Cartoon Network claims kids’ spending power on the rise

A study commissioned by Turner Broadcasting claims children now control about $1.8bn in spending power, up from $1.6bn in the last report two years ago.

The release:

Aussie kids have greater online access through mobile and tablet devices than ever before, but television remains the most popular media for kids who now have an annual spending power of $1.8 billion, Cartoon Network‘s leading research study New Generations has revealed.

Now in its 11th year, Cartoon Network New Generations, which analyses the media habits and spending power of Australia’s youngest consumers, has shown that kids are increasingly taking control when it comes to how they access the internet. Among internet users, almost a third (31%) of 4 to 14-year-olds go online using a tablet device and two in 10 do so via mobile phones – with 14% now owning a smartphone – up 8% from 2013 when the last study was undertaken.

Playing games is still the most popular online leisure activity for kids, followed by watching videos with average daily viewing times rocketing to 24 minutes, up by 33% from 2013. Apps continue to dominate tablet use, with 41% of kids accessing them at least once a day and 75% using them a minimum of once a week.

“As tablet and mobile devices continue to proliferate homes, the way kids access entertainment and games continues to evolve,” said David Webb, Director of Research and Planning at Turner International Asia Pacific. “We’ve seen a significant shift in the amount of time spent watching online videos because of this, but playing games and the use of apps is still how kids choose to spend the majority of their online leisure time and there’s no indication that this trend will change.”

While digital media consumption is strong, television remains the dominant entertainment and information source for kids, with 85% watching the larger screen in the past month. It is also the preferred way for kids to learn about things that interest them in including toys, games, movies and technology. And kids are continuing to watch TV alongside their parents with seven in 10 regularly viewing movies, cartoons and comedy programs with their children in the last week.

“Television is the number one media for kids. Outside of their friendship group it is the most important media when it comes to how they find out about new things that appeal to them. This, coupled with the fact that the majority of kids spend time co-viewing with the household purchasing decision maker every week, means TV is still the most effective advertising medium for reaching this important audience,” said Mr Webb.

Parents also say they are open to their children receiving advertising messages with almost seven in 10 saying it is a useful way to introduce new products and encourages them to try new things.

The Cartoon Network New Generations report which evaluated more than 1,000 responses from child and parent pairs, also found the annual spending power of kids has topped $1.8 billion with the average pocket money received by kids jumping to $14 a week, up from $11 in 2013. Kids from subscription television homes are even more affluent with an annual income of $742 compared to $436 for those in Free-to-air only homes.

While their personal incomes rise, kids are also influencing their parents purchasing decisions across a range of categories including most notably food, toiletries, clothes, toys, books and weekend activities with 94% influencing the birthday gifts they receive where bikes, iPads and Lego top the list of most expensive presents. Meanwhile seven in 10 parents say their child influences decisions on what type of family holiday to take.

“Australia’s youngest consumers are avid users of television and digital media. With $1.8 billion in spending power and significant purchasing influence over parents they can’t afford to be ignored.”

Source: Eckfactor press release


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