Gen Alpha and brand loyalty—6 ways to build a relationship with the next generation of consumers

As Gen Z is transitioning from high school to college and the workforce, a new generation is coming of age. Enter Gen Alpha, the first generation to grow up entirely immersed in a digital world. With Razorfish projecting its global population to reach 2.2 billion by the end of 2024, this cohort, often dubbed digital natives, mini-millennials or iPad kids, is an undeniable growth opportunity for brands. Gen Alphas span from newborns to preteens with no disposable income of their own. Yet to be successful, brands must begin to consider how they will reach this new demographic when they come into buying power. This generation is growing rapidly with an estimated 2.5 million born weekly. Its economic footprint is expected to reach $5.46 trillion by 2029, nearly matching the combined spending power of millennials and Gen Z, according to the BBC. Ad Age Leading Women Luncheon Join us Aug. 7 in New York as we recognize this year’s honorees Buy your ticket today Even without income, Gen Alphas influence household purchases. Eighty-seven percent of their predominantly millennial parents take their preferences into account when making purchases, according to Pew. There is cross-generational reinforcement occurring in Gen Alpha x millennial households, with parents introducing their children to brands or products and the children reinforcing them as “cool” in the culture. So, what can brands do now? Target millennial parents Start building loyalty early by targeting millennial parents, whose preferences heavily influence Gen Alpha's buying habits. This trickle-down effect can be seen when shopping at Sephora or looking for the newest Stanley Tumbler color at Target. For brands and advertisers, it’s important to note that defining a strong millennial audience can pay off with Gen Alphas. Gen Alphas are developing brand affinity from observing their parents’ behavior and from products found in their homes. Be authentic and transparent Given that this generation has grown up in the digital age, Gen Alphas are in tune with digital advertising and can spot a sponsored post or paid partnership a mile away. For Gen Alpha, there is little mystique behind a brand. As a result, they seek authenticity in everything from partnerships to social media presence. For brands looking to connect with the youngest generation, they must be authentic and transparent in their messaging and partnerships to resonate with them. Don’t highlight their age Gen Alpha is also unique as its preferences skew toward those of adults rather than children, and there is no longer an in-between. In the 2000s and 2010s, there were “tween” stores like Limited Too and “junior” clothing lines. Gen Alphas want no part of this and gravitate toward adult brands such as Lululemon, Sephora and Target, mirroring the preferences of their millennial parents. When targeting Gen Alpha in advertising efforts, steer clear of language that references their youth. Brands looking to reach this audience should ensure their tone reflects a sense of maturity that Gen Alpha aims to emulate. Find them on TikTok In the expansive digital landscape that Gen Alpha calls home, it's no surprise that TikTok emerges as one of their preferred social media platforms with 20% of 13- to 15-year-olds naming it as their favorite, according to GWI. Gen Alpha predominantly consumes content on TikTok, leveraging it as an entertainment and product discovery platform influenced by both branded and influencer content. Offer virtual experiences Gen Alpha also has an affinity for gaming. They are “phygital-first,” meaning they will grow up between IRL and digital social spaces. They have a strong presence across gaming apps such as Roblox and Minecraft and engage in social interactions within these fantasy worlds. To engage with Gen Alpha, brands such as Claire’s, e.l.f. and Fenty Beauty have all launched Roblox experiences. Brands should invest in these apps and AR capabilities to not only raise awareness but also cultivate deeper engagement within Gen Alpha's virtual worlds. Check out the latest Ad Age events and award programs Create engaging physical retail space Despite their moniker of "iPad Kids," even Gen Alphas appreciate time away from screens as they are passionate about mental health and wellness. Brands must recognize the value of an omnichannel presence in reaching this demographic, as exposure to brands in the real world shapes Gen Alpha's preferences and builds familiarity. To strike a balance between online and real-world interactions, create immersive experiences in digital spaces such as TikTok and gaming apps, but don't neglect physical retail presence to cater to Gen Alpha's preferences. To capitalize on the burgeoning influence of Gen Alpha, brands must adopt a multifaceted approach, leveraging digital platforms, immersive experiences and physical retail presence to authentically engage with this emerging demographic. By understanding their preferences, behaviors and the influential role of millennial parents, brands can position themselves as favorites among Gen Alpha, paving the way for long-term brand loyalty and market success. Is your brand ready? See all of the 2024 Small Agency award winners here

Gen Alpha and brand loyalty—6 ways to build a relationship with the next generation of consumers

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