Advertising to Kids


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Social Ethics Presentation 3/2011

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  • The first question is rhetorical…. There are studies that show that we are exposed to 3000 ads, 1600 ads, and 150 ads per day.
  • Kids have very strong influence on decision making Pester power: or known as the nag factor , learn to assiocate material items as their needs and wants, and many parents buy into these things I have to emphasize again children’s buying power of $25-30 billion, not million, billion! directly influence clothes, snacks, soft drinks, toys entertainment Indirectly influence: how can that be? That is too so much money? Yes its true. From family vacations are the biggest influencer, then 2 nd most cell phones. Also cars when parents thinking about safety issues and car pooling, They need it roomy and don’t forget road trips., Also recreation, food, accessories, school suppils, computers, different kids of technology, TVs, beauty aid and even home appliances Another influencing factor that kids feed off of is peer pressure from their friends and classmates. What they are wearing, doing, going and seeing from movies to Jamba Juice or dunken donuts. And so the want factors is an never ending cycle
  • 40,000 commercials a year and thru TV, magazines, radio, direct mail, internet In Australia kids average 4 hours a day, Annie noticed how have dvr and pre recorded shows skipping through advertisements. But about half of them were watched due to mult-tasking from the internet to the painting her nails. They way kids are watching TV is different from they way previous generations have done so.
  • Example way help kids differenitiate difference on Nickeloden have Face saying, “ok kids we will be back after this commercial break.” Many kids have hard time understanding the difference between the program and ad, At age of 3 only 57% understand, 4yrs 66%, 5 yrs 72%, 6 majority understand ( talk about study) Although many do understand difference of ad only 20% of kids could verbally say correct response to the difference between the two Incorrect//// Correct response: “tries to make people buy things” “Shows products you can buy.” Advertisers wants plant seed of brand recognitiion in children very young= hope for life relationship for examples Mc Donalds Studies shown babies at 6 months can see mental images of big corporations logos and mascots. By time go to preschool recognize 100 brands/logos American Psychological Association (APA) has recommended restrictions on advertising that targets children under the age of eight, based on research showing that children under this age are unable to critically comprehend televised advertising messages and are prone to accept advertiser messages as truthful, accurate and unbiased. 5 They don’t understand it disorts views of the world. For EX: sound effects amplified They are easily influenced, not skceptical. ))
  • Many concerned obesity epidemic in kids 50% of commercials are unhealthy foods= snacks high in fat, sugary cereals, and fast food Billions of dollars are spent on kids advertising and $3 billion is spend on fast food advertising to kids 15% increase of overweight kids ages 5-11 years old in last 2 decades. Everyone wants to blame advertising. Pointing the finger is always easier. But fact is fact Also parents who are bringing them there There has been many studies that shows correlation between # of hours TV and calorie intake and body mass index Many believe this is because with the volume of ads seen on TV affects kids want for unhealthy food, unhealthy eating behaviors, by showing all the unhealthy food options 20% fast food has tie ins and incentives to go out and buy that happy meal: Not only does fast food have tie ins but soft drinks, gummies, candy, snacks have incentive to buy product for experience secondary to the food Steven will go more into this later on Another reason for the increase of overweight children might be due to parents now are the first grown up generation to have exposure to fast food ads so they have built in connection to companies (Mc Donalds) hard break system
