Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Spending data
- Consumer survey data
- Abbreviations and terms
- Terms
Executive Summary
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- Changing composition of U.S. teens
- Parents a major source of teen spending money
- More evidence of a slowdown in spending
- Leisure spending reserved for mostly lifestyle items, entertainment
- Teen spending affects mainstream trends
- Teens are enamored with electronics
- Teens are engaged in non-traditional digital media
Insights and Opportunities
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- Market products designed for “green” teens
- Green is the right thing to do
- Green is the new black
- Create a viable third zone designed exclusively for teens
- Current teen hangouts aren’t cutting it
- A place of their own
- Use social networks to interact intimately with teens
- MySpace and Facebook are forces to be reckoned with
Fast Forward Trends
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- User Generated Content
- What's it about?
- What we've seen
- Specifics
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- Figure 1: Internet sites/retailers teens likely to visit/buy from, February 2008
- Implications
Market Background
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- Key points
- Number of teens declining
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- Figure 2: Population, by age, 2002-12
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- Figure 3: Households with children under age 18 present, 2001-06
- Teens become more racially and ethnically diverse
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- Figure 4: Population, by race/ethnicity, age 12-17 only, 2003-13
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- Figure 5: Population, by race and Hispanic origin, 2003-13
- Figure 6: Median household income, by race of householder, 2002-06
- Fewer jobs mean less money
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- Figure 7: Trends in summer employment rates of teens, 2000-06
- College plans impact spending habits for some
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- Figure 8: Whether teens plan to go to college, by gender, 2006 and 2008
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- Figure 9: How teens plan to pay for college, 2006 and 2008
Teens, Money and Income
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- Key points
- Teen spending expected to decline through 2012
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- Figure 10: Total U.S. teen spending at current prices, 2002-12
- Figure 11: Total U.S. teen spending at inflation-adjusted 2007 prices, 2002-12
- More than half of teens receive allowance, but jobs pay much better
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- Figure 12: Teens’ sources of spending money, by gender and age, May 2006-June 2007
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- Figure 13: Weekly amount for allowance/doing chores, by gender and age, May 2006-June 2007
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- Figure 14: Weekly salary before taxes, by gender and age, May 2006-June 2007
Teens and Banking
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- Key points
- Savings accounts the most popular financial instrument among teens
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- Figure 15: Teen ownership of financial instruments, summary, February 2008
- Younger girls are strong savers
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- Figure 16: Teens’ saving account balances, by gender and age, February 2008
- Teens are realistic about credit and debt
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- Figure 17: Teens’ attitudes towards debt and credit cards, by gender and age, May 2006-June 2007
- Financial institutions make it easier for teens to spend
What Teens Spend Money On
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- Key points
- Clothing and music top the list
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- Figure 18: How teens spend allowance money, 2005 and 2007
- Clothing makes the teen
- Teens like coffee, too
- Leisure reading on the decline
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- Figure 19: Percentage of teenagers who read almost every day for fun, November 2007
- Teens and music
- Teens are dictating music industry’s next steps
- Teens want their music, but they don’t necessarily want to pay for it
- Growth of downloads outpacing CD sales
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- Figure 20: Forms of music bought in last 12 months, 2005 and 2007
- Teens want to choose their music à la carte
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- Figure 21: Number of music downloads bought in last 12 months, 2005 and 2007
- Industry must find a middle ground to address file sharing
- What does this mean for the music industry?
