Understanding 1

Generation

Generation Alpha

CONSULTING Introduction A baby learns how to use a touch-screen device by the age of two. Parents panic as a toddler talks to Alexa and gets a response full of explicit material. A father is so concerned about his unemployed son’s gaming habits that he hires in-game assassins to kill his avatar. Stories like these give a glimpse of how young people are already encountering the world in different ways to the generations before them – ways that can be both exciting and troubling. But while rare incidents such as these often appeal to a widespread uneasiness about the fast-changing world of tech, the real story is inevitably more nuanced. Is all “screen time” bad for children, or could apps help them develop certain skills? Can voice assistants offer a new 2 way to communicate? And at what point does immersion in a digital 3 world become truly problematic? The next generation of young people will have unprecedented exposure to technology. Generation Alpha – a term coined by social researcher Mark McCrindle to describe the cohort of people born in 2010 onwards – will play, learn and interact in new ways. They are born into a landscape in which devices are intelligent, everything is connected and physical and digital environments merge into one. As they grow up, technologies that appear new or unusual to older generations will be a normal part of their lives, and will shape their experiences, attitudes and expectations of the world. Some neuro- scientists and psychologists even believe that their minds will be in some ways different to those of previous generations.

This report aims to shed some light on the impact of technology and culture on this emerging generation, approaching the issue from three main perspectives: Report author Victoria Turk, WIRED 1_ The effects of technology on the minds of Generation Alpha Report designer 2_ The technological trends that will define this generation Mark Bergin, WIRED 3_ How organisations and brands can reach Generation Alpha Report illustration Michele Marconi The point of this report is not to make crystal-ball predictions, but to Report sub-editor explore, based on current and emerging trends, the factors that will Simon Ward, WIRED set this generation apart from those that came before. Report contributors It’s important to note that generational boundaries are largely Thomas Upchurch, head of WIRED Consulting arbitrary and that there is much more commonality than there are Emma Cowdray, project consultant, WIRED Consulting differences between one generational cohort and the next. Members Emma Hazan, global head of consumer, Hotwire of Generation Alpha are not born inherently different to Millennials or Generation Z, but their personalities, motivations and outlook will be Contact us: Emma Hazan coloured by their shifting surroundings. Greater access to technolo- Global Head of Consumer, Hotwire gy will lead to new ways of thinking and doing – and as the speed of [email protected] technological change accelerates, so will our expectations. The trends covered in this report will not only affect this generation, Thomas Upchurch but will eventually affect mentalities across the board. Understanding Head of WIRED Consulting, WIRED UK these changes will be essential for those with a desire to stay ahead [email protected] of shifting tastes and attitudes. Inside the

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brain Chapter 1: Inside the 01 Alpha brain

For millennia, the human brain has relied on 7 real-world stimulation for its development. But in recent decades, children have increasingly turned to digital devices for learning, interaction and play. Does this increase their capacity for knowledge and intelligence, or does it – as many claim – hinder their chances of development? We examine how technology is changing the way Generation Alpha interacts with the world, and how it could lead us to greater levels of awareness.

01 02 03 Inside the Our brains will become Technology will enhance Alpha brain more specialised certain skills

04 05 06 We will outsource The debate over screen The kids are all right more brain activities to time rages on computers UNDERSTANDING GENERATION ALPHA CHAPTER 1 INSIDE THE ALPHA BRAIN

8 Inside the Alpha brain specialisation. Hundreds of years ago, What is neuroplasticity? 9 he says, we were “operational general- This describes how The brain is not developed in a vacuum; ists”, with a broad set of overlapping skills the human brain can it is constantly modified through expe- needed to survive. But today, individuals’ change throughout an riences with the external environment. brains are becoming dominated by a narrow individual’s life, even This is known as brain plasticity. “Every domain of problems and are increasingly during adulthood. It skill and every ability we have is refined specialised for specific tasks. “We’ve cre- alters in response to by how we engage our brain in the world,” ated a class of super-specialists,” he says. stimuli and refines its explains Michael Merzenich, a professor processes as it learns emeritus neuroscientist at the University Merzenich predicts that this trend will new tasks. Michael of California, San Francisco and a pioneer continue for Generation Alpha, and will Merzenich, known for in brain plasticity research. “That is the be pushed further by cultural shifts in the his work in this area, basis of the creation of the operational workplace. Employment is set to be widely has shown that it is person that we are.” disrupted by automation, meaning many possible to use the of Generation Alpha will need to devel- brain’s plastic qualities Quite how technology is changing young op highly specialised technical skills in to help children with minds remains unclear. Headlines tend to order to find fulfilling work. A July 2017 learning disabilities. lean toward the alarmist: Google is mak- report by PwC researchers estimates that ing us stupid; smartphones are turning us 30 per cent of UK jobs and 38 per cent of into zombies; Facebook is making narcis- US jobs could be automated by the early sists of us all. Others, however, argue that 2030s, with sectors including transpor- technology is enhancing our skills beyond tation, manufacturing and retail at the what was thought humanly possible, and highest risk.1 freeing our brains of monotonous tasks to focus on more high-level problems. This emphasis on specialisation, says Mer- zenich, could lead to cultural and social Regardless your position, one thing is divides, with a “super class” of individu- clear: technology will not only affect Gen- als taking highly specialised roles while eration Alpha’s experience of the world; others are left without meaningful work. it will also shape who they are. Some argue that Technology enhances certain skills automation and Our brains will become more technology free our specialised We know that technology can make us brains of monotonous better at certain tasks. Take the ex- tasks so we can One trend that Merzenich has observed ample of video games: a 2003 study in focus on more high- over recent years is the increase in Nature found that people who played level problems

