Marketing Food to Children and Adolescents - Federal Trade ...

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Marketing Food to Children and Adolescents C. Expenditures Analyzed by Promotional Activity Groups The Commission’s Special Order sought information about 20 separate promotional activity categories. For purposes of this Report, these categories have been consolidated into six groups: 1) Traditional Measured Media, consisting of television, radio, and print advertising; 2) New Media, consisting of company-sponsored websites, Internet, digital, word-of-mouth, and viral marketing; 3) Packaging and In-Store Marketing; 4) Premiums; 5) Other Traditional Promotions, consisting of product placements, movie theater, video, and video game advertising, character or cross-promotion license fees, athletic sponsorships, celebrity endorsement fees, events, philanthropic activities tied to branding opportunities, and other miscellaneous marketing expenditures; and 6) In-School Marketing. Figure II.4 shows how the reporting companies allocated the $1.6 billion in youth-directed food marketing across the six promotional activity groups. Appendix Tables C.1 and C.2 provide detailed data on these expenditures within each of the 20 individual promotional activity categories for each food group and each age category. 26 Figure II.4: Reported Total Youth Marketing Expenditures by Promotional Activity Group (In Millions of Dollars) New Media $76.6 5% Traditional Measured Media $852.9 53% Other Traditional Promotions $241.2 15% Premiums $66.9 4% Within these six promotional activity groups, Figure II.5 illustrates the percentage of total spending within each group contributed by each food category. The figure demonstrates, for example, that carbonated and non-carbonated beverages comprised a majority of the reported in- school expenditures, that cereals had the largest reported premium expenditures, and that nearly all food categories used traditional measured media, primarily television. Appendix Table C.3 provides further detail on expenditures within the six promotional activity groups. 12 In-School $185.5 11% In-Store and Packaging/ Labeling $195.4 12%
Dollars (in millions) 100% 80% 60% 40% 20% 0% Expenditures for Marketing Food to Children and Adolescents By comparison, figures II.6 and II.7 illustrate the extent to which the various promotional activities are used in each of the food categories for marketing to children and adolescents, respectively. Traditional Measured Media ($852.9 Million) Figure II.5: Food Category Share of Total Youth Spending For Each Promotional Activity Group New Media ($76.6 Million) In-Store and Packaging/Labeling ($195.4 Million) Premiums ($66.9 Million) In addition to the six promotional activity groups identified above, the Report analyzes all expenditures associated with the use of cross-promotions and celebrity endorsements. This category (Use of Cross-Promotions and Celebrity Endorsements) includes character licensing fees paid to the media property owners, as well as all costs associated with use of the licensed property in other promotional categories; it also includes endorsement fees paid to celebrities, and costs associated with promotional activities featuring the celebrity endorser. Therefore, the category is comprised largely of expenditures already reported in the other six groups (e.g., Traditional Measured Media, Packaging and In-Store Marketing, and Premiums). 13 Other Traditional Promotions ($241.2 Million) In-School ($185.5 Million) Fruits & Vegetables Dairy Products Baked Goods Prepared Foods & Meals Candy/Froz. Desserts Snack Foods Juice & Noncarbonated Bevs. Breakfast Cereal Restaurant Foods Carbonated Beverages
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