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FEDERAL TRADE COMMISSION
Marketing Food
to Children
and Adolescents
A Review of Industry Expenditures,
Activities, and Self-Regulation
A Report to Congress
Federal Trade Commission
July 2008
Marketing Food to
Children and Adolescents
A Review of Industry Expenditures,
Activities, and Self-Regulation
July 2008
Federal Trade Commission
William E. Kovacic, Chairman
Pamela Jones Harbour, Commissioner
Jon Leibowitz, Commissioner
J. Thomas Rosch, Commissioner
Report Contributors
Bureau of Consumer Protection
Sarah Botha, Division of Advertising Practices
Keith Fentonmiller, Division of Advertising Practices
Carol Jennings, Division of Advertising Practices
Mary Johnson, Division of Advertising Practices
Kial Young, Division of Advertising Practices
Heather Hippsley, Assistant Director, Division of Advertising Practices
Mary Koelbel Engle, Associate Director, Division of Advertising Practices
Bureau of Economics
Pauline M. Ippolito, Deputy Director, Bureau of Economics
Research Assistants
Todd Dickey, Bureau of Consumer Protection, Division of Advertising Practices
Diana Finegold, Bureau of Consumer Protection, Division of Advertising Practices
Conor McEvily, Bureau of Consumer Protection, Division of Advertising Practices
Colin Conerton, Bureau of Consumer Protection, Honors Paralegal Program
Micah B. Burger, Bureau of Economics
Michelle Y. Kambara, Bureau of Economics
Dane M. Vrabac, Bureau of Economics
ii
Contents
List of Tables....................................................................................................................................v
List of Figures............................................................................................................................... vii
Executive Summary................................................................................................................. ES-1
I.
Introduction..............................................................................................................................1
A. Background: Marketing, Self-Regulation, and Childhood Obesity..................................1
B. Conducting the Study.........................................................................................................3
1. Marketing Expenditures..............................................................................................4
2. Marketing Activities and Other Information Requested by the Special Order...........5
C. Role of the FTC Study........................................................................................................6
II. Expenditures for Marketing Food to Children and Adolescents.........................................7
A. Introduction........................................................................................................................7
B. Expenditures Analyzed by Food Category.........................................................................8
C. Expenditures Analyzed by Promotional Activity Groups................................................12
1. Traditional Measured Media: Television, Radio, and Print......................................15
2. New Media: Websites, Internet, Digital, Word-of-Mouth, and Viral Marketing.....17
3. Packaging and In-Store Marketing............................................................................18
4. Premiums...................................................................................................................19
5. Other Traditional Promotional Activities ................................................................20
6. In-School Marketing.................................................................................................23
7. Use of Cross-Promotions and Celebrity Endorsements............................................24
III. Food Marketing Activities Directed to Children and Adolescents....................................27
A. Introduction......................................................................................................................27
B. Specific Promotional Activities........................................................................................28
1. Cross-Promotions and Third-Party Licensed Characters..........................................28
2. Brand Recognition Activities....................................................................................38
3. Other Promotional Activities.....................................................................................39
4. In-School Marketing.................................................................................................51
C. Target Companies’ Market Research on Child and Teen Audiences................................54
D. Marketing Directed to Children or Adolescents by Gender, Race, Ethnicity, or
Income Level....................................................................................................................57
1. Television, Print, Radio, and Internet........................................................................57
iii
2.
3.
Athletic and Other Event Sponsorships....................................................................58
Packaging, In-Store, Premiums, and School-Related Marketing..............................58
IV. Assessment of Food Company Health Initiatives and Recommendations.......................60
A. The 2005 Workshop on Marketing, Self-Regulation & Childhood Obesity and the
2006 Report......................................................................................................................60
B. Developments Since the 2005 Workshop and 2006 Report.............................................61
1. Children’s Food and Beverage Advertising Initiative...............................................62
2. “Better for You” products..........................................................................................65
3. Innovative Packaging................................................................................................67
4. Nutritional Labeling..................................................................................................68
5. Competitive Foods and Beverages in Schools..........................................................72
6. Healthy Messages......................................................................................................75
7. Media and Entertainment Company Initiatives.........................................................78
C. Measuring the Success of Company Initiatives................................................................80
V. Conclusion..............................................................................................................................81
Endnotes........................................................................................................................................83
Appendices
Data and Research Methods.................................................................................... Appendix A
Federal Trade Commission Order to File Special Report........................................ Appendix B
Expenditure Data Tables by Food Category and Promotional Activity Category... Appendix C
FTC Survey of Food and Beverage Display Advertising on Child- and TeenOriented Websites and Select Data on Food Company Websites.....................Appendix D
CBBB Children’s Food & Beverage Advertising Initiative: Tables
Summarizing Individual Food Company Commitments Regarding Food
Marketing to Children...................................................................................... Appendix E
Tables Summarizing Alliance for a Healthier Generation School Beverage
and Competitive Food Guidelines.....................................................................Appendix F
iv
List of Tables
Table II.1: Total Youth Marketing for Reported Brands and Percent of Total Marketing, By
Food Category, Ranked by Youth Spending..................................................................9
Table II.2: Reported Child and Teen Marketing Expenditures and Overlap.................................11
Table II.3: Reported Child and Teen Marketing That Uses Cross-Promotions, Ranked by
Percentage....................................................................................................................25
v
vi
List of Figures
Figure II.1: Reported Child and Teen Marketing Expenditures and Overlap.................................7
Figure II.2: Reported Youth Marketing and Total Marketing for Reported Brands, Ranked
by Youth Expenditures................................................................................................9
Figure II.3: Child and Teen Marketing, Ranked by Youth Expenditures.....................................11
Figure II.4: Reported Total Youth Marketing Expenditures by Promotional Activity Group......12
Figure II.5: Food Category Share of Total Youth Spending For Each Promotional Activity
Group.........................................................................................................................13
Figure II.6: Reported Child Marketing Expenditures, By Promotional Activity Group..............14
Figure II.7: Reported Teen Marketing Expenditures, By Promotional Activity Group...............14
Figure II.8: Television Advertising Expenditures - Top 3 For Youth...........................................15
Figure II.9: Television Advertising Expenditures on Top 5 Teen (12-17) Broadcast Shows.......16
Figure II.10: New Media - Top 3 for Youth....................................................................................17
Figure II.11: In-Store and Packaging/Labeling - Top 3 for Youth.................................................18
Figure II.12: Premiums - Top 3 for Children..................................................................................19
Figure II.13: 2006 Child Traffic for Kids’ Meals with Toys, 99¢ or $1.00 Menu Items, and
Older Kids’ Meals (All QSRs versus Select QSRs)..................................................20
Figure II.14: Percent of 2006 Child Traffic for Kids’ Meals with Toys (All QSRs vs. Select
QSRs)........................................................................................................................20
Figure II.15: Other Traditional Promotions - Top 3 for Youth.......................................................21
Figure II.16: In-School - Top 3 for Youth.......................................................................................23
Figure II.17: Reported Child Marketing Expenditures and Portion Using Cross-Promotions.......26
vii
Executive Summary
Executive Summary
Concern about the dramatic increase in childhood obesity in the United States prompted
Congress to request that the Federal Trade Commission conduct a study of food and beverage
marketing to children and adolescents. The results of that study – an analysis of 2006
expenditures and activities by 44 companies – are presented here. Included are not only the
traditional measured media – television, radio, and print – but also activities on the Internet and
other new electronic media, as well as previously unmeasured forms of marketing to young
people, such as packaging, in-store advertising, event sponsorship, and promotions that take
place in schools. Integrated advertising campaigns that combine several of these techniques
and often involve cross-promotions – linking a food or beverage to a licensed character, a new
movie, or a popular television program – dominate today’s landscape of advertising to youth.
The data presented here tell the story of food and beverage marketing in a year just
preceding, or early in the development of, industry self-regulatory activities designed to reduce
or change the profile of such marketing to children. These initiatives – some of which grew
out of a 2005 joint FTC and Department of Health and Human Services (HHS) Workshop on
Marketing, Self-Regulation & Childhood Obesity – are described in Section IV of this Report,
which also sets forth recommendations for future actions by food and entertainment industry
members, as well as the organizations that have spearheaded self-regulatory efforts. This Report,
which compiles information not previously assembled or available to the research community,
may serve as a benchmark for measuring future progress with respect to these initiatives.
The data in this Report were obtained by issuing compulsory process orders to industry
members, including beverage manufacturers and bottlers; companies that produce packaged food
such as snacks, baked goods, cereals, and prepared meals; makers of candy and chilled desserts;
dairy marketers; fruit and vegetable growers; and quick-service restaurants (QSRs). These are
the foods most frequently advertised to children (ages 2-11) and adolescents (ages 12-17), and
the 44 target companies are the primary marketers to youth (ages 2-17) in those food categories.
The companies were required to provide expenditure data in each of 20 advertising or
promotional activity categories for marketing directed to children, adolescents, and all audiences.
Samples of marketing activities or descriptions of techniques used in 2006 were also obtained.
Dollars Spent on Marketing to Children and Adolescents
The 44 reporting companies spent approximately $1,618,600,000 to promote food and
beverages to children and adolescents in the U.S. in 2006. Approximately $870 million was
ES-1
Marketing Food to Children and Adolescents
spent on food marketing directed to children under 12 and a little more than $1 billion on
marketing to adolescents. About $300 million of these expenditures were addressed to both age
groups; hence, the total spending is less than the sum of the separate expenditures for the two age
groups.
