Amazon Ads' 2023 Higher Impact report reveals that global consumers, especially the younger generations, have become more discerning with their spending habits and remain loyal to brands mirroring their values.
The survey covered four aspects, from consumers' shifting priorities to brand trust and sustainability, as well as diversity, equity, and inclusion (DEI).
Consumer Priorities and Causes
In the landscape of heightened budget-conscious spending, 70% of consumers have preferred brands supporting causes close to their hearts - an 11% increase from 2022.
Globally, healthcare (32%), health and wellness (27%), and economic challenges (23%) are the top causes consumers care about. A generation gap is evident in their choices, with Gen Z emphasizing mental health awareness, while Millennials and others lean towards healthcare.
Since 70% of consumers believe in backing brands with their purchases, businesses must resonate with their customers' core concerns, especially in eCommerce niches.
Brand Trust
Value for money remains a universal trust factor, resonating with 39% of consumers across age groups. Yet, ethical stances play a decisive role.
Gen Z ranks employee well-being (14%) high on their list. Boomers and Gen Z agree on environmental conservation, averaging 18% and 17%, respectively.
Loss of brand trust, however, manifests differently - 40% of Gen X and 39% of Boomers flag poor value for money, whereas Gen Z and Millennials pinpoint product quality.
Sustainability
There is a 6% rise from 2022 in global consumers seeking sustainable brands.
As consumers grapple to align their needs, values, and finances, 52% express readiness to pay a premium for products backed by third-party sustainability validation.
Gen Z adults are the most inclined, with 62% willing to bear the extra cost compared to a modest 41% of Boomers.
Diversity, Equity, and Inclusion (DEI)
The advocacy for diversity, equity, and inclusion (DEI) remains high, with 73% of global consumers deeming it essential for brands to foster these values. Gen Z's expectation of DEI-centric brands is even higher at 77%.
Authentic DEI engagement, as per consumers, is best illustrated by actions that go beyond a brand's primary offerings (52%) and direct inclusion in the brand's chief products (48%).
"Younger generations of consumers want to see visible, sustained investments in diversity, equity, and inclusion to demonstrate it is a long-term priority," says Evaristus Mainsah, Amazon Ads VP for People, Experience, and Technology.
"They're expecting to see actions from companies and brands that not only reflect their communities but elevate and lift those communities as well."
About Amazon Ads' Higher Impact Report
Since 2021, Amazon Ads' Higher Impact survey has shed light on the evolving landscape of consumer-brand dynamics. Amid rising economic challenges, such findings are essential for brand development.
With the influence of Amazon in marketing and brand strategies, these findings can potentially reshape various approaches for businesses.
