Back-to-School: How Brands Capture Youngs?

Wavemaker research shows that when kids are involved early in the shopping process, parents are twice as likely to consider a brand. Urban Outfitters’ back-to-school campaign has tapped into this by enlisting influencers to create personalized Pinterest boards, later brought to life in physical events. This year's back-to-school season presents another challenging time for marketers, who must energize their strategies to capture shrinking consumer budgets. Connecting with younger generations could be a pivotal factor for brands aiming to stand out in a more cautious spending environment.

Spending during this period is forecasted to dip slightly compared to 2023, pushing brands to ramp up their efforts. Companies like Amazon and JCPenney are focusing heavily on offering value, while others like American Eagle and Urban Outfitters are targeting younger demographics to foster relatability and inclusivity in their campaigns. “The influence kids have at the start of the buying journey leads to a significant increase in parental brand consideration.” notes Krithika Rosenthal, strategy lead at Wavemaker U.S. “That’s why brands need to engage not just parents, but also their children from the outset.”

According to Deloitte’s annual back-to-school survey, 61% of parents acknowledge that their children influence their purchases, which may help brands succeed despite a tough market, with spending predicted to fall from $31.9 billion in 2023 to $31.3 billion this year. Financial concerns remain pressing, especially for low- and middle-income families, who are expected to cut spending by 4% and 9%, respectively.

“Low- and middle-income families are feeling the pinch due to rising living costs.” says Lupine Skelly, Deloitte’s retail research leader. “With more money going toward essentials like groceries and childcare, many families are forced to cut back in other areas, including back-to-school shopping.”

The season brings challenges beyond merely engaging younger audiences. Striking the right tone between value and emotion, while reaching consumers across multiple channels, is critical. Still, opportunities abound, particularly in building loyalty.

The New Normal

This year, parents expect to spend around $586 per child on back-to-school items, a slight decrease of $11 from last year, according to Deloitte. Spending on clothes and school supplies will likely remain stable, while tech purchases are projected to drop by 11%. As consumers remain cautious, marketers must prioritize value to thrive in this climate of "careful spending." By now, shoppers expect deals and promotions, having been trained by retailers to wait for discounts before filling their carts.

“I think ‘the new normal’ fits well with major shopping seasons like this,” explains Skelly. “Retailers have conditioned customers to hunt for deals and promotions, and consumers are holding off for discounts before finalizing their purchases.”

This hunt for value has also pushed shoppers to start their back-to-school purchases earlier, with 59% of consumers believing that the best deals occur at the beginning of the season. Deloitte data shows that around two-thirds of parents’ budgets were expected to be spent by the end of July, an increase from 59% in 2023 and a jump of 14 percentage points compared to two years ago. Amazon Prime Day has also gained momentum, with nearly 48% of back-to-school shoppers participating in the e-commerce giant’s sales event this year, marking a 10% year-over-year increase.

Amazon, building on the success of its Prime Day, recently debuted its back-to-school campaign. The highlight of this effort is a 30-second ad featuring actress Michelle Buteau, urging parents to “spend less on your little freeloaders” using Amazon’s back-to-school shopping guide. This humorous angle mirrors previous campaigns that featured actors like Randall Park and Kathryn Hahn. “Given the ongoing financial pressures, we’ve maintained a comedic tone to offer some light relief amid a tough news cycle.” said Jo Shoesmith, Amazon’s global chief creative officer, in a statement.

Striking an Emotional Chord

Other brands are leaning on deeper emotional messages to reach their audience. For example, Instacart's back-to-school campaign features ads that remind parents to cherish moments with their children amidst the busy season. Striking a balance between value and emotion is essential, especially for connecting with diverse and multicultural audiences, notes Rosenthal of Wavemaker. Younger generations, particularly Gen Z and Gen Alpha, are influencing their parents more than ever, particularly when it comes to shopping decisions, making it important to appeal to both groups.

“These generations are the most diverse we’ve seen, and their parents reflect that diversity.” says Rosenthal. “While emotions are important, it’s equally critical to customize messages to multicultural audiences, as kids increasingly impact their parents’ shopping choices.”

Wavemaker’s research, conducted in March, reveals that Hispanic parents value nostalgia and word-of-mouth, while Asian parents prioritize reputation. Brands that create immersive and engaging experiences for the younger demographic can also benefit from these insights, adds Rosenthal.

Urban Outfitters, for example, launched its “Shift Happens” campaign, which focuses on the changes young people experience during back-to-school transitions. This campaign spans multiple channels and features a partnership with Pinterest, where influencers crafted unique boards that were later featured at a live event. “This is a window of opportunity before the year-end madness sets in.” says Stanlei Bellan, Chief Strategy Officer of Juice Media.

American Eagle’s fall campaign, built around its “Live Your Life” slogan, also focuses on authenticity and self-expression. The retailer teamed up with Life on Film to capture footage from over 200 people, using disposable cameras to document how they live their lives. This candid, raw approach stands out from American Eagle’s typical back-to-school marketing strategies.

Finding Opportunities in a Challenging Landscape

This back-to-school season, many marketers, like the shoppers they target, are exercising caution. Bellan of Juice Media anticipates that overall spending will be flat or down compared to last year. However, major events such as the upcoming U.S. election could generate bursts of marketing activity as brands look to sidestep the broader noise these events create.

“The back-to-school period presents a chance to act before the end-of-year chaos takes over.” says Bellan.

The election may also heighten economic anxiety and lead to more cautious spending, according to Devon Schorr, strategy director at Movers+Shakers. Schorr believes that brands focusing on value and discounts will likely fare better than those riding trends this season. “We need to stay agile and ready to adapt to the tone of the moment.” Schorr advises.

While economic challenges persist, there are bright spots. Deloitte’s research shows that parents are prioritizing value over brand loyalty, with 67% saying they would switch brands if their usual pick becomes too expensive. This presents an opportunity for brands to strengthen loyalty programs, provided they offer real value. Loyal shoppers are shown to spend 35% more during back-to-school, making loyalty a key focus for brands like JCPenney and Target, which are using exclusive experiences to attract and retain customers.

Connecting Across Channels

Reaching shoppers on the right platforms is as important as the message itself. Deloitte reports that 70% of shoppers plan to use multiple channels to find the best deals, and Rosenthal expects retail media to receive increased investment as marketers better understand their audience. “Brands need to stop focusing solely on retailer promotions and instead use them to fuel other media efforts more effectively.” Rosenthal says.

Among the platforms seeing increased use, social media is expected to play a growing role, with 33% of consumers planning to shop via social channels, up from 21% last year. Meanwhile, 12% plan to make purchases directly through social platforms, a jump from 6% in 2023. The top shopping destinations this year are mass merchants (77%) and online retailers (65%), favored for both their pricing and convenience.

While in-store shopping was put on hold during the pandemic, it is now making a comeback. Brands like Pacsun and American Eagle are prioritizing in-store experiences in their fall campaigns, with Pacsun promoting its “Better in Baggy” campaign through a Pinterest collaboration that features QR codes on store windows. American Eagle’s push includes interactive video displays that invite shoppers to be part of the campaign.

As marketers head into this uncertain season, having the right mindset could make all the difference. Flexibility and responsiveness are essential to navigating unexpected changes, advises American Eagle’s Brommers. “The one thing we’ve learned is to stay nimble and ready to respond to whatever comes next.” he says. “And that’s exactly what we’ll be doing in the months ahead.”