1 PwC UK Economic Outlook Report, July 2017 UNDERSTANDING GENERATION ALPHA CHAPTER 1 INSIDE THE ALPHA BRAIN

10 We will outsource more brain policy and worries that by outsourcing 11 activities to computers these simpler tasks, we will jeopardise our ability to store or retrieve the infor- While technology can help hone specific mation needed to do so. brain skills, some fear that it could also have a deleterious effect. The ubiquity of As new technologies are developed, smartphones and tablets means almost all Merzenich suggests that this effect could of us now have a high-powered computer be amplified. From driverless cars to within arm’s reach at any given moment. internet-of-things devices, there is money to be made from removing the need to use Having the world’s knowledge at our our brains for different tasks. fingertips is, of course, of huge benefit in many day-to-day situations. But The debate over screen time rages on Merzenich is concerned that it also means we no longer need to use the same mem- These fears have led to much contro- ory or reasoning skills to solve problems versy in recent years over the issue of – and so may lose these capabilities over screen time: the amount of time young time. “Now a person can operate pretty people spend interacting with digital de- successfully in life, even in high-level vices. “No matter how high quality the jobs, by simply being really good at look- content, time spent in a screen-based video games had better visual skills than – likely due to improved scores on the Research has linked ing up answers,” he says. world displaces time spent learning, those who didn’t.2 To rule out the pos- kind of visual tasks that gaming prepares playing video games playing and socialising in the real world,” sibility that people with better visual them for and that are also commonly fea- to improved cognitive Susan Greenfield, a senior research fellow says Greenfield. “Real-world toys, activ- skills were simply more likely to play tured in fluid intelligence tests, which effects such as hand- at the University of Oxford and an outspo- ities and human-to-human interactions games, the researchers then trained test problem-solving abilities. “Most of eye co-ordination ken critic of children’s use of technology, foster the imagination, creativity and so- non-players on action game Medal of these games require the rehearsal of shares this concern. “Having technolo- cial skills in a child in a way technology Honor. This group’s visual skills improved. certain skills that are also part of some gy at our fingertips means we no longer typically does not.” The researchers conclude that, “Although intelligence tests,” explains Patti Valk- need to remember facts, dates, numbers, video-game playing may seem to be rather enburg, a professor of media, youth and places or to answer simple questions,” In her controversial new book iGen: Why mindless, it is capable of radically altering society at the University of Amsterdam. she says. Though some argue that this Today’s Super-Connected Kids Are Grow- visual attentional processing.” frees the brain for more intellectual- ing Up Less Rebellious, More Tolerant, As a result, some suggest that playing ly demanding activities, she says that Less Happy – and Completely Unprepared Subsequent research has linked video video games and other digital media could the brain adheres to a “use it or lose it” for Adulthood – and What That Means for games to other improved cognitive ef- even contribute to a phenomenon known fects such as hand-eye co-ordination and as the Flynn effect – a sustained increase 2 the ability to switch between tasks.3 Some in intelligence test scores from one C. Shawn Green & Daphne Bavelier, “Action video game modifies visual selective attention”, Nature 423, 534-537 (May 29, 2003) studies have even found that playing generation to the next over the past 80 3 Andrew J. Latham, Lucy L. M. Patston and Lynette J. Tippett, “The virtual brain: 30 years of video-game play certain video games can lead to chil- years or so.⁴ Put simply: technology could and cognitive abilities”, Frontiers in Psychology (September 13, 2013) 4 Patricia M. Greenfield, “The cultural evolution of IQ”, in U. Neisser (Ed.), The rising curve: Long-term gains in dren scoring higher on intelligence tests be making us smarter. IQ and related measures UNDERSTANDING GENERATION ALPHA CHAPTER 1 INSIDE THE ALPHA BRAIN

