NEW YORK, Aug 16, 2005 (BUSINESS WIRE) -- Bluto and the poor animals of Delta House have never seemed so "yesterday". The 3rd annual Alloy College Explorer Study, powered by Harris Interactive(R), reveals that the U.S. college student market (ages 18-30, from two-year and four-year colleges, attending part-or full-time) has evolved into one of America's most sophisticated and hard working. The number of students employed has reached a powerful 78 percent, generating substantial levels of income and marking significant increases in discretionary spend. With enrollments at an all time high(1), the result is a booming college student marketplace representing over $175 billion in consumer spending(2).

According to the study, the college market has expanded this year in nearly every market metric, gaining in aggregate size, spending power, and discretionary income. Overall spending among college students has increased almost 16 percent since the last study and discretionary spending has soared to a record $41 billion - a whopping 24 percent over 2003's numbers. Overall 16.5 million students head back to campus, up four percent over last year and representing the largest college class in history and fully 78 percent of those students will hold a job.

"This year's study reinforces the recent trend towards wealth and influence in today's college population," commented Samantha Skey, SVP, Alloy Media + Marketing. "On the other hand, they are among the savviest of consumers and a group becoming increasingly distracted and harder to captivate."

Gotta Have It

The study paints the picture of a buzzing college campus, populated by tech-savvy consumers with a strong work ethic, who purchase cutting edge products early and integrate them seamlessly within their lives.

About one of every six college students (15%) considers themselves an early adopter of electronic devices and gadgets. For males, the number approaches one in four (24%). The penetration of some consumer electronics, like cell phones, is widespread (85% of students own one), and the models they use tend to have more bells and whistles: Of those that own a cell phone; three-quarters send and receive text messages and nearly two-thirds (63%) play games. Sixty percent can access the Internet through their phone, and 36 percent can take, send, and receive pictures. Personalization rates highly, with almost 50 percent of students who own a cell phone reporting they've downloaded ring tones.

The survey suggests that the trend shows no signs of slowing. One in five college students plan to buy a digital camera in the coming year, and 17 percent an MP3 player. The vast majority (63%), including nearly three out of four African American and Hispanic college students, plans to make a technology purchase.

"College students' appetite for information and immediacy show no signs of slowing down. This year's study reveals a population more empowered than ever with the range of technologies available, easily integrating these tools into their active lifestyles, said John Geraci, VP of Youth and Education Research, Harris Interactive. "For today's college student, rapidly expanding technology has not only created a "must-have" and immediate gratification mindset, but has truly become essential in navigating both their social and academic obligations."

Give it Back

The study reveals important data on preferences, including the types of products students prefer to buy and the marketing content they prefer to see, and disparities across ethnic and gender lines.

Not surprisingly, today's college students are still looking for a good deal - 80 percent of students report a preference for buying brands that are on sale - but their preferences weigh heavily towards socially conscious brands. Though not all students may be directly involved in these activities, many are conscientious consumers, contributing to important causes through brand preference. Thirty-one percent say they prefer brands that are environmentally safe, 26 percent prefer brands that give back to the community and 20 percent prefer brands connected with a cause. A quarter (26%) are willing to pay more for a brand with a great image.

Humor Wins

With so many brands signing top-dollar celebrities to hawk their products, it may be surprising to learn that college students claim that they would rather see real people in ads. Only four percent of students feel advertisers should use celebrities to promote their products, whereas 36 percent think advertisers should use everyday people in ads and just as many say "make me laugh", with 35 percent thinking advertisers should use humor in their ads.

With advertising messages from real people demonstrating greater appeal for this consumer, it makes sense that the trend towards peer influence is gaining as well. Though television advertising continues to have an impact, its influence is fading. Fully 91 percent of students say they pay attention to the more nontraditional advertising method of word of mouth, with almost 70 percent of students who pay attention to ads saying that this most influences their purchasing decisions. Nearly half (48%) of college students consider sampling a product to be most influential to purchasing decisions.

