Kids Insights
T
he latest research shows that children are entering the digital world from a younger and younger age. Kids today have almost limitless digital entertainment options, across TV, film, gaming, social media and YouTube, which over a third of four to nine year olds watch multiple times per day. The number of children who get a mobile phone earlier than average (i.e age four to nine), has increased by 35 per cent over the last 21 months, marking for a significant shift. Remarkably, one of the highest expenditures for kids each year is on new technology. Over the course of a year, children are spending £1.9bn on new technology. This includes consoles, smartphones, gadgets, and drones, among other technologies. We can also see that different device owners consume different content. We see how those children who own iPads are more likely to use them for watching clips and episodes, whereas Samsung tablet owners over-index for using the device to chat with their peers. Kids whose tablets are Amazon branded are 77.5 per cent more likely than the average to play games on their tablets. So you have to ask, how does this digitalisation impact their purchasing behaviour? Digital entertainment Our data shows that during the last six
months, children aged three to 12 spend 63.9 hours per year on digital entertainment - on the internet, social media and playing video games and apps. As a result, an increasing amount of time spent on digital devices demands an increasing number of platforms, channels and content. We can see how the kids' app market continues to grow at a significant rate. In fact, UK children are spending more than half a billion pounds on apps and in-app purchases (INXP) per year. So the opportunities and challenges are really powerful.. What we mean by INXP is IN EXperience Purchasing, where children actively purchase while either playing or interacting with an app or platform. Over the last 21 months, the number of kids who pay for apps (or make in-app purchases) has increased from 52 per cent to 60 per cent, which represents growth of over 15 per cent in a consistent trend over time. Over the same period, the number of kids spending at least £1 per month has increased by 71 per cent. Adopting the model We have seen how gaming apps have successfully adopted this microtransaction model. Many popular apps and games operate on a ‘freemium’ model, where players are encouraged to purchase additional in-game content and perks. Three to 12-year olds typically spend £3.68, whereas teens spend £3.99 per month.
KIDS INSIGHTS Kids Insights specialises in research and insights on kids and their ecosystems. We now survey more than 2,000 children every week, across three continents and seven countries, or more than 105,000 children a year. Our real-time portal is continually updated to allow our clients to spot the latest trends before their competitors. Our insight-led reports are produced by some of the top kids’ researchers and have seen us short-listed for several startup and innovation awards. To download a complimentary Kids Insights report please visit www. kidsinsights.com/toynews
Apps ownership choices also says a lot about a child, more than you could imagine. For example, kids age six to 12 who spend more than £5 on apps a month, are more than twice as likely to post selfies on social media than the average. They also over-index for reporting PopJam as their favourite social network, and Telegram as their favourite chat platform. It is not just numbers; it is a significant transformation of content and marketing approach that gives businesses the next wave of opportunities in the kids’ market. We’re offering brands an immersive planning meeting to illustrate how data and insights can help your business planning for 2020.
Graph. 1 Spend on Apps (3-12s, P2 2018 vs P2 2019 UK)
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