ original sound - Stanley 1913 Generation Alpha, or the group born beginning in 2010, is quickly emerging as a cohort more brand-aware and brand-savvy than previous generations—including Gen Z and millennials—ever were at such a young age. The oldest Alphas are now only 14. The products they covet, including Stanley’s colorful tumblers, Drunk Elephant’s expensive skincare offerings and Lululemon’s Swiftly tees, come from brands that have risen to the top as social status symbols and are using their cultural prestige to deepen connections with consumers who represent decades of spending power. An annual report of “Coolest Brands for Kids & Teens” in the U.S. from Beano Brain, a consumer insights consultancy, saw the number of brands on the list double to 100 in 2023 from 50 in 2022; an introduction noted that “kids have brands on their brain.” Check out the latest Ad Age events and award programs Meanwhile, a 2023 report from digital agency Razorfish found that “access to the internet has accelerated Alpha’s brand maturity at a higher rate than previous generations.” The study found that adult-focused “mature” brands, including the likes of Amazon, Nike and Apple, are attracting Alphas and pulling them away from child-related brands even before the youths reach their teenage years. “The brands the parents were attached to at that age are kiddie brands, toys, cereal, but these kids are attracted to more sophisticated brands,” said Dani Mariano, Razorfish’s president. “Their baseline is a very mature brand set.” She noted that the agency first began studying Gen Alpha two years ago after noticing clients caught “off-guard” by how difficult Gen Z was to market to compared with prior generations. Gen Alpha marketing involves complexities—partnering with Alpha influencers, due to a lack of formal rules around child creators, includes murky guidelines and numerous pitfalls for brands. But by researching the motivations of Alpha now, and fostering early connections with them to build loyalty, marketers will be well-positioned for the future, Mariano said. Spending goldmine Alphas are expected to eventually command a massive spending power that could outpace previous generations as the cohort gets older. In 2029, Alpha’s collective global economic footprint is forecast to exceed $5.46 trillion, according to McCrindle, an Australia-based social research firm whose founder Mark McCrindle first coined the phrase “Generation Alpha” several years ago. Roughly $5.39 trillion is spent on the group currently, McCrindle found. “The spending power they have and the influence they have on your spending power as the parent of an Alpha is extraordinary,” said Christine Guilfoyle, a former Meredith Corp. exec who now is president of SeeHer, the Association of National Advertiser-run program dedicated to the authentic portrayal of women and girls. Also read: 5 influencer marketing trends to watch in 2024 While previous generations knew about certain brands and were loyal to some over others, they were not as hyper-aware as Alphas. Indeed, millennials, at one point dubbed the “generic generation,” cared so little about brands they birthed a company called Brandless. But Alphas were raised on unboxing videos from the likes of influencers such as Ryan Kaji of Ryan’s World and have spent most of their young lives on digital platforms consuming content. And now the boxes contain beauty items or clothing instead of toys—and the videos are “Get Ready With Me” tutorials and how-tos. The young viewers are taking notes and claiming favorites. “It’s a highly sophisticated generation having being exposed to messaging and brand influence at the youngest age,” said McCrindle. “They interact with brands that might be beyond their particular targeting because they’ve got access to information and content consumption beyond their age, which makes them very brand conscious.” 'Older sister energy' Some of those brands are Gen Z recommendations, but marketers should not assume Alphas are just smaller Gen Zers, experts say. Five years ago, when TikTok and other social platforms were on the rise, Gen Z consumers began exploring social media for self-expression and creativity. Alpha is even more sophisticated. “They have this reference where they’re able to pick it apart and say, ‘I like that,’—it’s almost this older sister energy,” said AJ Pulvirenti, a senior strategist at Movers+Shakers, who helps lead the agency’s “Culture Squad” examination of young generation trends. “The foundation was set by Gen Z when it comes to the brands they were interested in, and Alpha is going forward by being very specific on the ones they want to engage with and those they don’t.” The list of brands appealing to Alphas includes many that are typically perceived to be for adults: Starbucks ranks No. 14 on Beano’s list of The 100 Coolest Brands in the U.S. for kids and teens. The list also includes Apple, No. 23; TikTok, No. 30; Bath & Body Works, No. 53; and Shein, No. 96. While some toy brands, including Squishmallows, No. 22; and American Girl, No. 98; are in the mix, Barbie—No. 99—could be considered to have multi-generational appeal following the “Barbie” movie’s PG-13 rating. Digital drivers While Gen Zers are digital natives, Alphas are digital savants—they were born into a world of digital devices, including sophisticated smartphones, smart home assistants and iPads. Many kids had screens as toddlers or even infants, an experience that