KNOWLEDGE LINK – MARKETING TO KIDS

 

By the Three Amigos

 

Svetlana Bryner

David Meeks
When you send him to school, too often you send him into the crosshairs of people who only want him to be their loyal customer for life.                                                                        Herb Winston

 

 


 

 


 

 

 


 

 

 

 

Table of Contents*

 

Executive Overview                                                                                                               ii

 

1.   Introduction                                                                                                                      1

 

            Why Market to Children?                                                                                         1

 

2.   Traditional Marketing                                                                                                     2

 

            Retailing                                                                                                                     2

            Advertising                                                                                                                 2

            Cross-Marketing                                                                                                       4

            Market Segmentation/Research                                                                              4

            Use of Promotions                                                                                                      5

            New Product Development                                                                                        6

            Kid’s Marketing Leaders                                                                                         6

 

3.   Aspects of Online Marketing                                                                                          7

 

            Online Shopping Issues                                                                                             7

            Online Privacy Issues                                                                                                8

 

4.   Marketing in the Public Schools                                                                                     8

 

            Channel One                                                                                                              9

            Beverages                                                                                                                  10

            ZapMe!                                                                                                                       10

            Other Commercialization Activities                                                                          11

 

5.   Regulatory Issues                                                                                                            11

 

            COPA, CIPA, COPPA                                                                                               12

            International Regulations                                                                                          13

 

6.   Guidelines and Recommendations                                                                                  14

 

            General Child-Directed Advertising                                                                         14

            Public Schools                                                                                                            15

            Tobacco                                                                                                                      16

 

7.   Conclusions                                                                                                                      16

 

 

 

* Click on the topic of interest to be hyper-linked to relevant section in the Knowledge Link

 

 

 

Executive Overview

 

 This “Knowledge Link” presents a brief overview of various marketing strategies that are used for targeting children and
provides short summaries of reference materials that can be used for further research of the topic.  The paper addresses several key issues, which are organized into the following sections: Reasons for targeting kids (pre-school to teens); “Traditional” kid’s marketing practices – retail, advertising, cross-marketing, market segmentation and research, use of promotions, and new product development; Online marketing to children; Marketing in the public schools; Regulatory issues; Controversy related to the social impact of marketing to children; and Guidelines for marketing to children. 

Each section reflects an objective view of the key issues and presents a wide variety of reference material on each topic, including books, magazine and journal articles, Internet articles, transcripts from Congressional hearings, and government documents.  Hyperlinks are provided to each section within the Knowledge Link as well as all Internet references.


 

 

 

 

1.       Introduction

 

Why Market To Children?

 

There are three primary reasons companies target children (preschoolers to late teens) when marketing their products and services. First, as a primary market, children have become a legitimate market, with vastly increased purchasing power. Second, children serve as an influence market, with a huge impact on their parents’ purchasing decisions. Susan Linn of the Boston Globe (2000) estimates that children directly control $24.4 billion a year in potential revenue, and they influence another $300 billion. And third, children are the adult purchasers of tomorrow – the future market. The ultimate goal of marketers is to instill lifetime brand loyalty in children. The following references address reasons for marketing to children.

 

Leonhardt, David and Kerwin, Kathleen. Is Madison Avenue taking "get'em while they're young" too far? Business Week, 06/30/97 Issue 3533, p62.

This article describes the aggressive marketing approach shown by producers marketing to children. It shows the potential market of the latest generation of children, and addresses not only the sheer numbers but the wealth of this generation. Discusses commercials shown to children, advertising in child-specific media, products designed for children, and marketers’ attempts to sell to parents through children.

 

Linn, Susan (2000, January 16). Electronic Marketing:’Here, Kiddie, Kiddie!’ The Hours that Children Devote to TV. The Boston Globe. http://jbcc.harvard.edu/media/electronic_marketing.htm

This article discusses the increasing impact of media on children, and advertising executives’ desire to capture the lucrative youth market. Marketing concepts such as lifetime brand loyalty, the “nag factor,” employment of psychologists, cross-marketing, product placement, and saturation marketing are discussed. The author promotes protection of children from the marketing onslaught and the pressures of incessant advertising.

