Why Market to College Students?
College students represent a large and growing market of affluent buyers that practice high discretionary spending. They are away from their parents and are very receptive to new brands. When brands recognize the value of gaining the loyalty of students while they are in college, they will have life-long customers.
College students shopping at a local retail store.
Large & Growing Market
Today, there are more than 20 million college students in the United States. High school graduates are reportedly going to peak in 2025 with nearly 4 million students graduating. Since 69% of them enroll in college every year, the college student population is constantly increasing.
[Source: Western Interstate Commission for Higher Education, Knocking at the College Door, 10th edition, 2020]
Spending Power
College students control a massive $593 billion dollars in spending power each year of which $131 billion is on discretionary purchases. Where does all that money come from? Simply put, they work, a lot. 70-80% of college students work full- or part-time and 40% are actually working full-time while finishing their studies. Although one of their largest expenses is on their education and materials, they on average, spend $53,000 on personal expenses throughout their 4-year attendance. So, with all this spending power, where do they actually spend their money? According to admissionsly.com, college students spend:
$4,000/year is spent on eating out or take-out
$7,000/year is spent on clothing and accessories
Entertainment like video games, music and movies account for $2.4 billion dollars cumulatively each year
Great Demographics
Most college students are from middle-class or higher families and will likely have more disposable income. As reported by OppU, college students who were provided recreational money from their parents primarily used the money on eating out, clothes and drinks/snacks. The full breakdown is in the chart below.
College students spending money from their parents is primarily used to eat out and buy clothing.
Generation Z Sentiments
Gen Zers (anyone born from 1997 onward) are the first generation who have grown up with access to the internet and portable digital technologies from a young age. Growing up in today’s ‘always on’ digital-first environment, it’s no wonder that they prefer shopping in-store.
81% of Gen Z said they still like shopping in-store [Kearney]
50% say they’re looking for locally sourced products [Kearney]
82% trust their friends and family about brands and product advice, while only 52% believe influencers on social media [mckinsey.com]
College students drinking coffee and doing homework in a cafe.
Early Brand Loyalty
Brands that reach college students early have a competitive advantage over brands that wait until after graduation. College students 17-24 are taking a significant first step into the adult world and are developing their independence. They haven’t formed many strong brand loyalties yet and are still impressionable and open-minded. This gives brands 4-5 years to develop a strong relationship with college students and in return, gain lifelong customers. Gen Z is estimated to make up 30% of the U.S. workforce by 2030, so brands that gain their trust and loyalty now will have the upper hand. [Pew Research]▲
Start connecting with college students through dorm elevator door advertising.
Dorm Advertising offers ad placements exclusively in college dorm rooms in Wisconsin. Connecting Brands and College Students since 2020.