Just The Facts
about
Advertising and Marketing to Children
Advertising Expenditures Spiral Upward
* In 1998 US advertising topped $200 billion, a 24%
increase from the $161.5 billion spent in 1990, and an 89% increase from
$105.97 billion in 1980 (figures adjusted to 1998 dollars).
* The average amount spent by the advertising industry
in 1998 to reach one household: $1,987.00.
Ad Industry Spends Billions to Target Kids
* More than $2 billion is now spent annually on advertising
directed at children, over 20 times the amount spent just 10 years ago.
* Channel One'’s twelve-minute in-classroom broadcast,
42% of which is ads and filler, has a daily teen audience comparable to
that of the Superbowl—the most watched TV event of the year. In fact, 50
times more teens watch Channel One than watch MTV.
* A 1998 Federal Trade Commission survey examined
212 Web sites aimed at kids and found that 89% solicited personal information
such as name, postal address, and social security number, while only 23%
told children to ask their parents’ permission before providing information.
Little Big Spenders – Children and Teen Spending Skyrockets
* Children’s spending has roughly doubled every ten
years for the past three decades, and has tripled in the 1990’s. Kids 4-12
spent $2.2 billion in 1968, and $4.2 billion in 1984. By 1994 the figure
climbed to $17.1 billion, and only three years later in 1997 their spending
reached $23.4 billion.
* Older kids, 12-19, spent roughly $94 billion of
their own money in 19988, up from $63 billion just four years earlier.
The "Nag" Factor Works – Kids Influence on Parents’ Purchases Continues
to Grow
* In the 1960’s, children influenced about $5 billion
of their parents’ purchases. By 1984 that figure increased ten-fold to
$50 billion. By 1997 it had tripled to $188 billion10. Kids marketing expert
James McNeal estimates direct influence on family purchases will increase
to almost $290 billion in 2000.
Kids are Glued to the Tube and Bombarded by Commercials
* It’s estimated the average child sees between 20,000–40,000
commercials every year. * Children spend 60% more time watching television
each year than they spend in school.
* 24% of children under 6 have a TV set in their
own bedroom.
Creating Brand-Conscious Babies
* At six months of age, the same age they are imitating
simple sounds like "ma-ma", babies are forming mental images of corporate
logos and mascots. Experts say a lifetime customer may be worth $100,000
to a retailer, making effective "cradle to grave" strategies extremely
valuable.
* In a 1991 study, 91% of six-year-olds correctly
associated Joe Camel with Camel cigarettes.
Footnotes
1. McCann-Erickson U.S. Advertising Volume Reports.
2. Juliet Schor, author of The Overspent American.
3. Shelly Reese, "KIDMONEY: Children as Big Business," Arts Education
Policy Review 99(3), 11 Jan. 1998.
4. "K-III's 'Channel One,' the TV Show that Parents Can't Watch, Cheats
School Kids," Business Wire, 22 Jan. 1997.
5. Channel One Network, "Teen Fact Book 1997-1998," New York: Channel
One Network.
6. Federal Trade Commission, "Survey of Commercial Web Sites", March
1998, http://www.ftc.gov/reports/privacy3/survey.htm.
7. James McNeal, The Kids’ Market: Myths and Realities, Ithaca: Paramount
Market Publishing, Inc., 1999.
8. Peter Zollo, Wise Up To Teens: Insights into Marketing and Advertising
to Teenagers, 2nd ed., Ithaca: New Strategist Publications, Inc., 1999.
9. Peter Zolo, "Talking to Teens," American Demographics, November 1995.
10. James McNeal, "Tapping the Three Kids’ Markets," American Demographics,
April 1998.
11. James McNeal, The Kids’ Market: Myths and Realities, Ithaca: Paramount
Market Publishing, Inc., 1999.
12. David Leonhardt and Kathleen Kerwin, "Hey Kid, Buy This: Is Madison
Avenue Taking ‘Get ‘em While They’re Young’ Too Far?", Business Week, June
30, 1997; Michael Jacobson and Laurie Ann Mazur, Marketing Madness, Boulder:
Westview Press, 1995.
13. Annenberg Public Policy Center, "Media In The Home 1999: The Fourth
Annual Survey of Parents and Children", http://appcpenn.org/kidstv99/survey5.htm
14. Steve Sherman, "A Set of One’s Own: TV Sets in Children’s Bedrooms,"
Journal of Advertising Research, 36(6), 1996.
15. James McNeal and Chyon-Hwa Yeh, "Born to Shop," American Demographics,
June 1993.
16. Fischer, Paul, et al. "Brand Logo Recognition by Children aged 3
to 6 Years. Mickey Mouse and Old Joe the Camel," Journal of the American
Medical Association, 266(22) 11 Dec. 1991.
Compiled by Eli Lambert, Leah Plunkett and Trish Wotowiec.
