Top Social Media Companies Made Billions From Ads For Minors: REPORT
Will Kessler on December 27, 2023
Major social media companies collectively made nearly $11 billion in advertising revenue from American individuals under the age of 18 in 2022, according to a study from Harvard published on Wednesday.
Researchers analyzed market data and used public surveys to estimate the amount of money that Facebook, Instagram, Snapchat, TikTok, X and YouTube generated off of advertisements targeted towards minors on the platforms in the U.S., according to a release from the Harvard T.H. Chan School of Public Health. Around $2.1 billion of the revenue was generated by kids under the age of 12, while $8.6 billion was generated from users between the ages of 13 and 17.
“Our finding that social media platforms generate substantial advertising revenue from youth highlights the need for greater data transparency as well as public health interventions and government regulations,” Amanda Raffoul, lead author of the study and instructor in pediatrics at Harvard Medical School, said in the release.
Social Media Companies Generated $11B In Ad Revenue From U.S. Minors In 2022 https://t.co/HSj5m6sfxQ pic.twitter.com/w3UNIRkkFf
— Paul Mosenson (@NuSparkMktg) December 27, 2023
YouTube had the highest quantity of underage U.S. users at 49.7 million in 2022, followed by TikTok and Snapchat at 18.9 million and 18 million, respectively, according to the release. YouTube amassed nearly $1 billion in ad revenue from users under 12, the highest in that category among the social media companies, while Instagram generated the largest amount of ad revenue from users aged 13 to 17, at $4 billion.
Snapchat had the highest share of its total ad revenue from minors in 2022, making up 41%, followed by TikTok and YouTube at 35% and 27%, respectively, according to the release.
Some states have sought to limit minors’ exposure to social media, including Utah, which passed two bills this year that add age restrictions and require parental consent and age verification to access the sites. A trade group representing TikTok, Snapchat, Meta and X sued the state, arguing the restrictions violate the First and Fourteenth Amendments, claiming they infringe on free expression rights and access to public content.
Arkansas passed a bill in April requiring social media companies to obtain parental consent when setting up new user accounts for minors. Ohio passed a law taking effect on Jan. 15, 2024, requiring that social media companies receive parental consent when making accounts for kids under the age of 16, according to the Ohio Attorney General.
Meta, Snapchat, X, TikTok and Google did not immediately respond to a request to comment from the Daily Caller News Foundation.
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