was only exacerbated by the coronavirus pandemic when school, playdates and extracurriculars were all conducted online. The group currently spends more than five hours in front of screens each day, according to SeeHer research. “They’ve grown up with the ‘Nascar-ization’ of brands—brands are everywhere for them,” said Guilfoyle, referencing the plethora of logos and branding in real life and online. Yet she cautioned that only 4% of ads show Gen Alpha boys and girls in them. “Brands must represent Gen Alphas accurately, showcasing the cultural diversity this consumer cohort has,” she said, adding that 72% of the group uses media to manage their emotional stage. While many older Alphas are on platforms such as TikTok, Snapchat and Instagram, younger members of the group are not. But the majority of the group is on YouTube, as parents gravitate toward the platform’s safety and content controls. Razorfish found that some 51% of Alpha’s brand awareness is driven by YouTube. Brands such as trendy jewelry purveyor Kendra Scott have purposely diversified their digital marketing mix to include YouTube as a way of getting in front of Alpha eyeballs, for example. “YouTube is interesting, it makes sense that parents feel YouTube is a safe channel versus other social media channels, but that’s a place of exploration—those algorithms are fantastic,” said Mariano. As more brands use digital media to target Alphas, regulators are taking notice. The Federal Trade Commission has been exploring the issue of “blurred advertising” online in recent years; in September the regulatory body recommended separating advertising from other content for children on digital channels. Yet despite Alpha’s digital proclivities, some marketers have been successful in courting the group through real-life experiences. Kendra Scott, which is also a brand popular with Gen Z, is already seeing Alphas prioritize the in-store experience, according to Michelle Peterson, chief marketing officer of the 150-unit chain. The brand treats its stores like event spaces and offers a “Color Bar” personalization experience where shoppers can book parties and create customized jewelry. The events are resonating with young tweens especially. @kendrascott Come make alllll the friendship bracelets with us at the Color Bar® and enter your Eras era with KS! 👯✨ See us in store or click the link in profile to shop now before you go see the movie! 🎥😉 #kendrascott #fyp ♬ youre on your own kid - user88208558970 “Gen Alpha, they love experiences online because they’re of course digitally native, but they love experiences in store,” said Peterson. Indeed, the recent controversy over tweens visiting Sephora beauty stores, and older customers documenting the group’s messes and inappropriate behavior on TikTik, only proves how important store visits can be for connecting with kids, if done the right way, experts say. At Ulta Beauty, store associates are trained to support shoppers of every age, including tweens and younger kids, noted Michelle Crossan-Matos, chief marketing officer of the 1,355-unit cosmetics chain. “When it comes to tweens and teens, we’re here to help guide and educate them, and their parents, about the products and solutions that are suitable for their needs, and importantly help them establish a healthy relationship with beauty,” she wrote in an email. Ad Age Gen Z Contributor Column We welcome Gen Zers to submit fresh takes exploring Gen Z within the ad industry Learn more here Creating community for long-term loyalty Crossan-Matos added that the pandemic spurred an interest in beauty and self-care routines for Alphas at an early age as a way to find community and commonality with others also under lockdown. Others agree that the group craves a sense of belonging, evidenced by digital games such as Roblox, and brands that deliver that are well-positioned to earn Alpha dollars. Kendra Scott considered community and connections with younger customers when it created its marketing roadmap. “Connection over transaction is a principle [Kendra] started from Day 1 that applies to all our generations but also fits with Gen Z and Gen Alpha,” Peterson said. “We aren’t looking to market, target, deepen loyalty or drive awareness—we are looking to connect.” She added that loyalty and transactions may come later, but the priority is the connection. Stanley, which was founded 111 years ago and recently reinvented itself as a young influencer favorite, fuels its Gen Alpha appeal through a limited-edition scarcity model. The brand also, like Kendra Scott, offers customization options that resonate with young shoppers. “Limited-edition products, only available in this much quantity, that ‘need to grab it now’ scarcity creates excitement and urgency amongst consumers and a lot of brands use this tactic to get brands to buy immediately,” said Purvi Shah, associate professor of marketing at Worcester Polytechnic Institute’s The Business School. But a lot of that excitement also comes from Alpha’s millennial parents, a group marketers should be well versed in attracting by now. “Alpha are also influencing the decisions of their parents—they convey ‘I want this particular brand and this particular color of that bottle,’ because they’ve seen it on social media, they’ve seen their friends have it,” Shah added.

Why Gen Alpha is so brand-obsessed and how marketers can reach these savvy young consumers

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