  • the Federal Trade Commission (FTC) held hearings, reviewed the existing research, and came to the conclusion that it was unfair and deceptive to advertise to children younger than 6 years. 11 What kept the FTC from banning such ads was that it was thought to be impractical to implement such a ban the National Advertising Review Council (NARC) banned food high in salt, sugar, sugar, & fat 2007, the government-funded body Ofcom announced they were bringing in new rules concerning fast food advertising. The new guidelines decreed that foods which were high in salt, sugar or fat would be banned from appearing during TV programmes designed to appeal to children between the ages of four and nine. content of websites exempt from many advertising rules. the Office of Communications (OFCOM) announced a total ban on the advertising of junk food and fast food to kids, from January 2007. For channels, during any specific children’s programes, and also if an above average audience of under sixteen Many opposed legal restrictions on Food Regulations such as American Ass. Of Advertising Agencies Ass of National Advertisers and food manufacturers Food chains such as McDonalds and Wendys now offer healthier alternatives to soft drinks and French fries such as milk, carrots, fruit Along with Coca Cola, McDonalds, General Mills, and Nestle, the AAAA has formed the American Council on Fitness and Nutrition to promote physical activity in schools, effective nutrition education, and applied research on how to bring about lasting behavioral changes. Kraft has voluntarily suspended advertising of some of its less-nutritious products, like Kool-Aid and Oreos, from television, radio and print aimed primarily at children age 6 to 11
  • Advertising to Kids

    1. 1. To Kids Advertising
    2. 2. Introduction
    3. 3. <ul><li>Ethical Issues </li></ul><ul><li>Advertising to Children/Influence on Parents </li></ul><ul><li>Celebrity Endorsements </li></ul><ul><li>Effects of advertising to children </li></ul><ul><li>Laws & Regulations </li></ul><ul><li>Advertising on the Internet </li></ul>Overview
    4. 4. <ul><li>Virtue Ethics </li></ul><ul><li>Instrumental Approach </li></ul><ul><li>Strategic CSR </li></ul>Ethical Issues
    5. 5. <ul><li>Does advertising have a strong hold over the way we think or act? </li></ul><ul><li>Does the mass media dictate our needs and wants? </li></ul><ul><li>Children form the major chunks of the target group for advertisers </li></ul><ul><li>Ex: Disney Cruise Ship </li></ul>Kid’s Influence on their Parents
    6. 6. <ul><li>Pester Power </li></ul><ul><li>Huge buying power </li></ul><ul><li>Indirectly influence: $500-700 billion, #1 family vacations, #2 cell phones </li></ul>Psychological Effects: Influence on Parents
    7. 7. <ul><li>First prime motive of advertising is to attract attention </li></ul><ul><li>Children today, are more specific about their needs and wants </li></ul><ul><li>Advertising can also have a negative influence on children </li></ul><ul><li>Live life without “materialistic joys” </li></ul>Conveying the message
    8. 8. <ul><li>Ex: Disney Cruise Line over one such as Carnival </li></ul><ul><li>YouTube Clip </li></ul>Power of Advertising cannot be ignored!
    9. 9. <ul><li>Parents play a major role in this case </li></ul><ul><li>When demands increase, Parents need to step in </li></ul><ul><li>Converting a “No” into a “Yes” </li></ul><ul><li>What advertisers can do? </li></ul>Who’s to blame?
    10. 10. <ul><li>Social psychologists found communicator/spokesperson has strong effect on how audience receives and reacts to a message </li></ul>Use of Celebrities in Ads
    11. 11. <ul><li>Be Like Mike! </li></ul>Use of Celebrities in Ads
    12. 12. Elements to Successful Persuasion <ul><li>The Communicator </li></ul><ul><li>The Message and How it’s Communicated </li></ul><ul><li>C. The Target Audience </li></ul>
    13. 13. <ul><li>Liking factor </li></ul><ul><li>Authority </li></ul><ul><li>Consistency </li></ul>Aspects of “The Communicator” Positive levels in each immediately commands respect and attention from the audience.
