• Figure 1-1: Projected Growth of US Population Age 5-14, 1998-2050 (dollars)

Demographics

• Kids 5-14: A Powerful Consumer Group
• More Than 39 Million Kids Age 5-14
• Kids Market Really Several Markets
• Kids Reflect United States' Growing Diversity
• Most Children Live in Two-Parent Households
• One-Third of Children Live in or Near Poverty
• Being with Friends Is Most Popular Activity
• Today's Kids More Savvy, Sophisticated
• But Emotional Needs Still the Same
• Kids Just Want to Have Fun

The Market

• Kids' Purchasing Power Exceeds $157 Billion Annually
• Kids Market Growing
• Almost All of Kids' Dollars Are Discretionary

Kids as Consumers

• Kids Love to Shop
• Children Usually Buy Something When They Shop
• Kids Look for Five Attributes in a Store
• Many Retailers Moving to Meet Kids' Needs

Kid-Oriented Media

• Kids Love Television But Viewing Is Down
• Other Activities Cut Into TV-Viewing Time
• Radio an Important Medium—Especially for Older Kids
• Kids' Print Media Exploding
• Kids Very Involved with Magazines
• Kids Love to Get Direct Mail
• Kids a Natural for Interactive Media
• All Kids Equal on the Web

Marketing to Kids

• Kids Market Is Segmented
• Market Research Has Its Own Rules
• Market to an Older Child
• Know Your Audience's Parents
• Use of Slang Is Risky
• Sport Stars Are Favorite Celebrity Spokespersons
• Cause-Related Marketing Big with Kids

Scope and Methodology 20

• Kids Defined as Those Age 5-14 20
• Report Methodology

II DEMOGRAPHICS

• Introduction
• Kids 5-14: A Powerful Consumer Group
• Note on Terminology
• Figure 2-1: Projected Growth of US Population Age 5-14, 1998-2050 (number)

Population

• More Than 39 Million Kids Age 5-14
• Kids Population Will Hold Steady Until 2015
• Table 2-1: Projected Growth of Children Age 5-14, 1998-2050 (number)
• Males Outnumber Females to Age 24
• Table 2-2: Share of Kids 5-14 by Gender (number and percent)
• Kids Market Really Several Markets
• Developmental Issues Distinguish Children of Different Age Groups
• Figure 2-2: Share of Kids Population by Age, 1998 (percent)
• Gender Differentiation Occurs Around Age 6
• More Than 12 Million 5- to 7-Year-Olds
• Another 16 Million Are 8-11 Years Old
• 12- to 14-Year-Olds Number 11 Million
• Table 2-3: Share of Kids Population by Age, 1998 (number and percent)
• Kids Reflect United States' Growing Diversity
• Figure 2-3: Share of Kids Population Age 5-14 by Race, 1998 (percent):
• White, African American, Hispanic, Asian and Pacific Islander, Native American
• Regional Distribution of Kids Market
• Half of All Kids Live in Suburbs
• Growing Percentage of Kids Are Bilingual

Family Status

• Percentage of Households with Children Declining
• Most Children Live in Two-Parent Households
• One in Four Children Lives in Single-Parent Household
• Growing Percentage of Children Live with Grandparents
• Many Children Have More Than One Home
• Most Kids Live in Households of Four or More People
• Table 2-4: Share of Kids Population by Number of Siblings, 1996 (number and percent): None, One, Two, Three, Four, Five or More Siblings
• Both Parents Work in Growing Percentage of Kids' Households
• Kids More Independent, Assume Role in Running Household
• Yet Parents Are Taking a More Protective Stance
• Kids Are Family-Oriented
• Most Kids Share Many Daily Activities with Family

