Harvard Study Reveals Social Media’s $11 Billion Revenue from U.S. Minor Ads, Urging Government Regulation.
A recent Harvard study reveals that social media companies collectively earned over $11 billion in U.S. advertising revenue from minors last year. The findings underscore a pressing need for government regulation, as these companies have failed to self-regulate effectively. The study suggests that regulations and increased transparency could mitigate harms to youth mental health and curb potentially harmful advertising practices targeting children.
To calculate the revenue figure, researchers estimated the number of users under 18 on major platforms like Facebook, Instagram, Snapchat, TikTok, Twitter (now X), and YouTube. Using data on ad revenue and children’s time spent on each platform, they built a simulation model to estimate the total ad revenue earned from minors in the U.S.
The study emphasizes the financial incentives for social media platforms to delay meaningful steps to protect children. Despite claims of self-regulation, platforms like Meta (Facebook and Instagram’s owner) face legal challenges and lawsuits for their alleged contributions to the youth mental health crisis.
Social media platforms do not disclose how much they earn from minors, and concerns about advertising to children online persist due to the blurred line between ads and content. The Harvard study points out that YouTube, Instagram, and Facebook generated substantial ad revenue from users aged 12 and under, with Instagram leading in revenue from users aged 13-17.
As societal concerns about children’s mental health and online advertising grow, the Federal Trade Commission has proposed significant changes to a long-standing law regulating online tracking and advertising to children, including defaulting to turning off targeted ads for kids under 13.
