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May 2006

News & Media

Study Suggests to Go Online to Get Teen Customers in Stores 
May 17, 2006 

ENCINO, CA – A Forrester Research study suggests that if retail marketers want to capture the loyalty of teen shoppers, they better start getting more hip to what's going on in cyberspace, reports E-Commerce Times.

"The 73 million people under the age of 18 in the U.S. represent one thing to marketers and sellers: the next generation of spenders," Carrie A. Johnson, an analyst at the Boston-based Forrester research firm wrote in the report, adding, "But those marketers are more 'American Bandstand' than 'American Idol,' making it hard to understand this connected, gadget-grabbing group."

The study notes that teens "are always online" surfing the Internet and communicating to their peers, suggesting that online behavior of older teens "illustrates that this is a generation that has hardly known life without the Web."

So what exactly are teens buying off the Internet? According to Forrester, they are spending money on computer hardware, software, music, DVDs and books. Only a small percentage of teens are using Internet retail sites to purchase clothing and accessories, linens, home décor and footwear, notes the news source.

Marketing to teens presents its own unique challenge, as it also requires an understanding of "the wired word."

"Just as teens bring along friends to the mall, they find ways to incorporate their friends into online research," notes the report. "They use tools like 'e-mail a friend' links on retail sites, wish lists and IM when shopping to get purchasing help from friends … The majority of all teens also seek out social content and shopping tools like consumer ratings on Shopzilla and Shopping.com and reviews and peer-to-peer sales channels like eBay and Craigslist."

Teens are also search engine savvy. According to Vikram Sehgal, research director at JupiterResearch in New York City, most teens are likely to use search engines while spending time online. Therefore, "search engine marketing would be a very effective tool in reaching this age group."

The report also suggests that older teens are more likely than younger teens to rely on the Internet to purchase products offline by finding what they want through search engines such as Google.

"With its search ubiquity, local tools and integrated maps, Google captures the majority of local product search with both [older and younger teen] groups," notes the report, adding, "Here once again young consumers show their general disinterest in traditional media … They're three times more likely to use Google to find local businesses than online yellow pages from a phone company."

Marketing to teens also requires knowledge of what annoys them, such as pop-up advertisements, which most teens are "especially adept" at avoiding through pop-up blocking tools. Therefore, marketers have to be more creative in their delivery methods.

The study suggests that promotions that do work for teens are "advergames," instant-win games, online coupons, streaming video ads and cell phone promotions, notes the news source.

"Mobile phones are one of the most effective marketing vehicles for teenagers," Deborah Patton, vice president for corporate communications at New York City-based VNU Business Media told the news source.

Forrester's study also dismissed the notion that most teens are fickle shoppers and are not loyal to any single brand or retail store.

"Although they admit to shopping around before making a purchase, more than half of both younger and older teens agree that when they find a brand they like, they stick with it," notes the report, which, according to Patton, is true--but up to a certain point.

"You can develop their loyalty, if you get in quickly enough, for long term things--household products and stuff like that …But in the trendy stuff, they're not that loyal."