Marketing to KidsMarketing to Kids
They might not make as much asThey might not make as much as
adults, but they still spend $$$…adults, but they still spend $$$…
Important DemographicImportant Demographic
 Kids have their own purchasing powerKids have their own purchasing power
 Kids influence parents' buying choicesKids influence parents' buying choices
 Kids are the adult consumers of the futureKids are the adult consumers of the future
Industry spending on advertising toIndustry spending on advertising to
childrenchildren
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Millions
1990 2000
Parents are spending more on theirParents are spending more on their
kidskids
 Families of today are smaller than everFamilies of today are smaller than ever
 Dual incomes families and delayingDual incomes families and delaying
children until later in life. This means thatchildren until later in life. This means that
families have more money to spendfamilies have more money to spend
 Feelings of guilt influence spendingFeelings of guilt influence spending
decisions as busy parents substitute giftsdecisions as busy parents substitute gifts
for time spent with familiesfor time spent with families
““Pester PowerPester Power””
Children can now nag their parents intoChildren can now nag their parents into
buying things they might not havebuying things they might not have
otherwise. Marketing to kids is all aboutotherwise. Marketing to kids is all about
creating “creating “pester power”pester power”
Psychology and MarketingPsychology and Marketing
With the help of psychologists, advertisersWith the help of psychologists, advertisers
now have in-depth insight to children'snow have in-depth insight to children's
developmental, emotional and socialdevelopmental, emotional and social
needs at different ages. Using researchneeds at different ages. Using research
that analyzes children's behaviour, fantasythat analyzes children's behaviour, fantasy
lives, art work, and dreams, companieslives, art work, and dreams, companies
are able to create sophisticated marketingare able to create sophisticated marketing
techniques to reach the young.techniques to reach the young.
Brand Name LoyaltyBrand Name Loyalty
Marketers plant seeds of brand recognition inMarketers plant seeds of brand recognition in
children at very young ages in the hopes thatchildren at very young ages in the hopes that
these seeds will grow into a lifetime relationship.these seeds will grow into a lifetime relationship.
The Center for a New American Dream said,The Center for a New American Dream said,
“babies as young as six months of age can form“babies as young as six months of age can form
mental images of corporate logos and mascots.mental images of corporate logos and mascots.
Brand loyalties can be established as early asBrand loyalties can be established as early as
age two, and by the time children head off toage two, and by the time children head off to
school most can recognize hundreds of brandschool most can recognize hundreds of brand
logos.”logos.”
Interesting QuoteInteresting Quote
""Brand marketing must begin with children.Brand marketing must begin with children.
Even if a child does not buy the productEven if a child does not buy the product
and will not for many years... theand will not for many years... the
marketing must begin in childhoodmarketing must begin in childhood."."
James McNeal, The Kids Market, 1999James McNeal, The Kids Market, 1999
““Buzz MarketingBuzz Marketing""
 Another technique marketers use is to findAnother technique marketers use is to find
peers that kids look up to and have thempeers that kids look up to and have them
use or wear their product in order to createuse or wear their product in order to create
a hype around it. “a hype around it. “BuzzBuzz” can help a” can help a
company to “company to “successfully connect with thesuccessfully connect with the
savvy and elusive teen marketsavvy and elusive teen market” by using” by using
these idols to give their products coolthese idols to give their products cool
status.status.
Marketing in SchoolsMarketing in Schools
School used to be a haven for children,School used to be a haven for children,
protecting them from the advertising andprotecting them from the advertising and
consumer messages that are soconsumer messages that are so
prominent in our society. Due to budgetprominent in our society. Due to budget
cuts, school boards are beginning to allowcuts, school boards are beginning to allow
corporations access to students incorporations access to students in
exchange for money, computers, andexchange for money, computers, and
educational materials.educational materials.
Marketers ExploitsMarketers Exploits
 Sponsored educational materials. For example, a Kraft "healthySponsored educational materials. For example, a Kraft "healthy
eating" kit to teach about America's Food Guide (using Krafteating" kit to teach about America's Food Guide (using Kraft
products).products).
