Overview of Report Scope and Methodology
Methodology Overview of the Internet Generation
Internet Generation Households Have High Incomes and Two Parents Computers Still Trail Other Media but TV Begins to Lose Ground Internet Generation Expects Active Media Engagement Distinct Values Affect Consumer Behavior of the Internet Generation Survey of the Market
But Obstacles Remain Number of Internet Generation Families Will Grow at Rapid Rate Aggregate Income of Internet Generation Families Exceeds $1.3 Trillion Online Expenditures of Kids, Tweens, and Teens Expected to Top $4 Billion in 2004 Online Expenditures by 18- to 24-Year-Olds Projected to Exceed $10 Billion in 2004 Online Purchases by College Segment Will Exceed $2 Billion in 2004 Nearly 66 Million Members of Internet Generation Expected to Be Online at Home in 2004 Total Online Expenditures Will Exceed $14 Billion Marketing and Advertising Strategies
Opinions Differ on How to Promote Teen E-Commerce Teens Expect Retailers to Synchronize Online Marketing with Bricks-and-Mortar Facilities E-Commerce Sites for Kids and Teens Need to Meet Basic Expectations Internet Remains Only One of Many Marketing Tools Contests and Giveaways Drive Many Online Promotions Street Marketing Techniques Extended to the Internet Teens Web Sites Face Shakeout Permission Marketing Gains Ground Schools Become Promotional Partners The Kids Segment of the Internet Generation
Internet Access Available to 4.8 Million Young Kids TV Still Dominates Media Usage by Young Kids but Core Group of Computer-Users Grows Toy Sites Try to Tap into Expectations of Internet Generation Kids Marketers Begin to Use Web to Get Kids' Attention Kids Sites Try to Combine E-Commerce with Education The Tweens Segment of the Internet Generation
Television Gets the Most Media Attention Games and E-Mail Outpace Shopping Many Parents Closely Supervise Online Tweens Parents Object to Online Buying by Tweens McDonald's Uses Special Web Site to Reach Tweens Disney Tries to Capture Attention of Tweens with Enhanced Web Site The Teens Segment of the Internet Generation
More than 8 Million Have Internet Access at Home Multitasking Common Online Shopping Still Has Low Priority but Internet Plays Role in Teen Spending Internet Banner Ads Bother Teens Internet Is Key Component of Teens Marketing Programs The College Segment of the Internet Generation
College Students Are Webcentric College Students Are Big E-Spenders Surveys Generally Agree on Most Popular Online Purchases Internet Helps Marketers in Hard-to-Reach College Market Marketers Use Offline Promotions to Build Online Traffic Marketers Push Envelope to Create Successful Online Promotions Textbook Marketers and Membership Programs Top College Sites
Table 2-1: The Internet Generation: by Year of Birth and Length of Internet Exposure, 1976-1998 Echo Boomers Form the Core of the Internet Generation At-Home Internet Access Key Criterion Packaged Facts Analyzes Four Segments of the Internet Generation Key Demographic Features
Table 2-2: The Echo Boom Generation: by Age Group and Gender, 1999 Non-Hispanic Whites Remain Largest Component of Echo Boomers Table 2-3: The Echo Boom Generation: by Race and Hispanic Origin, 1999 More than 45 Million Members of Internet Generation Have At-Home Internet Access Table 2-4: Number of Echo Boomers with Internet Access at Place of Residence, 1999 Internet Generation Households Have High Incomes Table 2-5: Percent of U.S. Households Using the Internet at Home: by Race and Hispanic Origin and by Income, 1998 Internet Generation Kids Live in High-Income Neighborhoods Table 2-6: Availability of Computer and Internet Access at Home: by Community Income Internet Generation Kids Tend to Live in Two-Parent Households Table 2-7: Percent of U.S. Households (with Child) Using the Internet at Home: by Household Type, Income, and Race and Hispanic Origin, 1998 High-Income Families Over-represented in Internet Generation Table 2-8: Number of Families with Children with Internet Access vs. Number of All Families with Children Internet Generation Includes Large Number of Middle-Income Families Table 2-9: Families with Children with Internet Access: by Income Level Media Usage by the Internet Generation
