Even in times of economic uncertainty, young people are enthusiastic shoppers and therefore remain a prime market for advertisers, judging from a new survey by Harris Interactive.
The YouthPulse study analysed the income, spending and savings habits of young Americans in the 8-21 age range, the so-called Generation Y. It deduced that while the economic downturn had restricted total income to $211 billion, young people remain enthusiastic spenders.
“There are more than 57 million individuals in the 8-21 age group, and their influence on the consumer economy is immense,” said John Geraci, vice president of youth research at Harris Interactive. “Generation Y’s needs and opinions drive many adult purchase decisions, and they literally, represent the future market for most consumer brands.”
Pre-teens (ages 8-12) spend at a rate of $19.1 billion annually and this rises to $94.7 billion for teens (ages 13-19). Young adults (ages 20-21) receive less in the way of parent-supplied income and therefore spend at a lower rate of $61.3 billion per year. The group as a whole spend at a rate of $172 billion per year and save at a rate of $39 billion.
“This shows that this age group has been willing to forgo savings in order to keep their spending levels consistent,” said Geraci. “It is a very optimistic generation, and they demonstrate a great deal of confidence that the economic rebound is around the corner and that good times are ahead for them.”
The internet has had a profound effect on youth activity and a recent survey showed that young people now spend more time online than they do watching television (see Young People Spend More Time Online Than Watching TV). According to Harris Interactive, 15% of youth spending is done over the web but boys are happier to shop online and spend 1.7 times as much as girls.