 Supplying schools with technology in exchange for high companySupplying schools with technology in exchange for high company
visibility.visibility.
 Exclusive deals with fast food or soft drink companies to offer theirExclusive deals with fast food or soft drink companies to offer their
products in a school or district.products in a school or district.
 Advertising posted in classrooms, school buses, or on computers inAdvertising posted in classrooms, school buses, or on computers in
exchange for funds.exchange for funds.
 Contests and incentive programs. For example, the Pizza HutContests and incentive programs. For example, the Pizza Hut
reading incentives program in which children receive certificates forreading incentives program in which children receive certificates for
free pizza if they achieve a monthly reading goal. Or Campbell'sfree pizza if they achieve a monthly reading goal. Or Campbell's
Labels for Education project, in which Campbell providesLabels for Education project, in which Campbell provides
educational resources for schools in exchange for soup labelseducational resources for schools in exchange for soup labels
collected by students.collected by students.
Clip fromClip from Daria - “Fizz Ed”Daria - “Fizz Ed” Ep.501Ep.501
Marketers target Kids for AdultMarketers target Kids for Adult
EntertainmentEntertainment
Marketers are activly marketingMarketers are activly marketing
entertainment meant for older audiencesentertainment meant for older audiences
to children. In a report released in 2000,to children. In a report released in 2000,
the U.S. Federal Trade Commission (FTC)the U.S. Federal Trade Commission (FTC)
revealed how the movie, music and videorevealed how the movie, music and video
games industries routinely market violentgames industries routinely market violent
entertainment to young children.entertainment to young children.
•MoviesMovies
The FTC did a study on 44 films rated "Restricted,"The FTC did a study on 44 films rated "Restricted,"
and found that 80% were targeted to childrenand found that 80% were targeted to children
under 17. Marketing plans included TVunder 17. Marketing plans included TV
commercials run during hours when youngcommercials run during hours when young
viewers were most likely to be watching. Oneviewers were most likely to be watching. One
studio representative said the followingstudio representative said the following
regarding a violent R-rated film, "regarding a violent R-rated film, "Our goal was toOur goal was to
find the elusive teen target audience, and makefind the elusive teen target audience, and make
sure that everyone between the ages of 12 andsure that everyone between the ages of 12 and
18 was exposed to the film18 was exposed to the film."."
•MusicMusic
CDs containing the "explicit-content" labelsCDs containing the "explicit-content" labels
are being marketed to kids throughare being marketed to kids through
extensive advertising in the most popularextensive advertising in the most popular
teen venues on television, radio, in print,teen venues on television, radio, in print,
and online.and online.
•Video GamesVideo Games
More than 2 out of 3 video game companiesMore than 2 out of 3 video game companies
regularly market Mature rated games (17regularly market Mature rated games (17
years and older) to kids. Marketing plansyears and older) to kids. Marketing plans
included advertising in media that wouldincluded advertising in media that would
reach a large percentage of children underreach a large percentage of children under
the age of 17.the age of 17.
•ToysToys
The FTC also reported that toys based onThe FTC also reported that toys based on
characters from mature entertainment arecharacters from mature entertainment are
frequently marketed to kids. Mature ratedfrequently marketed to kids. Mature rated
video games are advertised in youthvideo games are advertised in youth
magazines and toys based on Restrictedmagazines and toys based on Restricted
movies and M-rated video games aremovies and M-rated video games are
marketed to children as young as four.marketed to children as young as four.
Interesting FactsInteresting Facts
 Channel One's twelve-minute in-classroom broadcast features 2Channel One's twelve-minute in-classroom broadcast features 2
minutes of commercials for every 10 minutes of news, is compulsoryminutes of commercials for every 10 minutes of news, is compulsory
on 90% of the school days in 80% of the classrooms in 40% of U.S.on 90% of the school days in 80% of the classrooms in 40% of U.S.
middle and high schools. Companies pay up to $195,000 for a 30-middle and high schools. Companies pay up to $195,000 for a 30-
second ad, knowing that they have a captive audience of 8 millionsecond ad, knowing that they have a captive audience of 8 million
students in 12,000 classrooms across the country.students in 12,000 classrooms across the country.