Table 2-10: Amount of Weekly Time 2- to 18-Year-Olds Exposed to Various Media Table 2-11: Proportion of Time Each Medium Contributes to Total Media Budget: Ages 2 to 18 But TV Begins to Lose Ground Tweens and Teens Place Highest Value on Computers and Internet Table 2-12: Preferred Media of 8-to 18-Year-Olds Table 2-13: Attitudes of 8- to-18-Year-Olds Toward Benefits of Computers vs. TV Multimedia Usage and Multi-tasking Routine Internet Generation Expects Active Media Engagement Youngest "Speeders" Prefer E-Mail to the Phone Internet Generation Will Spend One-Third of Lives on the Net Life Experiences and Values of the Internet Generation
Tweens Worldview Described Distinct Values Define the Internet Generation Diversity Seen as Normal Teens Expect To Be Wealthier than Their Parents Girls More Socially Concerned than Boys Consumer Behavior of the Internet Generation
Internet Generation Shoppers Want Things Their Own Way Internet Generation Wants to Find Things Out on Their Own Internet Generation Demands Authenticity from Marketers Echo Boomers Are Smart Shoppers
Online Population Will Grow Rapidly E-Commerce Hopes Remain High Wider Availability of "E-Wallet" Sites Will Facilitate Market Growth Table 3-1: Selected E-Wallet Sites, by Target Age Group and Features DoughNet.com Offers Financial Services to Teens DoughNet.com Offers ATM Card DoughNet.com and Harris Interactive Team Up RocketCash Enables Teens to Shop Online RocketCash Creates Online Currency Exchange RocketCash Expands E-Commerce to Latino Community Cybermoola Provides Teens with Pre-paid Cards Cybermoola and Footaction Form Alliance PocketCard Offers Teens Visa Spending Card Alloy Online and PocketCard Team Up Factors Limiting Market Growth
Younger Members of the Internet Generation Face Obstacles to Online Buying Many Teens Find E-Shopping Pale Imitation of Real Thing Echo Boomers Continue to Frustrate E-Commerce Strategies Online Victimization of Tweens and Teens Becomes an Issue Parental Concerns Begin to Be Heard Government Regulation Starts to Affect Online Kids and Teens Size and Growth of the Kids Segment of the Internet Generation Market
Internet Generation Kids Market Will Increase Five-Fold Table 3-2: Projected Growth in the Number and Annual Expenditures by or for Kids Ages 2-7 Shopping Online, 1999-2004 Size and Growth of the Tweens Segment of the Internet Generation Market
Table 3-3: Projected Growth in the Number and Annual Expenditures of Tweens Ages 8-13 Shopping Online, 1999-2004 Size and Growth of the Teens Segment of the Internet Generation Market
Table 3-4: Projected Growth in the Number and Annual Expenditures of Teens Ages 14-17 Shopping Online, 1999-2004 Size and Growth of the College Segment of the Internet Generation Market
Table 3-5: Projected Growth in the Number and Online Expenditures of Full-Time Students at Four-Year Colleges with Internet Access at Place of Residence, 1999-2004 Size and Growth of the Total U.S. Market for the Internet Generation
