Saturday, March 1, 2008

Kids Train for E-Commerce

Debit cards before drivers' licenses?
Get ready for the next generation of online buyers.

Kids are shopping online, downloading digital files and making their product opinions known. This activity, which doesn't always involve an actual purchase, serves as training for kids to make purchases once they have the means.



About 13% of US children surveyed for MediaMark's "2007 American Kids Study" said that they shopped online during the past 30 days.



Children ages 2 to 14 surveyed for NPD Group's "Kids and Digital Content" report downloaded a range of online content in October 2007. Online video clips and music videos led the list, but kids in the survey also downloaded music, games and ringtones.


Digital downloads are considered a service rather than a product by eMarketer, so the downloads do not contribute to retail e-commerce spending. That said, the navigation skills and other steps required for digital downloading are applicable to online buying.

This "online purchasing preschool" will turn into real money once kids are in their teens.

"There's quite a jump at age 14 in online buying compared with younger ages," said Jeffrey Grau, senior analyst at eMarketer. "That's why we include those 14 and older when defining online shoppers and buyers."

Mr. Grau noted that even at age 14, some teens have debit cards, or start using their parents' credit cards.

Other research studies have found that children as young as 8 have actually completed an online purchase.

Even when they don't buy things themselves, kids have some clout when it comes to influencing purchases, according to Harris Interactive's "2007 Youth Pulse" report.

As would be expected, 13-to-21-year-olds had far more influence on purchases than did 8-to-12-year-olds. Younger kids also held much less sway on purchasing decisions for big-ticket items.



But again, even though children were not buying goods themselves, voicing product opinions is an important part of online shopping and buying. Most online buyers consult consumer reviews as part of their research.

The children Harris surveyed may not have been tugging at parents' shirt tails in hopes of a purchase to benefit themselves, but they were still making their voices heard.

Learn about the latest frontier in marketing to children. Read eMarketer's Kids and Teens: Virtual Worlds Open New Universe report.

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