This 12 months’s back-to-school season is shaping as much as hit marketers with one more dose of turbulence, requiring fresh energy to capture what is predicted to be more limited consumer spending. A concentrate on engaging younger generations could possibly be what makes the difference between sink or swim.
Spending this season is predicted to fall barely versus 2023 levels, and brands accordingly have pulled out all of the stops in hopes of coming out on top during a critical sales period. For marketers like Amazon and JCPenney, that has meant doubling down on value. For others, including American Eagle and Urban Outfitters, it has meant marketing to Gen Z and other young cohorts to deliver a way of relatability and inclusive promoting.
“What we’ve seen with Gen Z, Gen Alpha is that the strong influence on the very start of the journey results in twice as many parents considering a brand,” said Krithika Rosenthal, group director of strategy for GroupM’s Wavemaker U.S. agency. “That’s why it’s vital not simply to influence the parents, it’s also vital to take into consideration how we connect with the youngsters.”
Among parent back-to-school shoppers, 61% agree that their children influence them to spend more, based on Deloitte’s annual survey of the occasion. Keeping the entire family in mind could also be what allows marketers to thrive amid one other tough season, which is forecast to see spending decline from $31.9 billion in 2023 to $31.3 billion. While the drop is smaller than last season’s, financial concerns endure, with low and middle-income families expected to spend 4% and 9% less, respectively.
“That low- and middle-income group is basically being squeezed by the fee of living prices which might be happening,” said Lupine Skelly, retail research leader for Deloitte. “Those families are saying that they’re having to spend more on their groceries and childcare, so in terms of back to high school they’re forced to must make some cuts in other areas to even spend at this level.”
This back-to-school season carries with it challenges beyond engaging the younger generation, whether it’s striking the fitting balance of value and emotion in messaging or reaching consumers across a wider swath of channels being shopped. Still, it’s not all doom and gloom — the period can also be full of opportunity, including a main probability to grow loyalty.
‘The latest normal’
Parents this season expect to spend $586 per child on back-to-school items, down just $11 from 2023 averages, per Deloitte. Spending on clothing and faculty supplies are expected to stay flat while tech spending is predicted to fall 11%, mirroring broader trends. As a concentrate on economizing endures, value will remain key for marketers to thrive in a season marked by “cautious and careful spending,” Skelly said. At this point, consumers may expect nothing less.
“I believe ‘the brand new normal’ is an ideal term for these varieties of big shopping events,” Skelly said. “These retailers have just about trained consumers to search for deals and these promotional events and individuals are really loading up their carts and waiting for those discounts to indicate up before they make purchases.”
In the seek for deals, back-to-school buying has began earlier, with 59% of shoppers believing that one of the best deals occur initially of the season. Roughly two-thirds of fogeys’ planned budgets were forecast to be spent by the top of July, up from 59% in 2023 and 14 percentage points from two years ago, Skelly said. Sales extravaganzas like Amazon Prime Day have also grown in favor, with 48% of shoppers shopping the e-commerce giant’s sales event last month for back-to-school items, a virtually 10% increase from the 12 months prior.
Amazon has cemented its concentrate on value beyond its latest Prime Day event, which saw record-breaking sales, with the recent launch of its back-to-school campaign. The effort centers on a 30-second ad starring actress Michelle Buteau, who encourages parents to “spend less in your little freeloaders” with Amazon’s Back to School shopping guide. The comedic messaging is analogous to that of its past back-to-school campaigns that featured actors like Randall Park and Kathryn Hahn.
“In recent years, we’ve seen customers continuing to feel financial pressures and in search of comedic relief amid the relentless news cycle, which is why our campaign focus has stayed consistent,” said Jo Shoesmith, Amazon’s global chief creative officer, in emailed comments.
Striking a chord
Deeper emotional appeals have been at the guts of promoting strategies for other brands this season. Among them is Instacart, which launched its back-to-school campaign with two ads meant to remind parents that moments with their children are what matters most amid the hectic back-to-school shuffle.
A concentrate on each value and emotion could possibly be critical to marketers for driving an authentic connection, particularly with multicultural audiences, explained Wavemaker’s Rosenthal. Notably, co-viewing has grown outstanding between younger cohorts and their parents. Accordingly, marketing to Gen Z and younger generations — who’re also known for prioritizing diversity — and their parents through a multicultural lens is essential.
“We know that [Gen Alpha is] probably the most diverse generation ever, so the parents are also diverse in that sense,” Rosenthal said. “Yes, emotions are vital, but additionally tailoring to those different multicultural audiences becomes much more vital because kids are influencing their parents so much more now by way of shopping.”
For instance, Hispanic parents value nostalgia and word-of-mouth, while Asian parents are driven by the notion of repute, per Wavemaker research conducted in March. A concentrate on more immersive experiences could also help attract the younger demographic, Rosenthal added.