Table 3-6: Projected Growth in the Number of Families with Children Ages 2-17 and with Internet Access at Home, 1999-2004 Nearly All High-Income Families Will Have Internet Access at Home in 2004 Table 3-7: Projected Growth in the Number of Families with Children Ages 2-17 and with Internet Access at Home: Family Income over $75,000, 1999-2004 Middle-Income Families Will Be Largest Segment of Internet Generation Families Table 3-8: Projected Growth in the Number of Families with Children Ages 2-17 and with Internet Access at Home: Family Income $35,000 to $74,999, 1999-2004 Internet Access at Home Will Grow Most Rapidly in Low-Income Families Table 3-9: Projected Growth in the Number of Families with Children Ages 2-17 and with Internet Access at Home: Family Income Under $35,000, 1999-2004 Aggregate Income of Internet Generation Families Exceeds $1.3 Trillion Table 3-10: Aggregate Income of Families with Children Ages 2-17 and with Access to the Internet at Home, 1999 Aggregate Income of Internet Generation Families Will Nearly Double by 2004 Table 3-11: Projected Growth in the Aggregate Income of Families with Children Ages 2-17 and with Access to the Internet at Home, 1999-2004 Internet Generation Kids, Tweens, and Teens with Internet Access at Home Will Total 44.7 Million in 2004 Table 3-12: Projected Growth in the Number of Children Ages 2-17 with Internet Access at Home, 1999-2004 Online Expenditures of Kids, Tweens, and Teens Expected to Top $4 Billion in 2004 Table 3-13: Projected Growth in the Number and Annual Expenditures of Members of the Internet Generation Ages 2-17 Shopping Online, 1999-2004 Online Young Adult Population Ages 18 to 24 Likely to Grow Nearly 50% Table 3-14: Projected Growth in the Number of Individuals Ages 18-24 with Internet Access at Place of Residence, 1999-2004 Online Expenditures by 18- to 24-Year-Olds Projected to Exceed $10 Billion in 2004 Table 3-15: Projected Growth in the Number and Annual Expenditures of Members of the Internet Generation Ages 18-24 Shopping Online, 1999-2004 Nearly 66 Million Members of Internet Generation Expected to Be Online at Home in 2004 Table 3-16: Projected Growth in the Number of Individuals Ages 2-24 with Internet Access at Place of Residence, 1999-2004 Total Online Expenditures Will Exceed $14 Billion Table 3-17: Projected Growth in the Number and Annual Expenditures of Members of the Internet Generation Ages 2-24 Shopping Online, 1999-2004
Internet Generation May Redefine Brand Loyalty E-Marketers Need to Break through Internet Generation Defenses "Convergence Marketing" Advised Opinions Differ on How to Promote Teen E-Commerce Teens Expect Retailers to Synchronize Online Marketing with Bricks-and-Mortar Facilities Restaurants Advised to Use Internet to Connect with Young Customers Teens Have Definite Preferences Regarding Web Site Designs E-Commerce Sites for Kids and Teens Need to Meet Basic Expectations E-Commerce Sites Trying to Be "Cool" Do Not Work Rules for Designing Tweens Sites Offered Advertising and Promotional Strategies
Online Market Research Seen as Only One Component Internet Remains One of Many Marketing Tools Contests and Giveaways Drive Many Online Promotions Street Marketing Techniques Extended to the Internet Marketers Find It Difficult to Blend Online and Offline Strategies Teens Web Sites Face Shakeout Malls Leverage Internet to Promote Bricks-and-Mortar Shopping Permission Marketing Gains Ground Personalized Online Ads Recommended Marketers Enlist Schools as Promotional Partners Word of Mouse Helps Online Advertisers Promote Their Sites in Schools Alloy Online Enlists Support of Schools Multimedia Advertising Employed by iTurf MaMaMedia Launches TV and Print Campaign E-Wallet Sites Have Multifaceted Promotional Strategies