12 the Rest of Us, psychologist Jean Twenge a pronounced spike in teen unhappiness, Hotwire: it to primarily talk to strangers, which is 13 draws a link between the rise of smart- and question how much time spent online What does this a whole different experience. Similarly, phones and social media and an increase in is genuinely replacing more wholesome mean for comms? spending time playing video games is depression, anxiety and loneliness among activities⁵. Reports such as Monitoring How do we not a problem for most people, but a small today’s teens. (She defines the “iGen” as the Future can only show correlation, not communicate to an number could be susceptible to compul- those born from the mid-90s, straddling causation, and rely on teens self-reporting audience with neither sive gaming or video-game addiction. the period between Millennials and Gen- their behaviour and mood. Several studies the capacity or desire eration Alpha.) have failed to find a link between time spent for remembering Ultimately, both the positive and negative online and loneliness or depression. One facts? We change the effects of technology are generally statis- She suggests that an increase in screen study published in January 2017 that looked game: our proactive tically small, and there is more variation time – to the detriment of time spent on at 120,000 UK adolescents’ use of digital communications will between individuals than there is between healthier, real-world pursuits – is to blame. technologies concluded that “Moderate have to entertain generational cohorts. “In my view, tech- “Teens now spend between six and eight use of digital technology is not intrinsical- people in a memorable nology is influencing all of us, not just the hours on average on electronic devices, ly harmful and may be advantageous in a way and keep them younger generations,” says Valkenburg. meaning tablets, computers, phones,” connected world.”⁶ coming back for more. she says. “I found they spent six hours We won’t bother Even where a generational difference can a day on just three activities: internet, Indeed, proving a causal relationship be- throwing facts at them be observed, Valkenburg warns against social media and texting.” tween a generation’s use of technology and because they won’t making value judgments. Take the com- their mental wellbeing is almost impossi- stick. Instead, we mon accusation of narcissism directed at Twenge’s main findings are based on ble. To do so, you would need to compare a will focus on tightly social-media-savvy Millennials. Is it so bad surveys and reports including the US Mon- group of people who use technology with targeted placement to exhibit confidence or enjoy celebrating itoring the Future report, which annually people of the same age who do not. With of our reactive one’s achievements? The line between surveys tens of thousands of 8th-, 10th- computers and smartphones so central communications so we high self-esteem (generally considered a and 12th-grade students (aged 13-18) on to modern life, finding that control group make an impact when positive trait) and narcissism (considered their behaviours. Based on these databas- would be incredibly difficult. Even if you Generation Alpha needs a negative trait) is blurry, and Valkenburg es, she found that iGen dates less, drinks could find them, they would likely have oth- answers. The winners even questions whether a small increase less and goes out less, but spends more er stark differences in experience, such as will be those that can in narcissism is necessarily a bad thing – time online. Twenge correlates teens’ religious views or socio-economic factors. be persuasive, brief and perhaps it could be a useful adaptation reported levels of happiness with the time most visible on Google. for success in many professions. they spend participating in on- and off- The important thing here is not the tech- screen activities and finds that those who nology itself, but how it is used, says spend more time on the internet, social Valkenburg. Take social media: she has media and texting are more likely to report found that being a member of a social- being unhappy. networking site can in fact boost young people's self-esteem and improve the 5 The kids are all right quality of real-life friendships. But that Alexandra Samuel, “Yes, Smartphones are Destroying a Generation, But not of Kids”, JSTOR Daily 6 Andrew Przybylski & Netta Weinstein, “A Large-Scale Test of the Goldilocks Hypothesis: Quantifying the is not the case for everyone⁷. While most Relations Between Digital-Screen Use and the Mental Well-Being of Adolescents”, Psychological Science But not everyone agrees with this picture. young people use social media to connect (January 13, 2017) 7 Patti M. Valkenburg & Jochen Peter, “Social Consequences of the Internet for Adolescents Some researchers dispute that there is such with friends they already know, some use A Decade of Research”, Current Directions in Psychological Science (February 1, 2009) Technologies

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Alpha CHAPTER 2 Technologies that will 02 define Generation Alpha

16 As technology develops alongside Generation 17 Alpha, user-friendly trends such as AI and voice will become increasingly common methods of communication between human and machine, leading to keyboards and screens giving way to controller-free gestural interfaces and two-way conversations between device and human. But could this open channel lead to increased data breaches? And how will Generation Alpha interact with personality driven with AI devices?

01 02 03 04 05 Technologies that Will Learning through the Devices will gain Voice will become Interaction with Define Generation Alpha internet of toys emotional intelligence a major interface technology will become to rival the screen more physical

06 07 08 Experiences will be Increased data The need for personalised to suit the collection will fuel technological literacy individual privacy risks is greater than ever UNDERSTANDING GENERATION ALPHA CHAPTER 2 TECHNOLOGIES THAT WILL DEFINE GENERATION ALPHA

18 Technologies that will define Learning through Smartphone and tablet 19 generation alpha the internet of toys ownership among five- to 15-year-olds The mobile devices that now feature One big trend that is already shaping is increasing: one heavily in the lives of every generation Generation Alpha’s experience of tech- 2016 Ofcom report are already prevalent among Generation nology is artificial intelligence. Some AI reveals that 41 per Alpha. According to the most recent devices are specifically aimed at Genera- cent of children own a Ofcom report on children’s media use, tion Alpha – the “internet of toys” includes smartphone and 44 per smartphone and tablet ownership among devices that incorporate technologies cent own a tablet. five- to 15-year-olds is increasing, with such as image or voice recognition, 41 per cent of children owning a smart- with current examples including Mattel’s A recent MIT Media phone and 44 per cent owning a tablet Hello Barbie and last Christmas’ must- Lab study found in 2016 8. Many more use these devices, have Hatchimals. Others are entering that children find AI with tablets particularly popular among homes in the form of internet-of-things “agents” such as younger children: a majority of three- to devices and AI assistants such as Amazon Amazon Echo Dot and four-year-olds (55 per cent) are reported Echo and Google Home. Google Home to be to use a tablet. friendly, trustworthy A team of researchers at the MIT Media and even smarter But while these devices still hold strong Lab recently ran a pilot study to explore than themselves. in people’s day-to-day lives, new tech- how children interact with AI devices9. nologies are emerging that offer different They observed a group of children aged Augmented reality of the researchers involved in the study. are so different; they sort-of map it out forms of interaction. Increasingly smart three to ten interact with four AI “agents”: will increasingly be “They start to associate intelligence with from what they know,” says Randi Williams, devices will be the norm for the gener- Google Home; an Amazon Echo Dot, with used to explore new declarative knowledge, like memorising another researcher on the project. But as ation that grows up with them: artificial its “Alexa” assistant; a chatbot tablet app virtual landscapes facts and new information,” she explains. the children engage with the devices, they intelligence will expand our ideas about called Julie; and Cozmo, a small autono- One seven-year-old girl, for example, said realise they’re not human but perhaps what technology can do, data-crunch- mous robot made by AI toy company Anki. she thought Google Home was smart- closer to an animal or pet. ing algorithms will make experiences Most of the children found the AI agents to er than Alexa because it gave her more ever more personalised and new in- be friendly and trustworthy, and the older information about sloths. Devices will gain terfaces will offer whole new ways of children often said the AIs – especially emotional intelligence communicating. These trends will feed Alexa – were smarter than themselves. The researchers observed the chil- into Generation Alpha’s expectations of dren pushing the boundaries of the AI The idea of devices as pets is one that technology and colour their interactions This could correspond to a transition in toys’ abilities to see what they could do. robotics company Anki actively tries to with the world around them. children’s perception of intelligence as Some asked Cozmo (which cannot talk) cultivate. Instead of spouting facts like they go to school, says Stefania Druga, one if it could jump or open doors, and others Siri or Alexa, Cozmo’s AI is all about per- offered the agents food – or asked, “Is sonality and emotion. Though the robot it OK if I eat you?” cannot speak, it communicates through 8 Ofcom, Children and parents: media use and attitudes report (November 2016) movements and expressions (its eyes 9 Stefania Druga, Randi Williams, Cynthia Breazeal & Mitchel Resnick, “Hey Google is it OK if I eat you?”: Initial “I think at first children expect a human- are displayed on a small screen). Face- Explorations in Child-Agent Interaction, Proceedings of the 2017 Conference on Interaction Design and Children (27-30 June 2017) level interaction, because these things recognition technology also lets the robot UNDERSTANDING GENERATION ALPHA CHAPTER 2 TECHNOLOGIES THAT WILL DEFINE GENERATION ALPHA