Previous estimates of food marketing directed to children and adolescents by other
researchers have been significantly higher than $1.6 billion. There are several reasons for this
disparity. Other researchers have not had access to the confidential company financial data
obtained by the Commission. Moreover, prior estimates appear to have included advertising
directed to children for products other than food. In addition, these estimates have included price
promotions, such as coupons or discounts for children at hotels and restaurants, that generally are
targeted to adults.
For those food and beverage brands promoted to children and adolescents, the overall
expenditures for promotional activities directed to all audiences, including additional adultoriented marketing, was more than $9.6 billion. Therefore, the expenditures directed to those
between the ages of 2 and 17 represented 17% of the total 2006 marketing budget for those
brands.
Carbonated beverages, restaurant (QSR) food, and breakfast cereals accounted for $1.02
billion of the $1.6 billion, or 63% of the total amount spent on marketing to youth by the
reporting companies. For carbonated beverages, the total was $492 million, with $474 million
(or 96%) of that amount directed to adolescents. Nearly 24%, or $116 million, of carbonated
beverage youth marketing consisted of in-school expenditures. QSRs reported spending close
to $294 million on promotions to youth, divided fairly evenly between activities directed to
children and those targeted to adolescents. For cereals, the total was $237 million, with $229
million targeted to children.
Television advertising still dominates the landscape of marketing techniques used to promote
foods and beverages to youth; companies reported spending $745 million, or 46% of all reported
youth marketing expenditures, on this medium. More than 50% of the television advertising was
directed to children under 12, with breakfast cereals and restaurant food accounting for more
than half of that advertising. Carbonated beverages and restaurant food dominated adolescentdirected television advertising. All told, traditional “measured media” (television, radio, and
print) accounted for $853 million, or 53% of the reported youth-directed marketing expenditures.
New media – the Internet, digital (such as email and text messaging), and word-of-mouth/
viral marketing – have become an important component of promotional activities intended to
reach children and adolescents. In an attempt to quantify the use of online marketing, Appendix
ES-2
Executive Summary
D to this Report explores the amount of display advertising for food and beverages that appeared
on child- and adolescent-oriented websites in 2006, as well as traffic on company websites that
promote food or beverage products through branded entertainment and activities designed for
children and adolescents. In terms of expenditures, however, the new media accounted for only
$77 million, or 5% of reported youth-directed marketing.
Expenditures on specialty items (premiums) and prizes for children and adolescents totaled
$67 million, or 4% of reported youth marketing dollars. However, this number does not include
toys distributed by QSRs with children’s meals because, in those cases, the consumer purchases
the toy when paying for the meal. If the cost of QSR toys – which is estimated to total $360
million – were added to the reported premium expenditures, this category would jump to $427
million and would rank second only to television as a promotional technique targeted to children.
Moreover, if added to QSRs’ reported child-directed marketing expenditures of $161 million,
these costs would result in total spending on child-directed marketing by the reporting QSRs of
over $520 million – more than twice the amount spent on child-directed marketing in any other
food category.
Companies reported spending $195 million on packaging and in-store display materials to
reach children and adolescents, or 12% of all reported youth marketing expenditures. Marketing
in schools totaled $186 million, or 11% of reported youth marketing, and 90% of those
expenditures were for beverages, both carbonated and non-carbonated. The remaining $241
million (15%) of reported youth-directed marketing was spent on other traditional promotional
activities, such as event and athletic sponsorships; celebrity endorsement fees; movie theater,
video, and video game ads; product placements in movies, television, and video games; crosspromotion licensing fees; and promotional activities conducted in connection with philanthropic
endeavors.
Expenditures for cross-promotions, including the use of licensed characters and tie-ins
with television programs, movies, toys, or other entertainment events, were compiled across
promotional categories – generally including television, the Internet, premiums, packaging,
and in-store displays. A little more than $208 million, representing 13% of all reported youth
marketing, was devoted to cross-promotions. For some food categories, such as restaurant
food and fruits and vegetables, cross-promotions were nearly 50% of reported child-directed
expenditures. Cross-promotional activities directed to children were used for restaurant food,
breakfast cereals, snack foods, prepared foods, dairy products, baked goods, and fruits and
vegetables. Cross-promotions targeting an adolescent audience were used for snack foods,
candy, and carbonated drinks.
ES-3
Marketing Food to Children and Adolescents
Methods of Promoting Foods and Beverages to Children
and Adolescents
For most food and beverage products, advertising to a young audience employs the full
spectrum of promotional techniques and formats. Promotional campaigns directed to youth
tend to be fully integrated, with themes encountered in television ads carried over to package
materials, promotional displays in stores or restaurants, and the Internet. Packaging promotes
the company or food product website, where entry of a code found on the package might enable
the young consumer to participate in a contest, play a game that features the product, or receive
“points” to redeem for premiums.
Cross-promotions were widespread in 2006, tying foods and beverages in all of the covered
categories to about 80 movies, television shows, and animated characters that appeal primarily
to youth. Superman Returns and Pirates of the Caribbean were prominent that year – promoting
QSR children’s meals, frozen waffles, fruit and fruit snacks, breakfast cereals, popcorn, lunch
kits, candy, carbonated and non-carbonated drinks, pasta, snack chips, and milk. Superman
and the Pirates characters appeared in ads on television, in movie theaters, on the Internet, and
on packaging and in-store displays. Companies created special limited edition snacks, cereals,
frozen waffles, and candies based on the movies. Children or adolescents could go online to
play “advergames” related to the characters and their stories and to enter contests or sweepstakes
using special codes obtained from food packages or beverage containers. Prizes ranged from
video games to trips to Disney parks to a $1,000,000 reward for the “capture” of Superman
villain, Lex Luthor. Related premiums included skull-shaped bowls, bandanas, strobe light key
chains, movie posters, outdoor flying toys, Superman action figures, activity books, and digital
downloads.
For some food products marketed to children, companies have created their own successful
“spokescharacters” – animated versions of animals, people, or even the food itself. Stories and
biographical information about the characters appear in television ads, on packages, and in online
videos. The stories are augmented by websites that use the characters in games, afford children
the opportunity to help them solve problems or mysteries, and offer related prizes or premiums,
such as character cards or comic books to collect. Food company characters occasionally
even make “live” appearances at events. Some food companies also sell – or license third
parties to sell – merchandise, such as toys and clothing branded with food products or their
spokescharacters.
The Internet – though far less costly than television – has become a major marketing tool
of food companies that target children and adolescents, with more than two-thirds of the 44
ES-4
Executive Summary
companies reporting online, youth-directed activities. Some devote space on a company website
to child or adolescent content, while others have developed independent websites for foods or
beverages that particularly appeal to children or adolescents. Advergames, directed to both
children and adolescents, were featured on websites for snacks, cookies, candy, cereals, dairy
products, frozen meals, beverages, soups, frozen waffles, fruit, and restaurant food.
Websites appealing to adolescents often featured sports or music, and many offered free
downloads, such as screensavers, wallpapers, ringtones, music, and layouts for MySpace
pages. Downloads for children included activity sheets, pages to color, stickers, iron-on
decals, and games. Some beverage companies contacted adolescents by text messaging, and a
few companies used podcasts and “webisodes” (online video episodes) to reach children and
adolescents.
A by-product of Internet marketing is viral marketing, in which consumers are encouraged
to share electronic promotional messages with other consumers. Typically, these efforts consist
of “e-cards” (electronic greeting cards) and “send-to-a-friend” emails that can be sent from food
product websites and contain hyperlinks back to the site. These techniques were used to reach
both children and adolescents, and often were linked to a cross-promotional campaign. Word-ofmouth activities involved electronic and non-electronic peer-to-peer communications about food
products, in which consumers were recruited to act as product “ambassadors” or “connectors”
by handing out promotional materials or samples. Most of these activities were directed to
adolescents.
Product packages and point-of-sale materials in stores were used heavily for movie or
television program cross-promotions, displays of company spokescharacters, and premium or
sweepstakes promotions. Sports themes and offers of sports paraphernalia were a popular means
of attracting adolescent consumers. Other store promotions featured mini-events, with branded
vehicles, product samples, carnival-type activities for children, and distribution of toys or other
items. Fruit and vegetable companies used Sesame Street and other characters on produce
displays, packaging, and the produce itself to appeal to young children.
Premiums – available free with the food product or at a discount with proof of purchase –
ran the gamut from small toys, trinkets, or collectible cards to DVDs, video games, music or
ringtone downloads, and amusement park or event tickets. Prizes available through contests or
sweepstakes were often in the form of cash. Other prizes included electronic equipment, such as
televisions, digital music players, and cell phones; sports equipment, apparel, camps, or clinics;
vacations and trips to theme parks; and tickets to concerts or sporting events. Some companies
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Marketing Food to Children and Adolescents
offered a point system tied to accumulated proofs of product purchase; points could be redeemed
for merchandise, usually through a company website.
