HOME > Promotional Marketing > Incentives > TEENS AND GIFT CARDS GO HAND IN HAND

Teens and Gift Cards Go Hand in Hand

By Jun 08, 2005

Teens are having a love affair with gift cards.

In fact, more than 93% of Americans of high-school age have received one or more gift cards during the last 12 months, according to a survey released last week and commissioned by Stored Value Systems Inc., a national gift card supplier and transaction processor.

The survey also found that 67% of teens have purchased a gift card and that the majority of respondents saw the cards as the first choice for a gift as opposed to a fall-back present. About two-thirds of the teens spend up to 10% of their disposable income on gifts.

“Teen gift card purchasing frequency is almost identical to what we found for adults in a similar study we conducted last fall,” said Bob Skiba, executive VP and general manager for Stored Value Systems in a statement. “However, teens receive gift cards at much, much higher levels. About one-fourth of adults say they have never received a gift card while only about 7% of teens have never received one. They’re obviously very popular gifts among this age group.”

Birthdays are the most popular gift-giving occasion for teens with $25 being the most desirable value. Music and apparel gift cards were the most popular retail categories with about 65% of purchases followed by electronics, books, restaurants, video rentals and movie theaters.

Other key findings of the survey include:

* 59% of teens use up gift cards on the first visit, in the first month.
* More than half leave an “insignificant” amount of value on a gift card unused (almost half leave a dollar or less).
* 77% like to give the cards because they know the recipient can get what he or she wants at a favorite store.
* More than 50% of respondents indicated that the appearance and having a choice of gift card designs was important in their purchase decision.
* 91% of boys and 95% of girls received at least one gift card during the last 12 months.

The survey was conducted online in March, 2005, involving 600 10th, 11th and 12th grade students.

For more coverage on research