Understanding the youth market is crucial for any company attempting to capture the attention of today's tween and teen consumers. The lives and minds of this dynamic group are ever-changing, so it's essential to gain a better understanding of our youth today before launching your next youth-oriented product or marketing campaign. Much of Brenda Hurley's time is focused on C&R's youth business, providing research and consulting services to clients through its KidzEyes and TeensEyes Divisions. She was also very involved in this year's launch of YouthBeat, C&R's syndicated report covering the attitudes and behaviors of today’s youth.

5. Products That Are Home Runs! Pleasure…Control…Personal Development…Social Acceptance

7. Context

9. The Internet & Technology Revolution The Years that Preceded Them 3 millionth IBM PC shipped Cell phone network introduced in U.S. First edition of MS Windows sold CD’s Introduced Macintosh Plus 1981 1982 1983 1984 1985 1986 1987 1980 1988 1989

10. The Years They Were Born Goes public with 165 locations World Wide Web DVD format introduced Cell phone boom Instant Messenger 1991 1992 1993 1994 1995 1996 1998 1999 1997 1990

11. The “New” Millennium The Years of Their Childhood Opens 12,000 th location Cable providers start to offer DVR service DVD Players become portable PSP unveiled Xbox launched Wii revolutionizes Console Gaming 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

14. What They Do in Their Free Time (Weekends) Go on Internet 74% / 78% Watch TV 83% / 77% Media Non-Media Solitary Social Prepare a meal 43% / 45% Read 42% / 40% Paint/Draw 28% / 16% “ Hang out” w/friends 68% / 73% Go Shopping 41% / 44% Watch Movie/ DVD at Home 64% / 62% Play Video Games Alone 55% / 41% Play Video Games w/Others 60% / 44% Exercise 40% / 33% Listen to Music 67% / 78% Tweens / Teens #’s / #’s Design Websites 4% / 5 % Knit/Sew 6% / 4 %

15. A Perfect Saturday Tweens Teens

21. Today’s Youth Market + Source: 2006 U.S. Census ++ Source: YouthBeat® $48.12 ++ with 20.6M + Tweens in their pockets right now = $991,272,000 $39.26 ++ with 21.3M + Teens in their pockets right now = $836,238,000

25. What Worries Them Q. How do you think the world will be worse? About the Environment “ I believe with the direction the world's natural resources are going, and the people in charge of our nation doing practically nothing, my generation will be left a HUGE mess to clean up. I'm afraid that we won't be able to correct the mistakes that people are making now.” “ The world is dying. We are running out of clean water, clean air, clean food... Everything we eat, drink, and breathe has been chemically polluted in one way or another...” “ because people don't open their eyes and their will be worse global warming, and no one really recycles and people waste so many things” “ The economy is beginning to crumble, and so is the very infra-structure of the country.” “ I think that our country will be even more in debt, with higher taxes, and trouble with our depleting oil resources “ The U.S. is in a recession, the governments a mess, and no change is being made. The future scares me.” “ It will be bad for a while. The economy is horrible and everyone is worried” “ look around you, my father lost his job, the economy sucks, stores are closing all the time and more people are out of work and I have little faith in the government to fix this mess” About the Economy

26. What Does It All Mean?

32. Brenda Hurley, Senior VP C&R Research/YouthBeat® [email_address] 312.828.9200 Questions? www.youthbeat.com