Table of Contents
Executive Summary
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- Parents provide the majority of teen spending money
- High unemployment and lower median household income depresses teen spending
- Young adult employment at lowest measured levels
- Teen population will remain steady in the short term and expand thereafter
- Teens saving more than spending
- Stark gender differences characterize teen spending
- Older teens more likely to spend on items away from home
- Teen consumers favor mass merchandisers for purchases
- Cash rules in teen buying, a challenge to online ordering
- The vast majority of teens plan to go to college
Insights and Opportunities
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- Get parents on board with products geared toward teens
- “Back to work” season
- Upselling in a slowly improving economy
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- Figure 1: Griffin Courier Clip for iPod Nano (6th Gen.), July 2011
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- Figure 2: AMC Theatres Coca-Cola Float, July 2011
- Hired teens may become brand ambassadors
- Digital teens demand instant connection
- Westfield offers mobile app
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- Figure 3: Westfield smartphone app, screenshot, July 2011
- Sponsorship opportunities for high school events
Inspire Insights
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- Trend: Prepare for the Worst
Teen Demographic Trends
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- Key points
- Teen population growth relatively stagnant
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- Figure 4: Population, by age, 2006-16
- Whites make up majority of teens, Hispanic teen population rapidly growing
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- Figure 5: Population, by race/ethnicity, ages 12-17 only, 2006-16
Teen Spending Drivers
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- Key points
- High parental unemployment likely depresses teen spending
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- Figure 6: Unemployment, January 2007-July 2011
- Figure 7: Families with an unemployed member, 2000-10
- Median household income continues to decline
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- Figure 8: Median household income in inflation-adjusted dollars, 1999-2009
- Highest income earners produce lowest number of teens
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- Figure 9: Median household income by race and Hispanic origin of householder, 2009
- Young adult employment rate at lowest measured levels
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- Figure 10: Employment population-ratio, 16-24 year olds, July 2000-10, not seasonally adjusted
- Figure 11: Employment population-ratio, 16-24 year olds, by gender and race/ethnicity, 2007-10, not seasonally adjusted
- Not only are fewer teens working, but fewer teens are looking for work
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- Figure 12: Labor force participation rate, 16-24 year olds, by gender and race/ethnicity, 2007-10, not seasonally adjusted
- Educational interest takes priority over summer jobs
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- Figure 13: Employment-population ratio and proportion enrolled in school, 16-19 year olds, summer 1989 to summer 2009
Teen Marketing Challenges
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- Key point
- Regulating food advertising to teens
- Other regulatory measures being considered
Spending Impact of the Teen Consumer
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- Key points
- Teen allowance levels back to pre-recession totals
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- Figure 14: Total amount received annually by 12-17 year olds who get allowance/money for chores, 2006-10
- Parents continue to give, give, give
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- Figure 15: Weekly allowance or spending money received and average amount, January 2006-December 2010
- Fewer working teens earning far less in 2010 compared with pre-recession earnings
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- Figure 16: Weekly earnings and average amount from working full- or part-time, January 2006-December 2010
- Sidebar: Teen spenders remain stalwart during the recession
- Families with children spend more on food, education, clothing, insurance
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- Figure 17: Average annual expenditures and characteristics, by consumer units with/without children, 2009
Innovations and Innovators
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- Integrating music and shopping with “Shop Till You Rock”
- American Express introduces prepaid card linked to the bank of mom and dad
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- Figure 18: American Express PASS Card, July 2011
Marketing Strategies
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- Overview of select brands with a teen audience
- Brand analysis: Apple
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- Figure 19: Brand analysis of Apple
- Apple online
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- Figure 20: Apple, Website, July 2011
- Figure 21: Apple, Website, July 2011
- Apple TV ads
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- Figure 22: Apple iPad TV ad, 2010
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- Figure 23: Apple iPod Nano TV ad, 2010
- Brand analysis: Coca-Cola
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- Figure 24: Brand analysis of Coca-Cola
- Figure 25: Coca-Cola, Website, August 2011
- Figure 26: Coca-Cola, Website, July 2011
- Brand analysis: McDonald’s
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- Figure 27: Brand analysis of McDonald’s
- McDonald’s online
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- Figure 28: McDonald’s, Facebook, August 2011
- McDonald’s TV ads
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- Figure 29: McDonald’s TV ad, 2011
- Brand analysis: JCPenney
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- Figure 30: Brand analysis of JCPenney
- JCPenney online
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- Figure 31: JCPenney Teen, homepage, 2011
- Figure 32: JCPenney Facebook page, July 2011
- Brand analysis: Payless ShoeSource
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- Figure 33: Brand analysis of Payless/Brash
- Figure 34: Brash, screenshot, 2011
Teens’ Primary Source of Spending Money
