Search Results for:

A ten-year-old YouTuber, with a subscriber count running in the tens of millions, recently created an interactive world for his fans to hang out in on Roblox. If you want clues into what makes Gen Alpha unique, that’s not a bad place to start. 

More than any other generation, Gen Alphas are reimagining what’s traditionally done in video games by using them as social hangouts and launchpads for learning. 

If millennials had Facebook, and Gen Z have TikTok, we can call Alphas the Minecraft or Roblox generation after the popular sandbox games, which are having a powerful influence on their ideas, behaviors, and future plans. 

If you want to understand what Gen Alpha will be like as fully-fledged consumers, you’ll need to know the platforms they’re using right now. Companies that grasp their gaming motivations and habits are best-placed to win them over, and to stand out in the years ahead.

Gaming’s about building things, not just blasting them

Every generation has its gaming touchstones. It’s been claimed that The Simpsons: Hit & Run‘s “cultural significance sits somewhere between BTS and the Shroud of Turin”. Guitar Hero, which created a legion of wannabe rockstars, is another good window into the noughties.

We’ve come a long way since then. In addition to shooter and action adventure games, Gen Alpha have a range of digital alternatives to building toys like K’NEX and Lego. They’re coming of age at a time when immersive creation games or “proto-metaverses” are well-established, and it shows.  

These types of platforms not only top Gen Alpha’s leaderboard, they’re growing more popular over time. Roblox has made the biggest jump since 2021, moving from 5th to 2nd place in the rankings.

Minecraft, Roblox, and Fortnite take up three of Gen Alpha’s top four gaming spots, and they share some key similarities. Each platform’s users can customize their own avatars, and they’ve all played host to music concerts or other social events at some point in the last two years. 

Minecraft and Roblox have even more in common, with Fortnite following in their footsteps. They’re user-generated spaces that let players build worlds and go on adventures with others; and they’re influencing what kids want from gaming experiences in general. 

Demand for building/creating tools has climbed by 7% since 2021, which is the highest increase across the board.

Plus, we’ve seen an equal rise in the number of teens playing simulation games (e.g. real-life, building) within this timeframe. It’s now the fourth-most popular genre among 12-15s, having overtaken fighting and sports since 2021 in order to get there. 

Kids clearly relish what these platforms bring to the table: the chance to think critically, learn new skills, and team up with others. 

This is more relevant for younger kids: demand for building tools is higher among 8-11s than 12-15s (49% vs 37%), and the same is true of Minecraft (65% vs 50%). This could be down to a number of factors, like younger kids naturally having more imaginative interests like arts and crafts, space, and dressing up. 

But even if the hope of becoming a “master builder” subsides as they grow older, creation software is on course to be more popular among today’s teens as they age than it is for current adults – 19% of whom play Minecraft in these markets. 

How brands can inspire a generation of game-changers

Creativity is infectious and thanks to these platforms, it isn’t in short supply. Brands have an opportunity to nurture kids’ interests by challenging and supporting young players. 

Kidfluencer Sofia LaBarbera believes that her time on Roblox is laying the groundwork for a potential career in architecture or interior design. She’s already created two “smart cities” within Bloxburg, a life-simulation experience where users build their own structures or towns, right down to the tiniest details.

Companies could sponsor those who show potential by funding in-game currency or hardware, for example. And on a broader scale, they can get community-based conversation going by asking fans to help flesh out their campaigns or products.

Compared to other 12-15s, Minecraft players are 27% more likely to say they use online social spaces to interact with brands.

So, it’s not just about meeting kids where they are and speaking to a more engaged crowd; brands can use world-building games to feed their appetite for self-development.

Nike has enlisted a group of Gen Alphas to build its presence on Roblox, a land called “Airtopia” in honor of its Air Max line. By handing over creative control, it’s proving to be a brand that values kids and what they have to say, while inspiring other young developers at the same time.

This will strike a chord because many Gen Alphas want to contribute to the online spaces they inhabit and have faith in their ideas. Half of teen Roblox players say that being treated their age is important to them, and even more describe themselves as creative (55%).

Meta hopes these spaces will be a big win for artists and people who live in areas with fewer opportunities to show off their imagination. With this in mind, brands will benefit from using them in ways the tech world is envisioning – as catalysts for thought and inspiration.

Games are already social hubs for next-gen consumers 

Something that’s less unique to Gen Alpha, but still super important to their gaming profile, is their desire to socialize and collaborate while playing.

Virtual social spaces aren’t anything new – think Club Penguin or World of Warcraft. But the metaverse has been described by Mark Zuckerburg as the “next evolution of social connection”, a concept that has Gen Alpha’s name written all over it. 

Kids are a key audience for brands eyeing up opportunities here, partly because they’re already enthusiastic about in-game socials; they’re usually the ones having Fortnite movie nights or hanging out on each other’s Animal Crossing islands. 

And it’s easy to see why. Playing with friends is more common than playing alone, especially among 12-15s. It’s also the general preference, with a minority saying they’d rather fly solo.

With Roblox having been described as the “most social ecosystem on the planet”, Gen Alpha’s experience with creation systems has not only sparked their imagination, but also made them crave social interaction while playing.

48% of teen players want games to include either teamwork or events, rising to 56% among Minecraft players.

And kids put gaming on a higher pedestal than other online activities, partly because it allows them to hang out in laid-back environments. 

Many got digital fatigue after lockdowns drove them to stare at their reflections a lot. Yet, playing video games is still the second-most popular thing Gen Alpha like to do on weekends (56%), ranking ahead of seeing friends in person (43%) and talking to them online (39%).

Our data highlights a couple of reasons for this. For starters, avatars allow kids to express their identity and mingle without being made to feel self-conscious. 

Our recent Zeitgeist study shows that 82% of adult gamers would rather be themselves than a persona when spending time online, whereas kids seem to be more enthusiastic about the latter: 29% say they like playing games as someone else, rising to a third among Roblox, Minecraft, and Fortnite users. 

Plus, these avatar-driven environments are naturally diverse, which matters as youngsters feel more at home in inclusive settings. Over a third of teen gamers say that seeing all types of people in media is important to them.

Parents and kids alike might be concerned about time spent in front of screens, but gaming seems to hold a special place in Gen Alpha’s heart, and gives them an opportunity to fully express themselves. 

Brands should do their bit, and then hand kids the reins

On the whole, existing “proto-metaverses” have the potential to break down barriers, making kids feel more comfortable and empowered. And in the future, branded metaverses could be safe spaces for niche or marginalized communities, especially among teens struggling with self-identity.

Like players, brands will need to carefully map out their own avatars when taking part, and prioritize customization settings when building their own worlds, as these characters underpin the social experience. 

Vans’ Roblox offering is a good example of how companies might charge kids’ social batteries. Its virtual park is a spot for skateboarding fans to get together and deck out their avatar in clothes, accessories, and more.

At the end of the day, it’s all about catering to these online communities and following their lead. 

As President of Kartoon Channel! Jon Ollwerther puts it, “We’re not trying to alter kids’ behavior or attract them to a new thing. We’re looking at what kids want to do and how we can facilitate that”. And right now, they really want to socialize and build things. 

In the UK, inflation skyrocketed to its highest level in 30 years, with economic recovery drawing to a halt. Figures were weaker than what economic experts first predicted – and it looks set to get worse. The Bank of England spelled out a stark message in early May: inflation is projected to rise to 10.2% this year. 

The rest of the world is seeing a similar picture. Inflation in the US is also at a 40-year high, with the cost of food, fuel, and housing climbing rapidly. In developing countries, the impact will be even more severe. 

So, how is the cost of living really affecting consumers? And what spending shifts might we see off the back of this? Using our Zeitgeist research from March and April 2022, let’s dive into the must-knows on how consumers are feeling and where their money might be headed. 

Financial security looks largely positive – for now

Most people recognize the impact of inflation, with over two-thirds of consumers across 9 markets feeling inflation has had a moderate/dramatic impact on their lives. Only 6% say it’s had no impact. 

In line with this, over half of consumers say the current cost of living has increased compared to 6 months ago, with notable differences by age and country.

Older generations are the most likely to say the cost of living has increased compared to younger generations. For example, 77% of baby boomers say this compared to 49% of millennials. 

On a country level, close to 90% of consumers in the US and UK say the cost of living has increased; on the other side of the spectrum is Japan, where just 17% of consumers say the same. 

Even though many feel the cost of living has increased, just over half of consumers say they’re somewhat financially secure, while a further 23% say they’re very or completely financially secure. So it’s not all doom and gloom. 

Again, financial optimism varies significantly by country. In Italy and France, for instance, close to 2 in 5 say they’re not financially secure. 

It’s something to bear in mind: the impact won’t be felt equally. People in different countries, age groups, and income levels will feel the strain in different ways, some more severely than others.

For many people, pent-up savings from the pandemic could be shouldering the heaviest blows – for the time being. On average, low-income households have $3,000 in their savings and checking accounts in the US – nearly double what they had at the start of 2019, according to the Bank of America’s data. 

