Amex’s Focus on Younger Generations

American Express (Amex) is continuing its targeted marketing strategy focused on millennials and Gen Z, recognizing their potential as long-term customers. Speaking at the Goldman Sachs U.S. Financial Services Conference in New York, CEO Stephen Squeri reaffirmed the company’s commitment to younger generations, a strategy that has been central to its operations since last year.

“They don’t spend as much right now as a Gen Xer or a [baby] boomer, and they don’t borrow as much, but we believe they’ll have 20 more years of relationship with us,” Squeri stated, emphasizing the long-term value Amex sees in cultivating relationships with these younger consumers.

While millennials (born 1981-1996) and Gen Z (born 1997-2012) currently spend less than older generations, Amex is betting that their lifetime value will outweigh the initial lower spending levels. This calculated risk appears to be paying off: spending by Gen Z and millennials on Amex cards increased by 12% in Q3 2024 compared to the previous year, significantly outpacing the 4% growth from Gen X and flat spending among baby boomers.

Amex plans to allocate approximately $6 billion to marketing in 2025, slightly down from its $6.8 billion budget in 2024. By directing more of its resources toward younger generations, the company is achieving greater returns on its marketing investment.

Squeri also touched on the importance of economic and regulatory stability under the incoming Trump administration, expressing a preference for maintaining the current tax environment to support steady growth.

Amex’s focused approach demonstrates its confidence in the spending power and loyalty of younger generations, aiming to secure a robust customer base for decades to come.