The consumer trends marketers can't ignore this fall, with Erika Wheless

Speaker A: Foreign.

Speaker B: Greetings, Insiders. Today is August 7th. This week, the trends brands should be tracking for the rest of 2026 and how marketers can start tapping into them right now. You won't want to miss it. This is Ad Age Insider taking you behind the scenes of the industry's biggest stories with the reporters who wrote them. I'm your host, Parker Herron. Make sure to hit follow wherever you're listening right now so that you're never behind on industry news. As we trudge through the humid thick of summer, it's a great time to take stock of what current consumer behavior indicates for marketing trends we'll likely be seeing rise up throughout the rest of the year. My fellow ad ager Erica Wheelis recently spoke with leaders across the industry about exactly that, and there were multiple common takeaways. From demand for physical media and brand memorabilia to the shift of trust from influencers to expert sources. Some of these trends are also playing out in consumer sentiment for brands. Erica works quarterly with Harris Polish to track the brands experiencing the biggest changes in equity among Gen Z and millennial consumers. So we draw some connections to that list, too, which feature some surprises like Grok and AliExpress. All of this indicates a marketing landscape that isn't so simple, so keep listening to hear how you can start implementing these lessons into your brand strategy. Let's get into it. Erica, uh, I am so excited to have you back on the podcast today.

Speaker A: I know it's been a minute. Glad, uh, to be back.

Speaker B: Oh, uh, it's been too many minutes. I've missed you dearly. And today I'm so excited that we're going to be chit chatting about the consumer trends marketers should be keeping their eye on for the rest of the year and also drawing some connections to the brands who've made the biggest gains with Gen Z consumers over the past quarter to see where there might be some matches, some contrasts, some interesting takeaways, et cetera, et cetera, et cetera. So, are you ready?

Speaker A: Yes. Let's do it.

Speaker B: Amazing. And I'm going to preface a little bit that, uh, if you hear a little bit of a chainsaw buzzing in the back of my audio, it is not because I am being hunted down by a serial killer, but I do have some neighbors working on their yard, so I apologize for that.

Speaker A: Sounds good. Hey, you got to do it before it gets too hot in the day. You got to be like, all right, yard work out of the way.

Speaker B: Exactly. Exactly. Okay, so let's get into it. Uh, as you've mapped out the rising trends for the rest of this year. Which one of those trends surprised you the most to hear from your sources?

Speaker A: Oh, which one surprised me? The. I, um, think the idea of credibility over authenticity, I think, was the one that was most surprising to me. So this is the idea I want to make sure I, I credit where credit is due. Yes. So, um, I asked Aaron Wong, who's the group strategy director at High Dive, about this, and this was something that she calls like, frontline authority. So it's just about, like, hearing it from influencers who, like, are authentic and use the product to. Now maybe it's like, no, tell me, like, show me the person that the CEO of the company or who makes your product. Or like, maybe instead of a beauty influencer, folks are opting for, like, the dermatologist over the beauty influencer. She also referenced the hill turns. The D.C. hill turns. So interns who work on the Capitol, like, work in the Capitol, maybe showing a little bit about, like, the day in the life and what they do versus, like, you know, a sound bite from a press conference that we may hear from a senator or think something like that. So, like, who are the people that work in the office and what are their views on things? So that one was kind of interesting, uh, just because I think we hear so much about the creator economy is, I mean, not going away is getting more important, is getting bigger. I think I also recently am reading more about how, like, micro influencers are becoming more popular. So maybe perhaps also though, that that ties into, like, the credibility because, like, they're doing it for love of the game, not necessarily for their, you know, 1.3 million followers or something like that. So that was the one that I was like, hmm, interesting.

Speaker B: Yeah, that is interesting. I wonder, I mean, did you hear anything about why that might be a rising issue right now? I know that, like a rising emphasis from consumer. Because I know, like, in the past we've had controversies around what you're saying where it's like a beauty influencer might edit her. Her lashes, uh, with a mascara product. I don't know who I'm talking about. But, you know, there are things like that where the credibility of influencers has been called into question before. So, like, why are consumers thinking about credibility and, um, factualness? Great word there.