But as costs continue to rise and savings deplete, consumers’ financial confidence will likely dwindle even further. 

Nobody is immune to the price hikes, but some are hit harder than others

Older, vulnerable, and lower-income groups are most at risk. Some people are being forced to cull household spending, forgo meals, or in extreme cases be disconnected from electricity and gas for periods of time. 

Older groups are more likely to say they’re spending less – 37% of baby boomers say this compared to around 30% of Gen Z and millennials.

Older consumers might have more spending power, but that doesn’t mean they’re less impacted by inflation. This group is generally more price-sensitive and cautious about their finances. They’re ahead of other generations for saying being financially secure is important to them. Having this financial safety net matters to them, so it might explain why they’re taking steps to stay financially comfortable.

Consumers in the UK are also the most likely of all markets tracked to say they’re spending less compared to two years ago (44%).

Even before the latest increases, many households in the UK were already feeling the strain. Over 3 million people in England faced “fuel poverty” or struggled to heat one’s home in 2020 according to government figures. 

In April, almost half of adults paying energy bills said they had struggled to afford those charges, and one in five were unable to buy fuel at some point, according to Britain’s Office for National Statistics.

Financial concerns aren’t limited to lower earners either. We found that 27% of higher earners say they’re spending less money, which isn’t miles behind lower earners at 35%. 

These findings echo CNBC’s and Momentive’s research which found higher earners’ decisions to cut spending isn’t far off those made by lower-income groups. Considering higher earners are responsible for up to three-quarters of the spending, their cutbacks will be the most troubling for businesses.

While most people will feel the impact in some way, rising prices and the squeeze on budgets will ultimately increase income inequalities. 

The pressure is mounting for governments to step up and take action, while some local community groups in England are jumping in to support those who are struggling. 

Consumers are set to re-prioritize their spending 

With everything from housing costs to our favorite candy bars getting pricier, it begs the question: where will consumers cut spending? 

Consumers are most price-conscious about the basics like food/groceries, utilities, and transport like car fuel, all of which have increased in cost. In some cases, consumers might make cheaper food swaps, such as shopping for own-label brands. Generally though, it’s harder to pare back spending on essential items. 

Instead, we’ll see more consumers re-prioritize their spending, with discretionary items likely being the first to go. 

When asked what consumers are likely to spend less on, treats/luxuries, nights out or eating out, and travel costs like fuel are top of the list. The average takeout in the UK costs 20% more than it did 5 years ago, so we might see consumers opt to cook at home more. We’ll also likely see consumers take other modes of transport like walking or cycling more.

With more consumers evaluating what they truly need, many will make cutbacks on non-essentials like subscriptions, luxury products, and new clothing. 

Meanwhile, others might shelve big home expenses. Purchases of household furniture (-7%), washing machines/tumble dryers (-7%), and dishwashers (-9%) have all dropped since the last quarter –  something the British Retail Consortium also found in their own data. 

Many people will be thinking of smart money swaps they can make, and it leaves a bunch of categories on the chopping block.

Despite the challenging economic situation, spending on hotels, resorts, and accommodation rose 16.6% in the UK compared to three years ago – the category’s highest growth since September last year. 

So, while over a quarter say vacations are something they’d potentially cut back on if they needed to, many would make other sacrifices before giving up on their holidays. This is particularly positive news for a sector that lost out so much during the pandemic, and signals the appetite some consumers have to make up for missed trips. 

Money-saving measures = a win for the planet

As more consumers weigh up costs, many will adopt money-saving strategies. But there’s an upside: some of the behaviors that cut costs will also cut emissions and waste.

Some of the biggest money-saving strategies like being more energy efficient, walking/cycling more, or reusing products all lean heavily into the circular model of living. The principles of a circular model are rooted heavily in rethinking how we design, make, and use things we need so waste and pollution are eliminated, and products and materials are reused. 

Consumers will generally opt for ways to save money, but that doesn’t have to be at the expense of the planet.

Brands should lean into ways that consumers can stay mindful of the environment, on a budget. 

This is an excellent opportunity for brands to show that they’re friends to both consumers and the planet by helping them live sustainably for less. Green-inspired incentives, like recycling programs that encourage consumers to bring in used items for discounts, could be a winning strategy. 

While there’s no ignoring the toll the cost of living crisis will have on many people, there’s also some potential benefits that are worth tapping into. 

What’s next?

The impact of inflation is only just beginning. While in some cases, consumer spending seems fairly steady for now, this could look very different at the end of this year or in 2023. 

Analysis from the Guardian found that many top corporations’ financials and earnings calls reveal most are enjoying profit increases even as they pass on costs to customers. With consumers bearing the brunt, there’s only so much they can handle before they need to clamp down on spending. 

The 2022 Oscars has left us with a lot to discuss in its wake. Not only did we witness the infamous slap, but we also saw CODA win best picture. This marked an industry first, presenting Hollywood’s top award to a streaming service – but the move left many divided, with some industry players feeling the win was a slap in the face too. 

A lot has gone down elsewhere in the streaming world. Netflix has had a pretty difficult couple of weeks, losing $54.4 billion in market cap overnight, and CNN is having an even worse time because it had to shut down its streaming service one month after launching.

All in all, it’s been a tough couple of years for the film industry. 

Studios are only just starting to release major movies at a pre-pandemic pace again, and the industry is still trying to assess the habits of moviegoers – something that could fluctuate again with the cost-of-living crisis. 

AMC’s CEO predicts that the box office won’t rise to pre-pandemic levels this year, and perhaps won’t fully rebound until 2025. 

But how are cinemagoers feeling?

The current vibe 

Since back in July 2021, when we last asked consumers how they were feeling about returning to the cinema, comfort has grown by 38%, with over half now feeling comfortable returning to the silver screen. 

But does this mean they will?

It’s all a bit up in the air. While restaurant visits are returning back to normal, cinema attendance has continued to decrease. 

So, even though more are feeling comfortable returning to movie theaters, there’s something about cinemas that isn’t tempting people back the way, for example, restaurants have – competition with streaming services being one possible factor. 

For 3 in 10, the cinema is the place where they’re most likely to watch new releases that they’re excited to see. However, over a third are more likely to choose a streaming service, either one they pay for or a free version.

That said, some of these streamers may be planning to take advantage of the same-day releases for new films they’re excited to see. 

The same-day release model allows some films to be released to streaming platforms at the same time as cinemas. It was introduced during Covid as a necessary part of the box office recovery process and is thought to be no longer needed.

It caused quite a stir last summer, and since then has been found to cause a spike in piracy. As a result, Black Widow was the most pirated movie for three consecutive weeks after its release according to TorrentFreak.

If studios opt to end same-day releases, this may encourage more to watch new releases on the big screen.

The magic of the silver screen

It also can’t be denied that the cinema creates an experience which would be hard to replicate in your living room. We can see this coming directly from consumers – it’s not just about the movie, it’s about the whole experience. 

For movie watchers, it’s not just about the big screen and the sound quality, the overall atmosphere is also key. Even when asked about the positives of watching movies at home, the atmosphere was also important to a quarter. The vibe always matters – whether at home or at the pictures.

This could be a reason why the boutique cinema sector is continuing to grow, despite the challenges of the pandemic. After missing out for so long, people are looking for real experiences, and going to the cinema is no exception. 

Smaller, boutique cinemas may also offer more appeal to cinephiles and those who would opt to watch movies at home, as they offer all the attractions of the cinema, big screen, food and drink options, good sound, but also offer a more home-like atmosphere. 

Indie cinemas have benefited from adapting during the pandemic. Many started to play more commercial films while some got more creative – the Texas Theater in Dallas set up a giant screen in its parking lot back in 2020 and ran concessions to cars. These kinds of cinemas can also benefit from support from the local community too. 

It’s going to be important for movie theaters to keep that flexibility and adaptability moving forward, as new issues like the cost-of-living crisis add potential pressure. 

The streaming wars

Despite it long being seen as the biggest threat to the industry, Netflix’s share price took a nosedive after it announced a net loss of 200,000 subscribers globally, and as we mentioned earlier, Warner Bros. Discovery shut down CNN’s streaming service.

With streaming services multiplying during the pandemic, there’s now a lot of choice, but not enough time to watch them all. Viewers are now faced with the choice to cull the subscriptions which don’t provide the content they want. 

Another issue for streaming is that among those who rent or buy newly released movies, over half feel that the prices are expensive. 

This concern has been brewing for a while – the number who feel that subscription services, like Netflix, are getting too expensive has grown wave-on-wave in our data. Now, over a third feel they’re too expensive, compared to around a quarter in Q2 2020.

The cost-of-living crisis has likely escalated the issue, with over 1 in 5 planning to spend less on home entertainment due to inflation. 

The crisis is likely to affect cinemas too, as 41% of consumers are looking to cut back on treats or luxuries and visiting the cinema may count as one. 

Some theaters are making moves to stay afloat. Cinemark is testing dynamic ticket pricing, with prices increasing or decreasing depending on the time of day, the market, and other factors. We may see other movie theaters follow suit. 