20 ‘Kids more and more Voice will become a major interface boy got frustrated when Alexa wouldn’t 21 are demanding to rival the screen play his favourite song. “If you have a their physical play device that speaks perfect English and it experiences to do more, Devices are increasingly using voice seems very smart and can pull all of this to be more fun, to be recognition as their primary means of information off the internet – for a four- more interactive and control – with assistants such as Ama- year-old, they’re very confused when responsive’ – Bethany zon Echo and Google Home again leading it can’t play ‘I’ve been working on the Koby, Technology Will the way. Bethany Koby, co-founder of railroad,’” says Williams. Save Us STEM-focused toy company Technolo- gy Will Save Us, thinks that voice as an Interaction with technology will ‘I think the expectation interactive medium will affect children’s become more physical is, “I want to have play patterns in completely new ways. that relationship that It’s not just voice that offers an alterna- I might have with a “Quite frankly, I’m excited for the screen tive to the keyboard and screen. Gestural movie character” to disappear,” she says. She hopes that interfaces let people interact with digital – Mark Palatucci, Anki more “natural” interfaces like voice will content using hand or body movements, tap into the human side of technology using information collected by wearable and allow children to interact with the devices or tracking sensors. These kinds environment around them in a more of devices could be used to interact with fulfilling way. Screens, she says, put virtual and augmented reality without the recognise its owner and say their name decade, and to gain a greater understand- Devices are a barrier between the user and their need to hold or touch a controller. using its distinctive voice tones. ing of their context and environment so increasingly using environment and often result in quite an they can respond accordingly. voice-recognition insular, singular experience. To Koby, these new interfaces promise “The emotion that you might have with assistants as a more engaging way to use technology your corgi – we'd love to be able to bring Generation Alpha will likely have high- their primary Voice interfaces also make technology that gets away from the passiveness of that level of depth into a product like this,” er and higher expectations of smart means of control more accessible to younger children, says watching a screen. “I think kids more and says Mark Palatucci, co-founder and chief devices as they’re exposed to them from Williams. If you’re interacting with a com- more are demanding their physical play product officer at Anki. Recent upgrades a young age. Palatucci says that adults puter using a keyboard, there’s a natural experiences to do more, to be more fun, to to the product let you “feed” and look after and children over the age of 12 often age limit as the user has to be able to read be more interactive and more responsive, your Anki in order to encourage this kind respond to Cozmo with awe, as they and write. “But when you have a device and for them to be a part of that process of nurturing robot. haven’t ever seen a device like it before that can talk, you have to be old enough in some way,” she says. outside of science fiction. But younger to talk to it – so now we’re looking at Palatucci says the Cozmo was inspired by children have never known any differ- three-year-olds,” she says. She believes that augmented reality the idea of bringing the kind of personal- ent. “I think the expectation is, ‘I want to will increasingly be used as a way to ex- ity-driven characters found in animated have that relationship that I might have In the MIT study, however, the research- plore new landscapes, especially as travel films into the real world. (Anki’s team in- with a movie character,’” says Palatucci. ers found that voice-recognition systems is made more expensive and difficult due cludes former animators from Pixar and “I think that's something that we're often struggle to understand young to climate change and changing attitudes DreamWorks.) He expects devices to certainly getting closer towards.” children, and the technology doesn’t to transport. develop richer personalities over the next always live up to expectations. One UNDERSTANDING GENERATION ALPHA CHAPTER 2 TECHNOLOGIES THAT WILL DEFINE GENERATION ALPHA

