Life-Stage Segmentation Profiles

Portrait of the Lower-Income Youth

Overview

Representing five percent of the population, the Lower-Income Youth (LIY) are under 45 years old, have no children in the house, and a household income less than $30,000. Most of them are single, about half attended college, and 29 percent live in a single family dwelling.

Fifty-nine percent are Caucasian, 16 percent Hispanic, 17 percent Black (African/American) and two percent Asian. Twenty-seven percent are multilingual.

Newspaper Readership & Newspaper Web site

In a media battle for today’s young consumer, the LIY remain elusive. They turn to television and to radio. Among them is found the lowest percentage of newspaper readers and the lowest percentage of people who feel a need to get the news every day. When they do read the newspaper, they spend less time with it than other groups.

They are more likely to be single copy buyers than subscribers. On Sundays, the LIY are more likely to read pass-along copies of the paper than any other group. When they purchase it, news and articles are more frequently the reasons than advertising.

When those who read the newspaper were asked if they had a favorite newspaper section, the response was 1) Sports 2) Comics 3) Local News 4) Entertainment 5) Food/Home. As with most of the people surveyed, the LIY check local sales, read cartoons, clip coupons, check movie listings and check sports scores.

Seventy-nine percent said that reading the newspaper helps to know more about their community, but only 62 percent agreed with the statement, “I enjoy reading newspapers.”

Among non-newspaper readers in the LIY group, about one in five use newspapers to check for local sales and to compare prices.

As a group, they are not heavy users of the newspaper Web site, even among those who read the print product. Though sports is their favorite in-paper section, it is not a leading reason for visiting the Web site. News, weather and movie listings bring more than twice as many to the Web site as sports. Autos, jobs and homes are also important drivers to the newspaper Web site.

Internet & Technology Adoption

By 2005, only 39 percent of the LIY used the Internet in the past 30 days, lower than the 53 percent average and the lowest use among the Young segments. Once online, they spend less time than the average user and have a lower use of broadband. Their wireless/mobile use is about average.

Their use of the Internet for news and information such as politics, weather, and news is generally lower than the other households in Young segments, but still higher than other lower-income groups (Families and Mature). When they turn to the Internet for local news and information, about half turn first to either Yahoo or Google, their use of these two sites about evenly split. Next they turn to the TV station Web site, and the newspaper Web site comes in fourth.

For entertainment needs, the LIY who use the Internet looked for movie show times, viewed reviews/trailers, downloaded music/podcasts and visited online games/fantasy sports. For these activities they turn first to Yahoo and are the highest Yahoo users among the lifestage groups. Fewer than one in ten turned to the newspaper Web site to fulfill their need for entertainment information.

In general, they are lower than average in ownership of tech gadgets and equipment (DVD, computer, digital or video camera, game systems, iPods, etc).

Shopping

The Lower-Income Young like shopping more than other groups. You’ll find them shopping on Saturdays. They are increasingly shopping more at discount/general merchandise stores and on the Internet. About half say they are shopping less at department stores and drug stores. They are twice as likely to be Wal-Mart shoppers as Target shoppers.

In their online research and shopping they turn to Google, EBay and Amazon but are the lowest of all groups in their online spending.

Advertising

Newspaper was the dominant source for advertising for the Lower-Income Young. It is the medium to which they turn to check ads and to plan their shopping. It is also the most valuable medium in bringing attention to sales. About half say the newspaper is most valuable in planning shopping, and only 15 percent feel that way about the Internet.

When it comes to the media that is most up-to-date for sales, however, 33 percent chose the Internet. Newspapers came in at 38 percent and television at 21 percent. Forty-eight percent believe the Internet is helpful for large purchases, while only 24 percent chose the newspaper.

LIY use the Internet for shopping information from computer stores and cell phone stores, but selected the newspaper for most categories, including home electronics, appliances, office supplies and discount stores.

Nineteen percent said they look at more advertising inserts now than they did a few years ago, and 40 percent keep the Sunday inserts 4-7 days. A strong majority regularly check for inserts from grocers, department stores and home electronics stores.

Recommendations

While the study reveals no specific tactics for reaching the Lower-Income Youth, they are an audience that could reap rewards for a newspaper. Developing successful strategies and continued loyalty with this group provides advertisers with the sought-after “under-45” crowd, and builds relationship with the people likely to be the Family segments in coming years.

Strategies to consider are promotions of the advertising most important to this group; cross-channel advertising to drive traffic between the online and print products; and (given the fact that this group like shopping) content developed to help them get more from their shopping experience.

Another strategy is to increase the value of the Web site through blogs, entertainment news, and entertainment information. The LIY’s use of the newspaper Web site for classified information could open opportunities if a strategy were devised that focused on jobs, homes and autos targeted to the particular needs of these people.

Return to Life-Stage Segment Profiles

Other Reports on this Topic:

Ethnic/Income Segmentation

Life-Stage Segmentation

For more information, contact Randy Bennett, NAA vice president, audience and new business development, at randy.bennett@naa.org.

© December 2007 NAA