But, Cineworld CEO Mooky Greidinger isn’t concerned and instead predicts that inflation will benefit cinemas, with many potentially seeing it as an affordable treat compared to vacations and play tickets. 

So in terms of a cinema vibe check, recovery is well on its way – but inflation could still change things. 

That said, it’s all up for grabs – if cinemas and streamers do the right things, either could take advantage of the situation. 

Here’s what we do know right now:

• Going to the cinema is an experience. With consumers feeling that they’ve missed out over the past couple of years, many may be looking for more experiences, and this may come in the form of watching a new release on the silver screen, rather than in their living room.
• Not all out-of-home activities are returning to the same pre-pandemic rate, with the cinema being one. Theaters should grab the opportunity to remind consumers that going to the movies is an experience – and one which is more affordable than other activities. 
• We live in uncertain times and it’s still hard to predict people’s habits – the industry needs to keep that flexibility and adaptability that it leant on during the pandemic.

So you’ve heard about the metaverse, and you want in. That’s okay, you’re not alone.

The metaverse has been touted as a virtual space where consumers can interact and perform almost every activity you can imagine. It’s an opportunity that sounds too good to miss, and we’ve got our fingers on the pulse to help you learn more about it.

Using data from our March 2022 Zeitgeist study, we’ll give you the lowdown on all the latest things you need to know about the metaverse.

We’re talking things like:

• Who are the early adopters?
• What do peoples’ current online behaviors mean for the metaverse?
• How can brands prepare?
• What will consumers do in the metaverse?
• What obstacles will it need to overcome to be successful?

Younger consumers will likely be the early adopters

It’s a common assumption at this point that, when the time comes, younger audiences will flock to the metaverse. There’s plenty of truth to that in our data; 42% of Gen Z & millennials are interested in taking part.

It makes a lot of sense. They spend significantly more time online than their older counterparts – using social media, playing video games, and watching online TV in particular. They’re also just more likely to know just what the metaverse is, so it’s safe to assume that the first virtual spaces will be populated by more consumers in these generations.

But that’s not to say Gen X and boomers won’t be using it. While just over 1 in 5 are interested at this point, there are many players in this space, and interest among these consumers could pick up if there are services built with them in mind.

Like social media, dating sites, and message boards, there’s bound to be spaces that appeal to all.

It’s worth thinking about the long-term here. Meta has made it pretty clear that its metaverse will “be created by everyone”. It might take some time, but as new users sign up they’re likely to build unique spaces that accommodate people from all walks of life.

It’s the right time for the metaverse

The internet is pretty cool; you can do a lot on there. People have even been questioning for some time now whether the real world can actually compete with everything it has to offer.

Today, over half of consumers in 9 markets say they actually prefer to spend their time online than in the real world.

Given what people expect of the metaverse, just imagine what this product means for these online-first consumers.

For those tinkering away at metaverse projects of their own, or brands weighing up the opportunities in this space, getting to know these ‘online-first’ consumers in more detail should be a priority. They’re more likely to be interested in participating in a metaverse, so brands need to understand them better if they’re to create virtual spaces that feel more accommodating.

A good place to start is China and India, where 2 in 3 prefer their online time to real-life.

This is interesting because while there’s a lot of focus on Meta’s project, for example, the likes of Tencent are working in this space too. APAC could be a key growth market for the metaverse before it spreads worldwide.

Because internet access in these markets typically means greater income, this figure is really telling of how appealing the online landscape has become; even with a better quality of life, consumers here prefer to spend their time online.

It’s a different story in the other 7 markets where 69% prefer the real world, but it varies from country to country. In Brazil, for example, opinion is evenly split, while in France and Germany little over 1 in 5 prefer to be online.

But it’s the way online-first consumers act on the internet that brands really need to pay attention to.

These consumers generally describe their online behavior as being less nervous or reserved. They’re also almost on par with the average consumer to say they prefer being themselves online than using an avatar. 

This doesn’t mean they’re different people when they’re online, they’re just more comfortable in being themselves there. 

There’s an important point to be made here about inclusivity. It’s up to the users to choose which version of themselves they want to be in the metaverse, but they will need unrestricted access to different body types, skin tones, ages, and anything that can be represented visibly. 

Consumers want to express themselves online just as they do in real life, and for those who prefer the online setting, these spaces could be perfect to do just that.

Brands can prepare right now using existing online spaces

While there’s no ‘official’ metaverse right now, we’ve spoken in the past about how brands can look at existing online services for inspiration. That usually refers to the likes of Minecraft, Roblox, and Fortnite – all of which are commonly referred to as metaverses in their own right.

Brands can access these services right now and get to grips with the kinds of in-game creator tools we might see in future metaverses.

There’s vast communities here that brands can lean on – just see for yourself what’s out there on Minecraft or Fortnite, for example. Find something or someone you think resonates with your brand? Then consider partnerships that bring creators to your side. Content creation has become a huge part of gaming, and having someone who understands what their community is looking for can be a huge bonus.

Among those metaverse-potentials – consumers interested in taking part – nearly 4 in 10 visited Minecraft in the last month. A further 3 in 10 used Fortnite, while other services like The Sandbox, Horizon Worlds, Second Life, and Roblox, all attract a healthy number of visitors too. The latter is growing at a rapid pace, especially among kids, with a 28% increase in the number of 8-15 year old gamers playing it since this time last year.

Each one comes with their own unique features and activities that speak to different consumers. It’s never too late (or in this case, too early) to brush up on how you can reach gamers more effectively, and bring these lessons to the metaverse.

The concept is older than Fortnite

DJ Marshmello’s in-game Fortnite concert way back in 2019 attracted millions of players, and is often considered proof that campaigns in a virtual space can work.

But was it really the turning point? 

While it’s absolutely recommended that brands use these popular franchises and services to learn more about how the metaverse might look, proof of how online spaces can blossom into communities and branded events goes back a lot further…

Second Life, an online multimedia platform that’s been around since 2003, is still visited by 17% of metaverse-potentials every single month – and its signups are still growing 19 years on. Other long-lived titles like World of Warcraft and RuneScape fit the bill too. Each with their own rich history of in-game, community-led events that not only continue to attract new players, but solidify the potential of the metaverse. 

There is no ‘one service’ that dictates how the metaverse is going to take shape.

What we have right now is a history of unique games and virtual spaces that continue to mold our understanding of how it might look. 

These kinds of services show that the metaverse concept is heavily centered in gaming culture, and there’s so much to learn here that offers brands an important place to do their research.

How agencies can make their metaverse campaigns work

Meta’s keynote presentation in late 2021 is still the closest thing we have to a ‘modern’ metaverse. New information about other services, however, is becoming more and more common, and it’s helping piece together what the final product might look like.

We now know for sure that there will be metaverses with specific audiences in mind – Fortnite creators, Epic Games, recently partnered with The Lego Group to build a metaverse for kids. One that’s “fun, entertaining, exciting, and playful”.

And those are four qualities that it seems all consumers want from the metaverse.

Metaverse-potentials are most interested in entertaining content – whether that’s watching TV, live events, or playing video games, these are all activities that can be performed in massive online spaces right now. 

Younger potentials are typically more likely to cite these things than their older counterparts, but it varies by country, and 46% of Gen X and boomers are keen to play games too – no doubt boosted by the rise of older aged gamers during the pandemic. 

This is a huge opportunity for entertainment brands.

In 2019, Fortnite premiered a clip for Star Wars: The Rise of Skywalker via an in-game event, giving us some idea of how this might work. But it’s really the attendance figures that brands should pay attention to – imagine the 41% who want to shop for products rifling through virtual wares all while they watch content. 

On that note, while shopping is no doubt hugely important, it’s not the only way brands can effectively monetize their metaverse presence. Wagner James Au, a journalist who’s been covering the virtual spaces (Second Life in particular) since 2003, has made it clear that brands shouldn’t just build stores in the metaverse. 

“… opening a store there isn’t very exciting. And so you have tens of millions of dollars being spent on these headquarters and a dozen people walk around them, get bored, and leave.”

Consumers are twice as likely to say they’re curious online as they are in real life.

A further 1 in 4 metaverse potentials are interested in simply exploring what these spaces have to offer. For brands and agencies looking to craft effective metaverse experiences, provoking someone’s curiosity might just be how you keep them engaged in cyberspace.

The key here is innovation. Our data shows metaverse-potentials have a really broad range of activities they want to perform. Some want to socialize and meet new people, others want to exercise, or make investments and hold business meetings. This opens the door to a wide range of brands. Consider creating dedicated social spots, gym classes, customizable meeting rooms, or even a virtual stock exchange – there’s so much more to do with metaverse campaigns than building a store and calling it a day.

Brands who bring aboard a creator who knows what their community wants can really push the boundaries of what’s possible here. Or as Au puts it:

“If you give a user community powerful enough creator tools, what they create in these worlds will be far more interesting than anything a major company can officially create.”

Consumers are literally telling brands what they want to do and it’s a whole lot more than just shopping or watching TV.

