Rochester, NY and New York, NY, September 11, 2000 — Online US kids, teenagers, and young adults aged 8 to 24 are currently spending at a projected rate of $164 billion per year. In addition, the online generation is saving at a rate of $54 billion annually; and, eCommerce spending among online 18 to 24 year olds is currently 13% of their total spending, or more than four times the rate of eCommerce spending among all adults.
These are among the findings of the most recent wave of Nickelodeon Online/Harris Interactive KidPulseSM and MTV/Harris Interactive YouthPulseSM studies. The studies, conducted online quarterly by Harris Interactive (Nasdaq: HPOL), interviewed 3,878 young respondents in July 2000.
Online teens and young adults (13-24) are spending their money on similar items: clothes, pre-recorded music, movie tickets, and books. This varies by gender a great deal; females are more likely than males to buy clothing (75% vs. 52%), shoes (40% vs. 23%), and camera film (36% vs. 18%). On the other hand, males are more likely than females to buy computer software (43% vs. 7%), stereo equipment (21% vs. 8%), and video games/systems (26% vs. 5%).
Similar to online 13-24 year olds, online kids (8-12) also buy books and pre-recorded music, but toys and games are popular items for children as well. When comparing the spending habits of 8-12 year olds boys and girls, girls are more apt to buy clothes (25% vs. 7%) and boys are more likely to buy video games/systems (42% vs. 7%).
The source of youth income changes dramatically as children enter the teen years. For example, nearly 40% of income for children under 13 derives from allowances, whereas by age 16 three-quarters of income derives from paid jobs. Younger children are fully dependent on parents for income, while teenagers and young adults have their own, independent source – namely employment.
"Online kids are very involved in family purchases," said Melva Goffney, Director of Research and Planning at Nickelodeon Online. "For instance, this study showed that 75% of online 8 to 12 year olds influence which groceries the family buys. Almost half (49%) influence their parents clothing choices. And, 7 in 10 said they have a major influence on where the family decides to go on vacation."
The studies also show that Generation Y is serious about saving. Savings rates were high throughout the age range covered by the study (8 to 24), and results indicate that kids become fiscally responsible quite early in life.
Categories that stand to benefit from the prosperity of today’s youth include apparel, music, food and grocery items, and sporting equipment. These were the most commonly purchased categories according to respondents.
"The spending power of this demographic has been known for some time, but members of Generation Y are big savers as well," according to Dawn Garnett, Primary Research Manager at the MTVi Group, "Teens and young adults told us they are saving for big purchases like college, cars, and vacations. In total, saving was 25% of the total income of 13 to 24 year olds. They know how to manage their money because they have big ambitions for the future."
"The study shows that this is truly a digital generation," said John Geraci, vice president of youth research at Harris Interactive. "Sixty-eight percent of teenagers are online. Online youth are no longer a segment, but they have become the mainstream."
eCommerce has a bright future among the nation’s young. Study results indicate that 63% of online 13 to 24 year olds say they will spend more online in the future than they do today. Added Geraci, "Advertisers using new media need to realize that the Internet influences more than direct eCommerce spending. This study found that 69% of online 13-24 year olds research products online before they buy them in traditional, bricks and mortar outlets."
There are currently 65.4 million 8 to 24 year olds in the US population, an increase of 6% from 10 years ago. This population group is currently 24% of the US population.
About the Studies
Nickelodeon Online/Harris Interactive KidPulseSM and MTV/Harris Interactive YouthPulseSM are multi-client studies conducted online that cover a variety of topics, from the market power and influence of youth, to their technology adoption and views, their brand and category usage, and their hopes and dreams for the future. The studies are conducted quarterly (January, April, July, and October) by Harris Interactive with a minimum of 10,000 completed interviews annually. Data in this release were collected between July 14 and 21, 2000 from 8 to 24 year olds. Completed interviews are weighted to reflect the characteristics of the proportion of Generation Y that has accessed the Internet at least once in the past month. Complete data from these studies are available on a subscription basis.
About Harris Interactive
Harris Interactive (Nasdaq: HPOL), the global leader in online market research, uses Internet-based and traditional methodologies to provide its clients with information about the views, experiences, behaviors and attitudes of people worldwide. Known for its Harris Poll, Harris Interactive has over 40 years experience in providing its clients with market research and polling services including custom, multi-client and service bureau research, as well as customer relationship management services. Through its US and Global Network offices, Harris Interactive conducts research in more than 80 different countries, in more than 30 different languages. Harris Interactive uses its proprietary technology to survey its database of more than 6.6 million online panelists. For more information about Harris Interactive, please visit our Web site at
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