March 2004

Getting the message through to kids

The terms 'Kid's Market' or 'Marketing to Kids' misses the subtleties of the market. This is partly because only a small portion of products for kids are actually paid for by the kids themselves. But the other side of the coin is that kids influence the usage of a range of products and services used by the whole family. After all, having kids around means a huge lifestyle change - and that's what marketers need to get a handle on. McNair Ingenuity Research have been studying 6 - 13 year old Australian kids for a number of years through a quarterly research program, Australian Kids Consumer Insight. And these are just some of the observations that come from the research.

How Trends Come and Go

There are two kinds of trends influencing this market - big prevailing trends and short-term fads. The large-scale trends are created by changes in society and technology, while the short-term fads are more marketing driven. Most of the big changes happen slowly over time - sometimes so slowly that they are hardly noticed. An example of one of these is that parents are becoming more cautious about letting their children out in the streets alone. The age that parents allow their kids to walk to school on their own is increasing. Twenty years ago it was the norm for primary school kids to walk to school and home on their own or with friends. Today it is the exception. An example of technologically driven change would obviously be the omnipresence of the Internet, and the increasing prevalence of mobile phones. So, for marketers there is an obvious balance to be achieved between these two forces - technology offering kids more freedom - versus parents struggling to be a gateway between their children and the world beyond (which is increasingly making its way into the living room!).

Conversely, the short-term trends come and go in the blink of an eye. In fact, the use of the word 'short-term' is quite apt, since most of them only last a school term. Those working in the kid's market need to think like kids and parents - in school terms. What was cool in term 3 will probably be passé by term 4. Some things are cyclical - yoyos manage to come back in vogue every few years for about a term. For older boys, so do skateboards. However, toys found in chip packets need to be extremely sensitive to short-term changes, and manufacturers need to be ready to re-tool the machines with new concepts in a matter of months or even weeks.

Kids and their Time

Kids' days are increasingly busy and how they spend their time is, not surprisingly, quite different by age and by gender. Girls are equally likely to be talking/playing with their friends as they are to be watching TV. In choosing programs, they increasingly select relationship-based shows such as Saddle Club, Home and Away, and Neighbours. Boys, on the other hand, are watching more TV than girls and are very likely to spend time playing computer/console games.

Media trends and the Internet

When it comes to how kids use the media, the really interesting changes are not measured in terms of absolute audiences - this only reveals the top line story. The real story is in how kids relate to different media. For instance, in the case of the Internet, a superficial look at the market might give the impression that every child from a toddler up is a Net-savvy marketing target. But the reality is far more complex and the availability of Internet-connected computers for young children is only the start of the story!

For one thing, as teachers increasingly suggest that kids should research their homework on-line, the idea of browsing web sites not only becomes less exciting, but it actually becomes more of a chore. Hence, what kids look for on-line needs to be beneficial to them. Where have we heard that question before, 'What's in it for me?' For boys the answer is most likely to be on-line games and some chat, while for girls the leisure usage of the Internet is about communication - emailing or chatting with friends. The obvious concern for parents is that this distracts kids from homework time, and also the concern about chats with strangers.

Nor has the Internet reached maturity as a response medium. For instance, children are far more likely to have responded to a magazine or newspaper promotion than to one on a web site. They are far more likely to send in a coupon than any other response mechanism.

The Internet is also having a big effect on the use of main media. McNair Ingenuity's data shows a drop in the amount of time devoted to watching TV. This doesn't mean that the TV isn't on, but their focus is now spread over more media.

This change in how kids watch TV also relates to the changing mix of content. Prime time soaps such as Neighbours and Home and Away continue to attract a devoted audience of kids (especially girls) aged 10 and up who really focus on the characters and story line. Boys are more interested in cartoons, which can also achieve an audience of focused viewers. However, the increasing numbers of reality TV shows have a more relaxed audience. There is less need to focus on the dialogue, and this allows the children to do more than one thing at the same time. Girls are tuning into relationship TV at much, for example, 40% of girls aged 6-7 watched the Saddle Club program.

Spending pocket money

The typical pocket money of $5 per week is just the tip of the ice-burg when it comes to kid's expenditure. While 12% of girls spend pocket money on clothes, only 7% of boys do. So, clearly the parents pay for everything, not just the new pair of school shoes, but also the cool surf brand T-shirt. But where are they spending their money? Boys buy chocolates and lollies, toys, chips and drinks, while girls spend their pocket money on chocolates and lollies, drinks and clothes.

Pester Power

Pester Power has a much more subtle effect than many marketers realize. Sure, for toys and snacks kids ask their parents

for specific items or brands, but for many more products the effect is covert. Parents choose brands and products that their kids will eat and use. A mum does not need to be reminded each week that the kids prefer a certain brand of toothpaste.

Hooking onto loyalty

The quicker you get it the quicker you lose it. Every marketer knows that badging a product with the current trendy characters is a huge boost - but even the kids will tell you that once the trend is passed, the loyalty is gone. Of course, if that loyalty can be maintained, it certainly pays dividends. Prevailing brand loyalty can stay with people all their lives and even be passed on from generation to generation, as our research into brand loyalty has discovered.

Kid's Magazine Survey - National Readership Figures

Kid's readership of magazines really starts at about age 7 and is again very delineated down gender lines. Boys are into cartoons, action and toys. Girls are again following relationships, both their own and characters they relate to, particularly as they reach upper primary school.

Source: McNair Ingenuity Research Australian Kids Consumer Insights

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