Celebrity endorsers – actors, athletes, singers, and musical groups – were featured in
television and print ads, on the Internet, and in store displays, primarily in ads directed to
adolescents or “tweens” (those between the ages of 8 or 9 and 13 or 14). Often they were tied
to sweepstakes, such as a contest for the opportunity to meet a basketball star in person. Food
and beverage promotion took place at sponsored events, including local fairs or festivals with
children’s activities, performances at mall and retail sites, concerts, athletic events, circuses,
children’s movie premieres, and other venues appealing to children or adolescents. Some
companies sent branded cars, vans, or buses on tour to distribute samples and engage with
children or adolescents at stores, community events, amusement parks, athletic events, or
“impromptu” events created by the food marketer itself. Sponsorship of athletes, athletic teams,
and competitive sporting events, including those for extreme sports, was a common promotional
activity directed to children or adolescents. The sponsorship of professional athletic teams also
included opportunities for children or tweens to meet players, participate in pre-game or sideline
events, and attend sports camps, clinics, or training programs.
Product placements – such as a character drinking a soda or offering it to another character,
a can or bottle appearing on a table, or a brand name mentioned in dialogue – occurred in a few
television programs popular with children or adolescents and in some PG and PG-13 movies
appealing to youth. Food and beverage ads also appeared in movie theaters, on videos, and
before video games, and occasionally food products were integrated into video game content.
Marketing in elementary, middle, and high schools occurred primarily through displays on
or around vending machines or in cafeterias. Companies sponsored athletic events, programs,
equipment, or apparel; provided product samples and branded merchandise to schools; and
sometimes sponsored contests with student prizes. A few provided instructional materials about
nutrition and fitness or sponsored reading encouragement programs.
Food Company Health Initiatives
Since the 2005 FTC/HHS Workshop on Marketing, Self Regulation & Childhood Obesity,
and the subsequent Report issued in April 2006, members of the food and beverage industry,
as well as entertainment and media companies, have taken important steps to encourage better
nutrition and fitness among the nation’s youth. The Children’s Food and Beverage Advertising
Initiative, established by the Council of Better Business Bureaus (CBBB) in November 2006,
represents a significant effort to change the mix of food and beverage advertising messages
ES-6
Executive Summary
directed to children under 12 and to encourage them to eat healthier foods and be more
physically active. To date, 13 of the largest food and beverage companies – estimated to account
for more than two-thirds of the food and beverage television advertising expenditures directed
toward children – have joined the Initiative, pledging either not to direct television, radio,
print, or Internet advertising to children under 12 or to limit their advertising to foods that meet
specified nutritional standards. Other aspects of the pledges include limiting the use of licensed
characters to the promotion of healthier products or lifestyles, not seeking product placements
in child-directed media, not advertising food or beverages in elementary schools, and using only
“healthy dietary choices” in interactive games directed to children.
The Alliance for a Healthier Generation – a partnership of the William J. Clinton Foundation
and the American Heart Association – has joined with industry in a significant effort to change
the array of “competitive” foods and drinks (i.e., those sold outside the school meal program)
sold to children and adolescents in schools. The School Beverage Guidelines, adopted in May
2006, impose size and calorie limitations that vary based on educational level. The Competitive
Food Guidelines, adopted in October 2006, impose restrictions on calories, as well as fat, sugar,
and sodium content.
Other efforts by food industry members include: product reformulation; development of
new “better for you” products; more nutritious products available in QSR children’s meals;
single-serving packages to assist with portion control; nutritional labeling initiatives, such
as company icons, third-party seals, and front-of-package nutrition information; and public
education directed to children and adolescents regarding nutrition and fitness. Some media
and entertainment companies have also stepped forward with new initiatives, such as limiting
the licensing of popular characters to promote only foods meeting minimum nutritional
requirements; requiring program sponsors to meet nutritional guidelines; and incorporating
healthy messages into children’s programs.
The Commission notes that significant progress has been made in implementing the
recommendations that evolved from its 2005 Workshop and 2006 Report, although there remains
room for improvement. Based on the results of this study, the Commission has developed the
following recommendations for future actions by industry members and others, including the
organizations that have undertaken new initiatives to address the childhood obesity problem:
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Marketing Food to Children and Adolescents
Recommendations for Food and Beverage Companies
General:
••
••
All companies that market food or beverage products to children should adopt and
adhere to meaningful nutrition-based standards for marketing their products to
children under 12. A useful first step would be to join the CBBB Initiative.
••
Companies should broadly construe “marketing” to include all advertising
and promotional techniques, including but not limited to: advertising on
television and radio, in print media, and on the Internet (including third-party
and company-sponsored websites); product packaging and labeling; advertising
preceding a movie shown in a movie theater or placed on a video (DVD or VHS)
or within a video game; promotional content transmitted to personal computers
and other digital or mobile devices; advertising displays and promotions at
the retail site; specialty or premium items distributed in connection with the
sale of a product; promotion or sponsorship of public entertainment events;
product placements; character licensing, toy co-branding and cross-promotions;
sponsorship of sports teams or individual athletes; word-of-mouth and viral
marketing; celebrity endorsements; and in-school marketing.
••
In cases where a product line contains some product varieties that meet the
nutrition-based standard and others that do not, companies should strictly limit
all components of a promotion or advertising campaign directed to children
under 12 to those varieties that meet the standard. Thus, for example, television
or print advertisements promoting a sweepstakes would feature only the “better
for you” varieties of the product, and licensed characters would appear only on
packages of the “better for you” varieties.
Companies should consider limiting branded merchandise intended for children to
products or brand lines meeting meaningful nutrition-based standards.
Improving the Nutritional Profile of Product Offerings:
••
Companies should continue and increase efforts to improve the nutritional profiles
of their products – especially those marketed to children and adolescents – through
product innovation and reformulation.
••
Companies should improve upon the nutritional criteria adopted for “better for you”
products as they find ways to lower sugar, fat, sodium, etc., without sacrificing taste
and appeal.
••
In applicable cases, companies should re-examine whether the fact that a product
has “less” of, or is “reduced” in, calories or certain nutrients (e.g., sodium, sugar,
or fat) is, by itself, a sufficient basis for qualifying as a “better for you” product.
ES-8
Executive Summary
••
Companies should continue and expand efforts to package more nutritious products
in ways that are more appealing to children.
••
Companies should continue efforts to use product packaging to help consumers
control portion sizes and calories, by offering smaller portions and single-serving
packages.
Nutrition Labeling:
••
Companies should conduct research on the effectiveness of various labeling devices
to determine how consumers interpret such labeling and to identify those devices
most effective at conveying meaningful, truthful information.
••
Companies should work toward consistency among the standards used by individual
food and beverage companies to determine what constitutes a “better for you”
product, such as through the development and use of third-party standards, icons, or
other devices. The Commission supports the work of the Keystone Center and others
in this regard.
Healthy Messages:
••
Companies should expand public outreach efforts – through company-sponsored
initiatives, third-party partnerships, and innovative and varied media techniques
– to educate children and adolescents about the importance of healthy eating and
exercise.
••
••
Companies should devote particular attention to outreach aimed at ethnic
minority populations that are disproportionately affected by childhood
overweight and obesity.
Companies should continue researching the effectiveness of their campaigns to
educate and motivate youth to engage in healthier lifestyles.
The CBBB Initiative:
••
The CBBB should closely monitor participating companies’ compliance with their
pledges.
••
The CBBB and participating companies should enhance the Initiative in the
following ways:
••
Expand the scope of “advertising to children” to encompass all advertising and
promotional techniques, including, for example, product packaging and in-store
marketing;
••
Require that 100% of food advertising directed to children under 12 promotes
healthy dietary choices;
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Marketing Food to Children and Adolescents
••
••
In cases where a product line contains some product varieties that meet a
company’s nutrition criteria for a “healthy dietary choice” and others that do not,
the company should strictly limit all components of a promotion or advertising
campaign directed to children under 12 to those varieties that meet the criteria.
Thus, for example, television or print advertisements promoting a sweepstakes
would feature only the varieties of the product that represent healthy dietary
choices, and licensed characters would appear only on packages of the varieties
that are healthy dietary choices.
Work toward standardizing the nutrition criteria for “healthy dietary choices” that
may be marketed to children, such as by product category (e.g., for beverages,
cereals, snack foods, soups, canned pastas, frozen entrees, etc.);
••
In applicable cases, companies should re-examine whether the fact that a product
has “less” of, or is “reduced” in, calories or certain nutrients (e.g., sodium, sugar,
or fat) is, by itself, a sufficient basis for qualifying as a “healthy dietary choice”;
••
Work toward developing meaningful, standardized definitions for what constitutes
advertising “directed to children under 12.” In considering how to define “directed
to children,” the CBBB and participating companies should consider, where relevant
to the advertising medium, factors such as the percentage of the audience under
12; the total number of children reached; the time of day and venue in which the
advertising appears; and whether the advertising features characters, performers,
or celebrities who are popular with children, or contains themes, language, or other
attributes designed to appeal to children.
••
Require companies not to engage in, approve, or allow placement of their product in
media directed to children under 12;
••
Require participating companies to ensure that their franchisees are bound by the
companies’ pledge commitments, such as by incorporating the pledge commitments
into any franchisee contracts.
Foods & Beverages in Schools:
••
Companies should continue efforts to improve the nutritional profile of foods and
beverages sold in schools.
••
All companies that sell “competitive” food or beverage products in schools should
join the Alliance for a Healthier Generation or otherwise adopt and adhere to
meaningful nutrition-based standards for foods and beverages sold in schools, such
as those recommended by the Institute of Medicine.
••
Participating companies should consider incorporating their Alliance commitments
into distributor contracts.