 In the 1960's, children influenced about $5 billion of their parents'In the 1960's, children influenced about $5 billion of their parents'
purchases. By 1984 that figure increased ten-fold to $50 billion. Bypurchases. By 1984 that figure increased ten-fold to $50 billion. By
1997 it had tripled to $188 billion. In 2000, children 12 and under1997 it had tripled to $188 billion. In 2000, children 12 and under
influenced family purchases to the tune of $500 billion.influenced family purchases to the tune of $500 billion.
 It's estimated the average child sees more than 20,000 commercialsIt's estimated the average child sees more than 20,000 commercials
every year - that works out to at least 55 commercials per day.every year - that works out to at least 55 commercials per day.
 47% of children have a television set in their bedroom.47% of children have a television set in their bedroom.
 At three years of age, before they can read, one out of five AmericanAt three years of age, before they can read, one out of five American
children are already making specific requests for brand-namechildren are already making specific requests for brand-name
products.products.
 Children who use the most media tend to be the least contented.Children who use the most media tend to be the least contented.

Marketing to kids

  • 1.
    Marketing to KidsMarketingto Kids They might not make as much asThey might not make as much as adults, but they still spend $$$…adults, but they still spend $$$…
  • 2.
    Important DemographicImportant Demographic Kids have their own purchasing powerKids have their own purchasing power  Kids influence parents' buying choicesKids influence parents' buying choices  Kids are the adult consumers of the futureKids are the adult consumers of the future
  • 3.
    Industry spending onadvertising toIndustry spending on advertising to childrenchildren 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Millions 1990 2000
  • 4.
    Parents are spendingmore on theirParents are spending more on their kidskids  Families of today are smaller than everFamilies of today are smaller than ever  Dual incomes families and delayingDual incomes families and delaying children until later in life. This means thatchildren until later in life. This means that families have more money to spendfamilies have more money to spend  Feelings of guilt influence spendingFeelings of guilt influence spending decisions as busy parents substitute giftsdecisions as busy parents substitute gifts for time spent with familiesfor time spent with families
  • 5.
    ““Pester PowerPester Power”” Childrencan now nag their parents intoChildren can now nag their parents into buying things they might not havebuying things they might not have otherwise. Marketing to kids is all aboutotherwise. Marketing to kids is all about creating “creating “pester power”pester power”
  • 6.
    Psychology and MarketingPsychologyand Marketing With the help of psychologists, advertisersWith the help of psychologists, advertisers now have in-depth insight to children'snow have in-depth insight to children's developmental, emotional and socialdevelopmental, emotional and social needs at different ages. Using researchneeds at different ages. Using research that analyzes children's behaviour, fantasythat analyzes children's behaviour, fantasy lives, art work, and dreams, companieslives, art work, and dreams, companies are able to create sophisticated marketingare able to create sophisticated marketing techniques to reach the young.techniques to reach the young.
  • 7.
    Brand Name LoyaltyBrandName Loyalty Marketers plant seeds of brand recognition inMarketers plant seeds of brand recognition in children at very young ages in the hopes thatchildren at very young ages in the hopes that these seeds will grow into a lifetime relationship.these seeds will grow into a lifetime relationship. The Center for a New American Dream said,The Center for a New American Dream said, “babies as young as six months of age can form“babies as young as six months of age can form mental images of corporate logos and mascots.mental images of corporate logos and mascots. Brand loyalties can be established as early asBrand loyalties can be established as early as age two, and by the time children head off toage two, and by the time children head off to school most can recognize hundreds of brandschool most can recognize hundreds of brand logos.”logos.”
  • 8.
    Interesting QuoteInteresting Quote ""Brandmarketing must begin with children.Brand marketing must begin with children. Even if a child does not buy the productEven if a child does not buy the product and will not for many years... theand will not for many years... the marketing must begin in childhoodmarketing must begin in childhood."." James McNeal, The Kids Market, 1999James McNeal, The Kids Market, 1999
  • 9.