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- Key points
- Parents provide the majority of teen spending money
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- Figure 35: Primary source of spending money, May 2011
- Less than one in five teens’ spending money comes from working
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- Figure 36: Primary source of spending money, by gender, May 2011
- Targeting younger teens
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- Figure 37: Primary source of spending money, by age, May 2011
- Parents enable younger teens’ spending more than they do older teens
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- Figure 38: Primary source of spending money, by gender and age, May 2011
- Sidebar: Keep families invested in teen spending
Money Spent and Received Per Week
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- Key points
- Teens not spending nearly as much as they’re making
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- Figure 39: Average amount of money spent and received each week, by gender, May 2011
- Higher income among older teens makes them targets for big ticket items
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- Figure 40: Average amount of money spent and received each week, by age, May 2011
- Young teen low-income earners are targets for small-dollar items
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- Figure 41: Average amount of money spent and received each week, by gender and age, May 2011
Top Ways Teens Spend Money
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- Key points
- Stark gender differences characterize teen spending
- Teen boys choose video games, movies, and savings for their spending money
- Teen girls choose fashion, makeup, movies, and savings
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- Figure 42: Top ways to spend money, by gender, May 2011
- Younger teens more likely to spend on items they can enjoy from home
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- Figure 43: Top ways to spend money, by age, May 2011
- Older males most likely funding movies and restaurants
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- Figure 44: Top ways to spend money, by gender and age, May 2011
- Sidebar: Teens, small electronics, and bigger-ticket items
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- Figure 45: Percentage of teens who own the following items, Feb. 21, 2011-March 14, 2011
Food and Snack Purchase Frequency
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- Key points
- Low cost and convenience key among teen food/snack consumers
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- Figure 46: Purchase frequency of food/snacks by location, May 2011
- Male teens prefer food on the go, while female teens will sit a little
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- Figure 47: Location for food/snack purchases at least once a month, by gender, May 2011
- Older teens purchase food/snacks more often at fast-food restaurants
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- Figure 48: Location for food/snack purchases at least once a month, by age, May 2011
- Older male teens core convenience consumer
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- Figure 49: Location for food/snack purchases at least once a month, by gender and age, May 2011
- Sidebar: Keeping an eye on nutrition
Teen Shopping Venues and Attitudes Toward Fashion
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- Key points
- Teen consumers favor mass merchandisers for purchases
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- Figure 50: Teens’ top retail stores where purchases made in the last four weeks, by age and gender, October 2009-December 2010
- The importance of style
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- Figure 51: Teens’ attitudes toward clothing and fashion, by age and gender, October 2009-December 2010
- Sidebar: Teen mall shoppers notice in-mall advertising
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- Figure 52: Teen mall shoppers’ mall advertising awareness*, 2009
Teens’ Primary Purchase Payment Method
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- Key points
- Cash rules in teen buying
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- Figure 53: Primary purchase payment method, by gender, May 2011
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- Figure 54: Primary purchase payment method, by age, May 2011
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- Figure 55: Primary purchase payment method, by gender and age, May 2011
Teens and Online Shopping
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- Key points
- Online ordering among teen consumers grows
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- Figure 56: Placed an online order in the last 12 months, items ordered and average amount spent, January 2006-December 2010
- Teen spending habits differ by gender
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- Figure 57: Placed an online order in the last 12 months, items ordered and average amount spent, by gender, October 2009-December 2010
- More older teens shop online, spend more than younger teens
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- Figure 58: Placed an online order in the last 12 months, items ordered and average amount spent, by age, October 2009-December 2010
- Sidebar: Growing online sales among teen audience
Teens’ Summer Plans
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- Key points
- School’s in for summer
- Summer travel means opportunities for marketing travel merchandise
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- Figure 59: Summer plans, by gender, May 2011
- Summer as a time of independence
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- Figure 60: Summer plans, by age, May 2011
- Older male teens do what they want, older female teens go to work
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- Figure 61: Summer plans, by gender and age, May 2011
Teens’ College Plans and Funding
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- Key points
- The vast majority of teens plan to go to college
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- Figure 62: College plans, by key demographics, May 2011
- After dipping with recession, teens’ plans for college on the rise
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- Figure 63: College plans, by gender, 2006, 2008 and 2011
- Education on someone else’s dime?