Diversity Increases Table 5-1: Number of 2- to 7-Year-Olds by Gender, Race, and Hispanic Origin, 1999 Table 5-2: Projected Growth in Number of 2- to 7-Year-Olds by Race, and Hispanic Origin, 1999-2004 More than 14 Million Young Kids Have a Computer at Home Table 5-3: Number of 2- to 7-Year-Olds with a Computer at Home: by Race and Hispanic Origin, 1999 Internet Access Available to 9.3 Million Young Kids Table 5-4: Number of 2- to 7-Year-Olds with Internet Access at Home: by Race and Hispanic Origin, 1999 Two out of Three Kids Will Have At-Home Internet Access in 2004 Table 5-5: Projected Growth in the Number of Kids Ages 2-7 with Internet Access at Home, 1999-2004 Computer and Internet Usage
TV Still Dominates Media Usage by Young Kids Table 5-6: Amount of Weekly Time 2- to 7-Year-Olds Exposed to Media: by Race and Ethnicity Table 5-7: Amount of Weekly Time 2- to 7-Year-Olds Exposed to Media: by Race and Ethnicity Table 5-8: Preferred In-Home Media of 2-to 7-Year-Olds But More than 25% of Young Kids Use Computers Often at Home and in School Babyware Prepares Infants to Join Internet Generation Many Two-Year Olds Use Computers Kids Tend to Use Computers in Presence of Parents or Others in Household Table 5-9: Preferred In-Home Media of 2-to 7-Year-Olds Kids in Higher-Income Families Watch TV Less and Use Computers More Table 5-10: Amount of Daily Time 2- to 7-Year-Olds Exposed to Media by Zip Code Income Family Structure and Education Level Impacts Computer Use Table 5-11: Amount of Weekly Time 2- to 7-Year-Olds Exposed to Each Medium by Family Characteristics Kids Most Likely to Use Computers for Games Table 5-12: Average Weekly Computer Use by 2- to 7-Year-Olds: by Type of Use Kids Who Use Computers Often Are Likely to Favor Computer Games over Web Sites Table 5-13: Average Weekly Computer Usage Among Children Who Used a Computer Yesterday: by Type of Use Table 5-14: Average Weekly Time Spent on Web Sites and Computer Games by Children Who Used a Computer Yesterday: by Age Group Marketing and Promotion Strategies for the Kids Segment of the Internet Generation
Competition Is Fierce among Toy E-Tailers Kellogg Co. Uses Internet to Build Kids' Loyalty Procter & Gamble Seeks to Enhance Crest Toothpaste Brand through the Internet Quaker Oats Partners with AOL to Attract Kids to Its Cap'n Crunch Web Site Candystand Attracts Kids and Other Buyers with Games Fleet Financial Aims at Young Kids Minute Maid Features Sweepstakes on MaMaMedia Kmart Teams with Sesame Workshop Web Sites for Young Kids
Sesame Workshop Targets the Whole Family MaMaMedia Emphasizes Educational Values Alfy.com Designed for Pre-Readers FoxKids.com Leverages Fox TV Content Go Kids Center Offers Many Links Zeeks.com Provides Support for School Work
Table 6-1: Number of 8- to 13-Year-Olds by Gender, Race, and Hispanic Origin, 1999 Tweens Population Is Growing Slowly Table 6-2: Projected Growth in Number of 8- to 13-Year-Olds by Race, and Hispanic Origin, 1999-2004 More than 16 Million Tweens Have At-Home Computer Table 6-3: Number of 8- to 13-Year-Olds with a Computer at Home: by Race and Hispanic Origin, 1999 More than 10 Million Tweens Have Access to the Internet at Home Table 6-4: Number of 8- to 13-Year-Olds with Internet Access at Home: by Race and Hispanic Origin, 1999 Population of Online Tweens Will Grow 60% by 2004 Table 6-5: Projected Growth in the Number of Tweens Ages 8-13 with Internet Access at Home, 1999-2004 Computer and Internet Usage
Table 6-6: Proportion of Time Each Medium Contributes to Total Media Budget of 8- to 13-Year-Olds But Tweens Wish They Had a Computer Table 6-7: Preferred Media of 8-to 13-Year-Olds Tweens Actively Engaged by Computers Table 6-8: Attitudes of 8- to-13-Year-Olds Toward Computers and TV Computer Usage Is Supervised Activity Table 6-9: Proportion of Time 8- to 13-Year-Olds Spend with Various Media in Their Bedroom Games and School Work Outpace Surfing the Web Table 6-10: Average Weekly Computer Use of 8- to 13-Year-Olds: by Type of Use Active Computer Users Also Favor Video Games Over the Web Table 6-11: Average Computer Use Among 8- to 13-Year-Olds Who Used a Computer Yesterday: by Type of Use Online Consumer Behavior of Tweens
