Where Millennial Parents Are Shopping for Their Kids—and Why

Millennial research, Millennial insight, Millennial marketing, Gen Z research, Gen Z marketing, Gen Z insight, youth research, youth marketing

Millennial parents’ spending power is only growing year to year, and they’re already an influential consumer group—with distinctive preferences. So where are they going to buy products for their families? We asked, and have their top store ranking…

Last year, we told you to recalibrate your expectations for Millennial spending habits in anticipation of one big change many of them are about to face: parenthood.  As time goes by, that advice is only becoming more true. As a generation, Millennials control a massive chunk of change. In 2017, Millennials spent an estimated $200 billion, and Forbes predicts that in 2018 they will have the most spending power of any generation. With so many of them on the path to parenthood, a large portion of this cash will likely be spent on their kids. According to data from Crowdtap, about 80% of 18-to-35-year-olds are on track to become parents in the next decade, and in 2015, 90% of children were born to a Millennial mom. According to Ypulse’s own data, 23% of Millennials are already parents. And only 12% of 18-35-year-olds report no interest in having children, leaving 65% who are planning on having kids in the future or are actively trying—a massive demographic with huge spending power. As Advertising Age put it, Millennial moms may have “the greatest lifetime monetary value of any consumer segment in the history of marketing.” (And don’t forget about dads!)

We’ve already seen hints that their family spending has the power to start trends and shift industries. Just one example: FoodDIVE reports that Millennial parents are giving organic products a major boost, and for the first time, baby food was ranked as the top category where consumers thought it was “extremely important” to buy organic. So where are they spending their influential money? In

 
 

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The Newsfeed

“I saw some heartbreaking stories in the internet, and decided to look up some international charities and donate to them.”—Male, 20, WA

Magazine covers aren’t dying in the age of digital—even when publications go out of print. Digital-only covers are “captur[ing] the print magazine's tangible essence” while building hype for media brands on social media (especially Instagram). PorterComplexNylonGQ and more publications have taken on the trend, featuring celebrities like Chance the Rapper to Sophie Turner. For magazines looking for a comeback with young consumers, digital-only covers can “translate their own brand for the web." (Fashionista)

Following “a series of scandals,” YouTube is taking major steps to overhaul its video review process and ad placement policies. The new guidelines “kick tens of thousands of video makers out” of the ad program by requiring anyone who generates ad revenue to produce 4,000 hours of content and gain 1,000 subscribers in one year, upping the ante from the previous requirement of 10,000 lifetime views. YouTube is also promising to manually review every video in its top tier of advertising (Google Preferred), and they’ve hired 10,000 new employees in the last year to get the job done. (recode)

Some Millennial parents are applying their minimalist tendencies to their kids’ toy chests to battle play clutter with “toy limitation.” It’s not a new concept—some schools of thought that have “advocate[d] simple, open-ended toys” include Montessori, Waldorf, and RIE—and today’s advocates say limiting toys can improve focus and happiness. A report from the University of Toledo concluded that toddlers “played ‘better’” when given fewer toys, meaning they played with each toy for longer and in more creative ways. However, some parents worry that they’re “denying [their children’s] self-expression” when they limit toys, and so the debate continues. (Slate)

Tostitos is giving fans their very own personalized Super Bowl ads to invite friends to their game parties. The platform takes a user's name, address, and other invite info and spins it into a video perfect for Customization Nation. Each ad features a different combination of Super Bowl clichés, including a “talking baby, puppies, sassy older women, [and] a celebrity pitchman.” Considering Ypulse data shows 64% of 13-34-year-olds watched some or all of the 2017 Super Bowl with friends and family, it’s a safe bet at least some will be sending out invites, possibly with some Tostitos product placement this year. (Adweek)

Facebook’s new feature lets Groups co-view each other’s content. “Watch Party” allows Group admins to show any Facebook video to members simultaneously, and to comment on a “dedicated reel” for a “shared viewing experience.” The feature is another step towards the platform’s new goal to “encourage meaningful social interactions,” and their new focus on Groups. The push for social viewing could possibly be integrated into other aspects of Facebook and its properties, like group chats. (TechCrunch)

“I plan to go to a free barre class at a local studio that is offering them as part of a New Year's promotion.”—Female, 33, MA

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