Speaker A: Yeah. I think a big part of this is, I mean, how, how far have we gotten into this and we're going to say the words AI so, like, uh, I think AI is a big part of this. There's just the General, I think of like what is, you know, what's sponsored like AI generated content or sponsored, sponsored content kind of a deal. And I think consumers are getting more critical about that and what that means. I think that one, maybe one way that brands are kind of um, combating this. Like you have to have a little bit of trust here. But um, the rise in like ah, employee created content. We are all familiar with Staples Baddie, a wonderful example of a brand who embraced like good, you know, an employee create like employee made content. Um, and as far as I can tell like I checked her, her stuff before we, we started chatting. I'm like it doesn't look to be like they have, have altered it too much or changed it. They're just like yeah, you're doing great. Keep showing people like how we can make coasters at Staples, you know, that kind of thing. I know that Starbucks is leaning further into this. They have like um, I know they already had like two uh, like known brand ambassador creators who were doing stuff but I think they're expanding that to more folks. So again the people who, that frontline authority, the people who are like I, I'm here every day, like let me show you what, how it works or what we can do kind of a deal instead of like I'm a creator, like a craft creator and like this is sponsored by Staples today. You know, you know, maybe like you never go to Staples, just. Yes. Like, like what do you.

Speaker B: It's interesting because as I mentioned at the top, you uh, have been tracking these trends for the second half of this year, but you also do a quarterly tracker of the brands that are gaining uh, the largest change in equity among Gen Z each quarter. So you just released the 20 brands that have had the highest positive change over the last quarter. And two of the brands in the top five are, are Grok and Clawd. And it's interesting to me because it's a little bit of apples and oranges because uh, you weren't specifically tracking the exact same thing. Uh, and they're not the same time period, et cetera, et cetera. But it was interesting to me that this topic of credibility and wanting to know that the information that consumers uh, are consuming about brands and products are true versus the rise of AI bots. Even like Grok X has been through some stuff. So are you seeing any like through line here? What is the tension that I might be picking up on, on like how consumers are feeling about AI in this conversation about credibility and maybe I'm missing something.

Speaker A: Yeah, absolutely. So this one was very interesting. Shout out Harris poll. We do this quarterly, uh, through the Harris poll, which is great. So yes, this was for the second quarter for Gen Z. We also have a Millennial one that we've. So if you want to check out what's happening with, uh, nobody cares about them. Nobody cares about us millennials anymore. But if you want to check out with Millennials, because there were some AI, I believe Microsoft Copilot was on there. And I know that there was another AI brand for Millennials as well. It might have been Claude again. But for Gen Z, yes, Grok was the top one on there. They were as far as I could tell. Um, one of the reasons they were on there was for like image changing in generation. Um, which I know that some of the other AI platforms are either like, I'm not that good at this or like, you know, they're like, we don't do this. So also like that and like lip syncing, which I thought was such a funny thing to. They were like, we've improved. Like lip syncing. But again, fakes like me m making a fake of somebody speaking kind of a deal. Yes, Clawd was back on there again too. But I want to note as well for gen Z, uh, DuckDuckGo. So the privacy browser, that was also a big gainer as well. So again, there's kind of like, I will use AI, but I only want to use it like when I want to kind of video. So again, on like that credibility, like they. Gen Z is really like setting the terms on when do I want to use something. So it's not, it's not that they're. Or like, you know, who am I listening to? So it's not that they're like, I'm not going to use AI at all or like, no, no more beauty influencers. But maybe they're just getting pickier about like who is credible, where that credible information comes from and they want the ability to opt out. And this was after Google like turned on AI results is just like, that's just how it is now. And I think a lot of people were like, I didn't consent to that. That's not why. That's not what I wanted to do.

