ISSUE 4 OCTOBER 2007 OCTOBER FOCUS: FINANCIAL INSTITUTIONS Whether it is a bank, a credit union, an investment firm, or a credit card company, financial institutions have one major thing in common: they all want to tap into the middle school, high school and college sector and capture their share of the gold mine that these up and coming customers represent. When it comes to attracting young consumers, the stakes are immense and financial institutions are willing to spend big money promotionally to edge out the competition. According to a study by Louisiana State University and Glenrich Business Studies, financial institutions are the second biggest purchasers of promotional products in the country, accounting for nearly 10 percent of the entire amount spent on promotions. In money terms, this equates to a staggering $1.8 billion dollars annually – which means huge opportunities for distributors with products that appeal to the teen and young adult sector. And nothing has been proven more effective than music downloads and cell phone entertainment. Instant access and personalization are critical to today's youth, and digital entertainment answers the call. With nearly two million songs and thousands of ringtones, images and games to choose from, our music download and cell phone entertainment promotions enable youth to select the content that reflects their tastes and personalities. What's more, because they are delivered virtually via the Internet, our digital content promotions give students the instant gratification they demand, while providing financial institutions with a powerful interactive marketing tool that enables them to communicate with prospective customers, drive Web traffic and capture valuable information for ongoing marketing efforts. CREDIT UNIONS TARGET YOUTH TO COMBAT AGING MEMBERSHIP Credit Unions are in a race against time to attract and retain youth. A recent study by the Credit Union National Association (CUNA) found that the average age of today’s credit union member is 47 year old, up from 40 years old in 1985. To combat its aging member population, credit unions are scrambling for ways to reach out to youth of all ages – starting with the under-12 age group all the way up to college students. At a recent conference, credit union leaders voiced their concerns and their need for savvy marketing tools that could help them connect with the youth sector. The conclusion: Give credit unions a promotion that motivates youth to act, and they will listen. NEWS YOU CAN USE: CHILDREN AND TEEN INTERNET USE SOARS Financial institutions have already discovered the importance of the Internet in growing and streamlining businesses. As an industry, it ranks at the top for incorporating the Internet into their business strategies. Now the financial institution sector might want to consider using the same virtual medium to connect with the youth sector it is working so hard to target. According to estimates by eMarketer, 41.5% of children ages 3 to 11 will use the Internet at least once a month in 2007. Among teens, eMarketer estimates 76.4% will go online at least once a month in 2007, rising to 87.1% by 2011. Overall, eMarketer says children and teens make up 18.2% of all US Internet users and predicts that by 2011, 53% of children in the U.S. will be “going virtual.” Because much of their Internet activity is spent exploring entertaining social networking sites, Debra Aho Williamson, eMarketer senior analyst and author of the new report, Kids and Teens: Virtual Worlds Open New Universe, says businesses interested in marketing to youth may need to rethink their strategies in order to stay effective. "They (youth) are growing up not only with social networking but also with the ability to interact with people, shop, learn and play in a graphic environment," notes Williamson. "Flat Web pages with clickable links and banner ads may pale in comparison."		WE'RE COMING Featured below are the events we will be exhibiting at over the next couple of months. The SAAGNY Fall Show - Meadowlands Exposition Center Secaucus, NJ 10/10 Stop, Learn, Win! All attendees who stop at the CFS booth will receive a music download card with a chance to win 1000 FREE songs.