 

McNeal, James U. Kids' markets. American Demographics, Apr98, Vol. 20 Issue 4, p36.

Discusses how companies are targeting the child consumer markets, kids' products that are being marketed, information on the distinct consumer markets – primary, influence and future, and forecasts the market potential of kids.

 

McNeal, James U. (1992). Kids as Customers: A Handbook of Marketing to Children. New York: Macmillan, Inc.

An excellent handbook for marketers interested in targeting children. How changes in the family structure have impacted the children’s market and how children have emerged as influential consumers. Children’s income, savings, and spending patterns. Changes in marketing strategy over the past few decades. Marketing to the vast overseas children’s market. How kids influence their parents’ decision making.

 

Rice, Faye. 'Superstars' of spending. Advertising Age, 02/12/2001, Vol. 72 Issue 7, pg1.

This article presents a special report on how United States advertisers are trying to market to children and young teenagers – so-called “tweens,” or older children who are not yet teenagers. The article discusses the increase in this age group's spending power, marketers' efforts to build brand loyalty, the role of child psychologists in helping marketers to target youthful consumers, and children's strong opinions on the kind of advertising they like.

 

Rosenberg, Janice. Brand loyalty begins early. Advertising Age, 02/12/2001, Vol. 72 Issue 7, ps2.

Discusses marketers' efforts to build brand loyalty early in United States children. Covers the role of the so-called “tween” market, which falls between young children and pre-teens, presents a statistical breakdown on how children like to spend their money, the amount of money children have to spend each week, and children's attitude toward advertising.

 

Stipp, Horst. New ways to reach children. American Demographics, Aug93, Vol. 15 Issue 8, p50.

This article discusses the need to rethink marketing strategies aimed at children. Outmoded assumptions regarding changes in young people's development are discussed, along with the reasons for a rise in children's spending, children’s influence on parent's purchases, and the importance of choosing the right media for marketing.

 

Today's kids are consumers of play. Drug Store News, 06/07/99, Vol. 21 Issue 9, p66.

Provides information on the evolution of children consumers in the United States. Includes comments from Jim Mitchell, general manager of Small Talk, a marketing firm specializing in marketing to children, statistics on children consumers in the country, a discussion on the attitude of young consumers, as well as diversity among youth consumers.

 

 

2.       Traditional Marketing to Kids

 

Retailing

 

Retailers have changed their approach to children as consumers over the past few decades. Where once children were looked at as potential shoplifters – an extension of their parents – they are now viewed as an important source of purchasing power and future business. Kids now make purchases in a wide variety of retail outlets, both with their parents and without. As retailing has become more competitive, many retailers have come to recognize this key market segment and develop strategies to capture their business. Several marketing strategies have been developed by retailers to target children – development of more kids’ product lines, credit cards for kids (through parents), entertainment areas (videos/reading areas), kids’ clubs, kid-oriented visual displays (colorful signs and lighting), kids’ fashion shows, placement of items that kids want near the checkout line, placement of kid’s items at eye level, focus on designer brands and providing a large variety of kid’s items, “teen” sections, kid’s menus, cross-marketing, training of store personnel to value and assist children customers, and a variety of other marketing techniques – all  aimed at spurring sales and developing loyalty among kids.

 

Hefty Sales. Discount Merchandiser, October 1998, Vol. 38 Issue 10, p74.

Reports that retailers in the United States are targeting larger-sized children to increase their sales and profit gains. The article discusses the overweight children's market, retailers that have expanded their children's extra large sizes, and the boom in sales of school uniforms.

 

McNeal, James U. (1992). Kids as Customers: A Handbook of Marketing to Children. New York: Macmillan, Inc.

A handbook for marketers interested in targeting children. This book contains an excellent analysis of kids’ impact on retailers of various types, how retailers’ views have changed, and what steps retailers should take to address this important market segment.

 

Williams, Laura A.; Burns, Alvin C. Factors Affecting Children's Store Loyalty: An Empirical Examination Of Two Store Types. Journal of Applied Business Research, Winter2001, Vol.17 Issue 1, p61.

