College Students Tote $122 Billion in Spending Power Back to
Campus This Year
360 Youth College Explorer reveals new data on students’
(ages 18-24) sources and uses of income
ROCHESTER, N.Y. – August 18, 2004 – Notice a lilt in the gait of
college students as they begin the familiar migration back to campus this month?
It could be the weighty $122 billion in spending power they’re carrying in
their wallets, including $24 billion in discretionary spending. The 360 Youth
College Explorer Study released today paints the picture of college
students—aged 18 to 24 years, from two-year and four-year colleges and who
attend part- or full-time—as financially empowered, rife with the high-tech
trappings of modern campus life and commanding nearly $13,000 of annual per
capita spending.
The study sheds light on detailed financial habits and reveals that college
students are putting in hours on the job (75% of students work) as well as in
the classroom. Overall, the data point to college students as savvy, capable and
influential consumers, balancing the rising cost of tuition with a hardy work
ethic, spending a fair portion of their considerable discretionary income on
high-end technology, and holding considerable sway over the purchasing decisions
of their peers.
The Jet(sons) Set
360 Youth College Explorer findings place students at the vanguard of
digital consumer technology, as fully one in eight (13%) consider themselves an
early adopter of emerging devices and gadgets.
In addition to the basics – the majority of college students (90%) own a
computer, and two-thirds (65%) of those students have broadband connection;
among students, 62% own a stereo, a cell phone (77%), a printer (77%), a
television (84%) and a calculator (86%)—they rely on an abundance of gadgets
to access information, communicate with friends, and keep themselves
entertained. Three-quarters of students (74%) own a DVD player and just over
half (55%) own a gaming system. More than six in ten 18 to 24 year old college
students use their cell phone for text messaging (62%) and playing games (70%),
and 41% of students with cell phones can access the Internet through their
mobile phone.
"College students have an insatiable appetite for information, and so
are eager to get the best devices that give them the most efficient
access," says Derek White, EVP Alloy and GM Media and Marketing Companies.
"The use of technology can create real efficiencies in their social and
academic lives, and for today's college students, technology is not so much a
luxury, but a necessity that's become seamlessly integrated into their everyday
environment."
In fact, the trend toward digital devices will continue: this year 20% plan
to buy a digital camera, 18% will buy a new cell phone, 12% a new computer, and
10% an MP3 player.
Come On—Entertain Us
With the gadgets come the content, and that costs too. College students seek
out entertainment, spending nearly $3 billion annually on movies, DVDs, music,
and video game purchases and rentals. They ring up music sales to the tune of
$474 million, they view theater tickets as worthy of $658 million, and they
spend $341 million for games. At home and in their dorms they’re watching
movies, spending $600 million to buy and another $326 million to rent DVD’s.
The appetite for in-theater movie viewing is especially high; a college
student goes to more than ten movies per year. On average, a college student
spends $70 annually on movie tickets compared to $321 for the general
population including children.
"If you’re going to reach college students, theaters are one place you
have to be", said White.
They Work Hard for the Money
So where’s the money coming from? In a word, work. Three quarters (75%) of
students maintain jobs, earning $645 per month on average. A fifth (20%) have
secured an on-campus job and four in ten (42%) are spending school breaks
working. Mom and Dad kick in too, contributing another $154 to a student’s
monthly income. All told, a student spends more than $13,000 per year, 19% of
which is discretionary. That adds up to a substantial $211 per month of
discretionary spending.
What we see from the study is that, contrary to common perception – maybe
even their own perception – college students are not poor", said John
Geraci, VP for Youth and Education Research, Harris Interactive. "They have
considerable discretionary income, and are already paving their way toward
financial responsibility and independence. College students today are
smart, value-conscious consumers, heavily weighing cost and quality in their
purchasing decisions." Geraci adds, "College students are not only a
capable bunch, but important beyond their numbers."
Calculation based on figure provided in "Hollywood suffers first
down in over decade", Reuters, January 5, 2004.
Psst…Pass It On
College students listen to friends when purchasing movies (78%) and video and
computer games (58%).
As White points out, "You’re talking about highly intelligent,
financially empowered consumers who are preparing launch into the marketplace
with well-paying jobs and long careers. Marketers who can successfully reach
these young adults with a quality product, positive message, and clear value
proposition, may enjoy decades of loyal purchasing and millions of dollars worth
of free, word-of-mouth marketing."
Methodology
The 360 Youth College Explorer Study, fielded online by Harris Interactive
during the Fall 2003 semester, polled 4,608 college students aged 18 to 30
years, including 3,451 18 to 24 year olds. In addition to automobile spending
behavior, topic areas include Sources of Income, Internet and Downloading
Behavior, and spending on Dining and Entertainment. Spending on other categories
such as Vacation/Travel, Personal Care Products, Over the Counter Medication,
and Financial Services was also examined. Figures for age, sex, race/ethnicity,
region, school status (full-time, part-time, 4-yr., 2-yr.) were weighted to
bring them into line with their overall proportions in the population. In theory
with probability samples of this size, one could say with 95% certainty that the
results have a sampling error or plus or minus (1 percentage point for the
overall sample of college students aged 18-30, and 2 percentage points for the
college students aged 18-24). This online sample was not a probability sample.
About 360 Youth
360 Youth is the media and marketing arm of Alloy, Inc. (NASDAQ:ALOY). As
part of Alloy’s Media & Marketing Division, 360 Youth integrates the
assets and experience of the largest and strongest college and teen marketing
companies including CASS Communications, Alloy, Y-Access, Market Place Media
(All Campus Media & Armed Forces Communications), YouthStream and others to
provide sales and marketing solutions targeting young adults. 360 Youth enables
Fortune 500 companies to reach more than 25 million Generation Y consumers each
month through a comprehensive mix of media and proprietary school based programs
using a wide range of media assets. For more information on 360 Youth, an Alloy
Inc. company, please visit www.360youth.com.
For more information on Alloy, Inc., please visit www.alloyinc.com
About Harris Interactive®
Harris Interactive (www.harrisinteractive.com) is a worldwide market
research and consulting firm best known for The Harris Poll®,
and for pioneering the Internet method to conduct scientifically accurate
market research. Headquartered in Rochester, New York, Harris Interactive
combines proprietary methodologies and technology with expertise in predictive,
custom and strategic research. The Company conducts international research from
its U.S. offices and through wholly owned subsidiaries—London-based HI
Europe (www.hieurope.com), Paris-based Novatris and Tokyo-based Harris
Interactive Japan—as well as through the Harris Interactive Global Network
of independent market- and opinion-research firms. EOE M/F/D/V
To become a member of the Harris Poll OnlineSM and be invited to
participate in future online surveys, visit www.harrispollonline.com.
Press Contacts:
Nancy Wong
Harris Interactive
585-214-7316
Jodi Smith
jodis@alloy.com
Alloy, Inc.
212-329-8359
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