* This article is a paid service of Digiday[Japanese version]a media for next-generation leaders responsible for branding.DIGIDAY+This is a reprint from.
For nearly a decade, the media industry (including media agencies) has devoted a great deal of attention and money to Gen Z. So is it too early to focus on Generation Alpha (the generation born after the 2010s)?
Some agencies and marketers think otherwise. The generation following Generation Z is the first to grow up in a fully digital world, and from birth they are exposed to new digital innovations such as artificial intelligence, virtual reality (VR), augmented reality (AR) content, and social media influencers. Surrounded by it, we live in such a world. Generation Alphas are also growing up during a global pandemic, so they will likely feel more comfortable with remote workplaces, social distancing, and hybrid or virtual events and activities.
Agencies are now beginning to research and learn about the generation born after 2010. Experts say such activities are very important for connecting with future generations. Learning about Alphas is important, but it should be a “future-proof approach” rather than marketing to them now, says Publicis Groupe’s interactive agency. said Josh Campo, CEO of Razorfish.
Research on the alpha generation is a strategy to keep up with the future
“In the not-too-distant future, this generation will be an adult, and it’s important for brands to prepare for it.
As clichéd as it sounds, Alphas are very different from the generations that came before them, and if businesses don’t start learning and understanding them, they may not know what they’re doing when they gain purchasing power as consumers. There is.” (Mr. Campo)
For Sparks & Honey, Omnicom’s cultural information consultancy, interest in Generation Alpha began five years ago. Hannah Hickman, senior vice president of customer strategy and head of youth culture practice, says that if we understand Gen Alpha now, marketers and brands will be as desperate as they were in Gen Z culture. Say that you will not have to try to catch up.
Hickman told Digiday:
“The key to avoiding that experience in the next generation is to start developing insights and data systems. To track and understand how it impacts behaviors, beliefs, and attitudes.We’ve seen many marketers scramble to accommodate Gen Z. We have to be prepared for what we have to do.”
The impact of the alpha generation on the market
Generation Alpha, which includes children born between 2010 and 2024, currently accounts for about 2.7 million births each week, according to McCrindle Research. They are expected to be the largest generation ever, with the majority of 8- to 11-year-olds using smartphones. McRindle expects this generation to make up 11% of the workforce by 2030, with jobs including drone pilots, user experience managers and blockchain developers.
It may be too early to characterize many of Alpha’s habits, behaviors, and sentiments — they’re still children after all. But one area we can start measuring is their purchasing power and influence over their families, Hickman said. This is because Generation Alpha is raised by millennial parents who have different values and easier access to technology than previous generations. For example, Generation Alpha children tend to be more aware of brand responsibility and sustainability from an early age than older children.
“Studies show that Generation Alphas are more influential in family purchasing decisions than previous generations at the same life stage.
This points to a different family structure millennials are trying to build, in which Generation Alpha has a greater say in decision-making. (…) We also see that Generation Alpha is raised in a cultural context where parents have a lot of debate about the moral obligations of brands that provide environmental protection and economic equity.” Hickman)
He said that while millennials and Gen Z are becoming more aware of this in their teens and twenties, “it creates consumers who are more sensitive to the impact of their purchasing decisions from an earlier age.” I’m thinking. Gen Alphas naturally become involved in conversations about how brands impact the world through their purchases.
Wunderman Thompson, a WPP company, has also been examining Generation Alpha for the past three years through its research on digital shopping and retail. The survey found that when thinking about their future jobs, 59% of this generation want to save lives, and 66% want to buy from brands that have a positive impact. They also want to receive their products faster, with an expected average delivery time of 2.23 days. According to the survey, one in five Alpha generations under the age of 16 said they wouldn’t buy anything online if it wasn’t delivered the next day.
Amanda Hudson, marketing expert and CEO of Hudson Davis Communications, said: “They are buying very differently, and the strength of brands going forward is digital first, technology first. It’s all about how deeply you understand and connect with this generation.”
The role of the metaverse, social media, and games
Generation Alpha has the most access and exposure to devices and online platforms. This means that their online habits and social connections greatly influence the media they consume. According to market research firm GWI, device ownership has skyrocketed in recent years. By 2022, 27% of Gen Alpha consumers own smartwatches, 19% smart TVs and 6% mobile phones.
Regarding media mix, Hickman said, “In the world of media agencies with parent companies, many of their clients reach Gen Alpha, so they’re focused on channel breadth rather than which channel is best.”
“Generation Alphas have been growing up with social media, games and content creation platforms from a very early age. You can expect them to gravitate to 12-15 different platforms (Discord[ディスコード]Roblox[Roblox]Google’s educational tools), and it’s natural for them to use them,” Hickman said.
In this diverse ecosystem, agencies expect immersive content and social media to continue to be their primary connection venues. And the pandemic has partially accelerated these trends. A good example is video games. A study by Laserfish found that Gen Z gamers spend 12+ hours a week gaming, compared to just 6-7 hours in-person with friends.
“We expect this trend to grow stronger for Generation Alpha, who have had these immersive experiences since childhood. Alpha generation expectations for their experience are revolutionary, and that’s through channels like the metaverse and social media. It really depends on how much you’re exposed to , and how much (members of Generation Alpha) are involved in games and immersive experiences based on games,” Campo said.
Additionally, TikTok and Roblox are expected to continue to be the dominant force of Generation Alpha. According to GWI, TikTok will be the platform of choice for 13- to 15-year-olds in 2022, followed by Instagram and WhatsApp. As for games, online games are the most popular, with more than half of 8-11 year olds and a third of 12-15 year olds currently playing Roblox. This represents an increase of 27% and 30% for each generation from 2021 to 2022, respectively.
“They demand pocket money in Roblox’s in-game currency, Robux, instead of dollars, and are familiar with contactless digital payment technology, which has been accelerated by the pandemic,” Campo said. If you look at Generation Alpha, it’s clear that they’ve moved far away from piggy banks and recycled-can piggy banks.