Empowered spenders: how Gen Alpha is shaping the market

There is a unique opportunity for brands to build strategies that speak to the hearts and minds of Gen Alpha, a generation characterised by increased spending power and appetite, but also by eclectic and demanding tastes and a vocal, impactful voice.

Drawing on real-time data, this feature explores the growing empowerment of Gen Alpha across the EMEA region. Beyond their appetite for spending, we look at how their attitudes towards advertising have shifted over the past year, the platforms of choice for kids and parents, and how far each group trusts those platforms as sources of advertising. We also cover shopping priorities, what makes a branding campaign land, and the societal concerns closest to their hearts.

Gen Alpha: the generation of influence and power

Empowered by entrepreneurial spirit, creativity and digital fluency, Gen Alpha is fast becoming the most independent and financially astute generation. Across EMEA, 31% of 10 to 14 year olds report earning their own money, a 51% increase in just two years. The trend extends to younger kids too, with 28% of 6 to 9 year olds saying they earn their own money. Financial independence is a growing priority not only for teenagers but for a surprisingly young demographic.

Germany leads the way

Germany stands out as the EMEA leader in this trend, with 40% of 10 to 14 year olds earning their own money. Kids there are not only financially independent but digitally savvy online shoppers: 74% spend most of their money online, 42% higher than the regional average. Perhaps more surprising is their interest in investment, with a 79% increase in cryptocurrency ownership and use compared with the EMEA average of 24%. These behaviours exemplify Gen Alpha’s entrepreneurial spirit and their advanced digital and financial literacy.

Our data also reveals heightened purchase intent among Gen Alpha. Compared with the average, they are significantly more likely to plan purchases in the near future, with food and drinks up 24%, gaming up 23% and sports equipment up 25% in planned spending over the next three months. As financial independence becomes more commonplace at a younger age, the influence of kids and teenagers across every industry will continue to grow, so it is crucial for brands to recognise them as a distinct consumer group.

Engaging Gen Alpha and their parents

This sense of empowerment extends to attitudes towards advertising, which can spark both heightened brand interest and direct purchases. 40% of 10 to 14 year olds report becoming more interested in a product after seeing a relevant ad, and 18% say they would make the purchase themselves, reflecting their growing financial independence. That is a 5% increase in self-directed purchases compared with last year. While pester power remains a factor, with 32% of 10 to 14 year olds across EMEA asking their parents for advertised products, it is even more prevalent among 6 to 9 year olds at 37%.

For marketers targeting Gen Alpha, a unique opportunity arises in engaging directly with kids rather than relying solely on parental influence. That requires responsible and balanced messaging. Traditional TV remains strong, holding 31% of ad viewership among 10 to 14 year olds, unchanged over the past year. Digital platforms are gaining traction, though, with YouTube second at 22%, followed by TikTok at 11% and Instagram at 6.8%.

Reach does not always mean engagement

An interesting dichotomy emerges when comparing memorability with usage. Traditional TV reigns supreme in ad recall at 31%, but YouTube takes the crown for actual usage at 36%. Netflix follows closely at 29%, with linear TV trailing at 14%. Reach does not always translate to engagement: TV ads leave a lasting impression, but Gen Alpha actively seeks out content on YouTube and streaming platforms.

Despite their growing independence, Gen Alpha still collaborates with parents on purchase decisions, which makes parental attitudes important. Among parents of Gen Alpha kids surveyed across EMEA in Q2 2024, linear TV leads on trust at 43%, followed by YouTube at 29% and online forums at 23%. Parental preferences have remained largely stable, though there is a 6% increase in trust towards TikTok ads, now at 20%. Trust in billboard advertising is up 3% at 19%, and sponsorships up 3% at 18%. Traditional media remains favoured, but a gradual openness to modern channels is emerging.

What makes Gen Alpha and their parents tick

The key to crafting kids’ products with cross-generational appeal lies in understanding what resonates with kids while securing parental approval. For 10 to 14 year olds, self-expression reigns supreme, with 66% prioritising products and brands that make them feel special. Parental influence remains significant, with 64% citing their parents’ approval as the second most important consideration, which highlights how collaborative household decision-making really is. Beyond those two, health and wellbeing at 63%, convenience at 61%, value representation at 59% and reputation enhancement at 56% all matter.

For parents buying kids’ products, practicality and utility take centre stage. Value for money ranks as the top consideration at 67%, followed by high quality at 66%, convenience at 64%, health and wellbeing credentials at 64% and brand trust at 63%. Kids, by contrast, prioritise features that enhance their self-image. Wellbeing credentials and convenience emerge as the most important attributes across both groups, resonating strongly with kids and parents alike.

The causes they care about

Product design matters, but so does how it is communicated. Value representation is a significant consideration for Gen Alpha, ranked fifth by 59% of 10 to 14 year olds. The rise of cancel culture over the past decade highlights this: Gen Z and Gen Alpha are driving real change by advocating for, lobbying against and boycotting brands whose values do not align with their own. Understanding what matters to these young consumers is therefore crucial for messaging that resonates.

Our data shows bullying is the top concern for 10 to 14 year olds at 28%, followed by animal cruelty at 20% and racism at 19%. These highlight a strong sense of social justice. Their own wellbeing ranks fourth at 17%, alongside environmental change at 17% and mental health at 16%. Terrorism has seen the sharpest year-on-year increase, up 13% to thirteenth, reflecting the current global climate. These future consumers are demonstrably collectivistic, aware of global inequalities and mindful of their own wellbeing.

What is next for brands

This generation is poised to be the most independent yet, wielding significant purchasing power and influencing market trends like no other. Brands must adapt their strategies to connect with both kids and parents, fostering trust through balanced and responsible messaging.

Gen Alpha’s entrepreneurial spirit and digital fluency make them key players in the evolving market. Their concerns about social issues, combined with their desire for self-expression through products, require brands to align with their values. While parents prioritise practicality and quality, the challenge lies in creating products that resonate with both generations. By understanding the motivations of Gen Alpha and their parents, brands can craft campaigns that build trust and loyalty, and capture attention.

Data covers responses from kids and parents across key EMEA markets surveyed in Q2 2024: the UK, Germany, France, Spain, Italy, Poland, South Africa, Turkey and Saudi Arabia.

This article first featured as part of the Spotlight EMEA Series on Gen Alpha on warc.com.