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Gurus in the teen universe build a track record by gauging where the market is going By Dan Lippe
EVEN IF EVERY TEEN IN the U.S. got an allowance of just sio a week, their annual spending power would approach $100 billion. And obviously they wield a lot more buying power than that.
Teenage Research Unlimited, which conducts semiannual national studies on teen trends and attitudes, says teen-agers spent $155 billion in 2000, up i.3 from the previous year. VP Michael Wood says TRU hasn't seen indications of a slowdown in teen spending so far this year, but "understanding that the No. i source of income for teens is their parents, if their parents are tightening up a bit, you can bet there will be some trickle-- down effect and teens will feel that. I don't think it's necessarily going to discourage them from spending. They'll just find alternatives for income," such as working entry-level jobs.
The deep-pocketed Gen Y-ers are under the microscopes of a veritable army of teen-watchers at agencies and other marketing companies. Advertising Age Special Reports posed a set of marketing-- related questions to five experts:
* Julie Halpin, CEO and cofounder of Geppetto Group, New York, a WPP Group agency that specializes in marketing to young people.
E Dan Pelson, CEO of Bolt, New York, a Web and wireless communications platform for 15-- to-24-year-olds, with 4 million members.
* Cliff Sloan, founder and chief creative officer of Sloan Group, New York, a marketing agency whose specialties include the youth and entertainment markets.
* Dave Rosenberg, VP-strategic planning at GMR Marketing, New Berlin, Wis., an event marketing agency owned by Omnicom Group.
* Howard Alport, co-founder and principal at Lipson Alport Glass & Associates, Northbrook, Ill., a design and brand marketing consultancy.
Below are their edited responses:
Advertising Age: Teen spending has been pegged at siy billion in 2000. How would you characterize Gen Y spending power?
Ms. Halpin: Teens not only have more income than ever before, they have a greater percentage of disposable income than almost any other demographic... after all, how many adults could say the money they spend is all discretionary? As teens' life-stage task is to sort through all kinds of identity issues, the money...