Table of Contents
Executive Summary
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- A parent’s bank card is the primary method of spending
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- Figure 1: Methods of spending money online, September 2015
- Pay-as-you-go remains preferred payment method
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- Figure 2: Smartphone payment method, September 2015
- Being unaware is parents’ greatest concern
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- Figure 3: Biggest concerns regarding child’s online spending, top-5. September 2015
- Children are choosing to save
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- Figure 4: Online spending behaviour, September 2015
- Online games influential in encouraging spending
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- Figure 5: Encouragements to buy, September 2015
- What we think
Issues and Insights
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- Alleviating parental concerns
- The facts
- The implications
- Helping children understand spending online
- The facts
- The implications
The Market – What You Need to Know
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- Children have access to a range of devices
- Facebook facing class-action lawsuit over unauthorised spending
- Advertising Standards Authority challenges gaming advertising
- Google and Apple respond to the European Commissioner on in-app purchases
- Controversy over YouTube Kids advertising
Market Drivers
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- Children have access to a range of devices
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- Figure 6: Technology used at home, March 2015
- Facebook facing class-action lawsuit over unauthorised spending
- Advertising Standards Authority rules for changes on online games
- Controversy over YouTube Kids advertising
- Google and Apple respond to the European Commissioner on in-app purchases
Key Players – What You Need to Know
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- PennyOwl pocket money app launched
- Buy-buttons rolled out across social media
- Financial literacy taught in schools for the first time
- Disney introduces video streaming service
- Nationwide launches a current account for children
- Amazon adds allowance feature
Launch Activity and Innovation
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- PennyOwl pocket money app launched
- Buy-buttons rolled out across social media
- Financial literacy taught in schools for the first time
- Nationwide launches current account for children
- Disney introduces video streaming service
- Amazon adds allowance feature
The Consumer – What You Need to Know
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- Parents’ bank cards are primary method of spending
- Most children have a smartphone
- Pay-as-you-go remains preferred payment method
- Spending is kept low
- Being unaware is parents’ greatest concern
- Clothes most popular item bought online
- Laptop still main device for purchasing
- Children are saving
- Online games influential in encouraging spending
Methods of Spending
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- Parents’ bank cards are primary method of spending
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- Figure 7: Methods of spending money online, September 2015
- Older children are given their own bank card
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- Figure 8: Methods of spending money online, by age, September 2015
Mobile Phone
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- Most children have a smartphone
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- Figure 9: Children’s mobile ownership, September 2015
- Pay-as-you-go remains preferred payment method
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- Figure 10: Smartphone payment method, September 2015
- Phone spending is kept low
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- Figure 11: Monthly spend on child’s smartphone, September 2015
Monthly Spending Amount
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- Nearly half spend less than £10 a month
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- Figure 12: Amount spent online by children, September 2015
Parental Concerns
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- Being unaware is parents’ greatest concern
- Parents worry about boys’ high gaming spend
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- Figure 13: Biggest concerns (ranked anywhere in parents’ top five) regarding child’s online spending, September 2015
- Figure 14: Parents’ biggest concerns, September 2015
Items Bought
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- Clothes most popular item bought online
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- Figure 15: Items bought online, September 2015
- Younger children more likely to buy apps
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- Figure 16: Items bought online, by age, September 2015
- Girls are buying clothes, boys are buying video games
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- Figure 17: Items bought online, by gender, September 2015
Devices Used
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- Laptops still the main device for purchasing
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- Figure 18: Devices used to purchase online, September 2015
Online Spending Behaviour
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- Children are willing to save
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- Figure 19: Online spending behaviour, September 2015
- Children are purchasing via social media
- Children using online services are spending accidentally
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- Figure 20: Spending online without realising it, by spending method, September 2015
Encouragements to Buy
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- Online games influential in encouraging spending
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- Figure 21: Encouragements to buy, September 2015
- Boys more influenced by online advertising
- Online advertisers must show caution despite influence
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- Figure 22: Encouragements to buy, by gender, September 2015
Appendix
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- Data sources
- Abbreviations
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