••
Companies should cease all in-school promotion of products that do not meet
meaningful nutrition-based standards.
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Executive Summary
••
The Commission encourages schools and school districts, as part of their school
wellness policies, to adopt and implement meaningful nutrition-based standards for
competitive foods sold in schools.
Recommendations for Media and Entertainment Companies
••
More media and entertainment companies should limit the licensing of their
characters to healthier foods and beverages that are marketed to children, so that
cross-promotions with popular children’s movies and television characters will favor
the more, rather than the less, nutritious foods and drinks.
••
Media companies should consider adopting uniform, objective standards that limit
advertising placements on programs “directed to children” to healthier food and
beverage products.
••
Media and entertainment companies should continue to incorporate health and
nutrition messages into programming and editorial content, and to create public
education campaigns aimed at the problem of childhood obesity.
••
Media and entertainment companies should test the effectiveness of any health
and nutrition messages and public education campaigns aimed at the problem of
childhood obesity.
••
Media and entertainment companies should consider the feasibility of instituting a
self-regulatory initiative to facilitate implementation of the recommendations above.
The companies should consider working with the CBBB in this endeavor.
Conclusion
The food and beverage companies surveyed for this Report spent more than $1.6 billion
marketing their products to children and adolescents in 2006. The Commission believes that
these companies were responsible for a substantial majority of the industry expenditures for food
and beverage marketing to children and adolescents during 2006. The companies used myriad
techniques, including traditional measured media, the Internet and other “new” media, as well
as product packaging, in-store advertising, and event promotions, to name a few. Integrated
advertising campaigns that combined several of these techniques were prevalent.
Whether there is a link between food marketing to children and childhood obesity is a
question not addressed by this Report. What is clear, however, is that childhood obesity is
a complex problem, with many social and economic contributing factors. The Commission
believes that all segments of society – parents, schools, government, health care professionals,
food companies, and the media – have an obligation to contribute to finding and implementing
solutions. This Report – with its detailed assessments of the kinds of foods being marketed to
ES-11
Marketing Food to Children and Adolescents
children and adolescents and how these foods are being marketed – informs one aspect of the
ongoing dialogue about how to address the problem.
Participants in the 2005 Workshop generally agreed that, regardless of the causes of
childhood obesity, food and beverage marketers can employ a wide range of strategies to play
a positive role in reversing the trend. Participants also recognized that consumers expect the
industry to help both adults and children improve their diets by providing more healthy choices
and helpful nutrition information, and by engaging in responsible marketing practices. Based on
this study, the Commission has formulated its recommendations for future actions by members of
the food industry, the media and entertainment industries, and others. These recommendations,
set forth above, are also included in Sections IV and V of the Report.
ES-12
Introduction
I.
Introduction
At the request of Congress,1 the Federal Trade Commission (FTC) has conducted a study
of the marketing of foods and beverages to children and adolescents.2 This Report presents
the results of that study. It analyzes data from both public and non-public sources to provide a
comprehensive picture of expenditures and activities directed toward children (ages 2-11) and
adolescents (ages 12-17, also referred to as “teenagers” or “teens”) by 44 food and beverage
producers, marketers, and quick-service restaurants (QSRs) in the United States during 2006.
While the study does not include the entire universe of companies marketing food to children and
adolescents (collectively referred to as “youth”), or the entire range of foods promoted to them,
the Commission believes that this Report covers a substantial majority of such expenditures
and activities for the relevant time frame. As requested by Congress, the study addresses not
only marketing activities in traditional measured media – television, radio, and print – but also
analyzes the Internet and other new media, as well as older, but mostly unmeasured, forms of
promotional activities directed to youth. The Report presents a great deal of information not
previously collected and not otherwise available to the research community.3 Significantly,
the Report gathers data from a year just before, or very early in the inception of, industry selfregulatory activities aimed at reducing or changing the profile of food and beverage marketing to
children. As a result, the Commission study may serve as a benchmark for measuring the future
success of voluntary efforts to modify that advertising.
A. Background: Marketing, Self-Regulation, and Childhood
Obesity
In recent decades, the incidence of childhood overweight and obesity in the United States
has increased rapidly. According to the Centers for Disease Control and Prevention, the
prevalence of overweight youth has increased about three-fold over the last 25 or 30 years.
Today nearly 14% of children ages 2-5, 19% of children ages 6-11, and about 17% of adolescents
ages 12-19 are overweight.4 The long-term health consequences – with increased risk for
cardiovascular disease and greater prevalence of type 2 diabetes – are very serious.5 Growing
awareness of the health issues has focused public attention on what and how much children
consume and which foods and beverages they are encouraged to eat and drink.
Government agencies, private organizations, and food and entertainment industry
members have endeavored, in recent years, to explore the contributing factors and develop new
initiatives to address the problem.6 In July 2005, the FTC and the Department of Health and
Human Services (HHS) jointly convened a two-day Workshop on Marketing, Self-Regulation
1
Marketing Food to Children and Adolescents
& Childhood Obesity.7 This event brought together some of the largest food manufacturers
and entertainment companies, as well as government officials, health experts, and consumer
advocates. The purpose of the Workshop was not to attempt to determine the causes of
childhood obesity nor to assess blame; rather, the goal was to focus attention on positive
initiatives that industry members and others could take to encourage healthier eating and living
by the nation’s young people. Out of the 2005 Workshop came a 2006 Report with a series of
recommendations for the food and media industries, including suggestions for self-regulatory
initiatives to change the way food is marketed to children.8
In July 2007, the FTC and HHS conducted a follow-up Forum to review progress in the
implementation of self-regulatory and educational initiatives.9 The agencies were encouraged
to learn that the 2005 Workshop and 2006 Report had provided a stimulus for new programs, in
particular the Children’s Food and Beverage Advertising Initiative, established by the Council
of Better Business Bureaus (CBBB) and the CBBB’s National Advertising Review Council. To
date, 13 of the largest food and beverage companies – estimated to represent more than twothirds of children’s food and beverage television advertising expenditures10 – have joined the
Initiative, making pledges that, when fully implemented, will significantly alter the landscape
of food marketing to children. Most of these companies have committed either not to advertise
directly to children under 12 or to limit such advertising – including television, radio, print, and
the Internet – to foods that qualify as “healthy dietary choices” by meeting specified nutritional
standards, such as limitations on calories, fat, sugar, and sodium and/or providing certain
nutritional benefits to children. In addition, the companies have pledged to limit the use of
licensed characters to promote “healthy dietary choices” or healthy lifestyles, not to seek product
placements in child-directed media, not to advertise food or beverages in elementary schools,
and to use only their “healthy dietary choices” in interactive games directed to children. The
Children’s Food and Beverage Advertising Initiative, and other voluntary efforts such as the
Alliance for a Healthier Generation, are described in Section IV of this Report.
In preparing this Report, as in sponsoring the 2005 Workshop and follow-up Forum, the
Commission has not attempted to address the question of whether there is a link between food
marketing to children and childhood obesity. An Institute of Medicine study released in 2006
included a comprehensive survey of research addressing the relationship between exposure
to food advertising on television and requests for, preferences for, and consumption of the
advertised products by children and adolescents. (The relevant research did not address forms
of marketing other than television advertising.) The IOM concluded there is strong evidence
that television advertising influences the food and beverage requests and preferences of children
ages 2-11, but found insufficient evidence for teens ages 12-18. With respect to actual food
2
Introduction
consumption, the IOM concluded there is strong evidence that television advertising influences
the short-term consumption of children ages 2-11, but again found insufficient evidence with
respect to teens. When looking at usual dietary intake, or long-term, as opposed to short-term,
food consumption, the evidence of a relationship to television advertising was much weaker.
Finally, the IOM found strong statistical evidence that exposure to television advertising is
associated with adiposity in children and adolescents; however, the IOM could not make a
finding about a causal relationship between the two.11
Another significant study regarding advertising on children’s television was published by
the Commission last year. Economists in the FTC’s Bureau of Economics compared children’s
exposure to television advertising in 1977 with their exposure in 2004. They concluded that
children’s exposure to food ads on television has not risen and has actually fallen modestly. In
2004, children ages 2-11 saw approximately 5,500 food ads on television, which constituted
22% of their total annual television ad exposure. This is about 9% less than the 6,100 food ads
children were estimated to have seen in 1977. In 2004, however, children’s ad exposure was
more concentrated on children’s programming; about half of the food ads seen by children were
during programs in which children were at least 50% of the audience, compared to about one
quarter in 1977. In both years, the advertised foods were concentrated in the breakfast cereal,
candy and dessert, and restaurant food categories.12
This Report will complement the Bureau of Economics study, providing information on
expenditures and promotional activities in the newer media that did not exist in 1977. Although
children’s exposure to food advertising on television has remained fairly constant over the past
30 years, marketing to children has become omnipresent, and promotional campaigns have
become more integrated because of the Internet, other new electronic media, and the burgeoning
of cross-promotions with products, movies, and characters popular with children and teens.