- Teens respond to vinyl records
Teen Shopping Trends
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- Key points
- Incidence of spending on selected categories
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- Figure 22: Incidence of spending on selected categories in last 12 months, by gender and age, February 2008
- Clothing the most common source of spending for teen girls
- Fast food the most common purchase for boys
- Over a third of teens have paid for their mobile phone or phone bill
- Likelihood of buying from selected clothing brands/retailers
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- Figure 23: Clothing brands/retailers teens likely to buy from, by gender and age, February 2008
- Siblings Old Navy and Gap looking to sharpen image
- Teen boys favor Levi’s and Old Navy
- Pink capitalizes on the popularity of loungewear as outerwear
- Teen girls favor specialty stores across a range of price points
- Likelihood of shopping selected shoe brands/retailers
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- Figure 24: Shoe brands/retailers teens likely to buy from, by gender and age, February 2008
- Six out of ten teens are likely to buy Nike
- Adidas and Reebok team up
- Teens appreciate saving money on shoes
- Likelihood of shopping selected personal care retailers
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- Figure 25: Personal care retailers teens likely to buy from, by gender and age, February 2008
- Specialty retailers resonate with teen girls
- Walgreens tops the list of retailers favored by teen boys
- Likelihood of shopping selected discount retailers
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- Figure 26: Discount retailers teens likely to buy from, by gender and age, February 2008
- Teens value the savings and one-stop shopping appeal of Wal-Mart and Target
- Teen girls are more likely to favor a wider variety of retailers
Leisure Time Spending Occasions
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- Key points
- Fast food
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- Figure 27: Fast food outlets teens likely to buy from, by gender and age, February 2008
- At least eight out of ten teens are likely to buy from McDonald’s
- Teens aren’t all about burgers
- Dunkin’ Donuts might be able to capitalize on popularity of coffee drinks among more price-sensitive teens
- Obesity concerns may affect future teen behavior
- Movies
- Teens are most frequent moviegoers
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- Figure 28: Frequent (at least once per month) moviegoers by age group, 2002-06
- Movies catering to a younger audience report strongest sales
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- Figure 29: Top 10 grossing films, by domestic box office and rating, 2007
- Online shopping
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- Figure 30: Internet sites/retailers teens likely to visit/buy from, by gender and age, February 2008
- Most likely Internet destinations are not retailer sites
- More than half of teens are likely to buy from iTunes site
Teens and Electronics
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- Key points
- Teen ownership of selected electronics
- Out with the old, in with the newest technology
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- Figure 31: Teen ownership of selected electronics, 2002-07
- Teen ownership of portable MP3 players
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- Figure 32: Teen ownership of MP3 players, by race/ethnicity, May 2006-June 2007
- Stark differences in MP3 player ownership by race/ethnicity
- Teens might not be buying MP3 players for themselves, but they are willing to
- Popularity of iPod benefits market as a whole
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- Figure 33: Brand of MP3/digital media player owned, May 2006-June 2007
- MP3 players in schools
- Teen ownership of mobile phones
- Keeping in touch is essential
- Mobile phone ownership on the rise among teens of all races/ethnicities
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- Figure 34: Incidence of teens owning mobile phones, by race/ethnicity, 2002, 2005 and 2007
- Teens likely on family plans
- Smartphones for teens new trend
- Mobile phones crowding out ownership of digital phones among teens
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- Figure 35: Digital camera sales, 2003-08
- Teen ownership of video game consoles
- Video games moving beyond the teen realm
Media and Advertising
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- Key point
- Introduction
- Television ads need an edge to catch teens’ attention
- Boost Mobile
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- Figure 36: Boost Mobile television ad, 2008
- FiveStar Flex Binder
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- Figure 37: Five Star Flex Binder television ad, 2008
- Fly Fusion Pentop Computer
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- Figure 38: Fly Fusion Pentop Computer television ad, 2008
- Helio Ocean
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- Figure 39: Helio Ocean television ad, 2008
- Nike 6.0 Sports Shoes
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- Figure 40: Nike 6.0 Sports Shoes television ad, 2008
- Panasonic, Ecko Unlimited, and Vans
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- Figure 41: Panasonic Digital Camera television ad, 2008
- Figure 42: Ecko Unlimited Footwear television ad, 2008
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- Figure 43: Vans Sports Shoes television ad, 2008
Social Networks
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- Key points
- Social networks are integral to teen life
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- Figure 44: U.S. Online social network advertising spending, by type of network, 2007-08, May 2007
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- Figure 45: U.S. Online social network advertising spending, 2006-11, March 2008
- Popularity of social networks spawns new advertising techniques
- Widgets
- Recruiting brand advocates
- Profile branding
- Online video integrates advertiser messages in new ways
- Sponsored video
- Branded video
Teen Spending—by Key Consumer Clusters
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- Methodology
- Key points
- Miss Big Spender
- Average male spender
- Junior low spenders
- Cluster distribution and demographics
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- Figure 46: Teen spending clusters, February 2008
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- Figure 47: Teen spending clusters, by gender, February 2008
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- Figure 48: Teen spending clusters, by age, February 2008
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- Figure 49: Teen spending clusters, by gender and age, February 2008
- Methodology
Appendix: Other Useful Consumer Tables
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- Respondent profile
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- Figure 50: Demographic profile of teens surveyed, February 2008
- Household demographics of teen respondents
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- Figure 51: Demographics of households with teens aged 12-17, May 2006-June 2007
- Trended data
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- Figure 52: Discount retailers teens likely to buy from, 2006 and 2008
Appendix: Trade Associations
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