Economic Status

• One-Third of Children Live in or Near Poverty
• One-Third of Children Are Middle Class
• Largest Percentage Live in Households with Incomes in Excess of $50,000
• Figure 2-4: Share of Kids Population by Household Income, 1996 (percent): From $12,499 and Under to $50,000 and Over
• Income Higher for Two-Parent Families
• Income Higher Among Whites
• Kids Derive Income from Three Sources
• Approximately 50% of Kids Receive an Allowance
• "Allowance" vs "Earned Income" Frequently a Matter of Definition
• Allowances Generally Track Age
• Table 2-5: Estimate of Kids' Allowance and Earned Income by Age, 1997 (dollars and number): Average Weekly Income, Yearly Total, Number of Kids, Aggregate Total
• Kids' Allowances Have Grown, But They Don't Buy as Much as They Used To
• Gifts a Significant Source of Income
• Table 2-6: Kids' Annual Gift Income by Age, 1997 (dollars and number): Average Gift Income, Yearly Total, Number of Kids,
• Aggregate Total
• Almost All of Kids' Income Is Discretionary
• American Kids Save More Than Their Parents, But Less Than Kids Worldwide

Leisure Activities

• Being with Friends Is Most Popular Activity
• Basketball Has Become Kids' Number-One Sport
• Video and Computer Games
• Card Collecting
• Other Types of Collections
• How Kids Have Fun
• Kids Like to Belong
• Other Activities, Hobbies
• Kids of All Ages Like to Go to Movies, Watch TV 49

Issues Important to Children

• Today's Kids More Savvy, Sophisticated
• But Emotional Needs Still the Same
• Kids Just Want to Have Fun
• What Kids Dream About
• Table 2-7: What Kids Daydream About, 1996 (percent): 13 Subjects Other Topics of Thought/Concern
• Table 2-8: Subjects Kids Think About "A Lot": By Age and Gender, 1996 (percent): 10 Subjects
• Kids Value Education
• Kids Mature, Responsible, Pragmatic

III THE MARKET

• Market Size and Growth
• Kids' Purchasing Power Exceeds $157 Billion Annually
• Children's Indirect Purchase Influence Estimated at $400 Billion
• Kids Market Growing
• Almost All of Kids' Dollars Are Discretionary
• Children Spend More as They Mature
• Parents Spend More on Older Children
• Table 3-1: Estimated Annual Expenditures on Children, 1997 (dollars): One-Child, Two-Child, Three-Child Family Middle-Income Families Spend $238,840 to Raise Child
• Table 3-2: Estimated Annual Expenditures on a Child Born in 1997 by Income Group (year and dollars): Age, Low-Income, Middle-Income, High-Income
• Parents Encourage Kids to Make Purchase Decisions
• Kids Market Really Three
• Kids Spend Heavily in Six Areas
• Kids Spend Nearly $9 Billion a Year on Food and Beverages
• Kids Spend $79 Billion on Play Items
• Clothing Accounts for $42 Billion of Kids' Purchases
• Kids Spend $31 Billion on Movies, Videos, and Sports Events
• Video Arcades Account for $25 Billion in Kids' Spending
• Kids Spend $20 Billion on "Other" Items
• Kids Manipulate Their Parents' Pursestrings
• Parents Spend Over $126 Billion Per Year on Items for Their Children
• Table 3-3: Total Direct-Influence Expenditures by Parents on Children: By Age, 1997 (dollars): Food, Clothing, and Miscellaneous Expenditures
• Kids Also Influence Other Household Purchases
• Several Reasons for Kids' Growing Influence
• Growing Number of Products and Services Targeted to Children
• Children Shopping More Than They Used To
• Food the Biggest Influence Target
• Children Influence Family Dining Out Decisions
• Kids Influence Parents' Selection of Toys and Play Things
• Children Dress Themselves with Their Parents' Money
• Kids Also Influence Parents' Automobile Purchase
• Kids Influence Consumer Electronics Purchases
• Older Parents Spend More on Their Kids
• Figure 3-1: Projected Growth of Kids Market, 1998-2003 (dollars)

Projected Market Growth

• Market to Top $228 Billion by Year 2003
• Methodology
• Table 3-4: Projected Growth of Kids Market, 1998-2003 (dollars):
• Kids' Income, Parents' Expenditures on Children, Total
• Kids the Entire Future Market