Speaker B: Yeah, yeah. And just to clarify, so the. What you're referring to is DuckDuckGo has done a big part push around choice that they do have AI results, but they have a whole campaign around. You can turn those off. Google has opted everyone in and when you Google something, you are just getting those AI results and I've even found when I use it, it kind of locks you in if you look on, click on the sourcing or something. So I think that's really interesting what you said earlier about like micro influencers rather than those like big influencers who are appealing, appealing to mass audiences. Like having that trust with that person that has that smaller community that you're locked into feels similar in that realm of choice. And consumers, maybe even these Gen Z consumers, wanting to feel like they control whether or not they like AI, like how these types of things are being fed to them.

Speaker A: Yeah, absolutely.

Speaker B: Well, let's talk about a few of the other trends that you had coming up here. One that I thought was really interesting is the rise of physical media, physical ownership of things. I myself am a lover of, uh, buying DVDs. I've got my favorites, Scream, Alien. I've got those like series on dvd. Cause you're not going to take those away from me. So I'm wondering what you've been seeing from brands digging into this or if that's a coming trend that more brands should be digging into.

Speaker A: Yeah, it's a little bit of, I'm gonna say this is something that more brands should be, be embracing. I think there are some brands that are doing this, this well and there are some who are already really pissing people off about this. Um, so the number one is if you are a gamer of any kind, you probably know. So PlayStation, uh, is going to stop making physical discs for its games. And instead when you, you can buy the like, plastic cover that it comes in and there's just, it's a code to be like, you know, you download the game and that's how you work. PlayStation is also under fire because they are removing certain, I believe, movie titles from their library. Even if people bought them, they are removing them because it's a part of a licensing deal with the movie studio that made them. So yes, there has been a bigger rise in like, I want that physical game copy, I want that cartridge to play with, or I want the physical dvd. There is. I talked to Alex Danks at Wyman Kennedy and she's like, yeah, my husband is now like, we're buying DVDs because it also, it ties back to like, the state of the economy and how expensive things are. Right? You're like, why would I pay for something and I don't have like a physical receipt of that, that thing and another company, like another entity can take that from me. Um, so that's one. People do want, like a physical receipt. Of. Of something. Um, I think maybe brands that are doing well with this are like the movie theaters. So, like, one thing that came up was the, the collectible, the popcorn buckets. And I know we've all seen all kinds of different ones. Like the weird one. I know maybe people will come for. They will correct me if I am wrong. But I feel like the big one was this started to me with the ERAS Tour movie. Remember how you could get the popcorn bucket that had like, her and it was the multicolored one. And I feel like after that we really started to see like Dune had one. I know. Like, I think the Mandalorian movie had like a grogu one. So it's those novelty popcorn buckets. And again, that's like a, like I went to a movie and I got this and like, it is a physical representation of an experience or something that you did and you have like, we like a tchotchke. We like a thing that reminds us of something. So that I think is a, uh, another part of it. Again, also going back to the. This is my last thing. I know this is a long answer, but my last thing is going back to Gen Z and wanting to be in control of how much media, both physical and non. Controls them or has an impact on them. But the rise of dumb phones. So still having that. I mean, you still need your phone, you still need a way to like, contact folks or, you know, what have you. But the rise of dumb phones is becoming like, maybe a stronger trend as well. There are like, physical phones that do like, the light phone and things like that. But I actually have seen on TikTok that there are people who, they would make demos for how to turn your iPhone into basically a dumb phone. And it was originally for people who maybe have elderly parents who are like, I don't. You don't need all the bells and whistles. Just here are like the six things that you need and they're right here. That's all you got to worry with. And like, I could see if you have a kid too, but now there are people, you know, like our age who are like, yeah, I just. I'm overwhelmed. Why do I have all these apps? I don't need this. Like, I just need my, my phone, my texts and like a camera and the Internet and like, be done. That's. That's all I need. So, yes, again, that control of like, how. How much impact does. Does media have on me? And also, yeah, who doesn't love like a physical thing that you get to have like, it's just like more fun, you know, than staring at your phone.