    ““Buzz MarketingBuzz Marketing"" Another technique marketers use is to findAnother technique marketers use is to find peers that kids look up to and have thempeers that kids look up to and have them use or wear their product in order to createuse or wear their product in order to create a hype around it. “a hype around it. “BuzzBuzz” can help a” can help a company to “company to “successfully connect with thesuccessfully connect with the savvy and elusive teen marketsavvy and elusive teen market” by using” by using these idols to give their products coolthese idols to give their products cool status.status.
  • 10.
    Marketing in SchoolsMarketingin Schools School used to be a haven for children,School used to be a haven for children, protecting them from the advertising andprotecting them from the advertising and consumer messages that are soconsumer messages that are so prominent in our society. Due to budgetprominent in our society. Due to budget cuts, school boards are beginning to allowcuts, school boards are beginning to allow corporations access to students incorporations access to students in exchange for money, computers, andexchange for money, computers, and educational materials.educational materials.
  • 11.
    Marketers ExploitsMarketers Exploits Sponsored educational materials. For example, a Kraft "healthySponsored educational materials. For example, a Kraft "healthy eating" kit to teach about America's Food Guide (using Krafteating" kit to teach about America's Food Guide (using Kraft products).products).  Supplying schools with technology in exchange for high companySupplying schools with technology in exchange for high company visibility.visibility.  Exclusive deals with fast food or soft drink companies to offer theirExclusive deals with fast food or soft drink companies to offer their products in a school or district.products in a school or district.  Advertising posted in classrooms, school buses, or on computers inAdvertising posted in classrooms, school buses, or on computers in exchange for funds.exchange for funds.  Contests and incentive programs. For example, the Pizza HutContests and incentive programs. For example, the Pizza Hut reading incentives program in which children receive certificates forreading incentives program in which children receive certificates for free pizza if they achieve a monthly reading goal. Or Campbell'sfree pizza if they achieve a monthly reading goal. Or Campbell's Labels for Education project, in which Campbell providesLabels for Education project, in which Campbell provides educational resources for schools in exchange for soup labelseducational resources for schools in exchange for soup labels collected by students.collected by students.
  • 12.
    Clip fromClip fromDaria - “Fizz Ed”Daria - “Fizz Ed” Ep.501Ep.501
  • 13.
    Marketers target Kidsfor AdultMarketers target Kids for Adult EntertainmentEntertainment Marketers are activly marketingMarketers are activly marketing entertainment meant for older audiencesentertainment meant for older audiences to children. In a report released in 2000,to children. In a report released in 2000, the U.S. Federal Trade Commission (FTC)the U.S. Federal Trade Commission (FTC) revealed how the movie, music and videorevealed how the movie, music and video games industries routinely market violentgames industries routinely market violent entertainment to young children.entertainment to young children.
  • 14.
    •MoviesMovies The FTC dida study on 44 films rated "Restricted,"The FTC did a study on 44 films rated "Restricted," and found that 80% were targeted to childrenand found that 80% were targeted to children under 17. Marketing plans included TVunder 17. Marketing plans included TV commercials run during hours when youngcommercials run during hours when young viewers were most likely to be watching. Oneviewers were most likely to be watching. One studio representative said the followingstudio representative said the following regarding a violent R-rated film, "regarding a violent R-rated film, "Our goal was toOur goal was to find the elusive teen target audience, and makefind the elusive teen target audience, and make sure that everyone between the ages of 12 andsure that everyone between the ages of 12 and 18 was exposed to the film18 was exposed to the film."."
  • 15.
    •MusicMusic CDs containing the"explicit-content" labelsCDs containing the "explicit-content" labels are being marketed to kids throughare being marketed to kids through extensive advertising in the most popularextensive advertising in the most popular teen venues on television, radio, in print,teen venues on television, radio, in print, and online.and online.
  • 16.
    •Video GamesVideo Games Morethan 2 out of 3 video game companiesMore than 2 out of 3 video game companies regularly market Mature rated games (17regularly market Mature rated games (17 years and older) to kids. Marketing plansyears and older) to kids. Marketing plans included advertising in media that wouldincluded advertising in media that would reach a large percentage of children underreach a large percentage of children under the age of 17.the age of 17.
