By M. Marin
NASDAQ:TBH
READ THE FULL TBH RESEARCH REPORT
Target Gen Z Market Characterized by Robust Spending Capacity
Brag House Holdings (NASDAQ:TBH) is a media-tech platform operating at what the company calls ‘the intersection of college sports, gaming, and social interaction,’ providing a digital medium for Gen Z casual gamers to interact with games, one another, and brands in ways that TBH notes feel authentic.
Reflecting substantial current and expected future spending capacity, Gen Z is an important target demographic for marketers. By 2030, Gen Z, with Millennials, are expected to comprise 74% of the workforce, according to Deloitte. The Economist notes that Gen Z overall represents higher income and potential spending than baby boomers and millennials at a similar stage. Specifically, a typical 25-year-old Gen Z-er controls an annual household income of more than $40,000, which represents a higher inflation-adjusted level compared to baby boomers at the same age. Bloomberg notes that people born between 1997 and 2012 hold an estimated $360 billion in disposable income. The Brag House believes it is well-positioned to tap into this purchasing power.
Expectation that platform & insights can help brands optimize outreach to key Gen Z demographic
The Brag House model is designed to enable brands to connect to Gen Z casual gamers via multiple channels, as many brands seek new avenues to optimize their marketing to Gen Z-ers. The company believes its target audience — Gen Z casual gamers — is largely underserved by traditional marketing strategies and represents a sizable niche within a broader $6.7 billion Total Addressable Market (TAM).
Moreover, gaming is an important channel to leverage to reach Gen Z. According to eMarketer, by 2027, nearly 75% of Gen Z’ers will be digital gamers. Research suggests that Gen Z values gaming for both the friendly competition, as well as the social experience, which Brag House believes aligns with its focus on gaming driven by school spirit and camaraderie. This is consistent with Deloitte research that suggests that “Gen Z consumers have gone all in on gaming, and not just for the entertainment value. Many Gen Z gamers also see this activity as a way to make connections and express themselves.”
Growth strategy; Planned revenue streams
The company expects to generate revenue from multiple sources, including tournament fees and advertising and marketing fees and data insights and analytics, and NIL (Name, Image, and Likeness) opportunities, among others. Based on user behaviors on its platform, TBH expects to build a database on Gen Z that can provide brands with insights that enable them to better understand Gen Z preferences and thereby customize offerings and marketing strategies. Conducting targeted marketing campaigns based on data analytics and insights is, in turn, expected to lower customer acquisition costs.
The many factors that distinguish Gen Z – they are digital natives who endured the pandemic during an impressionable period of their lives and their spending habits differ from those of earlier generations — are expected to boost the appeal of insights and analytics that improve marketers’ ability to understand Gen Z and optimize marketing spend and outreach.
Learfield partnership could prove transformative
With a presence at more than 50 universities across the U.S., TBH intends to further develop its network and is optimistic about its partnership with Learfield, a leading media and technology company in collegiate athletics that is expected to provide TBH access to media rights across nearly 200 mostly NCAA Division schools.
The May 2025 initial activation under the Learfield partnership led to 300 participants registering for the company’s event and potentially to new sponsorship deals. Brag House intends to hold additional events at other universities throughout 2025.
SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR.
DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives quarterly payments totaling a maximum fee of up to $40,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE.