With a population that has never known a world without smartphones and tablets, the Gen Alpha (those born after 2010) is making its presence felt to marketers lately.

It is growing up in an era where information is just a tap away and according to agency experts, while their purchasing power might not be significant yet, the sway they hold within their households is undeniable.

Advertisers too are waking up to this new reality – the realisation that the smallest members of the household are wielding significant influence over family choices.

“As the focus of advertisers still remains on outcomes and optimising ROIs, we see some exciting developments. For example, preparing for the next generation of consumers - Gen Alpha,” says Amin Lakhani, Chief Executive Officer, Mindshare South Asia.

He wrote in a LinkedIn post that Gen Alpha is set to be the most educated and informed generation ever. The level of precociousness and maturity they are displaying even now, is far ahead of previous generations.

The recently released ‘This Year Next Year’ report by GroupM highlighted that Gen Alpha comprises more than 25% of India’s population. As the oldest constituents of this generation approach their teen years, they are exerting major influence on the most important purchases made in the family, beyond just the products targeted at them.

Picture this: a family deciding on a vacation destination, and it's the seven-year-old member of Gen Alpha who confidently asserts, "I saw this amazing place on YouTube, let's go there!"

“Their influence extends even beyond categories where they are the primary consumer. Therefore we felt it's important as marketers to focus on this and see how you can play a role in capturing their imagination,” said Parthasarathy Mandayam, Chief Strategy Officer, South Asia, GroupM.

The Young Sheldons

Anirban Mozumdar, Chief Strategy Officer, Havas Worldwide India adds that recognising Gen Alpha's proficiency with technology, parents frequently assign product research to them. “Known as the 'Young Sheldons,' named after the popular young nerdy character from the eponymous The Big Bang Theory spin-off, this generation debunks stereotypes and offers unconventional advice. Gen Alpha actively participates in the shopping experience, offering distinct viewpoints whether managing online shopping lists or shopping at a supermarket.”

Experts note that this generation’s way of processing information is different. If the earlier generation replaced pen and paper with screens, this cohort is voice and visual first, with even typing, rapidly reducing. They are also far more inclusive and socially aware.

The GroupM report said that marketers will have to create significantly different strategies to appeal to this critical cohort. The key driver will be engagement powered by technology. Focus on voice & video-based discovery, interactive brand experiences, gamification and a focused influencer strategy will be critical to appeal to them.

But here’s the plot twist

The digital advertising landscape and the consequent conversions is heavily reliant on targeting ads to the desired cohort of consumers.

However, in February 2023, Meta started restricting the options advertisers have to reach teens, as well as the information the platform uses to show ads to teens. “We recognize that teens aren’t necessarily as equipped as adults to make decisions about how their online data is used for advertising, particularly when it comes to showing them products available to purchase,” the company shared over a blog.

The restrictions included removing the ability for advertisers to target teens based on their interests and activities, and removing gender as an option for advertisers to reach teens. Additionally, their engagement on the apps — like following certain Instagram posts or Facebook pages — won’t inform the types of ads they see.

With the increasing influential power of this generation, such restrictions came as a blow to marketers.

“While clients are very inquisitive to understand media behaviours, many advertisers choose not to engage with Gen Alpha consumers directly. This is primarily on the back of pledges taken by organisations on not talking to the kids directly. In the digital sphere as well, there are limited targeting capabilities available to identify Gen Alpha online,” shared Peeyush Sharma, VP, Starcom India.

He explained that due to platform restrictions and parental guidance Gen Alpha still does not have access to Meta and hence a large part of Gen Alpha's consumption is on YouTube and Gaming. “Gen Alpha has their own set of influencers who are termed as Kidfluencers,” he said.

Especially post the pandemic, the digital realm saw a huge boost in the number of bloggers, vloggers and the influencer economy as a whole. India’s Creator Economy market size is expected to reach $3,926.2 million by 2030.

“Gen Alpha's influence has increased even further with the emergence of youthful influencers like vloggers and bloggers with YouTube channels. These influential people, who have sizable peer followings, are crucial in influencing Gen Alpha's decisions and preferences within their groups,” Mozumdar said.

Parthasarathy believes that at the end of the day, regardless of the self-governed or platform guidelines, this set of consumers still gets influenced by what they see. “So it is basically about how responsible marketers can recognise the fact that they are playing a huge influence, and address it,” he said.

It also turns out that the preferred channels to reach Gen Alpha are in stark contrast to how Gen Z was reached. Experts draw a distinction between the two generations and note that the former’s consumption of the internet is heavily skewed to entertainment rather than expressing themselves.

Sharma shared that YouTube Shorts is a preferred consumption format amongst Gen Alpha, which sees a heavy time spent. He adds, “Gen Z on the other hand spends much more time, particularly on Instagram and Snapchat. Visual messaging is a preferred mode of interaction amongst GenZ who have developed their own lingo as well. Gen Alpha is yet to discover this aspect of social media.”

Z Gamers versus Alpha Gamers

Apart from YouTube, gaming is also turning out to be a Gen Alpha favourite. Mozumdar shared that the gaming sector is witnessing a surge in their participation, with Gen Alphas frequently engaging in common online game platforms, often seen battling away on their phones.

The gaming landscape for GenZ, according to Sharma, is much broader than only playing games, there is a significant amount of time spent on watching live streams of others playing and some time to understand how to cross difficult levels in multiplayer games.

First-person games in particular have developed a big following amongst GenZ, he mentioned. Gen Alpha on the other hand are more involved in playing games online with a heavy mix of casual and sports games as well.

Thus, the closing chapter of this narrative underscores the need for marketers to tread responsibly, acknowledging the profound influence they wield in shaping the preferences and decisions of Gen Alpha – the pioneers of a new era in consumer engagement!