IV KIDS AS CONSUMERS

• Shopping Patterns
• Kids Love to Shop
• Evolution of a Shopper
• Cereals First Products Selected, Followed by Toys
• The Co-Purchase
• Kids Shop Alone
• Kids Develop Retail Preferences
• Kids Shop Often
• Kids Shop a Variety of Stores
• Table 4-1: Types of Shopping Trips in Last Month: By Age and Gender, 1996 (percent): 5 Types
• Children Usually Buy Something When They Shop
• Kids Are Impulse Buyers
• 70% of Purchase Decisions Made in Store
• Kids Extremely Brand-Conscious
• Brand Loyalty Highest at Grocery Store
• Children Assign Quality to National Brands
• Children Favor Status Brands of Clothing
• Brand Loyalties Change with Fashions, Trends
• Peer Pressure Often Driving Force in Purchases
• Kids Emulate Other—Particularly Older—Kids
• TV Advertising a Big Influence
• Children Take Advertising Seriously

At the Retail Level

• The Grocery Store: Where Children First Learn to Shop
• Discount Stores Rate Number One with Kids
• Kids Look for Five Attributes in a Store
• Kids Don't Feel Welcome in Most Stores
• Five Things Kids Would Change About Stores
• Many Retailers Moving to Meet Kids' Needs
• Other Merchandising Techniques Obvious But Often Overlooked
• Shopping Center Targets Kids to Boost Traffic
• Kid Superstores Gaining in Popularity
• Retailer Profile: Toys "R" Us King of Toy Sales
• Retailer Profile: GapKids and babyGap
• Off-Pricers Compete with Discounted Brands
• Marketing to Kids Draws Parents, Too
• Retailers Can't Afford to Ignore Kids
• Restaurants Compete for Families by Targeting Kids
• Kids Menus Go Beyond Hot Dogs
• Kid Activities Include Coloring, Puzzles, and Jewelry Making
• "Kids Eat Free" Concept Boosts Weeknight Traffic
• But Many Operators Rethink Strategies
• Accommodation Replaces Promotion
• Some Restaurants Accommodate by Isolating

V KID-ORIENTED MEDIA 101

• Overview
• Kids Have Own Media World

Television

• Kids Love Television But Viewing Is Down
• Other Activities Cut Into TV-Viewing Time
• Kids' TV-Viewing Fragmented
• Kids Watch the Most TV When Their Parents Do
• Saturday Morning Is Third Most-Popular Time Segment
• After-School Time Slot Also Important
• Gender, Racial Differences Appear in TV-Viewing
• Nickelodeon Is Kids' TV Leader
• New Shows Bowing in 1998
• Prime Time is Nickel-O-Zone
• Nickelodeon Also Reaches Kids with Print and Alternative Media
• Nick Introduces Noggin
• Nickelodeon Movies and Production Studio
• Number Two Fox Also a Favorite with Kids
• Daily Programming Gives Fox and Nickelodeon an Edge
• Fox's Kids Club Another Cross-Promotional Arm
• Fox Expands into Radio
• Fox Family Channel
• WB Goes After Kids
• ABC and Disney Compete for Kid Viewers
• CBS Changes Strategy for Saturday AM Competition
• TBS Appeals to Kids with 24-Hour Cartoon Network
• UPN Set to Enter Kids Market in Fall 1999
• MTV Also Big with Kids
• But TV No Longer Guaranteed to Reach Mass Kid Audience

Radio 118

• Radio an Important Medium—Especially for Older Kids
• Table 5-1: Percentage of Kids Who Listen to Music Three or More
• Times/Week: By Age and Gender, 1996 (percent): 3 Media
• Most Kids First Exposed to Radio Via Others
• Radio an Intimate Medium
• Younger Kids an Underdeveloped Radio Market
• Marketers Seek New Outlets for Kids
• Until Recently, Kids' Radio Was Booming
• Radio AHHS Created Children's Radio Community
• Kids Get Into Act
• KidStar Radio Another Short-Lived Star in Children's Radio
• ABC and Disney Spell Death of CBC
• Fox Also Sees Future in Kids Radio