Minority Report

While the use of personal digital technology has permeated all college demographics, minorities tend to be the leaders and influencers, and they might be even more difficult to target via traditional media. Cell phone technology usage patterns are particularly compelling, where African Americans lead virtually every category over Caucasians and Hispanics, logging a greater percentage of text messages, games, pictures, and web surfing hours, and downloading more ring tones, files, and news to their phone.

But while they represent a tech savvy and influential minority, the African American college consumer is also a faster moving target, with fully 93 percent claiming to "multi-task while watching television".

Disparity among ethnic groups reaches to numerous behaviors and categories. Given their proclivity with phones it might not be a surprise that African Americans spend on average 25 percent more than Caucasians on phone service per month (including service for both landline phone and cell phone). Beyond communications and technology, Hispanics spend the most on entertainment at $40/month on average, 54 percent more than African American's and just slightly more than Caucasians. African American's spend 50 percent more on average than Caucasians on clothing and shoes, and 20 percent more on personal care products.

"The College Explorer offers vital information, revealing a shift against what many marketers consider "traditional" methods to reach this demographic," commented Skey. "The level of wealth across today's college student population is impressive. More than ever, this is the launching platform for smart marketers looking to generate life-long relationships with young, "high value" consumers."

About the Alloy College Explorer(TM) powered by Harris Interactive

The study is fielded using cutting-edge sampling and weighting techniques created by Harris Interactive methodologists. Harris Interactive is a pioneer in developing strategies to conduct projectable survey research using online samples. The Harris Interactive online panel consists of millions of cooperative respondents from more than one hundred countries. Potential respondents are drawn at random within targeted age and gender quotas from the panel and are invited by email to complete a survey.

Quota Targets: Quota targets are set using information from the National Center for Education Statistics (NCES). NCES populations for types of students (full-time/part-time, 2-year/4-year, undergraduate/graduate) as well as demographic information from the U.S. census were used as weighting targets. The result is data that are projectable to the 18-30 year old college student market. The questionnaire was developed jointly by Alloy Media + Marketing and Harris Interactive. The core study contains the following topic areas: Discretionary Spending Levels, Sources of Income, and Financing Education. In addition, specific category modules were included in the Spring 2005 wave: Brand Loyalty/Preferences, Media Consumption, Attitudes About Marketing/Advertising, Technology and Wireless, Online Behavior, Vacation/Travel, and Outlook for the Future.

Methodology

This most recent wave was conducted online between April 21 and May 2, 2005 among 1,638 U.S. college students aged 18 to 30. Figures for age, sex, race/ethnicity, region, school status (full-time, part-time, 4-yr., 2-yr.) were weighted to bring them into line with their overall proportions in the population. Though this online sample is not a probability sample, in theory with probability samples of this size, one could say with 95 percent certainty that the overall results have a sampling error or plus or minus 3 percentage points of what they would be if the entire U.S. population of college students aged 18-30 had been polled with complete accuracy. Sampling error for the results of the following sub-samples of college students aged 18-30: Caucasians (830), African Americans (305), Hispanics (356), males (702), and those who own a cell phone (708) is higher and varies.

About Alloy Media + Marketing

Alloy Media + Marketing is one of the country's largest providers of non-traditional targeted media and promotional marketing programs reaching over 85% of the Millennial audience (ages 5-29) daily. With large-scale networks, unique and exclusive media and promotional partnerships, and offices located in major markets across the country, Alloy Media + Marketing services over 1500 companies including half of the Fortune 200. Alloy Media + Marketing ranks fifth on the Advertising Age list of Top 100 Marketing Services Agencies and ranks among the World's Top 25 Ad Organizations.

Alloy Media + Marketing is part of Alloy, Inc. (Nasdaq: ALOY). For further information regarding Alloy Media + Marketing, please visit our web site at www.alloymarketing.com.

(1)Digest of Education Statistics, 2003. National Center for Education Statistics.

(2)Calculation based on survey findings among 18-30 year old students projected to the entire universe of 16.5 million college students as determined by the National Center for Education Statistics (2003).

SOURCE: Alloy Media + Marketing

Alloy Media + Marketing
Jodi Smith, 212-329-8359
jsmith@alloymarketing.com
or
Harris Interactive
Nancy Wong, 585-214-7316