Marketing Food to Children and Adolescents - Federal Trade ...
Marketing Food to Children and Adolescents - Federal Trade ...
Marketing Food to Children and Adolescents - Federal Trade ...
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<strong>Marketing</strong> <strong>Food</strong> <strong>to</strong> <strong>Children</strong> <strong>and</strong> <strong>Adolescents</strong><br />
Based on an assumed average unit<br />
cost of 40 cents per <strong>to</strong>y, 46 it is estimated<br />
that the Select QSRs spent more than<br />
$360 million <strong>to</strong> acquire the <strong>to</strong>ys promoted<br />
with the children’s meals. If the Select<br />
QSRs’ expenditures on self-liquidating<br />
premiums were added <strong>to</strong> their reported<br />
child-directed premium expenditures,<br />
premiums as a child-directed promotional<br />
technique would rank second only <strong>to</strong><br />
television – $427 million for premium<br />
promotions versus $458 million for<br />
television advertising. The Select QSRs<br />
reported spending $161 million on all<br />
child-directed marketing. If their <strong>to</strong>y<br />
acquisition costs were added <strong>to</strong> this<br />
<strong>to</strong>tal, child-directed marketing by QSRs<br />
would exceed $520 million – more than<br />
twice the amount spent on child-directed<br />
marketing by any other food category.<br />
5. Other Traditional<br />
Promotional Activities<br />
The 44 companies reported youth-<br />
directed expenditures for various other<br />
promotional activities for which expenditures are not systematically tracked by commercial data<br />
companies. These “non-measured” activities included product placements; ads appearing before<br />
or within a video game or preceding a home video or theatrical movie feature; license fees paid<br />
<strong>to</strong> use a third-party animated character in advertising or for cross-promotional arrangements;<br />
sponsorships of sports teams <strong>and</strong> athletes; fees paid for celebrity endorsements; public events;<br />
advertising or other product br<strong>and</strong>ing in conjunction with philanthropic endeavors; <strong>and</strong> other<br />
miscellaneous marketing expenditures. Together, these non-measured activities accounted<br />
for $241 million or 15% of all reported youth-directed marketing expenditures. As shown<br />
in Appendix Table C.1, no single one of these activities exceeded 6% of <strong>to</strong>tal youth-directed<br />
marketing expenditures. The <strong>to</strong>p three food categories in terms of spending on these other<br />
traditional media for youth 2-17 are shown in Figure II.15.<br />
Child Traffic (# of QSR visits in millions)<br />
% of Child QSR Traffic for Kids' Meals with Toys<br />
Figure II.13: 2006 Child Traffic for Kids’ Meals with<br />
Toys, 99¢ or $1.00 Menu Items, <strong>and</strong> Older Kids’<br />
Meals (All QSRs versus Select QSRs)<br />
1,400<br />
1,200<br />
1,000<br />
800<br />
600<br />
400<br />
200<br />
0<br />
20<br />
1,224<br />
901<br />
Kids' Meals with Toys<br />
Purchases<br />
Source: The NPD Group/CREST<br />
40<br />
35<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
19.5<br />
486<br />
398<br />
99¢ or $1.00 Menu Item<br />
Purchases<br />
All QSRs<br />
Select QSRs<br />
117<br />
93<br />
Older Kids' Meal Purchases<br />
Figure II.14: Percent of 2006 Child Traffic<br />
for Kids’ Meals with Toys<br />
(All QSRs vs. Select QSRs)<br />
Source: The NPD Group/CREST<br />
37.6<br />
All QSRs Select QSRs