Print

• Kids' Print Media Exploding
• But Success Not Guaranteed
• Reasons for Magazines' Appeal
• Kids Very Involved with Magazines
• Magazines Fulfill Kids' Love of Detail
• Marketers Find Magazine-Publishing Cost-Effective
• Magazine Advertising More Credible, Easier to Show Parents
• Some Magazines Successfully Target Kids and Parents
• Sports Illustrated for Kids a Prototype
• Time for Kids Published in Two Versions
• Disney Adventures a Kid-Targeted Entertainment Weekly
• Nickelodeon Magazine—A Take-Along Version of Kids' Television Network
• Crayola Kids Targets Kids and Parents
• GamePro and Nintendo Power Appeal to Boys
• American Girl Builds Self-Esteem and Relationships
• Pre-Teen Girls Seek Out Teen, YM, Seventeen, and the New Jump
• Newspapers Not a Big Factor in Kid Marketing

Direct Mail

• Kids Love to Get It
• But Direct Mail Expensive and Usefulness Can Fade
• Cooperative Mailings Can Cut Direct-Mail Costs
• Custom Magazines
• Kids' Catalogs
• Factors for Continued Growth of Kids Catalog Sales
• Challenges to Catalog Market
• Legislation May Affect Direct-Market Fortunes

Electronic Media

• Kids a Natural for Interactive Media
• Table 5-2: Percent of Kids in Households with Computers Who Use Computer Technology at Home Three or More Times/Week: By Age and Gender, 1996 (percent)
• Online Services Launch Sites for Kids
• Media Metrix Tracks Kids' Website Preferences
• Kids Use Online Services for Sense of Community
• All Kids Equal on the Web
• Kids Also Get Free Samples on the Web
• Disney Operates Several Top Sites
• SI for Kids Online on Pathfinder Site
• A Number of Websites for Games
• wwwgameprocom Also for Gamers
• FIND/SVP Study Shows How Kids Spend Time Online
• Computer Use a Group Activity
• Forget Sales, Build the Brand
• But Online Parents a Likely Target
• Parenting Sites Are Key Sites for Advertising
• CD-ROMs Combine New-Fashioned Graphics and High-Tech with Old-Fashioned
• Parental Control
• Other Media Opportunities for the Creative

Marketing Fundamentals

• Know Your Audience
• Kids Market Is Segmented
• Market Research for Kids Has Its Own Rules
• Segregate Kids by Age and Sex
• Strive for Focus Group Homogeneity
• Online Focus Groups an Exception to the Rule
• Kid-Conducted Research Also an Option
• Fantasy/Reality Shift Takes Place Around Age 7
• Market to an Older Child
• Younger Kids Have Appeal, Too, When They Show Up Their Elders
• Know Your Audience's Parents
• Kids' Market Used to Be Off-Limits
• But Marketers Increasingly Push the Barriers
• Parents Often Have Own Agenda
• Sometimes Best to Market to Parent and Child
• But Not to Parent or Child: Failing to Deliver Message Directly to Kids Is Risky
• Market to Both Genders
• Kid-Targeted Advertising Doesn't Have to Include Kids
• Five Motivators Govern Kids
• Kids Want to Feel More Powerful
• Girls, Too, Like Power
• Freedom Appeals to All Ages
• Fun and Freedom Closely Linked
• Kids Want to Belong
• Many Marketers Offer Community
• Kids Strive for Mastery
• Kids Find Most Television Commercials "Annoying"
• Kids Like Ads That Are Funny
• Find Out What Is Funny to a Kid: Ask
• Let Them Discover; Don't Teach or Preach
• Hone Your Message
• Kids Like Commercials to Tell a Story
• Kids Love Surprises
• Use Bright Colors and Bold Designs
• Make It Interactive
• Include Heroes
• Pick Up the Pace, Production Values
• Licensing Still Hot
• TV Advertising to Kids Is Regulated
• CARU Advertising Guidelines Govern Honesty
• Online Advertising Has Its Own Rules
• Children Don't Understand Privacy
• Guidelines Attempt to Clear Things Up
• Website Developers Police Their Own Sites