The major barriers to adoption might not be what you think

Consumers are evenly split on taking part in the metaverse; 33% are interested, 35% are on the fence, and a final 33% are uninterested. We know that metaverse-potentials have many reasons for wanting to take part, so what about the reasons for not wanting to?

Our data suggests the product just simply isn’t all that appealing to certain consumers, leaving brands some work to do in changing this.

Among those uninterested in taking part in the metaverse, 40% say it’s down to a lack of interest. This is understandable – when consumers know exactly what the product is and what they can do with it, then it’s likely that many will change their minds. As we’ve noted, it’s crucial that brands really push the boundaries here. It’s easier to sell a product that lots of different consumers can get something out of, instead of just a virtual shopping platform.

Likewise, 39% say they’d prefer to stay in the real world. Au notes a similar problem regarding the early days of Second Life:

“I think Linden Labs knew they were opening themselves up to that criticism of people escaping reality”

This is a pretty valid argument. There’s bound to be criticism when talking about creating a utopian, virtual world instead of focusing on our own. But that’s not the aim of the metaverse and marketing needs to address this. 

Then there’s privacy and safety.

Around 1 in 4 cite privacy concerns, while 15% say they would feel unsafe in the metaverse.

Regulating social media is already a key concern for governments and brands, let alone the metaverse. If brands want people of all shapes and sizes to use these services, then they’ll need to make sure they can feel safe doing it. 

With half of uninterested consumers saying they worry about how companies use their data, or how their governments track them online, maintaining open communication about how their data is not only used but protected, will be crucial.

Given these consumers are 28% less likely than the average to say they feel confident using new technology, brands will need to be on hand wherever possible to offer helpful advice if they’re to get around this. 

Consumers’ behavior towards protecting their privacy has been hardened from years of using the internet, but if brands can assure them the metaverse is safe to use, then more will be willing to take part.

Better get meta

Every day we hear more about the metaverse: who’s building it, what we’ll achieve with it, and who’s planning to use it. Rest assured, we’ll be keeping track of these developments as they come, and monitoring consumer opinion to help you get meta-ready.

In the meantime, here’s the key takeaways to focus on:

• Younger audiences will be the early adopters. Gen Z and millennials have a better understanding of what the metaverse is, and are more likely to be interested in using it. Don’t rule out older consumers down the line though; just as they have their own corners of the internet, the metaverse will need spaces that appeal to them too.
  
• For some, the metaverse is a dream come true. There are now consumers who prefer the online setting to that of the real world. With the right tools, it could be the perfect haven for these people to express themselves. This means offering customizable avatars for consumers of all shapes and sizes, but also activities that are more niche than others – not everyone is going to be doing the same thing.

• It’s not just a shopping mall. While there are plenty of consumers who expect to shop in the metaverse, many more anticipate socializing, playing, and even working in this space. This opens the door to a lot of different brands and services, who can toy with unique spaces offering more than just a place to browse products.
  
• Metaverse examples have been around long before Fortnite. Brands should be taking note of the modern gaming landscape to get a sense of how the metaverse might work, but the idea has existed for some time. The likes of Second Life, Runescape, and World of Warcraft have a rich history filled with community-led events that laid the groundwork for how brands can work in this space.
  
• Brands can source out partnerships now. While some brands will find content creation easier than others, there are plenty of individuals out there right now who have an in-depth understanding of how current online communities work. Find those who resonate with your brand and enlist them to help build out your space when the time comes.
  
• It needs to be safe, but interesting too. The key reason people are uninterested in the metaverse is simple; the idea just isn’t that interesting to them. Things like online privacy and safety will be important once they start using it, but to reach this stage, developers need to think about how varied the internet is, and ensure metaverse activities enhance these things if they’re to attract sign-ups. 

Every now and again, a slow-burning trend picks up speed and accelerates. That’s exactly what’s occurring with electric vehicles, but it’s only one of the trends that we’re seeing in the automotive world. 

The secondhand car market is at record highs in some countries, in part, due to delays in new cars coming off the production line. With stiff competition for car buyers’ attention, automotive marketers need to understand exactly who’s looking to buy, what they’re looking to buy, and what their purchase journey may look like.

Buckle up for the latest car buying trends you should know.

How has COVID affected car buying?

With the onset of the pandemic came a whole lot of uncertainty in the automotive market. Consumers’ focus was on stocking up on the essentials and staying safe, rather than what new car to put on their driveway. Not to mention chip shortages made new vehicles harder to find. 

But even as mass vaccination programs rolled out and consumers’ financial outlook started to recover, car purchase intentions have still continued to decline. With many now negotiating a cost of living crisis, car purchases are unlikely to recover to pre-pandemic levels any time soon. That said, there are still great opportunities in the market for new and used car sales.

There’s huge demand for electric vehicles, and the secondhand market is at an all time high. There are still consumers of all ages after a fresh set of wheels. They might have miles on the clock, but they’re still new to the buyer. 

So who might be looking to buy and why does it matter?

Is a new car the right car for you?

Across 9 markets, 80% of car buyers are planning to buy new in the next 12 months. It’s a sizable figure, but it doesn’t tell us the whole story.

In China and India, over 84% of car buyers surveyed are planning to buy new, whereas if you look at the UK/US, it’s a little over 3 in 5.

These consumers are buying because they want a more fuel-efficient car (17%), an electric/hybrid car (17%), and to replace their current vehicle (16%). Other factors such as wanting something more premium or spacious are only important to 1 in 10 new car buyers, with car prices less important still. Should that come as much of a surprise? Well if you look at what car buyers say about themselves … not so much.

Car buyers have money to spend, and stand out for describing themselves as affluent. They’re also a good reminder that a new car purchase is just as much about picking up new tech as it is getting from A to B. They also stand out for being confident with new technology, following the latest tech trends, and looking to buy tech products as soon as they’re available too.

With the latest waves of vehicles hitting the road being technology focused, and consumers keen to keep up, it’s a great opportunity for investors in this space to increase their profits.

Who’s buying secondhand cars?

Across 9 markets, 20% of car buyers are planning to purchase a secondhand car in the next 12 months. It’s a popular choice for many, with 45% of car buyers in the UK, 41% in France, and over a third in the US, choosing a pre-owned car over one fresh off the production line.

Where issues with supply affected new car sales, the secondhand market has looked to benefit. Numerous global lockdowns and staffing shortages have greatly disrupted global manufacturing and distribution, leading to a delay of new cars hitting the roads. The result? A sharp rise in demand for secondhand vehicles, with some markets increasing 30% year-on-year. 

But increasing car prices isn’t really a good thing for secondhand buyers, as they’re a consumer group that’s less about luxury, and more about practicality. 

Close to 2 in 5 secondhand buyers are from low-income backgrounds, a larger audience than medium or high earners. With cost of maintenance nearly 1.5x more important to secondhand buyers than those buying new, it’s clear many are feeling the pricing squeeze. 

The electric vehicle market

You can hardly avoid electric vehicles in the news, and you’ll be seeing more plugged in as this quiet revolution hits the road.

For new car buyers, a full electric or hybrid vehicle is their number one reason to buy, and markets like the US are a great example of rising interest.

Tesla is growing in interest among US car buyers – and growing quickly. Year-on-year interest in buying a Tesla has increased 48%, which is the fastest growth of any automotive brand in the US market. It also follows a trend of American car buyers’ valuing local manufacturing when it comes to their new vehicle purchases.

Bearing in mind all the disruption in the past couple of years, the fact that interest in EVs continues to grow is a sign of how attractive they are to consumers. The switch to electric isn’t a novel choice, for many it’s an important step to help the environment.

For consumers in 9 markets, the switch to electric vehicles is a more effective measure to reduce environmental impacts than changing diets, or even reducing air travel. 

Younger consumers see the advantages of switching to an electric motor vehicle, and are the most likely of all generations to see its importance. That said, it’s spending power that really comes into play here, as those in the high-income brackets are most likely to buy these higher priced vehicles. 

Since Q4 2019, the number of high-income households owning an electric/hybrid vehicle has increased 42%, whereas for low-income households, there has been little-to-no change. This presents its own issues, as policy makers phase out the new sales of petrol/diesel cars, but component prices such as batteries are only rising.

As the market develops, buyers will have more model choices presented to them, at increasingly accessible price points. Car dealers making payment options more accessible through financing via monthly payments, an auto loan, or green discounts with dealers through government incentives, will all bring down the EV ceiling. 

It’s probably too early to say that affordable electric vehicles will be hitting the road soon, let alone at scale, but the crest of the wave is certainly in sight. 

Global searches on Google for electric cars and used electric cars reached their peak this year, so even if manufacturing is struggling to keep up the pace, search traffic certainly isn’t.

The 3 big takeaways:

1. Consumers are less interested in buying cars, but that’s not stopping new car sales. Buyers of new cars are affluent and tech savvy, suiting the latest wave of vehicles hitting the market – good news for manufacturers looking to increase their profit per customer. 
2. Semiconductor shortages have created distribution challenges across the globe, but the secondhand market has sought to benefit. With used car buyers’ valuing the practicality of their vehicles, brand loyalty is less of an interest, while performance and cost are.
3. The electric market continues to grow. Interest is rising year-on-year, and for new car buyers, the switch to electric is the main reason for pulling their wallets out to buy a new car. 

