Teen Marketplace*



According to the 2010 U.S. Census, the tween/teen population (ages 10-19) is over 42 million strong in the United States. It is estimated that, excluding education expenditures, these teens account for a total of $208.7 billion dollars in spending per year – either by the teens themselves or by their parents directly, education excluded. Teens are important to the U.S. economy since they are most likely to embrace new technology and show the most excitement for current trends that later filter into the mainstream. Teens are not typically responsible for “life” purchases such as mortgages and savings, and therefore have the ability to spend 14 times more of their budgets on food, 8 times more of their budgets on books and clothing, and twice as much of their budgets on entertainment (electronics, movie tickets, concerts, and video games) than the average middle-class adult.

 

In addition to teens’ significant spending power, they also influence household expenditure decisions, especially since a growing number of parents rely on teens’ advanced computer skills to research products online. A recent Robin Leedy & Associates study found that mothers of teens reported that their teenage daughters influenced purchases ranging from snack foods (64%), breakfast cereals (62%), and beverages (58%) to restaurants visited (40%) and vacation destinations (25%). Teens are clearly playing an important role in the ever-changing American household and the economics of U.S. society.

 

 

The Mall Phenomenon

  • According to a 2014 study by Piper Jaffray, teens are making approximately 29 trips to the mall per year.
  • 64% of teens have been to a shopping mall within the last 7 days.
  • 76% of tweens (8-12 years old) said that they “really enjoy going shopping.”
  • 74% of teens (13-18 years old) prefer to shop in a store over shopping online.
  • On average, each visit a teen makes to the mall lasts 1 hour and 12 minutes.
  • Teens make purchases in 50% of the mall stores that they visit.
  • 51% of teen shoppers are browsers, while 30% have a specific store or purchase in mind.
  • On average, the 14-17 age group spends $56.72 per visit.
  • Teens play an influential role in purchases of: clothing/shoes/accessories (82%), makeup (67%), hair and skincare items (72%).

 

Lifestyle Marketing: Advertising to Teens

Also known as Generation Z, the 20 million girls and boys who make up the tween population (8-12 years old) account for an estimated $30 billion in spending annually of their own money and another $150 billion in spending annually of their parents’ money. Teens and tweens are becoming an increasingly difficult target to reach through traditional media. Between school, homework, part-time jobs, extracurricular activities, video games, shopping, socializing, etc. they simply don’t have much idle time.Teens and tweens are becoming an increasingly difficult target to reach through traditional media. Between school, homework, part-time jobs, extracurricular activities, video games, shopping, socializing, etc., they simply don’t have much idle time.


However, teens are particularly attuned to advertising to guide their purchase decisions. A 2009 Scarborough/ Arbitron survey found that 95% of teens (12-17years old) notice mall advertising with 66% paying special attention to posters advertising products sold at the mall.

 

 

Three Essential Components of High-Traffic Teen Malls

  • A large number of stores, especially teen stores: 75% of teens said that they choose the malls they go to based on how cool, hip, trendy, and fashionable are the stores.
  • Multiple food options, including a food court. For the first time ever in a Piper Jaffray’s teen survey, food expenditures amongst teens dominated their wallets.

 

*Refer to pdf for source information