Instagram, TikTok and YouTube make money from advertising for children: they earn billions of dollars a year

A new Harvard study shows that major social networks such as instagram And TIK Tak, make huge money from advertising aimed at children and teenagers. The T.H. Chan University School of Public Health estimates that the six largest platforms collectively benefited over $11 billion in 2022 in the US alone.

Major social networks are under scrutiny by researchers and authorities around the world for the harm they cause to children. In the United States, for example, a class action complaint is being filed due to the serious impact on the mental health of children and adolescents. And in Europe, regulators raised the alarm earlier this month as platforms such as Instagram and Facebook facilitate the creation of pedophile networks.

Everyone blames these companies for not taking the necessary protective measures, although they are aware of the potential damage. The Harvard researchers emphasize that their study shows that stronger government regulation is needed. The idea is simple: the profitable business of advertising to minors takes precedence over compliance with stricter regulations.

According to a new Harvard analysis, YouTube has the highest ad revenue from users under 12, with $959.1 million. Followed by Instagram ($801.1 million) and Facebook ($137.2 million). Between the ages of 13 and 17, Instagram raised the issue the most. with $4 billion, followed by TikTok ($2 billion) and YouTube ($1.2 billion).

How did they calculate how much Instagram, TikTok or YouTube earned from advertising to children?

At an overall level, between 30% and 40% of advertising money on three of these social networks—Snapchat, TikTok, YouTube—comes from underage audiences. Snapchatin this sense, is in first place: 41% of advertising revenue in 2022 came from users under 18 years of age. It is followed by TikTok (35%), YouTube (27%) and Instagram (16%).

Social networks themselves do not advertise how much money they make from children and teenagers. To get an idea of ​​this revenue, Harvard researchers first estimated the number of users under the age of 18 on Facebook, Instagram, Snapchat, TikTok, X (Twitter), and YouTube in 2022. To arrive at this number, they compared population data from the US Census. and Common Sense Media and Pew Research polls.

They then used data from research firm eMarketer, now called Insider Intelligence, and Qustodio, a parental control app. This way, they were able to estimate each platform’s US advertising revenue in 2022. As well as the time children spent per day on each platform.

Ultimately, the researchers created a simulation model to estimate how much advertising revenue they generated from this audience. This is the first study of its kind, the Harvard team emphasizes. “Although social media companies claim to be able to self-regulate their practices to reduce harm to youth, they have not yet done so,” said Bryn Austin, a professor in the Department of Social and Behavioral Sciences and lead author of the study.

Austin insisted in a statement that the analysis makes it clear that these companies “They have enormous financial incentives to continue delaying meaningful action.” In addition to government intervention, the researchers called for greater transparency as a first step to reduce potentially harmful advertising practices among children and adolescents.

Risk of advertising to children

Social media platforms like Instagram and TikTok aren’t the only ones marketing to children. However, online advertising can be especially insidious. The line between advertising and the content that children seek out online is usually quite blurred.

The American Academy of Pediatrics, in a document published in 2020, stated that children are “particularly vulnerable to the persuasive effects of advertising due to their immature critical thinking skills and impulse inhibition.” “They often can’t resist it when it’s shared on trusted social networks, endorsed by influential celebrities, or delivered alongside personalized content,” the document notes.

Another investigation this year by the Tech Transparency Project found that YouTube’s algorithms They recommended violent videos – for example, about how to handle weapons – for minors. Some of them were monetized through advertising.

Earlier this month, the US Federal Trade Commission proposed several changes to the law governing how online companies can track children and serve ads to them. The changes will include turning off advertising aimed at children under 13 by default. and limit push notifications.

I expect responsibility from social networks

Mark Zuckerberg, CEO of Meta, the parent company of Facebook and Instagram, is expected to testify before the US Senate in January 2024. Other executives from major tech companies and social media companies are also being called out. Primarily to deal with complaints of online child exploitation.

This month, the European Commission asked Meta to formally clarify what protections are needed to prevent child abuse. The call for attention coincides with a new report from Wall Street Journal O How Instagram and Facebook algorithms promote pedophile networks. The American newspaper described how these platforms connect consumers and sellers of child pornography through recommendations.

In the United States, dozens of states convicted Meta last October for fueling a youth mental health crisis. Prosecutors point to the addictive nature of Zuckerberg’s social media in the lawsuit. “Meta used powerful and unprecedented technology to attract, engage, and ultimately entice youth and teens,” the complaint states.

Prosecutors agree with what the Harvard researchers said: “His motivation is profit” said in the statement of complaint. Meta, according to the states, repeatedly misled the public about the substantial dangers of its platforms. And, knowing the risks, it still causes compulsive use in children and adolescents.