B. Conducting the Study
Based on its own research, as well as public comments received in response to a preliminary
Federal Register notice,13 the Commission concluded that the data necessary to prepare the
comprehensive report sought by Congress could be obtained only through the use of compulsory
process. Therefore, on July 31, 2007, the FTC issued an Order to File Special Report (Special
Order)14 to 44 food and beverage manufacturers, distributors, and marketers, as well as QSRs, in
the U.S.15 As noted in Appendix A, those 44 companies included the top television advertisers
in programs or time segments where 30% or more of the audience was between the ages of 2
and 17. In addition, for the primary products in the selected food categories, the companies
accounted for 60% to 90% of U.S. sales. Therefore, the Commission believes that the companies
3
Marketing Food to Children and Adolescents
that received and responded to the Special Order were responsible for a substantial majority of
expenditures for food and beverage marketing to children and adolescents during 2006.
Also included among the 44 companies were 12 fruit and vegetable producers, distributors,
and marketers. Fresh produce companies traditionally have not engaged in significant marketing
efforts directed toward children; however, some have now begun to use innovative techniques,
such as placing popular licensed characters on labels or in supermarket displays, to reach
children. Although the expenditures and range of activities for marketing these products to
children may be small when compared to those for packaged foods (such as snacks, baked goods,
cereals, and prepared meals) and beverages, the Commission decided that it was important
to include the marketing of fresh fruits and vegetables in this study. The new, child-friendly
promotions by some growers are a creative way to encourage healthier eating habits among
children; it is likely such efforts will gain momentum with heightened public awareness of
children’s health issues.
In addition, four major beverage bottlers were included among the 44 companies. The
bottling companies are responsible for many beverage marketing activities on a local level,
such as in-school marketing, event sponsorship, and in-store promotions. The Commission
therefore concluded that major bottlers should be included in the study in order to provide a more
complete and accurate picture of beverage marketing to children and adolescents.
The Special Order required information about marketing activities and expenditures in
2006 for brands in 11 categories of food products: breakfast cereals, snack foods, candy, dairy
products, baked goods, carbonated beverages, fruit juice and non-carbonated beverages, prepared
foods and meals,16 frozen and chilled desserts, fruits and vegetables, and restaurant (QSR)
food. A detailed explanation of the criteria used in the Special Order and the methodology of
conducting this study is set forth in Appendix A.
1. Marketing Expenditures
The companies were required to submit expenditure information for their marketing
activities directed toward children (ages 2-11), adolescents (ages 12-17), or both, in each of
20 separate promotional activity categories: television, radio, and print advertising, company
websites, other Internet advertising, packaging and labeling, advertising in movie theaters/
videos/video games, other digital advertising (such as email and text messaging), in-store
marketing, premium distribution, public entertainment events, product placement, character
licensing/cross-promotions/toy co-branding, sponsorship of sports teams or athletes, word-ofmouth marketing, viral marketing, celebrity endorsements, in-school marketing, advertising in
conjunction with philanthropic endeavors, and other promotional activities.
4
Introduction
For food products marketed to children or adolescents in any particular promotional
category, the companies also were required to report the total amount spent in that category to
market the product to all audiences. Finally, for any product marketed to children or adolescents,
each company also was required to report its overall marketing budget for that product. The
information about promotional category totals and overall expenditures for those products
marketed to children or adolescents was included in the request so that the reported expenditures
for children and adolescents could be placed within the appropriate context.
To protect the confidentiality of financial information reported by the individual companies,
as required by the FTC Act and Commission Rules,17 the expenditure data are reported, in
Section II of this Report, only in aggregated amounts, by food category and by the promotional
techniques used.
2. Marketing Activities and Other Information Requested by the Special
Order
The Commission Special Order requested samples or descriptions of advertising and
marketing in all promotional categories, except for television, radio, and print. The nature
of advertising to children in the traditional broadcast and print media is well known, readily
accessible, and described in other research studies. Therefore, the Commission limited this
aspect of the request to the other promotional activity categories. These comprise the newer
forms of marketing to children, such as use of the Internet, as well as traditional venues, like
packaging and in-store promotions, that generally have not been documented and described
elsewhere. Of course, as noted in Section III of the Report, cross-promotional advertising
campaigns generally include television advertising as a key component. Therefore, information
regarding television advertising that was part of a cross-promotional campaign involving a
licensed character, for example, was included in the company reports. In addition, companies
were asked to provide samples or descriptions of promotional activities for which they did
not incur expenditures. Therefore, Section III of the Report affords a comprehensive look
at the nature of promotional activities targeted toward children, adolescents, or both in
2006. Companies also were asked to provide any marketing research regarding the appeal to
individuals under the age of 18 of any particular types of advertising or promotional techniques.
Research findings of particular interest are described in Section III as well.18
In addition to responding to the congressional request, this Report serves as a followup report on the recommendations set forth in the FTC/HHS 2006 Report. Accordingly, the
Commission Special Order sought information regarding company policies pertaining to
food advertising and promotional activities directed to children or adolescents that were in
5
Marketing Food to Children and Adolescents
effect on or after January 1, 2006. The Special Order also requested information regarding
company initiatives to promote healthy eating, such as product reformulation, packaging to
make nutritious and lower calorie products appealing to children or adolescents, nutritional
icon or seal programs, efforts to improve the nutritional profile of foods marketed to children
and adolescents, public education efforts regarding nutritional issues, and efforts to improve
the nutritional profile of products sold in the schools. Section IV of the Report presents the
information received in response to this part of the request.
C. Role of the FTC Study
The data presented in this Report represent a substantial majority of expenditures and
promotional activities in the marketing of food and beverage products to children and teenagers
during 2006. The study does not represent the entire universe of such marketing. However, the
Commission believes that it received data from a sufficient percentage of marketers to afford
an accurate picture of food marketing to American youth between the ages of 2 and 17 years
old. The Commission recognizes that some companies believe the Special Order required overreporting of expenditures in certain promotional categories.19 It is also true that there was underreporting in some categories.20 The Commission recognizes that the companies included in the
study were asked, in some instances, to provide information they do not normally compile in
the manner requested and that they may have had to re-structure their usual accounting methods
to comply with the Special Order. The Commission believes the companies were thorough and
conscientious in preparing their responses, and it appreciates that effort.
Because childhood obesity is a complex problem, with many social and economic
contributing factors, the Commission believes that all segments of society – parents, schools,
government, health care professionals, food companies, and the media – have an obligation to
contribute to finding and implementing solutions. This Report – with its detailed assessments
of the kinds of foods being marketed to children and adolescents and how these foods are being
marketed – informs one aspect of the ongoing dialogue about how to address the problem.
Participants in the 2005 Workshop generally agreed that, regardless of the causes of childhood
obesity, food and beverage marketers can employ a wide range of strategies to play a positive
role in reversing the trend. Participants also recognized that consumers expect the industry to
help both adults and children improve their diets by providing more healthy choices and helpful
nutrition information, and by engaging in responsible marketing practices.21
Based on this study, the Commission has developed a series of recommendations for future
action by members of the food industry, the media and entertainment industries, and others.These
recommendations are set forth in Sections IV and V of the Report.
6
Expenditures for Marketing Food to Children and Adolescents
II. Expenditures for Marketing Food to Children
and Adolescents
A. Introduction
The 44 reporting companies spent more than $1.6 billion to promote food and beverages to
children and adolescents in the U.S. in 2006.22 The reporting companies spent $870 million on
food marketing directed to children under 12 and just over $1 billion on food marketing directed
to adolescents ages 12 to 17. As shown in Figure II.1, approximately $300 million of the
reported child- and teen-directed expenditures was directed at age groups that encompassed both
children and adolescents.23
Figure II.1: Reported Child and Teen Marketing Expenditures
and Overlap
Child 2-11
$870,328,898
Teen 12-17
Duplicative
$303,274,647
$1,051,546,191
Total: $1,618,600,442
The reporting companies
promoted their youthadvertised brands to adults
or to a general audience, as
well as to consumers under
age 18. Indeed, the reporting
companies’ overall marketing
expenditures for these brands
exceeded $9.6 billion. Thus,
the youth-directed portion of
the marketing expenditures
for these brands represented
17% of total marketing
expenditures.
Carbonated beverages, restaurant food, and breakfast cereals accounted for $1.02 billion
of the $1.6 billion, or 63% of the total spent on youth-directed food marketing. Carbonated
beverage companies reported $492 million in youth-directed expenditures, with $474 million (or
96%) of that amount directed to adolescents. Close to 24%, or $116 million, of the carbonated
beverage youth marketing consisted of in-school expenditures, the bulk of which were vending
machine commissions paid to the schools based on beverage sales, rather than traditional
marketing expenses. The reporting QSRs spent close to $294 million on youth marketing,
and split their expenditures almost evenly between children ($161 million) and teens ($145
million), with little duplication. Breakfast cereal producers reported a total of $237 million in
7
Marketing Food to Children and Adolescents
youth-directed marketing expenditures; nearly all, $229 million, of that amount was reported as
directed to children.
In terms of promotional techniques, the $745 million spent on television advertising
accounted for the greatest share (46%) of total youth-directed food and beverage marketing
expenditures. An additional $108 million (7%) was spent on other traditional measured media,
namely radio and print advertising. The reporting companies spent $77 million on new media
– company websites, Internet, digital,24 and word-of-mouth and viral – which represented 5%
of all reported youth-directed marketing. The companies reported spending $195 million on
in-store marketing and packaging to reach children and adolescents, accounting for 12% of
overall youth-directed expenditures. Premium expenditures represented $67 million, or 4% of
all reported youth-directed expenditures. However, there is an important caveat to this figure;
if the per unit cost of QSR toy premiums is included (see discussion in Section II.C.4.B below),
premium expenditures jump to $427 million, ranking second only to television advertising as a
promotional technique directed to youth. An additional $241 million (15%) of youth-directed
marketing expenditures was allocated among other traditional promotional categories, such as
product placement, movie, video, and video game advertising, cross-promotion license fees,
athletic and event sponsorship, and celebrity endorsement fees. Finally, the companies reported
in-school marketing expenditures of $186 million, representing 11% of all youth-directed food
marketing expenditures.