When Covid hit, many of us turned to binge-watching shows, playing Animal Crossing, or getting lost in a podcast. Two years in and people are starting to rebuild their lives and routines. Some people might be back in the office full-time, while others might have adopted hybrid working, or a permanent WFH situation. 

As people do this, it makes it trickier to understand their media behaviors – what’s changed, what’s stuck, and what direction are they going in?

Luckily, our latest global entertainment report has just landed and it’s stuffed to the brim with all the trends you need to know about the entertainment world. It’ll help you get a greater grasp of consumers’ media habits today. 

For now, here’s a sneak peek of what’s in-store. 

Online TV reaches peak subscription

Like a lot of other digital media, online TV gathered pace during the pandemic. In 2020, consumers globally spent 1 hour and 26m watching online TV on an average day. Growth has slowed down since then though, and broadcast TV remains firmly ahead. 

With that said, advertisers and marketers should bear in mind that online TV is progressively snatching up a larger portion of the overall viewing time. In 2015, 71% of TV watching happened on broadcast TV. Fast forward to 2021, and this figure had shrunk to 56%. It’s likely this gap between online and broadcast TV will fully close in the future, and will largely be driven by younger consumers. 

As people moved to set up their home offices, our day-to-day work routine and behaviors changed too. Our Zeitgeist research from December showed almost 4 in 10 fully remote workers watch TV shows and movies before starting work. As their third most popular morning activity just behind checking social media and watching the news, it suggests streaming has carved a new place in consumers’ lives.

It also gained new audiences. 

Since 2015, Gen X’s time spent watching online TV has increased at nearly the same levels as Gen Z (with an average of 35 minutes a day).

Although the pandemic has certainly diversified streaming’s user base, keeping the momentum going hasn’t been an easy feat. 

Our global data shows we may have reached “peak subscription” in the West, with the number saying they’ve paid for a movie or TV streaming service starting to plateau. As the battle for eyeballs intensifies, subscription fatigue follows.

Music streaming picks up steam

Music has remained the most popular personal interest since we started tracking it in Q3 2018, and today it tops the charts in 21 of our 47 markets. 

The beauty of audio is that it can be consumed in combination with other media or behaviors – and it often is. 

For example, 44% of fully-office-based or hybrid workers say they listen to music while commuting; of them, 38% browse social media at the same time.

In the context of an attention recession and screen fatigue, audio of any kind is gaining popularity among advertisers and marketers. Spotify reported a 40% year-on-year growth in ad revenue in Q4 2021, which now accounts for 15% of its total earnings.

In 2021, all generations spent more time on music streaming than radio except for baby boomers. It’s not that they’re listening to more radio though, they’re just spending less time on both types of audio types altogether.

However, as we covered in our 2021 Connecting the dots report, boomers are starting to adopt digital behaviors beyond just scrolling on social media, which was a trend further boosted by the pandemic.

We see signs of that in the music-streaming space. There’s been a 13% increase in boomers listening to music-streaming services each week in the space of one year alone. For marketers still not persuaded to move the needle toward digital audio, now’s the time to craft campaigns to engage with the most affluent generation out there.

Social continues to cater to consumers’ love for video content

Fueled by the popularity of creative, visual, video-heavy platforms like Instagram and TikTok, more and more consumers are flocking to these apps to consume and create content. 

TikTok is the fastest-growing platform across all generations, and is the go-to place to find entertaining/funny content.

Across all generations, short-form video content beats out long-form, with the former growing 5% among baby boomers since Q1 2021. TikTok may have led the way initially for this type of snackable content, but Instagram’s Reels is quickly picking up speed in a very short space of time, growing 27% since Q4 2020. With consumers craving a more honest, less polished online experience, short-form is primed to give them what they want. 

Some brands are leaning into this by partnering up with more niche creators on TikTok. Gucci, for instance, turned to trainspotter Francis Bourgeois to bring its collaboration with North Face to life – a bit of a departure from their typical creator collaborations. The brand is aiming to tap into TikTok’s increasing number of niche, playful sub-communities.

As services continue to battle it out to win consumers’ attention, brands need to stay focused on tailoring and optimizing their video content experience to better meet consumers of all ages where they’re at and do it in a way that’s fresh and relevant.

Gaming = a space for everyone

Similar to other forms of media, gaming benefited from the pandemic. However, this has since slowed down as people return to their normal routines. In Q2 2020, when the pandemic first hit, 87% of consumers said they play games on any device – this has steadily declined and now stands at 83%. 

It’s still a huge portion of consumers who play games though, and it’s been making serious gains among older consumers too. 

Pre-pandemic in Q4 2019, 56% of baby boomers said they play games via any device, climbing to 65% today.

The portion of women who play games has also increased (+5%), with almost as many women playing games as men – 85% vs 81%, respectively. This really underpins just how diverse the gaming audience is. And services like Paidia, a new online gaming community, are popping up to cater to this audience.

Mobiles have been the driving force behind increased adoption, growing by 8% since 2016. Alongside this, free-to-play games have hooked more people in – 34% of gamers have played or downloaded a free-to-play game in the last month, compared to 18% who’ve purchased a physical game or one from an online store. 

As the gaming audience continues to diversify, more brands are trying to get in on the action, as they increasingly realize that’s where their consumers are at. 

Wendy’s is a great example of how a brand successfully gets involved in gaming, but it’s not always plain-sailing. Understanding and listening to gamers is the most important first step in crafting a campaign that lands. 

Esports followers are open to sponsorship, with some caveats

Esports continues to cement its status as a key form of entertainment. As it increasingly integrates into pop culture, more companies and investors are closely watching this space. 

Similar to gaming, esports is also attracting attention from a diverse range of gamers. 

Just over 40% of female gamers are esports followers, which isn’t miles behind their male counterparts at 59%. 

At the same time, a sizable chunk of older gamers are esports followers – around half of Gen X gamers and a third of boomer gamers. 

Plenty of brands, including non-gaming ones, have managed to run some successful campaigns. As tempting as it might be to dive in head-first, failing to understand these audiences on a fundamental level is a misstep. Taking the time to understand what makes them tick is important. 

For example, this group is extremely community-focused and wants to feel involved, so brands that make them feel part of an insider group, or seek and listen to their opinions are likely to resonate more with this audience. 

Luckily for brands eyeing up this space, our data suggests esports followers may be more receptive to sponsorship than some might think – even when non-gaming brands are concerned. However, many are sensitive to over-advertising, so stakeholders should lean into what matters to fans. Using esports teams or players as influencers could be one way of creating content and conversations they’re excited to be a part of.

With so many media formats trying to grab a slice of consumers’ attention, it’s not an easy feat to stay ahead, especially as life gets back to normal in many areas of the world. A good way to keep a finger on the pulse is with trusted, relevant data – helping brands, agencies, and marketers of all kinds stay informed.

For the full lowdown on these trends, turn to our global entertainment report.

If you enjoyed a few games of Among Us during the pandemic, chances are you downloaded Discord as well, sharing your theories and coordinating your in-game movements over voice chat. 

The growth of gaming in the last two years has boosted Discord, increasing its user count by 13% in the last year – the 3rd biggest social app growth for 2021. And at the end of 2020, it raised $100 million at a $7 billion valuation, putting it on par with Reddit.

However, as Discord is such a closed platform (most of the time you need an invitation to join a server), there’s not a lot of research out there. This has led marketers to wonder why and how they might use it to reach their consumers. But our data has allowed us to dig deeper on Discord users, and shine a light on who they are and how brands can engage with them. 

For starters, what is Discord and why do people use it?

A closer look at the platform

Discord is a chat app, similar to Skype or Slack, but it was initially geared toward, and became popular among, gamers. The platform provides gamers with ways to find each other, coordinate, and chat – either through video, voice chat, or text. 

Discord members can join different “servers”; these are the spaces on the platform made by different communities or groups.

They’re focused on different topics, so there may be private servers which users can join with friends, or public servers that might focus on a specific game or topic. 

Brands typically get involved by creating their own servers, or partnering with a pre-existing one. And they can also leverage Discord’s strength at bringing people together for live events

While most discussions on Discord are related to gaming, there’s a variety of other topics on there, whether it’s self-improvement, cat memes, or just meeting new people and making friends.

Although the platform started out as an app for gamers, there’s a big opportunity here for non-gaming brands to enter the space and reap the benefits. 

Shining a light on Discord users

Discord users are most likely to be Gen Z males. They’re relatively evenly distributed around the world, but the app is most popular in Latin and North America. 

Bearing this in mind, any events or content posted on Discord should appeal to a Gen Z audience. Our recent research on this generation discovered how light-hearted and humorous content is likely to be a winner.

Gen Z are also keen for brands to be young and trendy, and while being on Discord might give brands a certain kudos, they should be aware of what makes the platform unique. 

