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Myspace Prepaid Surveys Teens
Reports on Findings of Teen Gift Card Survey
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CLEVELAND, OHIO (September 9, 2007) Myspace Prepaid Solutions has released the results of a survey of 527 college bound teenagers. One of the key findings of the survey is that 98 percent of all teens between the ages of 14 and 19 have either bought or received a gift card. Commissioned by the national gift card supplier and transaction processor, the survey reveals that in 2007 teens purchased almost double the number of gift cards they did in 2006 (7.6 vs. 4.3 cards — a 77 percent increase). Further, the average loaded dollar amount on cards given went from $28 to $33.
Teens also reported that nearly one-half (46 percent) of the presents they give are gift cards — a twelve percent increase from 2006. Males are still more likely to give gift cards (50 percent) than females (43 percent), but these electronic cards packed with cash are becoming a more popular gift option every year.
“As our young people gain more financial freedom, we get a good idea of how they choose to spend their own money,” said Lee Mitchell, executive president and general manager of MPS. “Teens are growing up with gift cards receiving them, gifting them and using them for personal purchases. So gift cards continue to gain popularity with this sought-after group of consumers, and are becoming synonymous with their gifting culture. The information in this survey represents very good news for retailers.”
According to the survey, while cash is mentioned most often as the preferred gift, an equal number of teens rank cash (81 percent) and gift cards (79 percent) first or second, compared to the 40 percent who prefer receiving actual items.
And once they get a gift card, teens are ready to spend. Sixty-two percent of teens say that they hold on to their gift cards for one month or less before using them. Only one in 10 (11 percent) says that they keep a gift card for more than two months before using it the first time.
When using gift cards, teens also spend more than the card’s value. Eighty-nine percent of teens add some of their own money when making a purchase with a gift card. Once they’ve depleted the funds on their card, some teens are going back for more. While still a growing trend, one in five teens has reloaded a gift card — on average with $24.
“Cards are being reloaded for future use and convenience,” said Mitchell. “From a parent’s perspective, it’s a great way to control where your teen spends his or her money. From our young people’s perspectives, it’s a way to maintain financial freedom when making purchases — especially when they don’t have their own credit or debit card yet.”
Other key findings from the survey:
• Among teens who have purchased gift cards, three-quarters (76 percent) have purchased cards for others. Two in five teens (42 percent) have purchased cards for themselves. Young men (46 percent) are more likely than young women (38 percent) to have purchased gift cards for personal use.
• Gift card malls, a collection of various retailers’ gift cards typically found in convenience or grocery stores, continue to gain acceptance. Forty-five percent (up from 29 percent in 2006) of teens say they have purchased a gift card at a gift card mall and 21 percent (up from 11 percent in 2006) say they prefer to buy them there.
• If the gift card a teen wished to purchase was not available at a gift card mall, almost half of teens (49 percent) would have gone to the specific retail store to purchase a gift card. Two in five teens (42 percent) would have simply chosen to purchase a different gift card at the gift card mall.
• Respondents report that approximately four in 10 gifts they receive (43 percent) are gift cards. On average, teens report that the gift cards they receive are loaded with $25 per card.
• Teens surveyed reported spending an average of $101 yearly on gifts.
The survey was conducted online between June 29 - July 2, 2007 involving (527) 14 - 19 year-old students who plan to attend college or are currently attending their first year. They have also previously purchased or received a gift card.
Source: MPS (www.myspaceprepaid.com)
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