Expenditures on cross-promotions – including the use of licensed characters and tie-ins
with television shows, motion pictures, toys, or other entertainment events – included not only
the licensing fees but also the cost of implementing the cross-promotion across various activity
categories, such as television and Internet advertising, premiums, and packaging. Just over
$208 million, or 13% of all reported youth-directed marketing expenditures, involved the use of
licensed characters or other forms of cross-promotion.
B. Expenditures Analyzed by Food Category
As previously noted, the Special Order was sent to 44 food and beverage companies, each
of which then reported child- and teen-directed marketing expenditures for any food brands
contained within the 11 specified food categories (see supra Section I). Because expenditure
data were reported for only four brands in the frozen desserts category, the frozen desserts
and candy categories were combined for purposes of this Report. For each brand with youthdirected marketing expenditures, the companies also reported the total marketing expenditures
for that brand – i.e., all dollars spent to promote the brand to consumers in 2006. In general,
the food categories that accounted for the largest youth-directed marketing also accounted for
8
Expenditures for Marketing Food to Children and Adolescents
Table II.1: Total Youth Marketing for Reported Brands and
Percent of Total Marketing, By Food Category,
Ranked by Youth Spending
Marketing That
Meets Youth
Criteria ($1000)
Total Marketing
($1000)
Percent of
Total Marketing
Meeting Youth
2-17 Criteria
Carbonated Beverages
492,495
3,186,588
15.5
Restaurant Foods
293,645
2,177,306
13.5
Breakfast Cereal
236,553
792,042
29.9
Juice & Non-carbonated Bevs.
146,731
1,252,022
11.7
Snack Foods
138,713
852,342
16.3
Candy/Froz. Desserts
117,694
456,677
25.8
Prepared Foods & Meals
64,283
434,978
14.8
Baked Goods
62,549
153,393
40.8
Dairy Products
54,475
255,697
21.3
Fruits & Vegetables
11,463
46,769
24.5
1,618,600
9,607,815
16.8
Food Category
TOTAL
Note: Youth 2-17 marketing includes all marketing that meets either the Child 2-11 criteria or the Teen
12-17 criteria, without duplication.
the largest overall marketing for
the reported brands. Table II.1
presents total youth-directed
expenditures (without duplication
between child- and teen-directed
expenditures) for each food
category, ranked in descending
order, and also expressed as a
percentage of the total marketing
expenditures for those brands
within that food category.
Figure II.2 illustrates the
youth-directed expenditures for
each food category, as well as the
total marketing for these reported
brands.
Figure II.2: Reported Youth Marketing and Total Marketing for Reported Brands,
Ranked by Youth Expenditures
3500
3,187
Youth 2-17 Marketing
3000
Total Marketing
2500
Dollars (in millions)
2,177
2000
1500
1,252
1000
500
852
792
492
457
294
237
147
139
118
435
64
63
153
256
54
0
Carbonated
Beverages
Restaurant
Foods
Breakfast
Cereal
Juice & Noncarbonated
Bevs.
Snack Foods
9
Candy/Froz.
Desserts
Prepared
Foods & Meals
Baked Goods
Dairy Products
11
47
Fruits &
Vegetables
Marketing Food to Children and Adolescents
The reporting companies with brands in the carbonated beverages, restaurant food, and
breakfast cereal categories spent the most on food marketing to youth; spending in those three
categories comprised 63% of all youth-directed spending. However, spending to promote
carbonated beverages and restaurant food to children and teens constituted a relatively small
percentage of the companies’ overall marketing budgets for their reported brands – 15.5% for
carbonated beverages and 13.5% for restaurant food. The baked goods category had the highest
proportion of youth-directed expenditures relative to total marketing expenditures on youthadvertised brands – 40.8% of the total.25 The juice and non-carbonated beverage category had
the lowest proportion (11.7% of the total). Fruit and vegetable growers and producers spent
$11.4 million on youth-directed marketing, 24.5% of their overall marketing expenditures for the
reported products.
Breakfast cereals ($229 million), restaurant food ($161 million), and snack foods ($113
million) accounted for the largest amount of expenditures directed to children under 12,
representing more than half of the total child-directed expenditures. It is important to note,
however, that the restaurant food figure does not include the cost of the toys distributed as
premiums with QSR children’s meals, although such premiums were a key component of QSR
food marketing activities directed to children. As explained in detail below, toy premiums were
excluded because they did not meet the definition of “premiums” set forth in the Special Order.
Technically, the QSRs sold these toys to consumers as part of packaged children’s meals; the
toys were not free promotional premiums given away with the food. The Commission estimates
that in 2006, the reporting QSRs paid $360 million for the toys distributed as premiums. If these
costs were added to other QSR expenditures, the total cost of QSR marketing to children for the
reporting companies would increase to approximately $521 million, which would be more than
twice the marketing dollars directed to children in any other food or beverage category. The
greatest reported expenditures directed to teens were in the carbonated beverages ($474 million),
restaurant food ($145 million), and non-carbonated beverages ($109 million) categories.
Table II.2 lists the reporting companies’ total expenditures for both child- and teen-directed
marketing by food category and indicates the amount of overlapping expenditures. Figure
II.3 illustrates the total marketing expenditures directed to youth in each food category and the
breakout between child- and teen-directed expenditures, as well as the overlapping expenditures,
for the reported brands.
10
Expenditures for Marketing Food to Children and Adolescents
Table II.2: Reported Child and Teen Marketing
Expenditures and Overlap
Food Category
Marketing That
Meets Child
2-11 Criteria
($1000)
Marketing That
Meets Teen
12-17 Criteria
($1000)
Overlapping
Marketing
($1000)
Carbonated Beverages
77,171
474,192
58,868
Restaurant Foods
161,479
145,008
12,841
Breakfast Cereal
228,983
71,266
63,696
Juice & Non-carbonated Bevs.
70,432
108,606
32,307
Snack Foods
112,607
51,354
25,248
Candy/Froz. Desserts
60,708
98,998
42,012
Prepared Foods & Meals
59,821
17,931
13,468
Baked Goods
61,147
39,649
38,248
Dairy Products
29,572
38,307
13,404
Fruits & Vegetables
8,410
6,236
3,183
870,329
1,051,546
303,275
TOTAL
Figure II.3: Child and Teen Marketing, Ranked by Youth Expenditures
500
Teens Minus Overlap
Child/Teen Overlap
450
Child Minus Overlap
400
Dollars (in millions)
350
300
250
200
150
100
50
0
Carbonated
Beverages
Restaurant
Foods
Breakfast
Cereal
Juice & Noncarbonated
Bevs.
Snack Foods
11
Candy/Froz.
Desserts
Prepared
Foods & Meals
Baked Goods
Dairy Products
Fruits &
Vegetables
Marketing Food to Children and Adolescents
C. Expenditures Analyzed by Promotional Activity Groups
The Commission’s Special Order sought information about 20 separate promotional
activity categories. For purposes of this Report, these categories have been consolidated into
six groups: 1) Traditional Measured Media, consisting of television, radio, and print advertising;
2) New Media, consisting of company-sponsored websites, Internet, digital, word-of-mouth,
and viral marketing; 3) Packaging and In-Store Marketing; 4) Premiums; 5) Other Traditional
Promotions, consisting of product placements, movie theater, video, and video game advertising,
character or cross-promotion license fees, athletic sponsorships, celebrity endorsement fees,
events, philanthropic activities tied to branding opportunities, and other miscellaneous marketing
expenditures; and 6) In-School Marketing. Figure II.4 shows how the reporting companies
allocated the $1.6 billion in youth-directed food marketing across the six promotional activity
groups. Appendix Tables C.1 and C.2 provide detailed data on these expenditures within each of
the 20 individual promotional activity categories for each food group and each age category.26
Figure II.4: Reported Total Youth Marketing Expenditures by Promotional Activity Group
(In Millions of Dollars)
Traditional Measured Media
$852.9
53%
In-Store and
Packaging/ Labeling
$195.4
12%
New Media
$76.6
5%
Other Traditional Promotions
$241.2
15%
Premiums
$66.9
4%
In-School
$185.5
11%
Within these six promotional activity groups, Figure II.5 illustrates the percentage of total
spending within each group contributed by each food category. The figure demonstrates, for
example, that carbonated and non-carbonated beverages comprised a majority of the reported inschool expenditures, that cereals had the largest reported premium expenditures, and that nearly
all food categories used traditional measured media, primarily television. Appendix Table C.3
provides further detail on expenditures within the six promotional activity groups.
12
Expenditures for Marketing Food to Children and Adolescents
Figure II.5: Food Category Share of Total Youth Spending
For Each Promotional Activity Group
100%
Fruits &
Vegetables
Dairy Products
80%
Dollars (in millions)
Baked Goods
Prepared Foods &
Meals
60%
Candy/Froz.