This research is an empirical examination of the factors that affect children's store loyalty. Specifically, the effects of impersonal communication, interpersonal communication, experience, and perceptions of affective and functional qualities of store image are examined as to how they impact children's store loyalty. Results suggest that prior experience and impersonal communications are important in the formation of a child's perception of a store's image. In turn, the child's perception of the affective and functional qualities of a store's image are fundamental to a child's store loyalty. These findings were supported for both a mass-merchandise discount store and a specialty store. Managerial implications for retailers interested in building store loyalty with children are discussed.

 

Advertising

 

The advertising part of the marketing communications mix has become the “hot button” of controversy with regard to marketing to children. Issues abound, including manipulation, fairness, and appropriateness. Television advertising remains the primary channel for reaching the kid’s market, but the following media are also used: magazines, mail, display advertising, movies, advertising in schools, newspapers, radio, videos, and the Internet. Marketing strategies targeted to children are becoming more integrated, with a variety of advertising strategies meshed with other communication channels. The following references address the topic of advertising to children.

 

Campbell, K.; Davis-Packard, K. How ads get kids to say, I want it! Christian Science Monitor, 09/18/2000, Vol. 92 Issue 207, p1.

Reports on the increased criticism of the practice of marketing to children. It discusses the influence of children on household purchases and questions practices by the advertising industry – suggesting that children must have a particular toy in order to be socially successful. Other criticisms include the allegation that television ads reinforce in male minds that they are violent and in female minds that their worth is determined by their physical appearance.

 

Conover, Kirsten A. Why Johnny has to have those sneakers. Christian Science Monitor, 02/10/98, Vol. 90 Issue 52, p13.

This article looks at the ongoing controversy surrounding marketing to children. It discusses the rise in marketing and advertising to children, the potential marketing power of children, the controversy surrounding marketing in schools, and commercial pressures that children face.

 

Fox, Roy F.  (1996). Harvesting Minds: How TV Commercials Control Kids. Westport, Connecticut: Praeger Publishers.

A detailed study of the effect of commercials on children. Addresses how commercials are designed to attract kids, how kids evaluate and respond to commercials, and how commercials affect kids’ behavior (consumer and otherwise). The author suggests that commercials play a significant role in kids’ lives, that kids accept, value, and embrace television commercials, and that kids buy what they see in commercials. The author recommends actions that can be taken by parents, schools, and regulators to diminish kids’ exposure to advertising.

 

Gay, Kathlyn (1992). Caution! This May be an Advertisement: A Teen Guide to Advertising. New York: Franklin Watts.

An excellent analysis of advertising to teens. Shows how advertisers use persuasive techniques to get teens to buy products, and how advertising messages are conveyed through the various media. Also includes discussion on the history of advertising, current marketing strategies, consumer issues, and regulations impacting advertising to teens. Specific chapter on marketing to target groups: students, teens, drinkers/ smokers, health conscious teens. The author also provides recommendations for “smart shopping,” including comparison shopping and validating advertising claims.

 

Henderson, Shirley. Youth quick to get the ad facts. Advertising Age, 02/12/2001, Vol. 72 Issue 7, p2.

This article reports on studies which suggest that United States children are knowledgeable about advertising, and that they know what they want to do with their own money. Discusses the 'KidTrends 2001 Report,' by Children's Market Research, the “tween” demographic group (between the child and pre-teen markets), and presents comments from individual children on what they do and do not like in commercials.

 

Hollander, Stanley C. and Germain, Richard (1993). Was There a Pepsi Generation Before Pepsi Discovered It?: Youth-Based Segmentation in Marketing. Lincolnwood, Illinois: NTC Publishing Group.

Provides a historical perspective on advertising to youth, the use of youth in advertising, and targeting youth with advertising.

 

Kline, Stephen (1993). Out of the Garden: Toys, TV, and Children’s Culture in the Age of Marketing. London: Verso.

This book looks at the history of marketing of toys to children via the mass media and its impact. The author suggests that the cultural effects of television and mass marketing to children are negative in nature. A “host of stereotyped figures around which children can organize their imaginative experience” have evolved that diminish the value of other experiences in children’s lives – such as reading books, imaginative street play, and family experiences.