22 Experiences will be personalised to Increased data collection will fuel Hotwire: ment: these are collecting information The need for technological literacy 23 suit the individual privacy risks What does this about an infant who has no awareness is greater than ever mean for comms? of how their personal data is being used As gadgets such as smart devices and While AI tools and increased data col- Could we see the – and no say in it. A common theme in interviews for this wearable technologies collect more and lection allow for more personalised death of the screen as report was the need to teach Generation more data on their users, companies will interactions, it also poses a security and a marketing channel “In the next ten years we’ll be seeing many Alpha how technology works. For Betha- be able to tailor their offerings more pre- privacy risk. Many smart devices are con- when Generation more of these apps that you can easily ny Koby, whose company makes DIY kits, cisely and develop products based on nected to the internet, which means they Alpha comes of age? Is use to measure and record,” says Rog- tech products can continue the tradi- feedback. Anki, for example, found out could be vulnerable to hacking. In Novem- voice finally making a ers. A parent could record a child’s mood tion of construction toys such as blocks from early user data (which was collect- ber 2015, it was revealed that Mattel’s comeback after years of or daily activities, for example, and store and LEGO and teach children important ed anonymously and in aggregate) that Wi-Fi-enabled Hello Barbie doll could being pushed aside by that information in the cloud to analyse physical and problem-solving skills, as people were particularly fond of a Coz- easily be hacked to turn it into a child- email and messaging? in aggregate. While this could have many well as educating them about the technol- mo feature called Explorer Mode, which surveillance device; in February 2017, Possibly. Video content benign uses, Rogers is concerned that ogy itself. Yvonne Rogers has also been lets you control the robot’s movements an official German consumer watchdog ticks the entertainment the data could be used in unforeseen working on toolkits that help teach chil- through a smartphone or tablet. “We were advised parents to destroy their children’s box, but when it comes ways – and that these devices and apps dren a variety of skills beyond just coding. just blown away by how many people like Bluetooth-connected My Friend Cayla doll to eliciting a response, could also cause parents to worry more using that,” says Palatucci. As a result, over similar fears. More widely, users are voice is a medium about their child’s development and Stefania Druga adds that we may the company added more capabilities to often ill-informed about how companies in which brands can encourage over-parenting. underestimate children’s capabilities in this feature, allowing children to move themselves can use the data these de- directly engage on understanding the technology embedded Cozmo’s head and arms and to see the vices collect from them. an individual basis to Hannah Broadbent, deputy CEO of inter- in their lives. She finds that adult’s reac- world through his front sensor. provide real meaning net safety charity Childnet, says young tions to questions about AI often tend to Connecting a toy to the internet immedi- on a personal as well people are becoming more aware of on- the extreme, but, in her experience, chil- Some devices and apps use the data they ately introduces a potential weakness for as collective basis. line privacy risks thanks to increasing dren can be open-minded and offer quite collect to become more personalised to hackers to exploit. Toy company VTech, But brands will need digital literacy among themselves and profound thoughts on the role these tech- the individual. Machine-learning algo- which makes kids’ gadgets including tab- to remember to build their parents. However, she says there is nologies could play in our lives. “I think a rithms can learn how a user interacts lets and baby monitors, was breached depth as well as still a knowledge gap, and young people lot of our assumptions of what a young with a device over time and custom- in 2015, exposing children and parents’ breadth into their voice- usually think more about privacy in terms child today could understand or do are ise the experience to their needs. Koby personal data. Security researchers have activated campaigns – of keeping information from each other yet to be challenged,” she says. foresees technologies growing and also raised concerns that connected dolls it’s no good setting up and people they don’t know, rather than adapting alongside Generation Alpha. and toys could breach privacy laws. a voice system which what companies can do with the data “They’ll change, they’ll modify, they’ll can’t deal with follow they collect. She thinks the demand for learn about the interactions that are Yvonne Rogers, director of the Univer- up questions. privacy may continue to grow as news happening in order to create bespoke, sity College London Interaction Centre, spreads around new data protection laws customised, informed and unique expe- says this is particularly problematic when such as the 2017 UK Data Protection Bill riences for kids,” she says. devices collect data from children, as they and European General Data Protection are not able to give permission. She points Regulations (GDPR). to devices such as smart baby monitors and bracelets that parents can use to track their baby’s health stats or move- Connecting

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Generation

Alpha CHAPTER 3 Reaching 03 Generation Alpha

26 Organisations and brands need to reach out to 27 Generation Alpha, but what technologies and innovations will prove to be key in engaging the future’s super-connected users? Will they be willing to cede personal data to marketers in return for discounts and special offers? And how will brands deal with algorithms skewed in favour of online’s retail giants?

01 02 03 04 05 Connecting with New technologies Brands must offer Video is dominating Generation Alpha Generation Alpha will set a new gold choice, diversity and social media will have multiple standard authenticity online identities

06 07 08 09 Data and AI will Consumers will be Tech platforms will One brand to rule help brands know more savvy about how have more power over them all? when to engage their data is used brand visibility UNDERSTANDING GENERATION ALPHA CHAPTER 3 CONNECTING WITH GENERATION ALPHA

