Social Media Giants Rake in $11 Billion from Kids' Ads, Study Says

According to a research released on Wednesday by the Harvard T.H. Chan School of Public Health, social media corporations generated over $11 billion in advertising income from children in the United States last year.

The results, according to the researchers, demonstrate the necessity of government control of social media since the businesses that profit from minors using their platforms have not been able to effectively exercise self-regulation. They point out that these rules, together with more openness from internet firms, may lessen the negative effects on young people's mental health and reduce potentially dangerous advertising techniques that target kids and teenagers.

Based on U.S. population statistics, the researchers calculated the revenue amount by estimating the number of users under the age of 18 on Facebook, Instagram, Snapchat, TikTok, X (previously Twitter), and YouTube in 2022.

Pew Research and Common Sense Media provided census and survey data. The researchers then estimated each platform's U.S. ad income in 2022 and the amount of time kids spend on it each day using data from Qustodio, a parental control tool, and research company eMarketer, which is now named Insider Intelligence.

The researchers then claimed to have created a simulation model with the data in order to calculate the amount of money the platforms made from children in the United States through advertising.

Read Also: SEC Ready to Unleash Spot Bitcoin ETF, Potentially Reshaping Crypto Landscape

Legislative Actions and Research on Social Media's Impact on Youth

Legislators and researchers have long been concerned about the detrimental impacts of social media, whose algorithms that are customized for each user might encourage youngsters to use the site excessively. Legislators in states like Utah and New York presented or enacted laws this year to limit children's usage of social media, citing worries about the negative effects on young people's mental health among other things.

Meta, the parent company of Instagram and Facebook, is currently facing legal action from numerous states, accused of playing a role in the mental health crisis. The company is being sued for allegedly contributing to the harm experienced by young people.

Despite assertions from social media platforms that they can regulate their practices to mitigate harm to young users, a study conducted by researchers at Harvard, including Bryn Austin, a professor in the Department of Social and Behavioral Sciences, indicates otherwise.

The study suggests that these platforms have not taken sufficient self-regulatory measures and highlights their strong financial incentives to postpone implementing meaningful steps to protect children.

The sites themselves do not disclose the amount of money they get from underage users.

Parents and academics have long voiced concerns about selling to children online, on television, and even in schools. Social media sites are hardly the first to promote to children. But since they might be directed at youngsters and the distinction between advertisements and the content they are interested in is sometimes hazy, internet advertisements can be particularly harmful.

Related Article: US Inflation Fuels $100 Million Gold Rush at Costco, Bars Disappear in Hours