    14. 14. <ul><li>Experiment 1987 (print ads/commercials): </li></ul><ul><ul><li>ATTRACTIVENESS ADVANTAGE </li></ul></ul><ul><ul><ul><li>significant difference in audiences’ perception of spokesperson </li></ul></ul></ul><ul><li>Experiment 1990 (print advertisements): </li></ul><ul><ul><li>ATHLETES SPORTS PRODUCTS </li></ul></ul><ul><ul><ul><li>athletes endorsing sports product more effective in leading to sales, also measuring drawing power athlete possess Ex. Scott Molina vs. LeBron James </li></ul></ul></ul>Other Supporting Studies
    15. 15. Ethics Behind Children’s Advertising
    16. 16. <ul><li>Children ages 3-12 years old </li></ul><ul><li>Spending power of $25-30 billion </li></ul><ul><li>40,000 commercial a year: </li></ul><ul><li>Advertisers spend $15-17 billion in U.S. </li></ul><ul><li>Before pre-school 5,000 hours favorite show </li></ul><ul><li>Average 2-3 hours a day, toddlers 2 hours </li></ul>Influence of the Next Generation
    17. 17. <ul><li>Don’t understand purpose of ads or persuasive intent (Face) </li></ul><ul><li>Commercials vs Programs: “People at TV show have to take a rest.” “Programs are fun and commercials are not.” </li></ul><ul><li>Preschoolers recognize 100 brands/logos </li></ul><ul><li>APA, “kids unable critically comprehend ads messages, expect as face value until age 12” </li></ul><ul><li>YouTube Clip </li></ul>Psychological Effects
    18. 18. <ul><li>50% unhealthy foods= high fat snacks, sugary cereals, fast food </li></ul><ul><li>Increase number of overweight children </li></ul><ul><li>Correlation between # hours TV and calorie intake </li></ul><ul><li>Incentives make kids excited about experience second to food </li></ul><ul><li>Parents now- first generation with fast food ads </li></ul>Obesity in Children
    19. 19. <ul><li>FTC – “unfair, deceptive to advertise under 6 years” </li></ul><ul><li>2007 NARC- banned food high in salt, sugar & fat during kids programs </li></ul><ul><li>OFCOM- total banned junk & fast food Jan 2007 </li></ul><ul><li>Oppose AAAA, ANA & Food Manufactures </li></ul><ul><li>McDonalds & Wendy’s healthy alternatives </li></ul>Obesity: Regulation & Corp. Response
    20. 20. <ul><li>Advertising shall not cause moral or physical harm… </li></ul><ul><ul><li>Shall not directly encourage minors to buy products </li></ul></ul><ul><ul><li>Shall not directly encourage minors to persuade their parents to buy products </li></ul></ul><ul><li>Children’s programs may have commercials only if program is longer than 30 minutes. </li></ul><ul><li>Product placement is not allowed . </li></ul><ul><li>Hundreds of SRO’s in EU. </li></ul>Regulation on Advertising Aimed at Children –European Union
    21. 21. Advertising to Children in the US.
    22. 22. <ul><li>1978 </li></ul><ul><ul><li>FTC proposed to restrict all television advertising to children. </li></ul></ul><ul><ul><ul><li>Intense opposition from food, toy, broadcasting & ad industries. </li></ul></ul></ul><ul><ul><ul><li>Congress saw this as a violation of 1 st Amendment Rights. </li></ul></ul></ul><ul><ul><ul><ul><li>Passed FTC Improvements Act of 1980. </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Removed FTC’s authority over Children’s TV Advertising </li></ul></ul></ul></ul></ul>FTC & FCC (cont.)
    23. 23. <ul><li>1984 </li></ul><ul><ul><li>Deregulation of Television </li></ul></ul><ul><ul><li>FCC deregulates all limits on the amount of advertising times. </li></ul></ul><ul><li>1990 </li></ul><ul><ul><li>FCC reinstates the policy on commercial lengths. </li></ul></ul><ul><ul><li>Slightly modifies other rules. </li></ul></ul><ul><li>1998 </li></ul><ul><ul><li>FTC develops rules restricting data collection practices and requires parental permission for collecting personal info for children under 13 years of age. </li></ul></ul>FTC & FCC (cont.)
    24. 24. “ We confirmed previous learning about this age group - they are curious, they are early-adapters, they want to be entertained, they can be fickle, they are pushing for independence yet are still very susceptible to peer pressure.” -Carol Walters (Internet Marketing/Media Planning Consultant )
    25. 25. <ul><li>Lawsuits against major children broadcasting company’s </li></ul><ul><li>Both sides feel that the other is responsible for children’s safety online </li></ul><ul><li>No laws regulate advertising to children online. </li></ul>Internet Advertising
    26. 26. <ul><li>$2 Billion on internet advertising to juveniles. </li></ul><ul><li>Advertisements are disguised as entertainment </li></ul><ul><li>Tailor to children’s interest by using popular children’s characters in advertisements. </li></ul>Online Advertising Regulations
    27. 27. <ul><li>Viacom and Disney have made internet advertisements more apparent </li></ul>The Future of Online Advertising
    28. 29. <ul><li>More SROs that deal with children’s advertising in the United States </li></ul><ul><li>Companies should work with CARU not against it </li></ul><ul><li>Last Resort: FTC & FCC implement more regulations </li></ul>Recommendations
    29. 30. Thanks!