Desserts
Snack Foods
40%
Juice & Noncarbonated Bevs.
Breakfast Cereal
Restaurant Foods
20%
Carbonated
Beverages
0%
Traditional
Measured Media
($852.9 Million)
New Media
($76.6 Million)
In-Store and
Packaging/Labeling
($195.4 Million)
Premiums
($66.9 Million)
Other Traditional
Promotions
($241.2 Million)
In-School
($185.5 Million)
By comparison, figures II.6 and II.7 illustrate the extent to which the various promotional
activities are used in each of the food categories for marketing to children and adolescents,
respectively.
In addition to the six promotional activity groups identified above, the Report analyzes all
expenditures associated with the use of cross-promotions and celebrity endorsements. This
category (Use of Cross-Promotions and Celebrity Endorsements) includes character licensing
fees paid to the media property owners, as well as all costs associated with use of the licensed
property in other promotional categories; it also includes endorsement fees paid to celebrities,
and costs associated with promotional activities featuring the celebrity endorser. Therefore,
the category is comprised largely of expenditures already reported in the other six groups (e.g.,
Traditional Measured Media, Packaging and In-Store Marketing, and Premiums).
13
Marketing Food to Children and Adolescents
Figure II.6: Reported Child Marketing Expenditures, By Promotional Activity Group
250
In-School
Other Traditional Promotions
Premiums
In-Store, Packaging/Labeling
New Media
200
Dollars (in millions)
Traditional Measured Media
150
100
50
0
Carbonated
Beverages
Restaurant
Foods
Breakfast
Cereal
Juice & Noncarbonated
Bevs.
Snack Foods
Candy/Froz.
Desserts
Prepared
Baked Goods Dairy Products
Foods & Meals
Fruits &
Vegetables
Figure II.7: Reported Teen Marketing Expenditures, By Promotional Activity Group
500
In-School
450
Other Traditional Promotions
Premiums
In-Store, Packaging/Labeling
New Media
400
Dollars (in millions)
350
Traditional Measured Media
300
250
200
150
100
50
0
Carbonated
Beverages
Restaurant
Foods
Breakfast
Cereal
Juice & Noncarbonated
Bevs.
Snack Foods
Candy/Froz.
Desserts
Prepared
Baked Goods Dairy Products
Foods & Meals
Fruits &
Vegetables
Note: The child-directed expenditures shown in Figure II.6 are on a scale of zero to $250 million, whereas the teen-directed expenditures shown in Figure
II.7 are on a scale of zero to $500 million.
14
Expenditures for Marketing Food to Children and Adolescents
1. Traditional Measured Media: Television, Radio, and Print
Traditional Measured Media (television, radio, and print) comprised 53% of youth-directed
marketing expenditures – $853 million.27 The bulk of the reported expenditures in traditional
measured media was for television advertising. As noted above, the reporting companies spent
more than $745 million on youth-directed television marketing, accounting for roughly 46%
of all youth-directed marketing expenditures and 21% of the companies’ $3.6 billion in total
television advertising expenditures for their reported brands.
a.
Television
The companies spent $458 million on child-directed television advertising. Breakfast
cereals accounted for more than 31% of those expenditures, or $142 million, and restaurant
food accounted for 20%, or $91 million. Other food categories with child-directed television
advertising were snacks ($69 million), prepared foods ($42 million), baked goods ($37 million),
and candy/frozen desserts ($33 million). Carbonated beverage companies reported $1.8 million
in child-directed television expenditures, representing only three-tenths of 1% of their total
television advertising expenditures for their reported brands.
The reporting companies spent $376 million on teen-directed television advertising.28
QSRs accounted for nearly 28% of those expenditures, or $105 million, although this amount
comprised only 8% of the QSRs’ $1.3 billion in total expenditures for television advertising.
Carbonated beverage companies spent $99 million, and the candy and frozen desserts category
spent $69 million on teen-directed television advertising. Other food categories with teendirected television advertising were snacks, juice and non-carbonated beverages, and baked
goods; they reported between $20 and $25 million each in teen-directed advertising expenditures.
Figure II.8 shows the total youth-directed television expenditures for the top three food
categories using this promotional category.
Figure II.8: Television Advertising Expenditures
Top 3 For Youth
350
300
Dollars (in millions)
The Special Order also sought
expenditure data for advertisements
placed during American Idol, American
Dad, Family Guy, Unan1mous, and The
Simpsons. Among broadcast television
programs, these five shows commanded
the largest percentage share of teens 1217 in the audience during the 2005-06
television year, according to The Nielsen
Company. Because these programs did
250
200
309
150
100
187
149
50
0
15
Restaurant Foods
Breakfast Cereal
100
Carbonated Beverages
All Other
Marketing Food to Children and Adolescents
not meet the 20% teen audience share threshold,29 the reported expenditures for these shows are
not included in the aggregated television expenditures. However, the data serve to illustrate the
point that children and teenagers are exposed to a great deal of advertising that may be targeted
to a general audience comprised mainly of adults. On average, more than two million teens
watched American Idol, and more than one million watched American Dad and Family Guy
during the 2005-2006 time frame. Some of these shows were even more popular with children.
On average, more than three million children watched American Idol, and more than one million
watched Unan1mous and The Simpsons. (By comparison, for the same year, the 2-11 audience
for Nickelodeon’s popular youth-directed show SpongeBob SquarePants ranged from 576,000 to
over 2.4 million, with an average child audience of about 2 million.30)
Most of the companies that advertised on these five broadcast programs stated that their ads
were not child- or teen-directed. One carbonated beverage company, however, acknowledged
that ad placements on these shows were part of its marketing strategy to reach teens.31 In
addition, at least two companies have affiliated their brands with shows such as American Idol in
order to reach children and teens – one through toy premiums for children’s meals32 and the other
through sponsorship of the American Idol Live! Tour.33
shows.
Figure II.9: Television Advertising Expenditures on
Top 5 Teen (12-17) Broadcast Shows
70
60
Dollars (in millions)
Advertising expenditures on these
top five broadcast shows – a total of
$116 million – were reported for all food
categories except fruits and vegetables.
As shown in Figure II.9, QSRs reported
$60 million, and carbonated beverage
companies reported $41 million; these two
categories combined accounted for 87%
of reported expenditures for the top five
50
40
30
41
20
10
0
b.
60
Restaurant Foods
Carbonated Beverages
8
7
Juice & Noncarbonated Bevs.
All Other
Radio and Print
Child-directed expenditures for radio and print ads were relatively small in comparison
to those for television. Only in the juice and non-carbonated beverage category were there
significant expenditures – $2.5 million for child-directed radio advertising.34 Teen-directed
radio advertising was more significant, with carbonated beverage companies spending more than
$41 million, and QSRs nearly $30 million. Candy/frozen dessert and non-carbonated beverage
companies reported more than a million dollars each for teen-directed radio advertising.
16
Expenditures for Marketing Food to Children and Adolescents
For print advertising, five food categories – breakfast cereals, candy/frozen desserts, dairy,
baked goods, and restaurant food – reported more than $1 million of child-directed expenditures;
spending for candy and frozen desserts was $4 million. Dairy products accounted for 52% of
all reported teen-directed print advertising, with expenditures of $11.4 million. In five other
categories – candy/frozen desserts, baked goods, carbonated beverages, juice and non-carbonated
beverages, and restaurant food – between $1 million and $3 million was spent on teen-directed
print advertising for the reported brands.
2. New Media: Websites, Internet, Digital, Word-of-Mouth, and Viral
Marketing
New Media, which includes company-sponsored websites, Internet, digital, word-ofmouth,35 and viral marketing,36 accounted for approximately 5% of all reported youth-directed
marketing expenditures. Of the $77 million spent on these activities for the reported brands,
$32 million was for company-sponsored websites; $39 million was for advertising on thirdparty Internet sites; and $1 million was for other digital marketing, such as mobile marketing.
Reported expenditures for youth-directed word-of-mouth or viral marketing were $5 million.37
Figure II.10 shows the top three food
categories with youth-directed promotions
in new media.
Figure II.10: New Media
Top 3 for Youth
35
Breakfast cereals accounted for the
highest spending on company-sponsored
websites directed to youth ($6.7 million),
followed by carbonated beverages,
snack foods, and candy/frozen desserts,
which each had expenditures between
Dollars (in millions)
30
25
20
15
29
21
10
5
0
Carbonated Beverages
14
13
Breakfast Cereal
Snack Foods
All Other
$5 and $5.9 million.38 With regard to
other Internet advertising, $12.1 million was spent on teen-directed advertising for carbonated
beverages; $7.5 million was spent on breakfast cereal advertising directed to children; and $6.7
million was spent on youth-directed advertising for snack foods. A focus on expenditure data,
however, may underestimate the degree to which food and beverage marketers used the Internet
to reach children and teens – both through online display advertising and company-sponsored
websites featuring entertainment content like “advergames.”39 Accordingly, Appendix D to this
Report explores the amount of display advertising for food and beverages that appeared on childand teen-oriented websites during 2006, as well as traffic on company websites that feature
branded entertainment and activities directed to children and teens.