Speaker B: And if you're not watching on video, you've really missed like, as Erica was describing this phone, she was like mapping the. But like, we were really getting a full visual presentation. So make sure to check us out on YouTube. Um, what I love about this is there's a through line of everything you just said, which is this kind of like desire for physical interaction and experiences. And I may have written myself one story by Parker Heron about what movie theater chains were doing to market to gen Z in 2024. I wrote this story and I wrote a lot about popcorn buckets. And that, uh, dune bucket was a little bit of an interesting case study because it was popular because it looked like a sexual toy.

Speaker A: It did, but it did. And it did.

Speaker B: We did. We've seen other examples of that. The Devil wears Prada 2 just had one that looked like a little like handbag and people loved that. And when I talked to these movie theater chain cmos, they were saying like, hey, people think that movie theaters are dying because Gen Z isn't going to. That's not the truth. Gen Z is like one of our biggest patron groups because they are subscribing to our subscription services. They're wanting to go out with their friends and be in person and do these activities. It's the same thing. You mentioned the dumb phone. We're seeing this flight away from, uh, or having like screen off time with friends. It's funny, I get a lot of Instagram reels about this where I'm on my phone like in bed watching blue light flight flooding my face about like, we're gonna have uh, phone off time with friends. And I'm like, that's so true.

Speaker A: You're like, I love that for you.

Speaker B: Yeah, exactly. Uh, I wondered as well. I mean we saw a couple of brands in your tracker that I thought were doing some interesting work that might relate to this. But you tell me if I'm wrong. We saw um, Aldi doing blind boxes and that's been a huge trend with Gen Z. We saw Crocs doing like these movie tie in partnerships for Toy Story 5 where you could get these cute looking, ah, cowboy boot Crocs. Like I feel like collectibles and limited times. What was that?

Speaker A: Croots. They're called Crutes, the croc boots. Excuse me, I'm a mom. That is on their Instagram. That is not me making that up. They are like, put your croots on. Continue.

Speaker B: But do you Feel like that is like along the lines of these trends. Should we see more brands doing like limited drops and collectibles or what's kind of the takeaway here?

Speaker A: For sure. I think everybody, like movie tie ins are always fun, but also good to just do, you know, like a certain celebrity that loves your brand or like a trend that you're seeing. Those that's always fun to see. I don't think drop culture has gone anywhere. I think that has been perhaps maybe more common and more popular among other subcultures. But I think more and more the Aldi one is a great example. Like, never did I think, uh, that Aldi would do like blind box drops. But they were, they were incredibly popular. A lot of people were like, I waited to check out and like it said, I was in line and I got to the end and they were like, just kidding, it's sold out. And they, to their credit, they were like, we, okay, we heard you. We did not know this was going to be this popular. And I think they released like they uh, they updated the checkout experience and they released I think like 5,000 more boxes. And my understanding is that it was literally just like certain snacks and drinks and maybe an Aldi finds kind of like people, you know, it's a blind box. People didn't know what they were going to get, but they were like, yes, give me, give me the Aldi. The Aldi blind box. That sounds great for sure.

Speaker B: Yeah. Yeah. The last point, I wanted to tie this to one, uh, more of your trends that you wrote about that I thought were really interesting. And of course if you want to go read deeper on either the brands that have made Erica's Harris Pol tracker collaboration, or these four trends to watch for 2026, I'll have those linked in this episode's description so you can dive, uh, on in. But the other one I thought was really interesting was, uh, about Gen Z prioritizing pets in their milestone, uh, financial planning because they are looking and considering the financial viability of having families and owning houses, houses and saying, uh, I think I'll stick with my cats and dogs instead. And while the takeaway could be okay, launch a pet product, I thought really this question about like affordability and how brands are leaning into financial issues for young consumers is more interesting. I wonder what your thoughts are on that and if you've seen brands either in your tracker or elsewhere considering this or how they should be or could be considering this.