28 Connecting with Generation Alpha tions that others have to meet, too. Some Birk Rawlings, head 29 brands, such as Nike, have already used of DreamWorksTV at Brands and marketers looking to reach AR in their marketing, allowing custom- Awesomeness TV, Generation Alpha will need to adapt to stay ers to try out different styles and colours summaries Generation relevant and remain sensitive to consum- digitally when they shop and connecting Alpha’s expectations ers’ changing attitudes and expectations. limited-edition designs to physical loca- thus: ‘They want This is not a new problem, says Andrew tions so they can only be unlocked when everything Stephen, associate dean of research and the customer visits in person. and they want it now’ L’Oréal professor of marketing at the Saïd Business School at the University of Oxford Even brands that are not particularly tech – but it is still a big challenge, especially focused will need to take notice. As Gen- for established brands. eration Alpha grows up, they will gravitate to brands that feel like those they already “Brands in general are a bit daunted by know and trust. If they’re used to using AR this generation, if not outright scared – for when they shop for groceries, they will similar reasons perhaps as they were ini- expect the same when they come to buy tially daunted or confused at approaching car insurance. Millennials and Generation Z after that,” says Stephen. “These are consumers com- Brands must offer choice, diversity ing into the market who may or may not and authenticity have different ways of behaving, and may or may not have different expectations.” Increased access to technology and media means that consumers have never had more New technologies will set a new choice – something that Generation Alpha gold standard has already come to expect. Young peo- ple also have more tools at their disposal, If brands wish to remain relevant and ap- from search engines to automated recom- pealing to young people, they must stay mendations, that allow them to research on top of emerging technologies. Stephen and scrutinise their options before making gives the example of augmented reality: their own choices. Birk Rawlings is head of young consumers are already becom- DreamWorksTV at AwesomenessTV, which ing used to AR in mobile apps such as makes video content for kids and has more Snapchat, and this technology is likely to YouTube followers than Disney Channel become much more mainstream. (In 2017, and Nickelodeon. He summarises Genera- Apple and Google both released their own tion Alpha’s expectations thus: “They want AR platforms for developers to work with.) everything and they want it now.” Some brands offer customers discounts or As future-looking brands experiment with To be effective, brands must provide the loyalty points in return these technologies, they set new expecta- variety that today’s young people expect. for personal data UNDERSTANDING GENERATION ALPHA CHAPTER 3 CONNECTING WITH GENERATION ALPHA

30 In the entertainment industry, children ic, where presenters make magic tricks GENERAL DATA produce their own video content through above probably don’t really think much 31 have access to thousands of pieces of out of household objects. “The shows’ PROTECTION REGULATION image-led platforms such as Snapchat about,” says Stephen. “Whereas if you go content across a huge range of media. hosts are very real; they don’t look and act In May 2018, new data and Instagram. to people in their teens and 20s, and prob- Any company that wants to keep their like super-high-polished actors, it feels protection rules will ably by default even younger, there’s very interest must therefore serve content like you’re hanging out with friends” he come into force across Generation Alpha will have multiple much this sense of identity management.” across a wide variety of formats and on a says. “I think that’s a big part why some of Europe. The General Data online identities broad range of topics. DreamWorksTV has these new platforms have worked so well – Protection Regulation Intruding at the wrong time could have produced more than 100 video series in because there is a hunger for that kind of (GDPR) will change While many of Generation Alpha don’t yet a negative effect – especially given the one year. “As a larger percentage of kids relationship with entertainment.” how businesses and have their own social-media profiles, they growing phenomenon of shaming brands gain access to mobile and tablets, that organisations can handle are beginning to experience them and are who step over the line on the very plat- individualised experience of controlling Video is dominating social media people’s information. The building their own digital footprint through forms they are trying to use to promote video selection is really empowering and law will require companies their parents’ profiles. But while sharing themselves. Stephen draws a link between exciting for them – and I only see that ac- Social media is already a major desti- to be more accountable details of our personal lives is becoming this increasing distaste for advertising that celerating,” says Rawlings. nation for brands to communicate with for data they hold, allow second nature, our relationship with so- feels intrusive and the rise of ad-blocking consumers and vice versa, and that will individuals greater cial platforms is becoming more nuanced. software, which allows users to opt out of Staying relevant means tapping into the continue to be the case – but the plat- access to information “There’s less reluctance to broadcasting seeing certain digital ads. Younger peo- passions of the moment. Rawlings says his forms and tools will evolve. One clear held about them and give your life to others, but at the same time ple, he says, don’t like the idea of being team is not above jumping on the band- development is a shift toward video con- regulators the power to this is a generation that is very sensitive directly marketed to. wagon of playground crazes such as slime tent. Childnet’s Hannah Broadbent says fine businesses that don’t to privacy,” says Andrew Stephen. or fidget spinners – but it’s also impor- that younger children are not yet on many comply up to €20 million Data and AI will help brands know tant to create content with longer appeal. of the big social networks, but YouTube (£18m) for major offences. Increasingly, people present different when to engage The key to this, he says, is authenticity remains incredibly popular. “More than identities across different platforms, and diversity. By diversity, he not only one third of three- to four-year-olds are with varying levels of intimacy and ex- Data and AI-based tools can help mar- means demographic metrics such as race using YouTube, and over half of five- to pectations of how they will be received. keters – or data scientists embedded in and gender but also representing a wide seven-year-olds,” she says. On one platform, for instance, they may marketing groups – to identify the right range of topics, styles and viewpoints. live-stream their innermost thoughts to a time and place to communicate with peo- One recent day, videos on the homepage DreamWorksTV distributes its shows select group of close friends. On another ple and offer real-time recommendations. of DreamworksTV’s YouTube channel in- through a variety of platforms global- they may post stylishly curated photos AI chatbots can offer customer service cluded a Captain Underpants cartoon, a ly, but YouTube is its flagship. “It’s the for the whole world to see. across different platforms at any time of music video of a young girl covering a pop number-one kids’ brand, and it’s also day, and help guide people to the con- song and a step-by-step guide to building the best place I’m aware of to aggregate For brands, the difficulty is in identifying tent most suitable to their needs at that (and smashing) an “epic sand castle”. audience,” says Rawlings. when it’s appropriate to engage. They moment. no longer just need to work out who the Authenticity means making communi- Other platforms are shifting to video too. consumer is, but which of that consum- “There is definitely value in making sure cations feel more real and natural. This, In August 2017, Facebook announced it er’s identities they are dealing with. “This you do everything you can to learn from says Rawlings, is demonstrated in Dream- would be commissioning its own video whole idea of consumers having different customer behaviour, because ultimate- worksTV’s two biggest hits: Life Hacks for shows for the first time with the launch identities and personalities for different ly that’s where audience expectations Kids, in which children give step-by-step of Facebook Watch. Consumers, mean- audiences across social-media platforms are going,” says Rawlings. “You want the making tutorials, and Junk Drawer Mag- while, are increasingly encouraged to is something that people in their 30s and simplest experience possible, and you UNDERSTANDING GENERATION ALPHA CHAPTER 3 CONNECTING WITH GENERATION ALPHA

