Teens are spending more than ever on advertising to boost their brands but few are actually buying them, according to research from the consumer goods giant Mintel.
The study, which surveyed nearly 2,000 consumers across the U.S., found that consumers who spent $500 or more on products in 2017 spent $3.7 billion on brand marketing.
The number of teens who spent more than $1,000 on branded products in 2016 increased to 31% of all consumers, up from just 10% in 2015.
The numbers also suggest that young consumers are increasingly spending their money on branded goods, despite being more likely to be consuming digital content and social media.
Mintel’s survey found that millennials were spending more on branded items than they did in 2015, with spending more now coming from the likes of Coca-Cola, PepsiCo, McDonalds, Apple and Amazon.
The most popular brands for the millennial generation, Mintel found, were Coca-Cola, Pepsi, Starbucks and Apple.
Minted says the brand spending is up nearly 80% in the past year and will likely continue to rise in 2018.
The survey was conducted on Feb. 14 and Feb. 22 and is based on responses from 3,800 people across the country.
The findings come as millennials have become more aware of how brands and brands of other brands are used in social media and other platforms.
In 2018, the majority of millennials said they had heard of Facebook, Snapchat, Instagram and Pinterest, according, Mintels findings.
And Mintel says brands are increasingly becoming a part of this trend, especially with millennials’ increasing use of social media platforms.
Mintels research found that brand spending rose to $1.8 billion in 2017, up nearly $1 billion from the year before.
Minting brands are spending up to 10% of their spending on marketing campaigns.
Mintell says brands need to be aware of the growing popularity of their brands and use them in a way that is not overbearing.
The brand spending will increase with the rise of millennials and with the growing influence they have in their social circle, Mintell said.
“We’ve seen brands do this before, but it’s a bit more nuanced, it’s about making it accessible and inviting them to become part of your brand,” Mintel CEO John Sperling told CNBC.
Mintbell says the biggest mistake brands make when they spend on branded content is not using it in a creative way.
Mintilless brands, for example, often use brands as the centerpiece for promotional videos and other media.
It’s also a common practice for brands to use them as an ad in the news and on television.
For instance, Nike recently used brands to advertise a special edition of the Nike+ platform.
Mintle says brands should consider how they can utilize the brand in ways that make sense to the brand and consumers.
Mintells brand spend will be even more significant as more millennials come into the workforce, Mintells research found.
“The millennial generation is going to be the biggest audience in the U and that’s where brands are going to start making an impact,” Mintell CEO Sperly said.
Mintes research also found that most brands are using social media to engage with millennials.
About half of the brands surveyed said they are using their social platforms for brand marketing and nearly one-quarter of the surveyed brands said they use social media for brand communication.
Mints research found brands are also reaching out to young people through brand partnerships, particularly through the company’s brand partners program.
Mintiless, in partnership with the nonprofit Public Citizen, partnered with a handful of nonprofit organizations to help them identify and train more millennials to use brand messaging.
Mintlless says its marketing teams are targeting teens through online platforms and engaging with their parents through online videos and educational materials.
Mintelle says it has made its own efforts to reach out to youth and will continue to invest in brands and content that are culturally relevant to the millennial audience.
Minteilless said that it is working with public school systems across the nation to train teachers on brand messaging and the importance of brand messaging in youth development.
Mintello is also partnering with the American Cancer Society, the National Institutes of Health and other public and private organizations to create content that highlights brands and their products, Mintello said.