Table 6-12: Children Age 8-13: Visits to Web Sites by Type of Web Site Table 6-13: Children Age 8-13 Who Visited a Chat Room the Previous Day: by Type of Chat Room Tweens More Likely to Use Web for Researching Offline Purchases than Buying Online Parents Object to Online Buying by Tweens Marketing and Promotion Strategies for the Tweens Segment of the Internet Generation
General Mills Uses Strategic Alliances with Web Sites Foster Farms Corn Dogs Teams with RocketCash Nintendo and Kellogg Launch Pokéman Web Site Web Sites for Tweens
FreeZone Content is Tween-Driven ePlay Offers "Smart Play" bChannel.com and gChannel.com Invite Opinions from Tween Boys and Girls AllowanceNET Helps Tweens Learn How to Manage Money ICanBuy Brings Buying Power to Tweens
Table 7-1: Number of 14- to 17-Year-Olds by Gender, Race, and Hispanic Origin, 1999 Teen Population Is Growing Slowly but Diversifying Rapidly Table 7-2: Projected Growth in Number of 14- to 17-Year-Olds by Race and Hispanic Origin, 1999-2004 Teens Most Likely to Have Computer at Home Minority Teens Less Likely to Have Access to At-Home Computer Table 7-3: Number of 14- to 17-Year-Olds with a Computer at Home: by Race and Hispanic Origin, 1999 More than 8 Million Have Internet Access at Home Table 7-4: Number of 14- to 17-Year-Olds with Internet Access at Home: by Race and Hispanic Origin, 1999 Nearly 80% of Teens Will Have At-Home Internet Access in 2004 Table 7-5: Projected Growth in the Number of Teens Ages 14-17 with Internet Access at Home, 1999-2004 Computer and Internet Usage
Computers Still Account for Small Portion of Teen Media Usage Table 7-6: Proportion of Time Each Medium Contributes to Total Media Budget of 14- to 18-Year-Olds But a Computer with Internet Access Is Preferred Medium of Teens Table 7-7: Preferred Media of 14-to 18-Year-Old Teens Teens Use TV to "Kill Time" and Computers to Learn Table 7-8: Attitudes of 14- to-18-Year-Old Teens Toward Benefits of Computers vs. TV Few Teens Have Their Own Computer Table 7-9: Proportion of Time 14- to 18-Year-Old Teens Spend with Various Media in Their Bedroom Online Consumer Behavior of Teens
Table 7-10: Average Weekly Computer Use of 14- to 18-Year-Olds: by Type of Use Table 7-11: Average Weekly Computer Use of 14- to 18-Year-Olds Who Used a Computer Yesterday: by Type of Use Online Shopping Still Has Low Priority Table 7-12: Teens 14- to-18: Visits to Web Sites by Type of Web Site Table 7-13: Teens 14-18 Who Visited a Chat Room the Previous Day: by Type of Chat Room Online Teen Buyers Still a Minority But a Few Teens Are Heavy Online Shoppers Forecasts Project Exponential Growth in Online Spending by Teens Most Teens Likely to Use Web for Product Research Internet Banner Ads Bother Teens Visits to E-Commerce Sites Increase Marketing and Promotion Strategies for the Teens Segment of the Internet Generation
Teen Book Imprint Looks to Alloy.com Kodak Uses Internet to Involve Teens in Product Design Troublewear.com Allows Teen Buyers to Customize Apparel Purchases
EchoBuzz Competes against Internet for Teen Subscribers Web Sites for Teens
iTurf Network Highly Popular Snowball Caters to Internet Generation Teen.com Attracts Teen Girls Teens Create Own Content Key Demographic Features