32 Targeting shoppers don’t want to spend hours trying to find what are you giving me in return for it?’” 33 can come across as what you want. In this world of massive says Stephen. Some companies already intrusive if pushed too choice, the systems that are the best at operate this kind of data exchange, for ex- far: we’ve all had that predicting what you’re going to want next ample offering discounts or loyalty rewards experience of looking are the most successful.” if people agree to share their information. at a jacket on a retail site, only for it Consumers will be more savvy Stephen believes that brands today could to stalk us around the about how their data is used get ahead of the game and engender great- web for days after. er trust from consumers by committing to But while many brands currently do not transparency over how they use data. But make good use of the data they collect, many companies are put off by regulation, there is a danger of going too far. While he says, and tend to adopt a wait-and- targeting shoppers based on their be- see approach on data issues rather than haviour and preferences can help show leading the way. them information most relevant to them, it can soon come across as intrusive if Tech platforms will have more pushed too far or poorly executed: we’ve power over brand visibility all had that experience of a looking at a jacket on a retail site, only for it to stalk us The rise of social media and internet search around the web for days after. Smoothing has given brands a new way to reach and the cracks in marketing tech, by fine- engage with their consumers, but it also tuning targeting algorithms and improving makes them beholden to platforms they communication between databases, will have little or no control over. help to solve these problems. DreamWorksTV, for example, relies on its Perhaps more importantly, customers are shows appearing in YouTube searches and becoming more careful about how their recommendation bars to keep attracting data is used. Governments are following new viewers. But they have no influence suit, with regulations such as GDPR giv- on the constantly changing algorithms ing individuals more control over their that make these decisions. “It is one of the personal information (see p30). There’s challenges of operating on other people’s a risk, then, that consumers could simply platforms,” says Rawlings. revoke access to their data if brands don’t Today’s consumers exercise caution. YouTube’s search algorithm optimises for adopt different factors such as video length. This, to an identities depending “[Brands] need to be worried about the extent, informs DreamWorksTV’s editing on the social-media customer of the future saying, ‘I’m switch- decisions when creating content (at the platform they are ing it off, you can’t have my data,’ or, more moment, most of its videos are between using at the time realistically, ‘You can have my data, but two and five minutes long). But ultimately, UNDERSTANDING GENERATION ALPHA CHAPTER 3 CONNECTING WITH GENERATION ALPHA

34 says Rawlings, the two companies have suggesting a move away from traditional Hotwire: 35 shared goals: “For them, it’s having people brand loyalties11. The jury is still out, how- What does this stay on the platform longer and ultimately ever, on whether the Echo’s voice interface mean for comms? to serve more ads; for us it’s having people will completely replace the screen: Ama- We won’t reach engage with our content for more time.” zon’s most recent Alexa product, the Echo Generation Alpha on our Show, for instance, includes a screen as terms – through out-of- One brand to rule them all? well as a speaker. home, point-of-sale or digital ads. Instead, we’ll Now that tech giants play such a large Stephen is more optimistic about the op- need to talk to them at role in the marketing we see, there is a portunities Amazon Echo presents for their point of need – concern that their algorithms could boost brands. The reason it works so well, he when they ask Alexa for visibility of some products while essen- says, is because it offers a useful ser- a recommendation on tially eliminating others from view. Scott vice, like ordering milk when you need it, their next toothpaste or Galloway, a professor of marketing at rather than bombarding customers with when they’re browsing New York University Stern School of Busi- advertising about its AmazonFresh gro- YouTube for their next ness, has suggested that voice-search cery service. But other brands can also recipe idea. The bravest systems such as Amazon’s Alexa could make use of this new platform by develop- and arguably most have a destructive effect on brands, espe- ing useful services, called “skills”, rather successful marketers cially those that make everyday consumer than just trying to push their products will develop subtle packaged goods10. Amazon Echo offers a on people. “It reminds me of the early communications new way to shop using voice commands, days of the app stores,” he says. “The campaigns that won’t but provides customers with much less whole ecosystem is only going to take even talk about their choice than a conventional Amazon off if third-party apps or skills are an in- own brands, such as search. Ask Alexa to buy batteries and it trinsic part of it, because otherwise it’s a meal their content will suggest just a couple options – all from kind of pointless. Amazon clearly has a recommends that Amazon’s own product range. vested interest in trying to use Alexa to doesn’t feature any of sell more of its products, but it can’t just its own products. But The voice interface is particularly dam- be a shopping device.” it will meet a need and aging for brands, argues Galloway, as it make Generation Alpha does away with the need for packaging, In a climate where customers don’t want trust us as a content design and store displays, leaving few to be marketed to, offering a genuinely provider first and a options for brands to differentiate them- helpful service can help brands and mar- brand marketing to them selves. He says that people are using brand keters connect in a valuable way. second. By building this prefixes in Google searches and in voice emotional connection commands to Amazon Alexa less often, over time, we’ll create a different kind of relationship, one which is personal to 10 L2inc, Scott Galloway: This Technology Kills Brands, youtube.com/watch?v=BXEu8RcneZQ (June 1, 2017) 11 The Bottom Line with Henry Blodget, Business Insider (April 20, 2017) the consumer. Conclusion: A generation CONCLUSION of difference?

