American Kids Shout, 'I Want to Be a Millionaire!' and Stress Importance of Having Lots of Money.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 19, 2004

Today's Kids Earn Their Money, Are Technologically Savvy Mobile Phone Users, According to TNS Online Kids Report

Sixty-six percent of kids in the U.S. believe that it is "important to have loads of money when you are an adult," reports a new international online study of kids ages six to 14 released today by TNS, a leading global provider of market information. The study concludes that most kids worry about not having enough money to do/get the things they want, yet 46 percent think they will earn a million dollars at some point in their lives.

The research reveals several interesting points about kids in the U.S. and money, including:

-- Starting at age seven, having money is relatively important to

boys, with 74 percent of boys from ages seven to nine and 71

percent of boys ages 10 to 14 placing significance on having

money;

-- In contrast, this is the case for only 65 percent of girls

ages seven to nine, while this number increases to 75 percent

for girls ages 10 to 14 who place significance on having

money;

-- Only 25 percent of kids in the U.S. are given pocket money.

Most kids in the U.S. say they earn spending money by doing

household chores such as cleaning the house, cooking meals,

ironing or tidying their room;

-- 22 percent of American kids ages six to 14 say they do not get

any money;

-- Kids in the U.S. spend most of their money on games (63

percent of all U.S. kids), clothes (31 percent) and CDs (27

percent).*

"Kids in the U.S. put a heavy emphasis on buying entertainment items and apparel, and for the most part, do some type of work for their money," says Keith Holzmueller, Vice President, Research Insights Group, TNS NFO. "When marketing to kids, advertisers need to understand what kids spend their money on, how much they have to spend, and that when shopping with parents, kids are often allowed to make choices for themselves, increasing their overall spending power."

American kids' spending power is a force to be reckoned with, concludes the study, and when marketers break down spending choices by gender and age, some interesting contrasts are revealed. For example, 82 percent of boys from ages seven to nine spend their money on games, compared with only 43 percent of girls in that age group. This ratio holds fairly steady, as kids get older, with 79 percent of boys from ages 10-14 responding that they spend their money on games, compared with 42 percent of girls in that age group.

Additionally, more American kids, especially girls, spend money on CDs as they get older. Thirty one percent of girls from ages 10-14 said that they buy CDs with their money, a sharp increase from 22 percent of girls age seven to nine. Girls at this age also favor books as well as CDs. On the other hand, 15 percent of boys age 10-14 are drawn towards CDs, and as they mature this number only jumps slightly. Only 11 percent of boys age seven to nine put CDs high on their purchase list.

Marketers are taking advantage of U.S. kids' interest in entertainment. Last year, $508 million was spent on advertising in pre-teen magazines and on kids' television programs, according to TNS Media Intelligence/CMR, the advertising and marketing information unit of TNS. Of the $85.2 million that was spent on advertising in kids' magazines, 52.7 percent came from the entertainment category, which includes games, toys and movies. Additionally, 53.7 percent of advertising spending during the two highest-rated kids programs on network or cable TV came from the entertainment category.

Not surprisingly, girls spend much more money on clothes than boys. Twenty-four percent of girls ages seven to nine spend their money on clothes, compared with only three percent of boys in that age group. These numbers significantly increase with older kids, with 58 percent of girls ages 10-14 spending their money on clothes, compared with 24 percent of boys in that age group. Surprisingly, the apparel/shoe category only made up 3.1 percent of the advertising spending in kids' magazines, and a mere 0.5 percent of advertising spending during the top two rated kids' TV programs. These results highlight the untapped potential for apparel makers to reach out to kids even more, especially with the research showing that apparel is one of the primary categories of kids' spending.

Additionally, food manufacturers and restaurant chains are taking good advantage of kids' spending power. Thirty-six percent of U.S. kids claim that when they go shopping with their parents, they are allowed to choose their own food. In 2003, the food category accounted for the second-highest level of advertising spending in kids' magazines, at 26.7 percent, and in the top two kids' TV programs, with 38.8 percent.

Global Marketing Implications

Several key findings illustrate significant differences between kids in the U.S. and kids in the surveyed European countries: France, Germany, Holland, Italy, Sweden and the U.K. Brand marketers at global companies will need to make an effort to address these issues in their multi-national campaigns by ensuring that kids are not treated as a homogenous group. For example, while 55 percent of all kids surveyed receive pocket money, only 25 percent of kids in the U.S. receive it versus 59 percent in the surveyed European countries. U.S. kids show a stronger tendency to "earn" their money while kids in Germany show the opposite extreme (81 percent of German kids receive pocket money, while only 14 percent help to clean the house to earn money). Additionally, across all spending categories except games, the effective spending power of kids in the U.S. is lower than the average in European countries.