 

Kraak, Vivica and Pelletier, David L. How Marketers Reach Young Consumers: Implications for Nutrition Education and Health Promotion Campaigns. Family Economics & Nutrition Review, 1998, Vol. 11 Issue 4, p31.

Provides an overview of the advertising techniques, styles and channels marketers use to reach children and teenage youth. Discusses how knowledge of market research methods, marketing strategies, and techniques can be used to design more effective nutrition education and health promotion campaigns for young consumers. Includes marketing concepts that can be used for planning a social marketing program.

 

Linn, Susan and Levin, Diane E. Shielding children. Christian Science Monitor, 09/22/2000, Vol. 92 Issue 211, p11.

This article argues that the advertising practices of the marketing industry are harmful to children. It discusses ways in which companies market to children, the role of television viewing in the dissemination of marketing content, the marketing of violent content to children by the entertainment industry and its impact on the way that children behave, and marketing by fast-food companies to children and its impact on children’s health. The authors suggest that young children are extremely vulnerable to manipulative advertising – advertising that affects their health, safety, and creativity.

 

Lipscomb, Elaine and Evers, William D. (2001, March 16) Impact of Television Commercials on Food Preferences of Preschoolers. Purdue University School of Consumer and Family Sciences. eFood RAP, Volume 11, Number 6.  http://www.cfs.purdue.edu/extension/efr11-06.htm.

This article reports the results of research conducted on a group of preschool children. Researchers evaluated the impact of television commercials on food preferences. The study showed that the food preferences of the preschool children tended to reflect the television commercials they viewed. Researchers recommended that parents limit their children’s exposure to television commercials, that parents explain to children the purpose of commercials, and that children be taught the difference between healthy and non-healthy foods.

 

Solomon, Michael R. (1996). Consumer Behavior: Buying, Having and Being. Englewood Cliffs, New Jersey: Prentice Hall.

Textbook on all aspects of consumer behavior. Includes an excellent section on children in the marketplace – the impact of the growing children’s market, targeting children, building brand loyalty, and understanding and appealing to the teen market. Contains several examples of print advertisements aimed at youth.

 

To talk to kids, companies usually need translators. Brandweek, 2/13/95, Vol. 36 Issue 7, p26.

Presents guidelines for marketing to children and discusses the difficulties of present-day marketing to children. Reports on the annual spending power of children and how children in the 8 to 17 segment break down their purchases. Includes the following guidelines: assume nothing, kids seek attachment and familiarity, kids will not forgive disappointment – you must deliver what you advertise, kids demand more information on products these days, play up the “wow” factor, appeal to kids and their parents for a “double-whammy.”

 

Cross-marketing

 

The use of the cross-marketing technique has become an effective marketing strategy. Cross-marketing occurs when a company uses a variety of vehicles simultaneously to market their product. For example, PokemonTM is a children’s card game, a movie, a television program, a computer game, a video game, toys, clothing, and a McDonald’s Happy MealTM toy! The goal is to saturate the kid’s market with as many images of their product as possible. Another excellent example of a company that cross-markets is Disney. The following reference discusses the topic of cross-marketing.

 

Linn, Susan (2000, January 16). Electronic Marketing:’Here, Kiddie, Kiddie!’ The Hours that Children Devote to TV. The Boston Globe. http://jbcc.harvard.edu/media/electronic_marketing.htm.

This article discusses the increasing impact of media on children, and advertising executives’ desire to capture the lucrative youth market. Marketing concepts such as lifetime brand loyalty, the “nag factor,” employment of psychologists, cross-marketing, product placement, and saturation marketing are discussed. The author promotes protection of children from the marketing onslaught and the pressures of incessant advertising.

 

Market Segmentation/Research

 

Age segmentation and market research are important marketing techniques. The segmentation of children as a target market has been done for some time. Marketers are now further segmenting children into smaller target markets, both by gender and by age group. For example, television programming (and the advertisements shown during these shows) reflects the fact that preschool children watch TV on weekday mornings, school-age children watch TV in the afternoons and early evening, and teens watch TV late evening. There is a distinct difference in programming during these times. Segmenting allows the marketer to focus on the target market and use the appropriate message and delivery technique.  Market research allows the marketer to profile target market segments and more effectively program their marketing strategies. The more information the marketer has about target markets, the more focused the marketing strategy can be. The following references address segmenting and market research.

