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

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Marketing Food to Children and Adolescents not meet the 20% teen audience share threshold, 29 the reported expenditures for these shows are not included in the aggregated television expenditures. However, the data serve to illustrate the point that children and teenagers are exposed to a great deal of advertising that may be targeted to a general audience comprised mainly of adults. On average, more than two million teens watched American Idol, and more than one million watched American Dad and Family Guy during the 2005-2006 time frame. Some of these shows were even more popular with children. On average, more than three million children watched American Idol, and more than one million watched Unan1mous and The Simpsons. (By comparison, for the same year, the 2-11 audience for Nickelodeon’s popular youth-directed show SpongeBob SquarePants ranged from 576,000 to over 2.4 million, with an average child audience of about 2 million. 30 ) Most of the companies that advertised on these five broadcast programs stated that their ads were not child- or teen-directed. One carbonated beverage company, however, acknowledged that ad placements on these shows were part of its marketing strategy to reach teens. 31 In addition, at least two companies have affiliated their brands with shows such as American Idol in order to reach children and teens – one through toy premiums for children’s meals 32 and the other through sponsorship of the American Idol Live! Tour. 33 Advertising expenditures on these top five broadcast shows – a total of $116 million – were reported for all food categories except fruits and vegetables. As shown in Figure II.9, QSRs reported $60 million, and carbonated beverage companies reported $41 million; these two categories combined accounted for 87% of reported expenditures for the top five shows. b. Ra d i o a n d PR i n T Child-directed expenditures for radio and print ads were relatively small in comparison to those for television. Only in the juice and non-carbonated beverage category were there significant expenditures – $2.5 million for child-directed radio advertising. 34 Teen-directed radio advertising was more significant, with carbonated beverage companies spending more than $41 million, and QSRs nearly $30 million. Candy/frozen dessert and non-carbonated beverage companies reported more than a million dollars each for teen-directed radio advertising. 70 60 50 40 30 20 10 0 16 Top 5 Teen (12-17) Broadcast Shows 60 41 Dollars (in millions) Figure II.9: Television Advertising Expenditures on Restaurant Foods Carbonated Beverages Juice & Noncarbonated Bevs. 8 7 All Other
Expenditures for Marketing Food to Children and Adolescents For print advertising, five food categories – breakfast cereals, candy/frozen desserts, dairy, baked goods, and restaurant food – reported more than $1 million of child-directed expenditures; spending for candy and frozen desserts was $4 million. Dairy products accounted for 52% of all reported teen-directed print advertising, with expenditures of $11.4 million. In five other categories – candy/frozen desserts, baked goods, carbonated beverages, juice and non-carbonated beverages, and restaurant food – between $1 million and $3 million was spent on teen-directed print advertising for the reported brands. 2. New Media: Websites, Internet, Digital, Word-of-Mouth, and Viral Marketing New Media, which includes company-sponsored websites, Internet, digital, word-of- mouth, 35 and viral marketing, 36 accounted for approximately 5% of all reported youth-directed marketing expenditures. Of the $77 million spent on these activities for the reported brands, $32 million was for company-sponsored websites; $39 million was for advertising on third- party Internet sites; and $1 million was for other digital marketing, such as mobile marketing. Reported expenditures for youth-directed word-of-mouth or viral marketing were $5 million. 37 Figure II.10 shows the top three food categories with youth-directed promotions in new media. Breakfast cereals accounted for the highest spending on company-sponsored websites directed to youth ($6.7 million), followed by carbonated beverages, snack foods, and candy/frozen desserts, which each had expenditures between $5 and $5.9 million. 38 With regard to other Internet advertising, $12.1 million was spent on teen-directed advertising for carbonated beverages; $7.5 million was spent on breakfast cereal advertising directed to children; and $6.7 million was spent on youth-directed advertising for snack foods. A focus on expenditure data, however, may underestimate the degree to which food and beverage marketers used the Internet to reach children and teens – both through online display advertising and company-sponsored websites featuring entertainment content like “advergames.” 39 Accordingly, Appendix D to this Report explores the amount of display advertising for food and beverages that appeared on child- and teen-oriented websites during 2006, as well as traffic on company websites that feature branded entertainment and activities directed to children and teens. Dollars (in millions) 35 30 25 20 15 10 5 0 17 21 Figure II.10: New Media Top 3 for Youth 14 13 Carbonated Beverages Breakfast Cereal Snack Foods All Other 29
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