FOMO Fuels the Fun: Gen Z Confesses to Event-Driven Overspending, According to New MERGE Study

Survey Reveals Nearly 86% of Notoriously Cost-Conscious Cohort Exceed Event Budgets

Event Advertising Influences More Than Half of Gen Zers to Buy

Recent findings from "The Event Effect: Gen Z Retail Survey" conducted by MERGE, an integrated technology and marketing services provider, highlight the dynamic and influential relationship between live events and the spending behaviors of Generation Z. While Gen Z is generally known for being price-conscious, events can drive them to overspend impulsively. According to the study, a striking 85.8% of the 1,000 respondents admitted they exceeded their budget when attending events, with excitement and the event atmosphere playing a significant role.

MERGE conducted a study of 1,000 Gen Z consumers and tracked spending for a select group attending concerts, sporting events and festivals this summer. The findings revealed critical insights into how this cohort engages with fashion, entertainment, and sporting events.

The study highlights Gen Z’s top spending categories related to events. Food and Beverage (41.3%) and Apparel and Accessories (33.7%) were the top items purchased for use at events, reinforcing the interplay between fashion, entertainment, and social experiences in Gen Z’s spending habits. Nearly 70% of respondents at fashion and beauty events identified apparel and accessories as their primary spending focus.

The research also uncovered additional significant insights, including:

• Brand activations are a must: Brand activations at events have a significant impact on Gen Z's purchasing behavior. Nearly 64% of respondents reported purchasing items due to event advertising, with those frequently influenced by brand collaborations being more likely to attend Food Fairs and Fashion Events.
• Most popular Gen Z events: Notably, professional sports and music festivals emerged as the most popular event categories overall, according to MERGE’s study, which also uncovered nuances in Gen Z values. Authenticity reigns supreme for Gen Z, with low influence from perceived social currency.
• Sustainability is not a concern: Contrary to assumptions, sustainability concerns ranked low overall when deciding to attend or avoid events. However, brands who want to reach Gen Z must steer clear of greenwashing and avoid pandering to trends while embracing authenticity and transparency.
• Males buy on impulse: Males are more likely to engage in impulse buying and attend sports events, tech and innovation events, and are often influenced by event-specific merchandise or to support a team. They also have distinct preferences for research channels, favoring video reviews, podcasts, and AR/VR.
• Females overspend: Females are more likely to overspend due to emotional connections and FOMO (Fear of Missing Out) and tend to attend arts and culture as well as fashion and beauty events.
• Older vs. younger Gen Zs: Older Gen Zs (25+) are more likely to overspend for convenience and accessibility, while younger Gen Zs (under 25) are more focused on attending rallies and protests, are influenced by peer trends, and prioritize diversity and inclusion.

"These findings underscore the reality that events serve as a powerful catalyst for unlocking aspirational and discretionary spending among Gen Z, despite their reputation for being budget-conscious,” said Stacey Hawes, Chief Performance and Data Officer for MERGE. “It's clear that the intersection of fashion, entertainment, and sports creates a compelling environment where Gen Z is willing to invest significantly, often going beyond their planned budgets. This convergence presents a unique opportunity for brands to engage this generation in authentic ways that align with their values and enhance their experiences, especially in the realms of apparel, accessories, and social media presence."

A small but notable group of Gen Z respondents reported spending over $5,000 in the past year on events and related expenses. These high spenders are 27% more likely to attend film festivals, 20% more likely to participate in fitness festivals and wellness expos, and 29% more likely to engage in fashion and beauty workshops.

Gen Z Summer Event Diaries

In addition to fielding a national survey, MERGE also recruited seven Gen Z consumers and tracked their spending on events this summer. These event-goers shared their experiences in a series of diaries detailing how they planned for the occasion, felt about advertising displayed during the event, and engaged with social media before, during and after the event.

One soccer enthusiast shared how the atmosphere and camaraderie at events can influence spending decisions. “At events with my friends, I can easily be convinced to buy the most random things. The event atmosphere and being with my friends make the logic go away,” said Sash, 23, who attended the Atlanta United v. Toronto FC Major League Soccer game on June 29.

Event attendance was a valuable source of fashion inspiration for a Gen Zer who purchased a ticket to her first NASCAR race. “One standout item for me was cowboy boots. I've never owned a pair of boots and just haven't gotten around to buying them, but seeing so many people wearing them at the event made me want to get some too,” said Tyra, 25, who attended the NASCAR Weekend at the Pocono Raceway from July 12-14.

The anticipation of an event influenced another Gen Z consumer to buy items sooner than planned, highlighting how events can shift the timing of purchases. “An event affects my buying behavior by changing the timing of when I would buy something. For example, I had been planning to buy a white camp collar shirt to embroider, but since I'm going to [an event], I decided to get it now," said Armaan, 24, who attended the Governors Ball Music Festival from June 7-9.

Methodology

"The Event Effect: Gen Z Retail Survey" was conducted with 1,000 Gen Z respondents across various demographics from July 10-18, 2024. The survey explored event attendance, spending habits, and the impact of brand activations on purchasing decisions.

Additionally, MERGE selected seven participants for an event-spending project, in which they received a $700 prepaid credit card to cover event-related expenses like food, clothing, and accessories. They participated in a 30-minute pre-event interview to discuss the project and gather initial quotes, followed by a 30-minute post-event interview to review the content gathered. Participants were also asked to document their purchases and key social media posts throughout their events in June and July 2024.

About MERGE

MERGE promotes health, wealth and happiness in the world by merging storytelling with technology and offers clients full-service capabilities including strategy, creative communications, experience engineering, performance marketing, media and marketing operations platforms. MERGE has enduring client partnerships with American Express, T-Mobile, LG, Kate Spade NY, Coach, The North Face, Meta, BlueCross BlueShield, Abbott, Supernus, Seqirus, GE Healthcare, Indiana University Health, Nationwide and Fidelity. With 750+ employees across offices in Atlanta, Boston, Chicago, Denver, Kansas City, Montreal, New York City and Los Angeles, MERGE enables clients to think higher and feel deeper about their customers. For more information, visit MERGEworld.com.

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