 

Acuff, Dan S., Ph.D. (1997). What Kids Buy and Why: The Psychology of Marketing to Kids. New York: The Free Press.

A good “how-to” book on marketing to children. Includes the authors’ specific process (Youth Market System) for developing a marketing strategy for products aimed at children. The book tells how different segments of the “kid market” make decisions, segmenting the market into birth – age 2, ages 3 – 7, ages 8 – 12, and ages 13 – 15, and ages 16 – 19. Discusses how gender differences in children impact marketing.

 

Bradley, Frank (1995). Marketing Management: Providing, communicating and delivering value. New York: Prentice Hall.

A comprehensive text on marketing management. Includes very good sections covering both market segmentation and market research, including the design and implementation of market research projects.

 

Boutilier, Robert (1993). Targeting Families: Marketing to and Through the New Family. Ithica, New York: American Demographics Books.

Discusses the importance of families to marketers. Changes in the family structure in today’s society and how they impact marketing. The four “Ps” and how they apply to families. Decision making dynamics in the family unit. Market research in the area of marketing to families.

 

Forsyth, J.; Gupta, S.; Haldar, S.; Haul, A.; and Kettle, K. (1999). A segmentation you can act on. The McKinsey Quarterly, Volume 3, p7.

Discusses the concept of value-based segmentation, versus the traditional segmentation based on demographics or geographical area. The difficulty of defining value-based segments is that they don’t fit neatly into demographic or geographic groups. The authors suggest that marketers think outside the box to identify target segments that provide the maximum value. One example is the self-selection approach, where marketers give consumers in a given market ways to segment themselves.

 

Heuton, Cheryl. No one's watching the kids. MediaWeek, 3/25/96, Vol. 6 Issue 13, p9.

Focuses on the lack of ratings data for children's radio broadcasting in the United States. Impact on radio's marketability as a marketing tool for advertisers catering to children below 11 years old; Reasons for Arbitron's decision not to measure the market segment; Marketers' call for data on the segment.

 

McNeal, James U. (1992). Kids as Customers: A Handbook of Marketing to Children. New York: Macmillan, Inc.

An excellent handbook for marketers interested in targeting children. This book includes a chapter dedicated to marketing research among children – its purpose, how to conduct research, and what problems might be encountered. Techniques discussed include observation, laboratory experiments, role playing, focus groups, and picture drawing techniques.

 

Use of Promotions

 

Marketers have used promotions to attract kids to their products for many years. Promotions include the use of games and contests (“peel and win”, game pieces, collect and win, etc.), distribution of free or discounted merchandise (“get a free pack of baseball cards with each Mark McGwire action figure!”), sampling, offering special “limited time” bargains (“this sale only good until Saturday.”), and inclusion of toys or other “prizes” with purchases (Cracker JackTM prizes, McDonald’s Happy MealTM toys, cereal box prizes). The following references include material on the use of promotions in advertising.

 

Boyd, Malia. Look who's buying. Incentive, Sep94, Vol. 168 Issue 9, p76.

This article focuses on children as a market force not to be ignored. Discusses the impact of promotional marketing, using the example of McDonald’s Happy MealTM – one of the most effective marketing tools ever devised for marketing to kids. The article further discusses product characteristics ideal for children, marketing plans that work on children, and examples of promotional marketing techniques used by some major companies in United States designed for children.

 

Bradley, Frank (1995). Marketing Management: Providing, communicating and delivering value. New York: Prentice Hall.

A comprehensive text on marketing management. Includes a section on sales promotion. Covers the need for sales promotions, benefits of immediate response, determining the appropriate use of sales promotions at different stages of the product life cycle, developing sales promotion objectives, and determining the success of sales promotions.

 

Gay, Kathlyn (1992). Caution! This May be an Advertisement: A Teen Guide to Advertising. New York: Franklin Watts.