U.S. Kids and Mobile Phones**

From shopping to working for their money, today's kids are often on the go. To keep them connected to friends and family the mobile phone has increasingly become the "must have" item. However, while half of the kids surveyed by TNS in Europe and the U.S. combined claim to have their own mobile phone, only 29 percent of U.S. kids reported having one versus 48 percent in Europe.

The report findings demonstrate that when American kids make spending choices, entertainment rules - and to further support that claim, 41 percent of mobile phone-toting U.S. kids report that they download games, a statistic that is far higher than anywhere in Europe. Thirty-eight percent use mobile phones to download ring tones and 34 percent use their phones to take pictures, demonstrating the high technological savvy of American kids with mobile phones.

Additionally, 73 percent of U.S. kids who own a mobile phone responded that having a mobile phone makes them feel safe - especially those in the 10-14 year-old range, including 83 percent of boys and 81 percent of girls - and 60 percent of all U.S. kids use their mobile phones to call friends, 59 percent to call family.

According to Emil Morales, Senior Vice President, Director, TNS Telecom Sector: "We've seen wireless really take hold over the past year, and as it becomes more ubiquitous, so do 'friends and family' plans offered by wireless carriers. These plans appeal to the family as a whole, as they are good ways to save money while ensuring kids have an additional means of communicating with their parents, and feeling/staying safe."

This study on money, spending habits and mobile phones is the first part of an overall study on kids' behavior conducted by TNS in late 2003. Also issued today are the study results on kids and health, stress and exercise.

About The TNS Online Kids Report

The TNS Online Kids (OK) Report is based on research that took place at the end of 2003. 20,162 kids from ages six through 14 were surveyed from seven different countries - France, Germany, Holland, Italy, Sweden, UK and the U.S. Respondents in the U.S. account for 660 kids. Each was asked questions about money, health, and mobile phones. TNS OK is an international platform that provides instant access to millions of kids in a safe and ethical environment. Participation in research requires parental consent and registration and the service adheres to strict international privacy guidelines.

About TNS

TNS is a leading global provider of market information. The company collects, analyzes and interprets information to help its clients better understand the needs and wants of their customers. TNS provides research, advice and insight on market segmentation, advertising and communications, new product development, brand performance and stakeholder management. The company is also one of the leading providers of social and political polling.

From its global network, which spans 70 countries, TNS provides local expertise and knowledge, together with internationally consistent information and analysis to multi-national organizations.

TNS is listed on the London Stock Exchange (TNN). Further information can be found on http://www.tns-global.com.

*Editor's Note 1:

U.S. Kids Ages 6 - 14 Spend Their Money On:

---------------------------------------------------------
          Item                        Boys   Girls  Total
---------------------------------------------------------
         Games                         76%    48%     63%
---------------------------------------------------------
         Sweets                        22%    26%     24%
---------------------------------------------------------
    Magazines/Comics                   20%    20%     20%
---------------------------------------------------------
        Clothes                        21%    42%     31%
---------------------------------------------------------
         Shoes                         17%    22%     19%
---------------------------------------------------------
          CDs                          23%    32%     27%
---------------------------------------------------------
         Books                         23%    27%     25%
---------------------------------------------------------


**Editor's Note 2:

Usage by Kids U.S. Kids Ages 6 - 14 Who Own Mobile Phones:

--------------------------------------------------------
        Activity            Boys      Girls     Total
--------------------------------------------------------
Call Friends                     58%       61%       60%
--------------------------------------------------------
Call Parents                     61%       57%       59%
--------------------------------------------------------
Text Message Friends             31%       40%       36%
--------------------------------------------------------
Text Message Parents             28%       31%       30%
--------------------------------------------------------
Text/Call TV Shows or
 Competitions                    28%       31%       30%
--------------------------------------------------------
Download Games                   44%       39%       41%
--------------------------------------------------------
Download Ring Tones              33%       42%       38%
--------------------------------------------------------
Download Pictures                27%       33%       30%
--------------------------------------------------------
Take Photos                      31%       36%       34%
--------------------------------------------------------
Use Internet                     32%       43%       38%
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