Urban Outfitters, in its efforts to ring a bell with the younger generation, recently unveiled a “Shift Happens” campaign that nods to the changes the younger generation experiences around events like going back to high school. The effort has a presence across multiple channels, including a partnership with Pinterest and a number of other influencers, each of whom created their very own boards that were dropped at life at an in-person event.
“This is where there’s a window of opportunity to do something before the craziness at the top of the 12 months that can affect markets.”
Stanlei Bellan
Chief Strategy Officer, Juice Media
An analogous approach is on the core of American Eagle’s latest “Live Your Life” brand platform and fall campaign. “Live Your Life,” a 20-year-old slogan for the retailer, is supposed to advertise self-expression and acceptance. The accompanying campaign features a slew of activations meant to attach with the brand’s goal Gen Z audience, including a tie-up with Life on Film and over 200 people to capture disposable camera footage showcasing how they live their lives.
Elements just like the Life on Film parnterhsip are more candid than American Eagle typically puts forward in its back-to-school marketing, CMO Craig Brommers explained to Marketing Dive in a July interview. This approach could help it stand out throughout the make-or-break sales period, and while reports like Deloitte’s present a less optimistic spending forecast, other forecasts have painted a sunnier outlook.
“One thing that has been resilient over time is that folks will, the truth is, help their kids and put them first, so I believe we’re optimistic for this back-to-school season,” said Brommers.
Finding vibrant spots
Advertiser behavior could mirror that of consumers this season, said Juice Media Chief Strategy Officer Stanlei Bellan, who expects spend to be “flat and down” from last 12 months. While overall spending may trend lower, two major events — the Olympics and November election — could lead on to bursts of activity as marketers attempt to avoid broader cultural noise.
“This is where there’s a window of opportunity to do something before the craziness at the top of the 12 months that can affect markets,” Bellan said of the back-to-school period.
The election could heighten concerns in regards to the economy and result in more cautious spending, explained Devon Schorr, a method director for agency Movers+Shakers, in emailed comments. Accordingly, marketers who emphasize value and discounts of their marketing over what’s trending will “likely see more success this season,” the exec said.
“The one thing that I actually have learned is that we have now to be flexible and nimble and able to react to the tone of the time.”
Craig Brommers
CMO, American Eagle
Marketing this season will not be without vibrant spots. Parents are prioritizing value over loyalty, with 67% reporting that they’ll shift brands if their preferred brand is pricey, per Deloitte. Accordingly, the season could present a chance for marketers to grow their loyalty programs, so long as they provide priceless incentives, Skelly said. Loyal back-to-school shoppers spend 35% more, based on separate Deloitte research.
Loyalty has been a key focus by marketers like JCPenney and Target, that are each using members-only experiences around value as a approach to attract and retain interest.
Meeting where they’re
Beyond messaging, marketers must also juggle meeting consumers in the fitting place. Shoppers this season have indicated that they plan to buy more retail formats to seek out one of the best deals this season, per Deloitte, while 70% are multichannel shoppers. In an effort to higher understand goal consumers’ behaviors, Wavemaker’s Rosenthal expects retail media to see a lift in investment this season, mirroring broader trends around the channel’s growth.
“[Marketers] have to not keep focusing the spend only on retailer promotions but moderately use retailers as a approach to drive other media more effectively,” Rosenthal said.
Among channels consumers will shop, 33% plan to leverage social media, up from 21% the 12 months prior. Twelve percent plan to make use of social to buy while searching for back-to-school products, up from 6% in 2023. The top destinations for consumers to buy are mass merchants (77%) and online retailers (65%), formats appealing for each their price and convenience.
Seventy percent of consumers plan to buy each in-store and online, up 4% from 2023. While in-store experiences were neglected throughout the pandemic, Skelly sees this season as a chance for retailers to spice up such experiences. Consumers also report that they’re more loyal to retailers once they have consistent experiences online and in-store, Skelly said.
Pacsun is amongst those prioritizing in-store. The retailer this month launched its “Better in Baggy” fall campaign through a Pinterest partnership that included QR codes on store windows to encourage consumers to buy its seasonal Pinterest board. American Eagle’s fall campaign also contains a major in-person push, including custom videos projected on its stores that can invite customers to “be an element of the campaign.”
While messaging, tone and media mix are all vital parts of promoting strategies this season, having the fitting mentality could possibly be the key to success. Uncertainty can be a throughline this season and beyond, and has taught American Eagle’s Brommers to be willing to regulate to make sure the retailer navigates unexpected moments effectively.
“The one thing that I actually have learned is that we have now to be flexible and nimble and able to react to the tone of the time,” Brommers said. “And we can be over the course of the subsequent couple of months.”
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