An excellent analysis of advertising to teens. Shows how advertisers use persuasive techniques to get teens to buy products, and how advertising messages are conveyed through the various media. Cautions against being “fooled” by advertising “gimmicks” and sales promotions that may not be bargains at all. The author provides recommendations for “smart shopping,” including comparison shopping and validating advertising claims.

 

Hollander, Stanley C. and Germain, Richard (1993). Was There a Pepsi Generation Before Pepsi Discovered It?: Youth-Based Segmentation in Marketing. Lincolnwood, Illinois: NTC Publishing Group.

Traces the history of marketing to youth. Examines marketing campaigns aimed at children, including Pepsi, Brylcreem, Hallmark, Brunswick, auto companies, Jantzen, RCA, and others. Discusses the impact of promotion, pricing, distribution, product design, and targeting of youth.

 

Strasser, Susan (1989). Satisfaction Guaranteed: The Making of the American Mass Market. New York: Pantheon Books.

A comprehensive history of advertising, retailing, sales and promotions, packaging. Includes many sample advertisements through recent history, as well some discussion on marketing to children.

 

New product development

 

The development of new products targeted at the children’s market requires that product developers consider the characteristics of the children’s market during the conception and development stages. New product developers must work hand-in-hand with marketing managers experienced with marketing to children. This will ensure that developers take advantage of kids’ known patterns, and will make the job of the marketing manager much easier “down the road.” The following references contain material on new product development and marketing to children.

 

Battersby, G. J. and Grimes, C. W. (1996). The Toy and Game Inventor’s Guide. 2nd Edition. Stamford, Connecticut: Kent Press.

Specifically directed at readers interested in developing new toy and game products. Includes specific instruction on conception, research, development, and marketing of toys and games. Describes the toy and game market/industry.

 

Walden, Gene and Lawler, Edmund O. (1993). Marketing Masters: Secrets of America’s Best Companies. New York: HarperCollins Publishers.

An analysis of several of America’s most effective marketers. Common characteristics of the best marketers. New product development techniques. Discussion of the following companies’ marketing techniques: Rubbermaid, Tyson Foods, Logitech, Gerber, McDonald’s, Subway, and others. Some discussion of how certain companies market to children.

 

Kid’s Marketing Leaders

 

McDonald’s (www.mcdonalds.com) has long been viewed as a leader in marketing to children. Although some argue the value of turning kids on to fast food that may impact their health, none can argue their success at winning kids’ loyalty to their products. There are scores of articles that discuss McDonald’s marketing success, including the following. Other companies that have achieved success marketing to kids include Disney, Lego, and Nintendo.

 

Komenar, Margo (1997). Electronic Marketing. New York: John Wiley and Sons, Inc.

A guide to electronic marketing techniques. Includes information on marketing through various electronic channels, examples of industry leaders in eMarketing, intellectual property issues related to electronic marketing, and electronic marketing relative to children. Examples of McDonald’s kids page, AOL’s Kids Only web page, and KidSoft software.

 

Calkins, John D.; Eagle, Jevin S.; Farello, Michael J.; Horn, Michelle B.; and Loch, Mark A.  (1999). You want profits with that? The McKinsey Quarterly, Volume 4, p134.

Discusses changes in the fast food industry and an important part of the strategic mix – concept renewal. McDonald’s is highlighted as a company continually renewing concepts – adding playgrounds, changing décor, menus, and promotions.

 

3.       Aspects of Online Marketing to Children

 

Brick-and-mortar businesses have long understood the powerful combination of kids and money.  Today, as the number of kids using Internet is reaching 10 million, more and more companies are using Internet to market their products to kids.  Online advertising has several characteristics that make it even more powerful than traditional advertising:

       

·         It has no national boundaries and therefore is often unregulated

·         Children that participate in online activities become a part of the online community and create a strong association with the brand

·         Advertising is interwoven with the content of the web site and is hard to distinguish from entertainment, activities, and information

·         Companies are able to collect personal information about kids by engaging kids in clubs, surveys, contests, and sweepstakes

·         Companies are also able to track kids’ tastes and preferences online and customize online experience to their specific interests

 

A list of the most popular kids’ web sites is provided by the Center for Media Education and can be found at: http://www.media-awareness.ca/eng/med/class/teamed2/cmebest.htm

 

Media Awareness Network (2000).  Online Marketing Strategies.

 http://www.media-awareness.ca/eng/webaware/tipsheets/kds4sale.htm

 

In addition to traditional banner ads used to market products on the Internet, companies that target kids in their advertising use many other marketing strategies.  The most common ones are creating communities or virtual worlds, using “spokescharacters” to promote products, and involving kids in interactive activities such as coloring pages, crosswords, and word searches featuring brand-name products and their spokescharacters. 

 

Pham, A., Johnson, G. (2001).  Advertisers Play on Allure of Online Games.  Los Angeles Times.  07/22/01 http://www.latimes.com/business/la-000059752jul22.story

 

More and more companies are beginning to use so-called “advergames” as part of their marketing strategy to kids and adults.  The advergames are ads disguised as games that are intended to build and increase brand loyalty as well help companies obtain data on potential customers.  Even though there is no evidence yet that games result in increased sales, companies find this strategy appealing because it attracts people to their web sites, allows to collect information about consumer preferences (i.e. model of the car, music choices, etc.) as well as personal information.

 

Tracy, K.  Ad Models for the Internet: What Clicks with Kids.  KidScreen Magazine.  03/01/01, p. 48.  Retrieved from http://www.kidscreen.com/articles/magazine/20010301/30801.html

 

The article talks about different advertising approaches that are used by companies that advertise online and provides examples of different ad formats.  Banner ads, the traditional format of online advertising, is still a great way to generate the most mass, cost-effective reach for your message.  Adisodes” are streamlined video/audio ads/cartoons that showcase an advertiser’s brand to the audience (i.e. Nick.com).  Stand along product sites are used for promoting branded products (i.e. Pokemon.com) by offering interactive video games and building a brand “community.”  While there is no clear consensus on what advertising strategy works best online, most believe that the integrated approach should be used for advertising online.

 

Online Shopping Issues

 

Van Nevel, F. (2000).  Digital Allowances: What Parents Need to Know.  

 http://www.lgefcu.org/magazine/0200_d.htm

 

In the recent years, several companies engaged in offering online allowances or “digital wallets” that allow kids to shop on their own, but allows parents to control where, when, and how much their kids can spend online.  Kids can spend their online allowances in e-stores, deposit it into a savings account, or donate it to a charity.  Some of the “digital wallet” companies allow ATM withdrawals, and teach kids about budgeting, and how they can invest their money in custodial investment accounts or mutual funds. 

 

Online Privacy Issues

 

Arden, L.  Kids Online: Surfing in Shark-Infested Waters.  

 http://www.eref.net/privacy/features/kids_online.asp

 

Over 75% of web sites still collect kids’ personal information without receiving parents’ consent.  The information being collected from the kids often goes beyond what is needed for identification.  Kids are routinely asked for information about parents, including their home address, employers, favorite hobbies or music or sports.  The article examines multiple examples of privacy violations and provides recommendations what parents can do to protect their kids online.

 

Digital Chaperones for Kids.  Consumer Reports Online.   March 2001.    http://www.consumerreports.org/main/detail.jsp?CONTENT%3C%3Ecnt_id=18867&FOLDER%3C%3Efolder_id=18151&bmUID=1005599167364

 

The article reviewed six Internet filters including AOL’s parental controls. The investigation found that some filters blocked nearly 20% of sites with legitimate content, and AOL’s Young Teen control blocked 63% of those sites. The ability of filters to block inappropriate sites also varied, with AOL’s Young Teen control allowing only one site out of 86 through in its entirety, along with portions of 20 other sites. The other filters allowed at least 20% of the sites through in their entirety. The sites were filtered through three basic methods: software analysis, human analysis, and site content labels, such as the Internet Content Rating Association (ICRA) labels. The ICRA plans to release a free software program later this year which will allow parents, schools, and other institutions to set up their own list of permitted and blocked sites. 

 

Lewis, M. (2001)   Surprise! Children’s Web Info For Sale

http://www.newsfactor.com/perl/story/7029.html

 

The article describes how one company (N2H2) that monitors sites visited, pictures downloaded and information provided by students at school, also sells that information to other interested companies.   The company reviews web site access by kids and organizes it into 40 categories such as pornography, e-commerce and auctions.  The company later sells the nonspecific information about students’ age, race and census district for a yearly fee of $10,000.  The article points out that even though this practice is within the legal standards, the boundaries of collecting and selling information about kids might need to be revised in the future.

 

4.       Marketing In The Public Schools

 

A recent study from the U.S. General Accounting Office confirms that advertising and commercial activities in public schools are widespread1.  Safeguards protecting students against advertising do not exist due to the absence of comprehensive state laws and regulations.  The GAO states that advertising in the public schools takes several forms including:

  • Product Sales, including exclusive contracts between schools and soda or fast food companies, and other activities such as the sale of candy and gift-wrap;
  • Direct Advertising – Targets students with advertisements on vending machines and school buses.  It also includes direct ads delivered thought electronic media outlets;
  • Indirect advertising – Occurs primarily when schools use corporate-sponsored educational materials; and
  • Market Research Practices – Employ focus groups, student questionnaires, and online tracking to capture students’ consumer habits. Included in this group are companies that track individual students by age, gender, school zip code and aggregate information describing students’ Internet activities.

 

This section presents various examples of marketing within the public schools, and the extent to which national organizations are building momentum against such tactics.  References to several public-school advertising programs are provided.  This includes three of the most controversial programs: Channel One; Beverage Advertising and ZapMe!

 

Advertising in the Schools. ERIC Digest – Amy Aidman

http://www.ed.gov/databases/ERIC_Digests/ed389473.html

 

Illustrates why big business markets to children by citing elementary school children having an estimated $15 billion of their own money to spend annually of which they spend an estimated $11 billion on products such as toys, clothes, candy and snacks. And that children influence at least $160 billion in parental annual purchases.  The article attempts to rally support for appropriate policies for addressing the increasing flow of commercialization in the classroom.

 

From Billboard to Chalkboard: Advertising Creeps Into the Classroom – Linda Starr

http://www.education-world.com/a_admin/admin056.shtml

 

This article illustrates that kids spend more than 20% of their time in school, causing marketers to realize that “All roads eventually lead to the schools”.  Strategic reasons for targeting students include: Influence how kids spend their own money; Affect how kids influence their parents spending; and build brand loyalty among future adult consumers.  Corporate presence continues to grow at a fast pace despite concerns of educators and parents due to the sizable financial assistance that schools may realize. This is especially true at a time when taxpayers are increasingly reluctant to raise school budgets, when school spend enrichment programs are in danger, and when teachers spend an average of more than $400 of their own money on classroom supplies.

 

Channel One

               

Channel One

http://www.commercialfree.org/channelonetext.html

 

Presents extensive information on Channel One’s market share and how Channel One provides schools TV sets, VCRs and a satellite dishs in return for airing its proprietary productions. The article also discusses how school districts require their students to watch Channel One as part of its curriculum and the rigorous criteria by which schools commit to deliver “captive audiences” i.e., students to the viewing of Channel One.  Marketed as the “Leading provider of television news and education program”, research indicates that a significant part of each broadcast is devoted to advertising, sports, weather and natural disasters, features, and profilers of self-promotion of Channel One.  Social economic patterns are presented indicating that Channel One is disproportionately shown in low-income communities and communities of color where less money is available for education. While it uses public schools as an outlet for programming, Channel One refuses to allow public access to its tapes and programs. Students spend approximately six days of an average school watching Channel One, equating to $1.8 billion dollars of annually-lost classroom time to watching Channel One and $300 million in class time lost to commercials.

 

Commercial Alert – Protecting Children and Communities Form Commercialism

http://www.commercialalert.org/channel_one/

 

Summarizes the negative impact of Channel one, including: Misuse of the compulsory attendance laws to force children to watch commercial advertising; Wastes school time; Promotes violent entertainment; Wastes tax dollars spend on schools; Promotes the wrong values to children; May harm children’s health; Corrupts the integrity of public education; and Promotes television instead of reading.  The article also provides suggestions on how parents, local educators and concerned citizens can take action against Channel One.

 
Testimony to the Senate Committee On Health, Education, Labor And Pensions – Phyllis <