Speaker A: Yeah, first I want to back up for a second because I feel like you Know, we always talk about, I think there was a moment where we would say, like, you know, Gen Z doesn't have any money. Like, Gen Z is broke, but Gen Z has grown up. I think sometimes we forget that these amorphous generations that we talk about age. And so now, like, older Gen Z folks, like, they're out of college, they're maybe in their first job or second job, and they have disposable income and they are, you know, balancing a household budget kind of a deal. So I just want to say that, like, it isn't that Gen Z is broke, but like, you know, the rent is too damn high and like, gas prices and groceries, everything is expensive. Uh, and it's just causing them to have like, a little more scrutiny and just have like, some more selective spending on, like, what is important to me and like, what maybe gets cut. I will say that this was the, this was a trend that, like, I, when I first read it, I was like, really? This is the thing. But as a, as a dog owner myself, I definitely have spent more money on certain dog things that like, that he loves. I'm glad I got it. But it also was like, you know, it's, it's like, uh, I think if I totaled it, I would be a little shocked at how much I've spent on like, dog toys for the dog. So, like, being maybe a little bit more judicious on our spending. So it's, it's kind of the, I think Libby Rodney from the Harris poll, actually I asked, uh, her about this and she was like, it's the sense of like, austere on the self, but we're extravagant for our pets. And I think that is playing out that austerity. So again, like, that frugality. I think that there are brands who are benefiting from Gen zers who are looking Gen Z or people in general who are like, I'm looking for a deal. Like, this doesn't need to be that expensive. So in the tracker, uh, the top brand was AliExpress, who is known for like a ton of stuff and super cheap, right? Very Fun to watch. AliExpress hauls. There are people that are like, listen, read the reviews very carefully. Don't put your all your eggs in one basket and be like, this is, you know, this is my only wedding guest dress I'm buying. This is my only, like, kids, like, you know, pants for my kids that I'm buying. So, like, read the reviews. But a lot of people overall are like, this was great. So they have done well Aldi like we said, they have done very well. Discount grocery store Longhorse Steakhouse also was up there as well. And I pulled this before we talked because I wanted to make sure I had this right. So Longhorn Steakhouses, their same restaurant sales rose 9.5%, uh, according to parent company Darden Restaurants. And that was for the fiscal fourth quarter that ended in May. Like, that ended May 31st. So this is a brand that like that, again, it's not like, like this. It's affordable and people are rewarding the brands that make that possible for them.

Speaker B: Erica, so if you were to, uh, talk to a CMO right now and they said, give me a briefing, what is the one thing that I can do from the three trends that you discussed with Parker on the fabulous Ad Age Insider podcast, which would be credibility in facts, physical media ownership, or physical ownership of media and other goods, and, uh, prioritizing pets and how Gen Z are prioritizing financial spending.

Speaker A: I think the, the one, probably the most applicable one is going to be that physical, physical ownership around media. And let's even extrapolate that further. Further, right? And just say like, physical ownership and you're like, well, that's most brands, right? Like, I'm selling you clothes, shoes, beauty, whatever, a physical thing. But that's like, we know that that's not what we're talking about, right? Like, what is some tangible object that you can like, put out for consumers. That is a pot, Like a fun reminder of like an experience at your, your brand. Like, can you put like get into that drop culture idea of like, hey, like, we're like, we're opening a new store, the first like 100 people. You get like a bag. The bag charms are still having a moment. So like you get this like bag charm from us. Could it be like a birthday thing? This was something I was thinking like more stores, like, you know, there are, the beauty stores in particular are good about this. If you can come in and say like, hey, it's my birthday. So for your birthday month, I can you get like a free mini. Or maybe you get like a little set, you know, based on your point system. But like, there are plenty of other brands that could be doing this too of like, yeah, come in, it's your birthday. Like you get like a free, uh, maybe you can get like a free like kind of glass or something. You know, you get a drink and like a free glass kind of a deal. So just something that is like in that popcorn bucket theme or the Aldi, the blind box theme, I think Those are always fun. I think, too, I see smaller businesses applicable for small businesses, too. I have definitely, even at just like, local craft fairs, I have bought something and it was literally like little necklaces. And she just was like, it's a blind necklace. Pull. It says if it's a gold or silver, but, like, you don't know if it's like a, uh, charm necklace. You don't know if it was like a thicker chain. It was just like, yeah, here. Like, it's, you know, see what you get. So, like, that kind of like, fun again, interactivity results in, like, a little item. Like, there are definitely ways for brands to tap into that. Yeah.

