Research And Insight

Marketing Strategies to Capture Generation Alpha

Marketing Strategies to Capture Generation Alpha

In 2025, it is estimated that the Generation Alpha group will have a global population of 2.5 billion and the greatest amount of spending power in history.

By 2030, Gen Alpha will be key decision makers and are already influencing brands’ communication strategies.

As the most hyper-connected generation so far, Gen Alpha will expect more from businesses.

Between 2019 and 2021, kids are using streaming services by 43%, according to a United Talent Agency study in August 2022. According to another study, 85% of US kids between two and 12 watch YouTube, so it’s still relevant.

Brands are paying close attention to Gen Alpha, the first generation to get a taste of immersive technology thanks to the rebrand to Gen M, short for Generation Metaverse.

Because they grew up in a polycrisis era, this generation will have to be resilient, like their parents. They’ll feel a responsibility to undo what previous generations did to the planet. As Millennials, they’ve inherited values like caring about climate change, so brands will have to be transparent about their green credentials.

It’s all here, from working with Alpha influencers to using collectibles to communicate DE&I and selling through virtual worlds.

Brand strategies that can be incorporated –

The Parennial Effect

The ‘Parennial’ generation is a mix of Gen Alpha’s parents and their millennial kids, so brands need to think about a two-way approach when courting this cohort.

This cohort can recognize brands as early as three and form opinions about them, so it’s crucial to start engaging with them now. They learn about brands, quality and taste from their parents. Millennial parents have a lot of buying power, so brands should think about them when courting Gen Alpha. Make marketing and products that bridge generational gaps by taking a multigenerational approach.

When it comes to reaching millennial parents, trust plays a big part. Companies should be good brand citizens and embrace their values, such as education, inclusion, sustainability, and radical transparency.

Power of Alphluence

Millennials are growing up with technology and influencing their parents’ buying decisions, which is creating a new generation of influencers. The study found 40% of Millennial parents in the US and Canada say Alpha kids influence them when buying things, and 37% say they watch YouTube weekly for their kids.

US based 10-year-old is a popular Alphluencer with 33 million subscribers. He recently unboxed a claw machine and it got more than 3.7m views. As part of his long-term partnership with the US footwear company, he unveiled new sneaker designs ahead of the local back-to-school season in July 2022.

Upping Virtual Worlds

With 85% of 8 to 11-year-olds playing games for fun across 14 markets, the global online gaming industry is projected to reach $132bn by 2030, driven partly by Gen Alpha who make up 40% of new internet users.

Avatars can be used to express oneself, compete in challenges, build virtual land, and attend events on the social gaming platform. Luxury labels have been one of the earliest adopters, launching in-game experiences and products that could be Gen Alpha’s first luxury purchases. Brands are flocking to them, a stepping stone to the metaverse.

Gen Alpha is all about combining virtual and real experiences. Brands are creating digital spaces and products that can be redeemed in real life. Creative, learning, and socialising are the reasons Gen Alpha loves phygital experiences. Get their attention with gamification in phygital experiences. For future launches, invest in the gamer creator economy because no one can create a brand experience better than someone who already lives there.