Use of Slang in Marketing to Kids

• Use of Slang Is Risky
• Yet Kid-Directed Speech Can Be Colorful

Use of Celebrities When Marketing to Kids

• Sport Stars Are Favorite Celebrity Spokespersons
• Use of Other Celebrities Can Be Tricky
• With Research, Marketers Can Launch Products and Celebrities Simultaneously

Cause-Related Marketing

• Cause-Related Marketing Big with Kids
• Nickelodeon Scores Big with "Big Help"

Promotions for Kids

• Promotional Tie-Ins Extend Value, Excitement
• Nickelodeon and Partners Assemble $200 Million Movie Promo Deal
• Kids Clubs Another Form of Promotion
• School Promotions: Hot But Controversial
• Guidelines for Promoting to Kids
• Contests Another Way to Attract Kids
• Master Lock Sponsors Xtreme Sports Sweepstakes

VII EXAMPLES OF STRATEGIES AND CAMPAIGNS TARGETED TO KIDS

• Food and Beverages
• McDonald's Reputation Built on Families and Fun
• Burger King Is King of Kids Clubs
• Chuck E Cheese Pizza
• Supermarkets Beginning to Recognize Kids' Importance as Customers
• Food Lion Supermarkets Team Up with Sports Illustrated for Kids
• Wegman's Good Food Tours
• Kellogg Appeals to Kids—and to the Kid in Every Adult
• Kellogg Also Targets Busy Moms and Kids with Breakfast Mates
• Froot Loops Ad Uses Interactivity, Fruit Scents to Involve Kids
• Farley's Also Goes for Interactive Approach And for Teamwork
• Mott's Rides Rugrats to New Image with Kids
• Sargento Foods Teams with Sports Illustrated for Kids
• Milk Banks on the Power of Celebrities

Play and Leisure Items

• United States Leads World in Toy Sales
• Toy Industry Tremendously Volatile
• Classic Toys Exception to the Rule
• That Irrepressible Barbie
• Crayola Packs Top Ten
• Other Top-Selling Toys
• Two Toymakers Dominate
• Best-Selling Toy Introductions Show Mercurial Nature of Toy Industry
• Nintendo Revives Video Game Industry
• Sega Turns Up the HeatThen Goes Cold
• Sega Announces Dreamcast
• Sony PlayStation Changes Video Game Market in 1996
• Six of Top 10 Video Games Are for PlayStation
• Video Game Advertising Some of Most Impressive
• Trading Cards Continue to Evolve
• Toys "R" Us Is King of Toy Sales

Video

• Kidvid Growing by Leaps and Bounds
• Disney the Leader in Kidvid Sales
• Other Studios Storming the Field
• PolyGram Targets Boys with X-Men and Power Rangers
• KidVision Another Newcomer
• Golden Home Video Sees Literacy Value
• Popularity of Kids' Videos Creates Cross-Promotional Opportunities

Apparel

• Kids' Apparel Market Skyrocketing
  • Sneakers Lead List of "Must-Have" Items
  • Style the Dominant Factor
  • Nike the Current Footwear Leader
  • Reebok Targets Kids with Weebok and Reebok Kids
  • Licensed-Team Apparel Big with Kids
  • Other Licenses Drive Kids' Apparel Sales
  • Designer Clothes for Kids
  • Gap and Levi Go After Kids

  Health & Beauty Care
  

• Kids Market Growing Strong
• Bold Colors, Fruity Scents, Fun Packaging Appeal to Kids
• Licensed Characters Strong in HBC Field
• Big Brands Also Strong in Kids' HBC
• Tinkerbell Gives Itself a Make-Over
• Grocery Stores and Mass Merchandisers Have an Edge in Kids HBC

Reading

• Most Kids No Longer Read Comics
• But Comics Publishers Trying to Change That
• They Read Books! (That Are Written Like Comics)
• A More Literary Side

APPENDIX I: EXAMPLES OF CONSUMER ADVERTISING
AND PROMOTIONS

APPENDIX II: ADDRESSES OF SELECTED MARKETERS