Speaker B: A little shareable experience. Something you can remember as well. Also, like, I could go buy a popcorn bucket right now, but it wouldn't be the ERAS Tour popcorn bucket. I could go buy a croc right now. It wouldn't be the Woody, uh, Crute, did you say? Yes, exactly. So I think that what you're saying kind of that, like, how do you make your brand memorable and what the consumer is owning is really interesting. Uh, what is your biggest outstanding question as you were reporting these trends as you're looking forward to what you're seeing consumer behavior? Like, what is something that you're curious about that we can watch over the next. Uh, you know, there are five months left in 2026.

Speaker A: Maybe around, like, as we get into. I know there are marketers that are already planning, you know, the holidays, and it is crazy to me that we already are seeing back to school. I was just in a Target the other day, and there was already, like, shop for. For back to school. Had to go into a hobby lobby. They already had, like, Thanksgiving and fall decor up. So it almost. That is. I don't know if it is a trend per se, but it is interesting that brands. It almost feels like we're just, like, rushing to get through this year. Like, we're already just kind of like pulling up all of those maybe like, late Q3, Q4 things, which I, as a summer person, am sad about that. I love a summer thing. So it just may be interesting that brands are already pushing for that and maybe they see that in their data that that's what customers want, but that's not necessari. Probably my experience. I think most folks are like, yeah, I just want things to be less expensive than. Maybe less expensive and a little more fun. I think that's kind of the big, like, takeaway is how can brands be, like, a little less expensive and a little more fun and are, uh, you know, do we see these things stretch into the holidays yet to be seen. Right. Like, this will be a very interesting end of year push. Yeah.

Speaker B: As a lover of Halloween, I'm excited that there's so much enthusiasm for Halloween right now in July. However, I'm, like, a little worried about it not feeling as special because now we've had months and months of Halloween by the time October hits. My last question for you is we have talked about so many things today, and I'm sure there's some marketer out there who listened to us on 5x speed and just got the little, like, chipmunks in their ear. If they did what is something you wouldn't want them to misunderstand? What is a wrong takeaway? You wouldn't want them to have anything that you think, like, really solidified this in your mind as the truth and

Speaker A: not this a good ender question. I think perhaps, like, the biggest takeaway from all of this is, like, just because it is good for your bottom line, for your productivity, for we, you know, oh, AI is going to free this up, or, hey, we don't have to make physical CDs anymore. Or, no, we're not gonna, like, have, you know, the birthday bag charm anymore. We're just, we're trying to save money. I feel like there is often a disconnect between what is good for the bottom line and what your consumers are telling you. Um, and I would may. I think the brands that are gonna do well are the brands that, that listen to consumers and maybe don't always just go with, like, well, this is what our senior leadership team said we should do. Um, so. Sure, why not?

Speaker B: Amazing. Well, Erica, always a pleasure and a privilege to have you on the podcast. So thank you so much for joining me today.

Speaker A: Yeah, this was a fun one.

Speaker B: All right. I hope you found that conversation as thrilling as I did. If you enjoyed it, please follow adageinsider wherever you're currently listening. Now, a few more things you need to know. Adage's Business of Brands conference is right around the corner. It takes place September 15th and 16th in Chicago, featuring programming with brand decision makers from Sharkninja, United Airlines and Mars. I'll have the link to buy tickets in this episode's description. And this week on Adage's Marketer's Brief, a conversation with the head of marketing at Kayak. Listen to that on the Marketer's Brief podcast, available on your favorite podcast platform. Go deeper on any of the stories I've mentioned today by clicking the links in this episode's description. And if you enjoy Adage Insider, please subscribe on your favorite podcast platform. If you have a topic you want me to dig into with my fellow ad agers, email your ideas to aapodcast, uh, at adage. Com or DM me on LinkedIn. Thank you to my guest Erica Wheelis, and to producer Lauren Ciardio. Thank you for listening. I'm Parker Herron, and this is Adage Insider. Enjoy your day.