36 Technology is embedded in almost every could be that one of the most socially 37 aspect of our lives, and this will be even disruptive consequences of advancing more true for Generation Alpha. They technologies is the unequal distribution will have increased access to existing of positive and negative effects, with and emerging technologies, and will the richest and most tech-literate become accustomed to interacting with gaining a greater advantage over their digital content in new ways – no doubt less well-off peers. including many unforeseen in this report. This also impacts marketing. Already While we can assume that these trends we are seeing cases in which users who will broadly affect Generation Alpha’s pay for digital content can opt out of expectations of the world, it would advertising that free users must put up be foolish to treat this generational with. Scott Galloway goes as far as to say cohort as homogeneous in outlook that advertising is “a tax that the poor and attitudes. Indeed, we have seen and the technologically illiterate pay”.12 that young people today value the independence to make their own By definition, viewing Generation choices, manage rich and varied digital Alpha under a single banner is only identities and increasingly expect useful as a top-level perspective. The services to take their individual needs flip side, however, is that many of the and preferences into account. observations we make about Generation Alpha may also have relevance for Meanwhile, data and AI tools mean that older and younger people who are services and brands can understand subject to the same technological their audience on a more granular and cultural shifts (just as it is not only level than ever before and can target Millennials whose lives are influenced by consumers with much greater specificity smartphones and social media). than a sweeping age range. Tracking these trends can therefore We must also recognise that, while have much broader significance for many childhood experiences are those wishing to understand our effect shared across demographic lines, on technology – and technology’s access to technology is not equal. It effects on us.

12 Recode Decode, Google is God, Facebook is love, and Amazon will be worth $1 trillion (Scott Galloway, founder, L2) Contributors About us

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38 Many thanks to the following people Hotwire is a global communications WIRED Consulting uses the collective 39 who were interviewed for this report agency that helps brands better power of the WIRED network to help and whose expertise in various fields engage and connect with their organisations adapt to the fourth helped shape its conclusions: customers. From Sydney to San Industrial Revolution. Francisco, was operate with a borderless mindset across 22 Through our unrivalled network locations including the UK, the US, of startups, entrepreneurs and France, Germany, Spain, Italy and technology pioneers, we help Hannah Broadbent Stefania Druga is a Susan Greenfield is Bethany Koby is CEO Michael Merzenich is is deputy CEO at UK graduate student in the a research scientist, and co-founder of Tech a professor emeritus Australia, together with co-branded organisations make connections with charity Childnet, which Personal Robots Group author and broadcaster. Will Save Us, which neuroscientist at the and affiliate partners across the globe. the most progressive thinkers. We use aims to make the at the MIT Media Lab. She has held research makes STEM toys. One University of California, disruptive interactions, workshops, internet a safer place She is also the founder fellowships in the of WIRED’s Designers San Francisco. He is the for children and young of STEM organisation Department of that Matter, she has author of Soft-Wired: The consumer market has never been masterclasses and intelligence people. She also sits HacKIDemia and digital- Physiology Oxford, the appeared at events How the New Science so cut-throat, so today’s brands need reports to help our clients make on Facebook’s Safety fabrication training College de France Paris such as TED Kids, Maker of Brain Plasticity Can to connect in a meaningful way. To sense of the epochal shifts Advisory Board. project Afrimakers. and NYU Medical Center. Faire and Resonate. Change Your Life. remain relevant, they need to be about transforming business and society. Mark Palatucci co- Birk Rawlings is head Yvonne Rogers is a Andrew Stephen is Jean Twenge wrote more than product and pricing. They founded entertainment of DreamWorksTV at professor of interaction associate dean of iGen: Why Today’s need to be a part of a consumer’s life. For more information, please visit robotics company Anki. AwesomenessTV, a design at University research and L’Oréal Super-Connected He was the founding media company aimed College London. Her professor of marketing Kids Are Growing wired.co.uk/article/about-wired- CEO of software at children and young research interests are in at Oxford University’s Up Less Rebellious, Hotwire’s teams are dedicated to consulting company Copera, and people. He has also held the areas of ubiquitous Saïd Business School. More Tolerant, Less winning the battle for hearts and held engineering and positions at Nickelodeon computing, interaction He specialises in the Happy–and Completely research positions at and Walt Disney design and human- intersection of marketing Unprepared for minds. From working with brands Google and Intel. Animation Studios. computer interaction. and technology. Adulthood. from action cameras through to fold-up bikes and travel sites, we Patti Valkenburg is a Randi Williams is a Report author Victoria professor of media, graduate research Turk is a senior editor bring brand loyalty right to the front youth and society assistant in the at WIRED, where she of our campaigns. at the University of Personal Robots works across print, web Amsterdam. She is Group at the MIT and video. She is also also the co-author of Media Lab. Her focus the curator of WIRED: For more information, please visit the 2017 book Plugged is on designing robots Next Generation, its hotwireglobal.com In: How Media Attract that supplement the annual festival for 12- and Affect Youth. education of children. to 18-year-olds. 40

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