Gift Cards Gain Popularity

A new survey indicates sharply higher popularity for gift cards. According to the survey, an estimated 97 million Americans, or 45% of the adult population, bought a gift card in the last 12 months, twice the number who bought one in 2002. The 2003 survey, which was conducted in August by TNS Intersearch's Financial Services Group, embraced 1,023 adults aged 18 and older, and follows one conducted in August 2002. The annual surveys are commissioned by ValueLink, the gift-card unit of First Data Corp., Denver. Other results showed that 92% of respondents are aware of the cards, up 13%. Some 60% said they bought or received a card in the past year, up 22%. The average number of cards purchased is 5.6 per year, an increase of one card, and respondents say they plan to buy an average of six cards next year. The average spend on the cards in the past year is $197, but consumers aged 45 to 54 averaged $235, and those aged 55 to 64 average $241. Further, 42% of users now reload their cards, more than twice the 20% reload rate in 2001, while 56% of the respondents said they spend more than the initial value on the cards.