Introduction
A study published by the Harvard School of Public Health found that social media companies generated over $11 billion in advertising in the United States last year from minors. The researchers point out that these results highlight the need for government regulation of social media, as companies benefiting from the use of children on their platforms have failed to self-regulate effectively. The researchers note that such regulations, alongside increased transparency from tech companies, could help mitigate the harm to youth mental health and reduce harmful advertising practices targeting children and teenagers.
Estimation of Advertising Revenues
To arrive at the final revenue figure, the researchers estimated the number of users under 18 years old on Facebook, Instagram, Snapchat, TikTok, Twitter, and YouTube in 2022 based on population data from the U.S. Census and survey data from Common Sense Media and Pew Research. They then used data from the research firm eMarketer, now known as Insider Intelligence, and the parental control app Qustodio to estimate advertising revenues in the United States for each platform in 2022 and the time children spend on each platform daily. After that, the researchers stated that they built a simulation model using the data to estimate the advertising revenues generated by the platforms from minors in the United States.
The Negative Impact on Children’s Mental Health
Researchers and policymakers have long focused on the negative effects stemming from social media platforms, as their specifically designed algorithms can drive children towards excessive use. This year, states like New York and Utah introduced legislation to curb social media use among children, citing the harm to youth mental health and other concerns.
The Need for Government Regulation
Brin Austin, a professor in the Department of Social and Behavioral Sciences at Harvard University and a lead author of the study, said, “Although social media platforms may claim they can regulate their practices to reduce harm to youth, they have not done so yet, and our study suggests they have overwhelming financial incentives to continue delaying serious steps to protect children.”
Targeted Advertising to Children
Social media platforms are not the first to advertise to children, and parents and experts have long expressed concerns about marketing to children online, on television, and even in schools. However, online advertising can be particularly insidious because it can be targeted at children and because the line between ads and content that children are seeking is often blurred.
The Impact of Advertising on Children
In a policy paper released by the American Academy of Pediatrics in 2020, it stated that children “are uniquely susceptible to the effects of advertising due to underdeveloped critical thinking skills and impulse control.” The paper noted that “school-aged children and adolescents may be able to recognize advertisements but often cannot resist them when they are embedded within trusted social networks or when encouraged by popular influencers or when presented alongside content tailored to them.”
Proposed Changes
With growing concern about social media and children’s mental health, the Federal Trade Commission proposed this month radical changes to an outdated law governing how companies track users online and advertise to children. The proposed changes include stopping targeted advertising to children under 13 by default and limiting push notifications.
Advertising Revenues
According to the study conducted at Harvard University, YouTube generated the highest advertising revenue from users under the age of 12 ($959.1 million), followed by Instagram ($801.1 million) and Facebook ($137.2 million). In contrast, Instagram generated the highest advertising revenue from users aged 13 to 17 ($4 billion), followed by TikTok ($2 billion) and YouTube ($1.2 billion).
Platforms
The Most Affected
According to researchers, the estimated percentage of total advertising revenue from Snapchat that comes from users under the age of 18 is 41%, followed by TikTok at 35%, YouTube at 27%, and Instagram at 16%.
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