Taking a closer look at Discord users’ interests, the most distinctive ones center around gaming and technology, but they’re also drawn toward the arts, sports, and science. 

Marketers should be careful not to treat Gen Z males and Discord users as one in the same. Compared to other Gen Z males, for example, Discord users are less interested in things like celebrity news, and much more interested in things like board games or computers.

Something also unique to users is that they’re an adventurous group, driven to challenge themselves, and take risks. 

So a diverse range of brands have opportunities to reach this audience using the platform, and to truly resonate brands should empower the people they’re speaking to. 

Discord doesn’t run ads, instead making its money through a subscription tier.

Marketers can still get involved, but it’s not the place for anonymous, mass-market messaging. 

Not to mention Discord users are actually quite ad-averse, with around a quarter saying they avoid all types of advertising. 

They’re far more likely to say they mainly use social media to see content from their favorite brands, but also to have unfollowed a brand in the last month. So, they’re very open to brand interactions, but want them to be relevant and engaging.

Marketing on Discord is all about engaging and collaborating with your biggest brand advocates – whether it’s hosting live events, producing support, running your own server or getting involved with a pre-existing one. 

The power of closed online spaces

Discord users are also all about community – they’re more likely to buy products to access the community around them, and seek expert opinions before buying expensive products.

Their community focus has led users to want brands to run customer forums, while also feeling that contributing to their own community is important.

Businesses like All Saints, Chipotle, and TikTok have all harnessed the power of Discord to reach some of their consumers. A huge advantage for brands who use the platform is that it provides them with a way to engage with communities in a direct and personal way, which can be more difficult to do on platforms which are algorithm-centered, like Instagram. It’s a good way to reach a large number in just one post.

Adobe is a useful case study. At first glance it doesn’t seem to fit the template of what you might expect from a young audience with a deep interest in gaming. But the company has found a way to use the platform that resonates with their target audience without feeling like advertising.

Adobe has servers dedicated to individual products (like Illustrator and Photoshop), which help users get quick answers to their queries. But it also has one called “Adobe Creative Career” that helps connect budding designers with experienced professionals. 

Adobe understands its audience demographic (young, lots of students, interested in technology and the arts), and empowers them to pursue future opportunities. In bringing people together to share their experiences, they create a thriving culture in their communities. All those qualities can help build a winning Discord strategy. 

Discord can also be used as a virtual event space, given that Discord users are 43% more likely to say they use social media to watch livestreams.

For example, Chipotle recently hosted a virtual job fair that received over 23,000 applications in one week, while All Saints hosted a Q&A with their design director of menswear.

Something for brands to consider when using Discord is that servers can attract spam due to its “always on” nature. TikTok made steps to try and discourage spam on their server by only allowing people to send a message every 30 seconds. However, users found a way around this and started to use threads instead which didn’t have the 30 second limit. Moderators then removed the ability to make threads.

Brands would, therefore, be wise to nominate moderators who can constantly review what gets posted to message boards and ensure spam is not spread. It might also be smart to include a “rules” page to set the tone of the server early on.

While rewarding, communities are tough to create and even harder to maintain. Moderation is an important thing to get right, to ensure bad actors don’t harm the culture at the heart of them. 

What you need to know before heading to the servers

All in all, here are our key need-to-knows for brands looking to embrace the Discord space:

• Discord is a great way to reach your biggest fans directly and build a sense of community among your followers.
• Discord users have a variety of interests, so it’s definitely not just a space for gaming organizations. Software companies can take advantage of their interest in computers, technology, and science, as Adobe has done. 
• Audience is absolutely key, and Discord is currently a great place to reach Gen Z consumers, particularly male ones. But communication has to feel personal, and not feel like the ads they’re so desperate to avoid. 
• To review any potential spam and set the tone of the server, nominating moderators would be a good idea to ensure brand image is upheld.

Two years have passed since the World Health Organization declared Covid-19 a pandemic. Flights were grounded, sports competitions were suspended, and half of the world’s population was told to stay indoors. At the time, virtually everyone wondered if life would ever be the same again. 

So, 24 months later…is life the same again? What habits have stuck? Are we “back to normal”? And does normal even exist anymore? 

Using two years of syndicated and bespoke research into consumer attitudes and behaviors, we’ve gathered the best insights on where people are at right now, and the journey they went through to get there. 

Staying in was the new going out

When lockdowns kicked in properly in early 2020, it wasn’t surprising that anything to do with moving around (like taking public transport) or going outside for entertainment took a big hit.

What was more surprising (and in the long run, perhaps more important) was that interest in these topics also declined.

This is now starting to recover, but it’s still below 2019 levels. Consumers simply aren’t as invested in going out as they once were. 

On the flip side, many habits picked up from staying at home – like playing games and cooking – are still very much in vogue.

Online entertainment has also claimed new ground in the battle for attention. Initial lockdowns boosted virtually all forms of media, although offline channels like physical press and broadcast TV have now gone back to their pre-pandemic trends and are declining again. Online TV and music streaming saw the biggest peaks, helped by older consumers using them for the first time.

But any subscription business will find the rest of 2022 tough going, as new entrants and cost-of-living concerns will make consumers think harder about their monthly bills. In the US, feeling that online TV subscriptions are too expensive has grown 27% since Q2 2020, while plans to cut the cord are down 8%. 

Lockdowns created a new sense of YOLO

It’s little wonder that March to April 2020 saw some weighty predictions about the world’s future – that was the time when people were most concerned about the pandemic. 

Concern about Covid was massive in the first wave, but then consistently dropped, even as subsequent (deadlier) waves sprung up. Even with massive disruption to their lives, consumers adapted. 

But even as concerns about the virus have dropped, other changes have made an impact. Across finances, the environment, and a sense of what’s truly valuable in life, Covid has left a deep impression. 

By working at home and saving money on travel, some have built up reserves that they’re itching to spend. Other people have been made redundant and seen their industries badly affected by the pandemic. They’ve ended up worse off, and more bad news may be coming soon. 

With energy bills and food costs set to rise, and with concern over the cost of living growing more than anything else in our Ukraine conflict research, this gap will only widen further. 

Ecommerce grew, but has dipped recently

For those who have money to spend, they’re much more likely to be doing it online. Every sector has seen its share of online sales grow, with alcohol and grocery seeing some of the highest increases. 

Cost has become less important when making purchases in-store or online, though the shockwaves of the Ukraine crisis will likely reverse this. 

One lasting change will be the priorities in online delivery. The speed in which something gets to the door is becoming much more important with the growth of ecommerce. Even more so than how much it costs.

Travel is starting to turn the corner

As with most out-of-home activities, it wasn’t just travel behaviors affected by the pandemic, but interest too. 

As interest rebounds, two consumer segments will emerge. There will be the bucket list types, eager to finally go on that big adventure, and then there will be the more cautious travelers who, after two years of disruption, want brands and experiences they trust. 

The first group will respond to marketing that plays on romance, self-discovery, and the unknown. 

The second group will prefer marketing that gives them the facts, offering them assurance about what they can expect – something that can be helped with creative use of customer data. 

Physical and mental health have both been affected

As with income, the pandemic has created different outcomes on consumer health.

Stay-at-home orders may have forced people to stay put, but some still managed to get outside for exercise, with more consumers getting on their bikes or lacing up their running shoes.

But consumers are now more likely to report feeling unwell, and we’ve also seen hints of the impact of long Covid in our research. 

This again highlights the different experiences of the pandemic.

For some, lockdown was a chance to try new exercise habits in relative safety, while others had to deal more directly with the threat of infection. Or, we might be witnessing a newfound openness to feeling off. The prevalence of a health-related crisis, and the prioritisation of our mental health, has encouraged us to be more honest and forthcoming about feeling sick.

But all types of people have endured the so-called “hidden pandemic” on their mental health. Mask mandates and social distancing may become things of the past, but the psychological side-effects of the pandemic will be deep and lasting. 

Consumers will need support and reassurance, having lived through such an unprecedented and traumatic period. 

A different story in each country

For countries with high vaccination rates, life in 2022 is turning out to be not so different from 2019. Many trends from before the pandemic have reached where they were going – it just happened quicker. 

The most lasting changes will be more modest than some of the initial predictions from March 2020, and rather an acceleration than a complete step-change. Older consumers would have likely ended up shopping and watching TV online at some point – lockdowns just forced them to do it sooner.

On a global scale, it’s a different story. Some countries are still in the thick of it. This is best demonstrated by Hong Kong, previously a “zero Covid” success story, experiencing a death rate two years into the pandemic even worse than what the US experienced during its first wave in 2020. 

To give a more granular picture, we’ve created a score inspired by The Economist’s “normalcy index”, which lets you see where a country sits in relation to that 2019 benchmark, based on an aggregate of some data points from this piece (use of public transport, buying foreign vacations, visiting restaurants), and a few others. 

Select a country from the dropdown menu to see, with all those things taken into account, how close a given country is “back to normal”.