Table 8-1: Projected Growth in Number of Full-Time Students through 24 Years of Age at Four-Year Colleges, 1999-2004 Women Outnumber Men in Four-Year Colleges Table 8-2: Number of Full-Time Students at Four-Year Colleges Ages 15-24: by Age Group and Sex, 1997 College Students Remain Elite Group Table 8-3: Total U.S. Population Ages 18-24 vs. Full-Time Students at Four-Year Colleges Ages 18-24 Non-Hispanic Whites and Asian Americans Over-represented on Campuses of Four-Year Colleges Table 8-4: Total U.S. Population Ages 18-24 vs. All College Students Ages 18-24, by Race and Hispanic Origin Half of Full-Time Students Hold Jobs Table 8-5: Employment Status of Full-Time College Students Ages 18 to 24 Majority of Full-Time Students Are in 10 States Table 8-6: States with Largest Four-Year College Student Population States with Largest Four-Year College Student Population Number of College Students Online Will Grow 12% Table 8-7: Projected Growth in the Number of Full-Time Students at Four-Year Colleges with Internet Access at Place of Residence, 1999-2004 Internet Usage
Male Students Spend More Time Online E-Mail Is Most Important Contests and Sweepstakes Major Online Activity Online Consumer Behavior of College Students
Most Student Spending Is for Essential Items Most Students Have Credit Cards College Students Are Big E-Spenders Online Shopping Increases Offline Shopping Still More Important Offline Advertising Also Most Effective Word of Mouth Influences Buying Decisions More than Web Sites Word of Mouth Also Most Important Source of Information about E-Commerce Sites Bricks-and-Mortar Shopping Habits of College Students Present Obstacles to E-Marketers Surveys Generally Agree on Most Popular Online Purchases Offline College Music Sales Decline Students Furnish Dorm Rooms Online Dot-com Textbook Companies Fail to Compete with College Book Store Web Sites Marketing and Promotional Strategies for the College Segment of the Internet Generation
College Market Has Been Hard to Reach Internet Offers New Opportunities for College Marketers Marketers Use Offline Promotions to Build Online Traffic Free Online Offers Attract College Students Advantages of Online Promotion Cited Marketers Push Envelope to Create Successful Online Promotions Permission-Based Marketing E-Mails Work Opt-in Wireless Advertising Increases in College Market Textbook Marketers Adopt "Click-and-Mortar" Strategy Online Textbook Companies Use Traditional Advertising Media On-Campus Promotions Also Important Online Textbook Marketers Seek to Expand Business Base H&R Block Seeks to Build Long-Term Brand Loyalty Sprint's Web-based College Strategy Pays Off AT&T Wireless Promotes Services to College Students Sallie Mae Carries Out Comprehensive Offline Program to Promote New Web Site for College Students Riffage.com Profits from Spring-Break Promotions Web Sites for College Students
Student Advantage Successfully Migrates Online CollegeClub.com Gains High Ratings Loyalty Programs Succeed Student Publications Go Online College Broadcast Launches Web-Based Channels Appendix: Addresses of Selected Internet Generation Market Resources
Internet Sites Organizations |
800.298.5294
Int'l: +1.240.747.3095
Questions?
Contact a research specialist >
Most Popular Research
White Paper: Consumer Insights and Trends: Packaged Facts Forecasts the Product and Social Trends That Will Make Their Mark in 2011
The New Recession Consumer in the U.S.
The U.S. Moms Market 2010, 3rd Edition
Ethnic Health and Beauty Care Products in the U.S., 7th Edition
Latino Consumers: Demographic Patterns and Spending Trends among Hispanic Americans, 8th Edition
Healthy 50+ Americans: Trends and Opportunities in the Emerging Wellness Market
|
||||||||||
Email a colleague
Printer format
Order by fax|
Privacy Policy
|
Terms and Conditions
|
Site Map
|
Return Policy
|
Press
|
Help FAQs
|