We discussed our latest study on INXP trend in October issue of Toy News magazine.
The latest research shows that children are entering the digital world from a younger and younger age. Children have almost limitless digital entertainment options, across TV, film, gaming, social media and YouTube, which over a third of 4-9s watch multiple times per day.
The number of children who get a mobile phone earlier than average (i.e age 4-9), has increased by 35% over the last 21 months, marking a significant shift.
Remarkably, one of the highest expenditures for kids each year is on new technology. Over the course of a year, kids are spending £1.9bn on new technology. This includes consoles, smartphones, gadgets, and drones, among other techs.
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. Kids whose tablets are Amazon branded, are 77.5% more likely than the average to play games on their tablets.
So how does this digitalisation impact their purchasing behaviour?
Our data shows that during the last 6 months, children aged 3-12 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, and with 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 whilst 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% to 60% which represent growth of over 15% in a consistent trend over time. Over the same period, the number of kids spending at least £1 per month has increased by 71%.
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. 3-12-year olds typically spend £3.68, whereas teens spend £3.99 per month.
Apps ownership choices also says a lot about a child, more than you could imagine. For example, kids age 6-12 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.
To know more about the next generation of consumers, download a complimentary Kids Insights report below: