Harvard study reveals social media’s $11 Billion revenue from ads targeting kids

A Harvard study reveals that social media companies made $11 billion in revenue from advertising targeting children and teenagers, with nearly $2 billion coming from users aged 12 and under. Snapchat, TikTok, and YouTube garnered 30% to 40% of these profits. The study indicates that these platforms, despite potential harm to young users’ mental health, are financially motivated to delay implementing meaningful protective measures.

Notably, YouTube, Instagram, and Facebook earned millions from ads targeting children. In contrast, mounting pressure for child protection has led to lawsuits against major platforms and calls for stricter guidelines on social media use among youngsters.

Based on 2021 and 2022 data, the study focuses on two age groups (12 and under, 13 to 17) across popular platforms: YouTube, X, TikTok, Instagram, Facebook, and Snapchat.

Why does it matter?

With mounting concerns about the impact on children’s mental health, US Surgeon General Dr Vivek Murthy called for more robust guidelines on this matter. Over 2,000 families have pursued lawsuits, with 350 expected to proceed in 2023 against TikTok, Snapchat, YouTube, Roblox, and Meta. In October, attorneys general from 33 states filed a federal lawsuit against Meta, alleging harm to young users and illegal data collection. New York lawmakers also proposed legislation to restrict minors’ access to ‘addictive feeds’ without parental consent. Across the Atlantic, the European Parliament is responding to the impact of social media on young users by passing a resolution targeting the addictive nature of digital platforms. The goal is to prioritise this issue on the legislative agenda after the upcoming European elections in June.