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- Figure 64: College funding plans, by gender, May 2011
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- Figure 65: College funding plans, by age, May 2011
- Figure 66: College funding plans, by gender and age, May 2011
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- Figure 67: Advertisement featuring scholarship opportunity, July 2011
- Minority respondents less likely to expect someone else to foot the bill
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- Figure 68: Funding college, by race/Hispanic origin, May 2011
- Sidebar: The question of college
Teen Financial Attitudes
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- Key points
- Teens get what they want, but still want more
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- Figure 69: Attitudes toward finances, by gender, May 2011
- Older teens are keen on saving
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- Figure 70: Attitudes toward finances, by age, May 2011
- Older female teens are most interested in saving
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- Figure 71: Attitudes toward finances, by gender and age, May 2011
- Teen interest in saving grows through recession…
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- Figure 72: Attitudes toward money and savings, January 2006-December 2010
- …as does negative perception of credit cards
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- Figure 73: Attitudes toward credit cards and debt, January 2006-December 2010
- Teens from high-income families are the least comfortable with debt
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- Figure 74: Attitudes toward credit cards and debt, by gender/age and household income, October 2009-December 2010
Impact of Race and Hispanic Origin
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- Key points
- Hispanic teens more likely to get allowance, less likely to get gifts
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- Figure 75: Primary source of spending money, by race/Hispanic origin, May 2011
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- Figure 76: Average amount of money spent and received each week, by race/Hispanic origin, May 2011
- Hispanic teens allocate more spending money to movies and fashion
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- Figure 77: Top ways to spend money, by race/Hispanic origin, May 2011
- Hispanic teens more likely to frequent all food venues
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- Figure 78: Purchase food/snacks location at least once a month, by race/Hispanic origin, May 2011
- For Hispanic teens, cash is king
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- Figure 79: Primary purchase payment method, by race/Hispanic origin, May 2011
- Hispanic teens hit the books during the summer months
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- Figure 80: Summer plans, by race/Hispanic origin, May 2011
- Addressing Hispanic teens with the message of independence
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- Figure 81: Attitudes toward finances, by race/Hispanic origin, May 2011
- Debt feared most by those least familiar with it
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- Figure 82: Attitudes toward credit cards and debt, by race/Hispanic origin, October 2009-December 2010
- Sidebar: Marketing to Hispanic teens
Cluster Analysis
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- Spending Allowed
- Characteristics
- Opportunity
- Earning Savers
- Characteristics
- Opportunity
- Lower Budgets
- Characteristics
- Opportunity
- Characteristics
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- Figure 83: Teen consumer clusters, May 2011
- Figure 84: Primary source of spending money, by teen consumer clusters, May 2011
- Figure 85: Average amount of money spent and received each week, by teen consumer clusters, May 2011
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- Figure 86: Primary purchase payment method, by teen consumer clusters, May 2011
- Figure 87: Summer plans, by teen consumer clusters, May 2011
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- Figure 88: Attitudes toward finances, by teen consumer clusters, May 2011
- Demographics
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- Figure 89: Teen consumer clusters, by gender, May 2011
- Figure 90: Teen consumer clusters, by age, May 2011
- Figure 91: Teen consumer clusters, by gender and age, May 2011
- Figure 92: Teen consumer clusters, by Hispanic origin, May 2011
- Cluster methodology
Appendix—Trade Associations
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