According to a recent study conducted by Harvard T.H. Chan School of Public Health, social media companies collectively made more than $11 billion in advertising revenue from minors in the United States last year. The study highlights the need for government regulation of social media platforms, as these companies have failed to effectively self-regulate despite profiting from children who utilize their platforms. The researchers suggest that regulations, along with increased transparency from tech companies, could help mitigate the negative impact on youth mental health and limit potentially harmful advertising practices targeted towards children and adolescents.
To calculate the revenue figure, the researchers estimated the number of users under 18 on various platforms, including Facebook, Instagram, Snapchat, TikTok, X (formerly Twitter), and YouTube in 2022. They used population data from the U.S. Census as well as survey data from Common Sense Media and Pew Research. Additionally, they relied on information from research firm eMarketer (now called Insider Intelligence) and parental control app Qustodio to estimate the ad revenue generated by each platform in 2022, as well as the amount of time children spent on each platform each day. The researchers then developed a simulation model using this data to estimate the ad revenue earned from minors in the U.S.
The negative effects of social media platforms on youth have long been a focus for researchers and lawmakers. personally-tailored algorithms used by these platforms can contribute to excessive use among children. This year, states such as New York and Utah introduced or passed legislation aimed at curbing social media usage among kids due to concerns over youth mental health and other issues. Meta, the company that owns Instagram and Facebook, is also facing lawsuits from several states, alleging its contribution to the mental health crisis.
Despite claims by social media platforms that they can self-regulate their practices to mitigate harm to young people, the Harvard study suggests they have failed to do so, and financial incentives drive them to delay taking meaningful steps to protect children. The platforms themselves do not disclose how much revenue they generate from minors.
While advertising to children is not exclusive to social media platforms, concerns have been raised by parents and experts regarding online marketing aimed at children, as well as television and school-based advertisements. Online ads can be particularly insidious as they can be finely targeted and the line between ads and the content sought by kids can often be blurred.
In a policy paper published in 2020, the American Academy of Pediatrics stated that children are particularly vulnerable to the persuasive effects of advertising due to their underdeveloped critical thinking skills and impulse control. The paper noted that although school-aged children and teenagers may recognize advertising, they often struggle to resist it when it is integrated within trusted social networks, promoted by celebrity influencers, or delivered alongside personalized content.
In response to growing concerns about the impact of social media on children’s mental health, the Federal Trade Commission recently proposed significant changes to a long-standing law that regulates online companies’ ability to track and advertise to children. The proposed changes aim to turn off targeted advertisements to children under 13 by default and restrict push notifications.
The Harvard study revealed that YouTube earned the highest ad revenue from users aged 12 and under ($959.1 million), followed by Instagram ($801.1 million) and Facebook ($137.2 million). Among users aged 13-17, Instagram earned the most ad revenue ($4 billion), followed by TikTok ($2 billion) and YouTube ($1.2 billion). The researchers also estimated that Snapchat derived the highest share of its overall 2022 ad revenue from users under 18 (41%), followed by TikTok (35%), YouTube (27%), and Instagram (16%).
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it