As with The Economist’s metric, we find that Egypt is one of the only countries to get back above the 2019 benchmark, and some countries have had unexpected outcomes. Israel has been a leader in the vaccine rollout, but low interest in foreign vacations means that it’s actually still quite far from where it was in 2019. 

What’s next?

Regardless of where you are in the world, we’d all like to move on from Covid. But from all of the research we’ve collected in the past 2 years one statistic stands out more than most. Showing us all the need to learn the lessons from how people behaved, what they felt, and the toll it took on them: 

64% of consumers think another pandemic is likely to happen in their lifetime. 

Sports help many of us understand our bodies, thoughts, and keep in touch with the rest of the world. They stir the emotions, allowing for brand affinity to develop, and form strong ties with supporters.

In recent years, the sporting scene has shifted dramatically. Off the back of government and community demands for good governance, integrity, and equality, offering safe, fair, and inclusive sporting environments is no longer a goal. It’s a must.

Putting parasports in the media eye

Parasports have seen a large growth in interest, with investment in para-athletes, events, and media coverage all increasing over the last decade. But for many, that’s still not enough.

 In France, Germany, Italy, and the UK, the Summer and Winter Olympics are by far the most popular sporting events, followed by football competitions such as the FIFA World Cup and the UEFA Champions League. 

Parasports don’t garner quite the same attention, but are still popular with viewers.

The Paralympics are followed by 1 in 5, with the Winter Paralympics following narrowly behind.

As international event organizers look to expand their global supporter base, the relationship between sports, athletes, and fans all grow in importance. These events provide a platform to compete on a global stage as well as a space for public and private sectors to join in the celebration of sport. 

But it’s just that which makes these events so significant – their global reach.

Sports often focus on the most successful, medal-winning athletes in an attempt to capture the national audience interest. For the Paralympics in the UK, the use of this strategy clearly resonates, with research from the European Journal of Communication showing the reason many watch the Paralympics is to experience another sporting event that delivered national medal success.

Originally planned for 2020, the Invictus Games are set to go ahead in The Hague this year, a celebration of the individuals who were injured or became sick as a result of serving their country, bringing together over 500 competitors from 19 nations. 

As many as 42% of consumers believe parasports should be highlighted more by the media, with 32% believing they’re exciting to watch.

Media opportunities – when positive – are well received, and Netflix are set to bring parasports to the streaming masses later this year.

As part of a mega deal signed with the Duke and Duchess of Sussex, Netflix is filming a docuseries about the Invictus Games, the first of its kind for the event. The series, Heart of Invictus, will follow a group of competitors from around the globe on their road to the games, as well showing their resilience, determination, and resolve.

Given its global reach, Netflix will bring the event to the eyes of viewers who may not tune in, especially as interest in the games outside of the UK is limited. Given the successes of Drive to Survive and how the Netflix docuseries has increased interest in the sport, Heart of Invictus could play an important role in attracting broader audiences.

How brands can play their part in social causes

It’s been fifty five years since Kathrine Switzer broke barriers as the first woman to run the 1967 Boston marathon. With so much time passed since the landmark event, you would expect there to be more equity in the representation and inclusivity of female professional athletes in sporting events.

Some steps have been made, but brands have an active role to play in the discussion. After all, over 2 in 5 consumers want brands to be socially responsible, and over 1 in 3 want brands to make them feel valued. 

So, let’s dive into some examples of issues in sport, before finding out what brands have done to address them.

You can look across most disciplines, and won’t have to do much digging before issues emerge. Widely regarded as one of the finest men’s cycling races, Paris-Roubaix was first held in 1896, but what about the women’s event? Well, that was only held for the first time last year. 

It’s not just problems with representation and participation – salaries and prize money are huge issues across sport.

The 2021 female winner of Paris-Roubaix Lizzie Deignan received €1,535 for her landmark victory. The male winner? A cool €30,000. 

While race organizers and governing bodies did little, Deignan’s team, Trek-Segafredo, took matters into their own hands by matching all prize money awarded to the value of the men’s prize fund. They took it a step further by matching rider base salaries too. An unprecedented step for the sport, but one in the right direction.

You may never have heard of Trek-Segafredo, or even be aware that Trek and Segafredo are separate independent businesses. One a global bicycle retailer, and the other? A global coffee distributor. Their approach brought great acclaim in the cycling world, and is an example of brands acknowledging and addressing inequalities proactively.

Despite the best intentions of governing bodies, they don’t always have the speed, or flexibility, to address issues. The important thing for brands looking to contribute is that they do so authentically, not using their approach or investment as a vanity metric, or a form of gender washing.

Esports & DEI

Greater representation and inclusivity isn’t limited to traditional, physical sports either. It’s also becoming increasingly important in esports – fueled by the growing interest in gaming among different audiences more generally. 

Taking place this year in Birmingham, England, the Commonwealth Games are set to be viewed by 28% of consumers in the UK. The event features major disciplines such as track athletics, road cycling, diving and netball, but disabled athletes are also represented in the same competition, with para athletics, para track cycling, and para powerlifting, among other disciplines.

But for the first time, as sanctioned by the Commonwealth Games Federation (CGF), the inaugural Commonwealth esports championships are being held – albeit independently.

Raising the profile of esports is a nod to the huge interest in gaming among younger audiences. In an article from The Guardian, CGF President Dame Louis Martin goes on to explain how it will allow them to “continue to evolve and explore future editions of [the] event and what they could look like.” Now reaching mainstream status, livestreaming providers and gaming studios could have a huge role to play in creating a new wave of esport athletes, and long demanded disabled esports leagues.

Over half of esports viewers watch content on Twitch, and the platform uses tags to help share and discover interests and groups. On the surface level, you can search for tags specific to games, genres, and league play, which for some casual gamers, can help narrow down to their favorite titles. 

For some however, the feature brings like-minded groups together, with tags for gender, ethnicity, disability, and health conditions, among others.

Physically impaired consumers are 56% more likely to livestream their gameplay, 11% more likely to watch live gaming streams, and 7% more likely to watch esport tournaments, than non-disabled individuals. 

Gaming platforms & streaming services provide spaces for non-disabled gamers to engage and learn alongside disabled communities.

We’re aware that these insights only highlight some of the progress that needs to be made. The issues are evident, but the solutions less so, as what we often see is just the tip of the iceberg in a sea of problems. 

Individual needs are unique, and for event organizers, brands, sports teams and beyond, understanding the interests and attitudes of consumers will go some of the way to tackling issues of diversity and inclusion head on.

The pandemic-driven rise of online grocery shopping caused sales to soar, making it almost as profitable as shopping in-store. But its growth didn’t end with Covid restrictions – it’s continued since.

When UK consumers rediscovered the outdoors last year, ONS data found that internet sales took a slight downturn. But this wasn’t the case for online grocery shoppers. Remote foodies have continued to add items to their virtual baskets – with convenience replacing safety as the key motivator.

Globally, the number who’ve shopped for groceries online in the past month has grown 19% since the beginning of 2020, and there’s no sign that this number is starting to dip. Any movement in the percentage of grocery items bought virtually is worthy of some spotlight, as the global annual spend is immense.

So what can we expect from the grocery industry as behaviors continue to shift? And what can stores do to keep up?

1. Grocers need to enhance the in-store and online experience

Shopping in-store is still favored among consumers – but they like to have a choice. Nearly three quarters of in-store shoppers buy groceries at a supermarket monthly, but a third still order for home delivery, and a quarter opt for collection. 

It appears that consumers do the bulk of their shopping either online or in-store, but carry out top-up shops using either. The most popular reason to order groceries online is as part of a regularly scheduled purchase, but this is followed by needing staple products quickly. 

With more people shopping for groceries online, pioneering on-demand delivery services like GoPuff, Gorillas, and 1520 started to offer delivery of groceries within 30 minutes or less. This type of service offers consumers the option to do top-up shops to supplement their weekly grocery shop, which they may prefer to do in-store. 

Many traditional grocery stores have also been ramping up their online offerings by partnering with third-party delivery companies like Instacart or expanding their click-and-collect services. Put simply, they’ve got to be competing for a slice of the ‘need it now’ rush.

Grocers should ensure they offer both a same-day service as well as the ability to book a weekly delivery. 

This will guarantee both types of consumers are captured – those who order a top-up online but prefer to shop in-store, and those who prefer to shop online but are happy to go to the store to refresh their supplies. 

On top of this, supermarkets that cater to the omnichannel consumer may need to work on their in-store offering. With home delivery becoming more important, stores will need to become more competitive to keep up.

We may start to see stores adopting more technology, such as cameras and software alerting staff when shelves have run empty. We’re likely to see more contactless stores too, with Whole Foods being the latest to use walk out technology. Another way grocery stores can cater to all is through offering a click-and-collect option, which has been used by a third of consumers in the past month.

For sustainable shoppers eager to make their mark (or, in fact, reduce it), the option to have refillable groceries in-store is something that is gaining more traction. 

Naturally, that’s hard to replicate online. Stores offering delivery should therefore ensure their service is also attractive to sustainable online shoppers too to avoid excluding this type of buyer. In fact, over a third of online grocery shoppers place importance on eco-friendly delivery.

