Generation Alpha may not have their own income yet, but they already have a say in what gets bought. According to the recent survey from PwC, Generation Alpha are some of the most “digitally native, entrepreneurial and commercially confident kids in history.” These kids have a voice of their own and aren’t afraid to speak their minds – and parents are listening.
Data reveals that 70 per cent of 7- to 14-year-olds own their own tablet, 72 per cent use smartphones regularly, and 97 per cent say they make purchasing decisions independently at least some of the time. The younger generation know which brand of yogurt to add to the grocery cart, are ordering dinner at home and even experimenting with makeup.
Averaging 3.6 hours of recreational screen time daily, children are not just consuming content but are learning how to spend money, which new products to incorporate into their families’ lives and how to influence household purchasing decisions.
When asked what makes them want to buy something, 61 per cent of Gen Alpha respondents point to social media. This figure is larger than peer influence at 56 per cent and significantly outpaces traditional channels like TV advertising at 48 per cent or in-store browsing at 53 per cent.
Over time, social media and gaming platforms are likely to become increasingly important discovery engines for the next generation, shaping purchasing intent and decisions as well as where brand preferences are formed.
With 89 per cent of 13-14 year olds who own their own smartphone, this generation is increasingly turning to social media for fun. The leading platform for the generation is YouTube with 68 per cent of Gen Alpha spending time on the platform. Gaming and streaming platforms are tied for second among ages 7-9, while gaming platforms are more prominent among those aged 10-14. Another prominent platform among 13- to 14-year-olds is TikTok, with 46 per cent using it.
The report finds that the main reasons children stop using their devices include boredom, cited by 52 per cent, excessive advertising at 36 per cent, slow load times, and coming in last, adult intervention through screen-time limits, also cited by 36 per cent.
Essentialy, what this means for brands and advertisers that if they fail to deliver frictionless entertainment or relevant experiences they will lose their audience and it wont be because of parent intervention but because Gen Alpha chose to leave.
Most Gen Alpha knows exactly where to spend their time and money. What this means for brands and advertisers, is that the newer generation is developing preferences for products and services years before they have an income of their own.
The top spending cateogry for Gen Alpha is at 72 per cent for food and drinks. According to the survey, 1 in 4 kids are independently ordering for themselves with 25 per cent doing so via food delivery platforms like DoorDash or Uber Eats.
With their purchasing power still dependent on their parents, payment methods remain relatively traditional among the younger generation despite their digital savviness. While 60 per cent of children say an adult pays for them when they buy something, cash is the strongest payment method after that. Some 49 per cent of 7- to 14-year-olds say they use cash, while only 16 per cent use digital wallets or digital payments.
There seems to be gap between what parents think their kids are doing and what they actually are.
According to the P…