  • 17.
    •ToysToys The FTC alsoreported that toys based onThe FTC also reported that toys based on characters from mature entertainment arecharacters from mature entertainment are frequently marketed to kids. Mature ratedfrequently marketed to kids. Mature rated video games are advertised in youthvideo games are advertised in youth magazines and toys based on Restrictedmagazines and toys based on Restricted movies and M-rated video games aremovies and M-rated video games are marketed to children as young as four.marketed to children as young as four.
  • 18.
    Interesting FactsInteresting Facts Channel One's twelve-minute in-classroom broadcast features 2Channel One's twelve-minute in-classroom broadcast features 2 minutes of commercials for every 10 minutes of news, is compulsoryminutes of commercials for every 10 minutes of news, is compulsory on 90% of the school days in 80% of the classrooms in 40% of U.S.on 90% of the school days in 80% of the classrooms in 40% of U.S. middle and high schools. Companies pay up to $195,000 for a 30-middle and high schools. Companies pay up to $195,000 for a 30- second ad, knowing that they have a captive audience of 8 millionsecond ad, knowing that they have a captive audience of 8 million students in 12,000 classrooms across the country.students in 12,000 classrooms across the country.  In the 1960's, children influenced about $5 billion of their parents'In the 1960's, children influenced about $5 billion of their parents' purchases. By 1984 that figure increased ten-fold to $50 billion. Bypurchases. By 1984 that figure increased ten-fold to $50 billion. By 1997 it had tripled to $188 billion. In 2000, children 12 and under1997 it had tripled to $188 billion. In 2000, children 12 and under influenced family purchases to the tune of $500 billion.influenced family purchases to the tune of $500 billion.  It's estimated the average child sees more than 20,000 commercialsIt's estimated the average child sees more than 20,000 commercials every year - that works out to at least 55 commercials per day.every year - that works out to at least 55 commercials per day.  47% of children have a television set in their bedroom.47% of children have a television set in their bedroom.  At three years of age, before they can read, one out of five AmericanAt three years of age, before they can read, one out of five American children are already making specific requests for brand-namechildren are already making specific requests for brand-name products.products.  Children who use the most media tend to be the least contented.Children who use the most media tend to be the least contented.

Editor's Notes

  • #3 Purchasing Power Influence parents buying Consumers of the future
  • #4 Increased from $100 million in 1990 to more than $2 billion in 2000
  • #5 Smaller family sizes Duel income families starting later Guilt spending
  • #6 Kids power over adults is called Pester Power
  • #7 Psychologists gave marketers insight into children at different ages Marketers now know what kids want and how to reach them
  • #8 Marketers are starting very young “babies as young as six months of age can form mental images of corporate logos and mascots. Brand loyalties can be established as early as age two, and by the time children head off to school most can recognize hundreds of brand logos.” –Center for a New American Dream
  • #9 "Brand marketing must begin with children. Even if a child does not buy the product and will not for many years... the marketing must begin in childhood."-James McNeal from Book “The Kid Market – Myths and Realities”
  • #10 Pop celebs market products to kids using cool status creating “buzz”
  • #11 Budget cuts have driven schools to marketers to find funds and educational materials
  • #12 Sponsors: Kraft’s food guide using Kraft products Marketing visibility for technology Soft drink companies give money for exclusive deals – Daria Intro Money for advertisements in classrooms, busses and computers Pizza Hut and Campbell contest and incentives to promote sales
  • #14 Marketing adult entertainment to kids
  • #15 FTC studied 44 films rated R and 80% targeting kids under 17 Marketed during kids TV primetime "Our goal was to find the elusive teen target audience, and make sure that everyone between the ages of 12 and 18 was exposed to the film.“ –Studio Rep said about R movie
  • #16 Explicit-content labels marketed through magazines, TV, radio, and online
  • #17 2/3 video game companies market M rated games to kids under 17
  • #18 Toys based on R movies and M games marketed to kids as young as 4