2. Stores offering delivery need to ensure quality is matched

Since 2015, as part of our Core survey, we’ve asked consumers what’s most likely to make them buy products online. In every single wave we’ve asked this question, and in every single country, free delivery is the stand-out factor.

It’s clearly a big deal. But when it comes to groceries, the cost of delivery isn’t the be-all and end-all. 

For online grocery shoppers, the most important factor is the quality of produce, followed by its freshness, and whether the groceries arrive as scheduled. Consumers want these things set in stone as they can’t handpick the products themselves and test out their readiness to eat. 

So it comes as no surprise that the majority of people feel the biggest drawback to online grocery shopping is receiving damaged products, followed by the issue of out-of-stock products. Again – these are more important to get right than the cost of delivery. 

Stores can help alleviate the issue of out-of-stock items by offering more personalized alternatives, while issues with damaged products can be rectified through small changes to packaging. ULMA Packaging has found that excess air used in storage bags can lead to larger-than-necessary packs and can damage fresh produce. These insights have encouraged new ways to seal packaging, which reduce waste and keep groceries a little safer on their commute. 

While those who shop in-store are more likely to pick somewhere to shop based on proximity, consumers can be more choosy when shopping online. In this day and age, digital journeys have got to be slick – shoppers are looking for great experience and service. 

Supermarkets can nail this if they have an open dialogue with their customers, and more importantly, take on board feedback to optimize the end-to-end journey.

3. The online offering needs to be optimized

Shopping on smartphones has helped accelerate the growth of online grocery purchases in the US in particular, with 57% buying at least some of their groceries via mobile, and a fifth doing all their grocery shopping on a smartphone.

So, grocery stores should make sure they’ve got an optimized and user-friendly app for customers. A key way to do this is through offering account personalization. 

As unsatisfactory product substitutions are a bugbear for many online shoppers, an app may offer more personalized substitutions based on consumers’ preferences, which would also help alleviate issues around out-of-stock products. 

Personalization can also be used to recommend items to customers. For example, Lollipop AI, a new British online grocery marketplace, has recently created a platform where people can build meal plans from recipes, adding the ingredients automatically into their shopping baskets. The platform also suggests remaining household essentials. Its aim is to help improve cooking skills and minimize food waste.

Another way to optimize an online service is to offer customers the option to repeat order the items they know they’ll need. Amazon has been ahead of the game with this for a while now, but we may start to see more supermarkets following suit.

On top of that, with many people wanting niche products from specialist retailers, supermarkets may start to offer more specialty sections on their websites in a bid to cater to customers with any requirement. 

Our key trends to digest:

• Online grocery has shown continued growth long after Covid restrictions have eased, creating more omnichannel consumers. This trend shows no sign of slowing down.
• Grocery stores now need to ensure they’re optimizing both their online and in-store offering to cater to all types of shoppers. 
• Online grocery shoppers are placing more importance on quality, availability, and the freshness of products rather than price. Stores will need to ensure standards and quality don’t slip.
• With the growth of online grocery shopping on smartphones, stores need to leverage personalization to create a seamless online experience, while also alleviating some of consumers’ biggest bugbears.

It’s no surprise that consumers have changed in the last two years. As global fashion retailers adjust to the ‘new normal’, brands need to do more than return to their pre-pandemic strategies.

We’re seeing fashion retailers aiming for some very ambitious goals. In recent months, COP26 is an example of how we’re seeing new contributions brought to the table. With these incentives in mind, and the right attitude, they have the opportunity to capture what’s really important to consumers now. 

Fashion and jewelry brands are fab at making sure they’re staying on top of the latest trends – but can they stay on top of consumer needs too? 

Get real about representation 

In recent years we’ve seen fashion brands representing a wider range of body types, cultural backgrounds and genders. We love  to see brands like Victoria’s Secret joining the conversation, but diversity and inclusivity in the fashion industry still has a long way to go.

Diversity is crucial for a brand’s survival but representation doesn’t mean simply ticking the diversity box and moving on – it’s an opportunity for brands to connect with a wider and more loyal audience.  

Only 23% of global fashion and jewelry buyers feel that they are represented in the ads that they see, and in North America that number differs between gender, race, ethnicity and sexual identities. 

In the US, representation is particularly important among the younger generation, and as this next wave of consumers has enormous spending power, brands need to encompass ideals that support Gen Z.

These consumers want brands to represent them better and it’s all about feedback. 

The most important thing for these consumers is for brands to listen to them. Developing processes that offer greater involvement of consumer voices is crucial, and leveraging feedback, especially from those who represent the minority, should be a top priority for brands.

Don’t resell, repurpose.

Overconsumption plagues the fashion industry. In one way, the resale market helped to solve this problem, but while consumers look to clean out their closets, the re-commerce market has encouraged a side-hustle economy of individuals eager to spend their money on new items.

As brands continue to explore the resale market, rather than encouraging consumers to resell their old items, consumers should be inspired to keep them – but with a repurposed twist.

Fashion brands have a responsibility to help consumers take better care of their purchases.

 Finding new value gives brands an opportunity to offer ways to revive items that would usually be left unworn and forgotten.

In a joint custom study with Avery Dennison and GWI, over half of consumers in Europe are not only interested in repairing fashion items, but they believe that brands hold the responsibility to help consumers repair them too. 

For the luxury market, altering formerly loved items of clothing and jewelry not only offers consumers an opportunity to repurpose, it also encourages brands to create items that have a life beyond their original design. This means brands can focus on materials that are made to last, retaining value, and reinforcing a luxury brand’s reliability, quality and craftsmanship that these consumers regard so highly. 

Engage with the new digital age

As consumers continue purchasing items online, brands can look to creating new digital experiences. The emergence of the metaverse, NFTs and AR/VR creates an exciting opportunity for fashion brands and new tech to merge.

Fashion and jewelry buyers are more likely to engage in social opportunities, but they’re also equally interested in tech. 

These consumers are 28% more likely to feel confident using new technology and they’re also eager to purchase new tech when it becomes available on the market. This interest creates an opportunity for fashion brands to explore ways to engage their consumers through new technology, and one way they can do this is with one of the most important industry events of the year, fashion week. 

This year, the fashion industry will see its first ever Metaverse Fashion Week. A digitally connected landscape brings together a host of opportunities for brands to connect with their consumers, but even with fashion and jewelry buyers keen to participate in the metaverse, they’re missing a vital element – crypto.

Most of these consumers don’t currently use cryptocurrency. Even with an interest to do so, without a digital wallet, engaging in this new online space will prove difficult as many items are only available to buy with cryptocurrency.

Equally important for digital developments is the use of blockchain. Fashion and blockchain offers opportunities for brands to create a digital identity of their supply chain, and it has the potential to unlock deeper levels of transparency and connection with consumers. 

But, as the technology is fairly new, there’s currently only a small percentage of fashion brands that are using it. Even with fashion industry workers 36% more likely to want to use blockchain, brands will need to build consumers’ awareness on how it can be beneficial to them. 

Digital innovations have the potential to disrupt ecommerce, but whether consumers are looking to buy digital outfits or one of those controversial MetaBirkins, we’ll need to see an increase in fashion and jewelry buyers, and their favorite brands, participating in new technologies and digital currency before life in Web3 takes off. 

Go beyond green

As the fashion industry continues to talk about sustainability, consumers are interested in purchasing sustainable products, and with 67% of fashion and jewelry buyers saying they would rather pay more for an eco-friendly product, their reasons to purchase vary from a wide range of eco-friendly conscious choices. And brands need to make sure they are top of the pack in making sustainable choices easy for their consumers.

One area where brands can think more sustainably is by reconsidering their sourced materials. In the US, 42% of apparel buyers want brands to be transparent about how products are made. By reshaping what natural or organic can mean with unlikely resources, brands have an opportunity to engage these sustainable seeking consumers into a world of new materials.

These innovations have caught the eye of many big name high-street retailers, the likes of H&M and Zara are using a variety of conscious new materials from vegan leather made from pineapple leaves to sustainably sourced cellulosic fibers. 

Material swaps are a small change that can make a big difference for people and the planet, and revisions like these are a step in the right direction, but brands can do so much more. 

Sustainable solutions need to be a part of the entire product line and include other important elements such as carbon-neutral shipping and reusability. Sustainability should no longer be considered separate. It needs to be a benchmark from which brands can build upon a conscious foundation. 

Above all, brands need to be open to something new. 

Fashion and jewelry buyers are confident, creative, open-minded consumers, and industry leads need to look beyond the surface of where they were two years ago. A return to pre-pandemic normalcy is not an option.

In a market that moves rapidly from one trend to the next, fashion brands will need to do more than curate the next season’s must-have looks to secure a strong consumer connection.  

These consumers want brands to go further. Their needs have shifted; they value reliability and innovation far greater than being trendy or cool. Brands don’t need to reinvent themselves, they need to create opportunities to show their consumers how engaged they are with the problems that matter to them most.