17
Marketing Food to Children and Adolescents
The snack, candy/frozen desserts, dairy products, baked goods, and carbonated beverage
categories accounted for digital expenditures ranging from $100,000 to $434,000, most of which
was teen directed. The companies reported spending just under $5 million on youth-directed
viral and word-of-mouth marketing.40 With the exception of $392,000 that the QSRs reported
as child directed, word-of-mouth expenditures were primarily teen directed.41 Teen-directed
word-of-mouth expenditures included $2 million for carbonated beverages, $1.3 million for dairy
products, and about $811,000 for juice and non-carbonated beverages.
3. Packaging and In-Store Marketing
The companies reported that they spent more than $195 million on packaging and in-store
marketing to reach the youth audience.42 In every food category, a total of more than $3 million
was spent on packaging and in-store marketing to reach children. QSRs led spending in these
two promotional categories with nearly $22 million directed to children, followed by companies
producing snacks ($18.2 million), breakfast cereals ($14.3 million), carbonated beverages and
candy/frozen desserts ($11.6 million each), and juice and non-carbonated beverages ($10.2
million). Relative to overall in-store and packaging expenditures for the reported brands, the
child-directed expenditures for these two categories ranged from 5% for carbonated beverages to
70% for dairy products.43
and in-store marketing for the reported
brands.
Figure II.11 presents the top three
food categories in terms of total costs on
packaging and in-store marketing directed
to youth ages 2-17.
Dollars (in millions)
In the carbonated beverage category, nearly $90 million was spent on teen-directed
packaging and in-store marketing for the reported brands, while teen-directed restaurant food
expenditures totaled $280,000. The
Figure II.11: In-Store and Packaging/Labeling
carbonated beverages’ $90 million in teenTop 3 for Youth
directed expenditures represented 67% of
100
90
teen-directed expenditures, and 46% of all
80
youth-directed expenditures, for packaging
70
60
50
40
91
61
30
20
10
0
18
Carbonated Beverages
22
22
Restaurant Foods
Snack Foods
All Other
Expenditures for Marketing Food to Children and Adolescents
4. Premiums
a.
Reported Expenditures
Figure II.12: Premiums
Top 3 for Children
Dollars (in millions)
The companies reported $67
45
million to reach youth consumers
40
35
through premiums, accounting for 4%
30
of all reported youth-directed marketing
25
expenditures. Far and away, breakfast
20
40
15
cereals accounted for the largest
10
expenditures on premiums. As shown in
5
10
4
4
Figure II.12, cereal companies reported
0
Breakfast Cereal
Snack Foods
Prepared Foods &
All Other
Meals
close to $40 million in child-directed
premiums, representing 93% of all
expenditures on premiums for the reported breakfast cereal brands and 69% of child-directed
premium expenditures across all food and beverage categories. For other food categories,
companies reported no more than $4 million and as little as $450,000 on child-directed premium
expenditures. Some companies explained that a cross-promotional partner, such as a toy or
media company, often covered the premium costs, such as sweepstakes prizes or DVD rebates.
In addition, as noted previously and explained below, the reported premium expenditures do not
include the QSRs’ self-liquidating premiums (toys), which were a large component of childdirected marketing for QSRs.
b. Self-Liquidating Premiums
The Special Order instructed companies with expenditures for premiums directed to children
or adolescents to deduct payments made by consumers for the premium item. As a consequence,
premiums distributed as self-liquidating promotions – where the companies’ premium costs
were entirely covered by the incremental revenue generated by the promotions – would not have
triggered a reportable expense. Nevertheless, such promotions can be an important, indeed a
critical, component of a QSR food marketing campaign directed to children.44
According to data obtained from The NPD Group, in 2006, QSRs sold more than 1.2 billion
children’s meals with toys to children ages 12 and under, accounting for 20% of all child traffic
at QSRs. As shown in Figure II.13, the ten QSR chains responding to the FTC’s Special Order
(the “Select QSRs”)45 delivered more than 900 million of those meals. For those Select QSRs,
Figure II.14 illustrates that children’s meals with toys accounted for nearly 38% of the meals
served to children.
19
Marketing Food to Children and Adolescents
television advertising. The Select QSRs
reported spending $161 million on all
child-directed marketing. If their toy
acquisition costs were added to this
total, child-directed marketing by QSRs
would exceed $520 million – more than
twice the amount spent on child-directed
marketing by any other food category.
5. Other Traditional
Promotional Activities
Figure II.13: 2006 Child Traffic for Kids’ Meals with
Toys, 99¢ or $1.00 Menu Items, and Older Kids’
Meals (All QSRs versus Select QSRs)
Child Traffic (# of QSR visits in millions)
1,400
All QSRs
1,200
Select QSRs
1,000
800
600
400
1,224
901
486
200
0
398
117
Kids' Meals with Toys
Purchases
99¢ or $1.00 Menu Item
Purchases
93
Older Kids' Meal Purchases
Source: The NPD Group/CREST
Figure II.14: Percent of 2006 Child Traffic
for Kids’ Meals with Toys
(All QSRs vs. Select QSRs)
40
% of Child QSR Traffic for Kids' Meals with Toys
Based on an assumed average unit
cost of 40 cents per toy,46 it is estimated
that the Select QSRs spent more than
$360 million to acquire the toys promoted
with the children’s meals. If the Select
QSRs’ expenditures on self-liquidating
premiums were added to their reported
child-directed premium expenditures,
premiums as a child-directed promotional
technique would rank second only to
television – $427 million for premium
promotions versus $458 million for
35
30
25
37.6
20
15
10
19.5
5
0
All QSRs
Select QSRs
The 44 companies reported youthSource: The NPD Group/CREST
directed expenditures for various other
promotional activities for which expenditures are not systematically tracked by commercial data
companies. These “non-measured” activities included product placements; ads appearing before
or within a video game or preceding a home video or theatrical movie feature; license fees paid
to use a third-party animated character in advertising or for cross-promotional arrangements;
sponsorships of sports teams and athletes; fees paid for celebrity endorsements; public events;
advertising or other product branding in conjunction with philanthropic endeavors; and other
miscellaneous marketing expenditures. Together, these non-measured activities accounted
for $241 million or 15% of all reported youth-directed marketing expenditures. As shown
in Appendix Table C.1, no single one of these activities exceeded 6% of total youth-directed
marketing expenditures. The top three food categories in terms of spending on these other
traditional media for youth 2-17 are shown in Figure II.15.
20
Expenditures for Marketing Food to Children and Adolescents
Figure II.15: Other Traditional Promotions
Top 3 for Youth
140
Dollars (in millions)
120
100
80
60
117
40
67
20
0
a.
37
Carbonated Beverages
21
Restaurant Foods
Juice & Noncarbonated Bevs.
All Other
Product Placements and Movie Theater, Video, and Video Game
Advertising
The companies reported spending more than $5 million on youth-directed product
placements. Some companies explained that product placement expenses encompassed the
cost of the product only; other companies reported expenditures for hiring agencies to negotiate
opportunities for product placements. Only carbonated beverage companies spent a significant
amount on product placements – just over $4.5 million for teen-directed placements, which
comprised 67% of what the carbonated beverage companies spent in total on product placements
for the reported brands.
The companies spent $8.4 million on youth-directed advertising preceding or appearing
in video games or preceding movies. The prepared foods category accounted for the greatest
expenditures on movie theater, video, and video game advertising to reach children ($2.4
million), representing 95% of all expenditures by the reporting companies on such advertising
for prepared foods. Candy/frozen dessert makers reported the largest expenditures on movie
theater, video, and video game advertising to reach the teen market ($3 million),47 representing
84% of all such expenditures in the candy/frozen dessert category for the reported brands.
b. Character or Cross-Promotional License Fees
Youth-directed expenditures for character or cross-promotional licensing fees were reported
in all food categories, for a total of $46 million. Although these fees comprised only 3% of all
youth-directed marketing expenditures, several companies reported that many to most of their
cross-promotional arrangements did not require them to pay fees. Breakfast cereal companies
reported the largest amount of child-directed licensing fees ($12.4 million), followed by the
QSRs ($11.5 million) and snack food producers ($8.7 million).
21
Marketing Food to Children and Adolescents
The Special Order required the companies not only to report license fees, but also to identify
the costs reported in other promotional activity categories associated with implementing the
license, such as the cost of television ads or product packaging featuring a licensed character.
The youth-directed license fees represented 22% of the breakfast cereal companies’ total youthdirected expenditures associated with using character and cross-promotional licenses. Such fees
accounted for 15.7% of all youth-directed implementation costs in the restaurant food category
and 34% in the snack food category. By contrast, 38% of the fruit and vegetable producers’
youth-directed expenditures associated with character and cross-promotional licensing
arrangements were attributable to license fees. For an analysis of the overall costs associated
with implementation of licensed cross-promotions, see Section II.C.7, below.
c. Athletic Sponsorships and Celebrity Endorsement Fees
Nearly all of the food and beverage categories used athletic sponsorships48 and celebrity
endorsements49 as promotional techniques, and these were primarily directed to teens. The
Special Order asked the companies to report the fees paid to celebrities to serve as endorsers,
which are discussed here. In addition, companies were required to identify expenditures already
reported in other promotional categories that represented the use of a celebrity endorsement, such
as the costs associated with television ads or an event featuring a celebrity endorser. See Section
II.C.7, below, for a discussion of the total costs associated with use of celebrity endorsements.
Youth-directed expenditures on athletic sponsorships and celebrity endorsement fees for
the reported brands totaled $37.6 million. Carbonated and non-carbonated beverage companies
spent more than $27 million on teen-directed expenditures in these categories (including $3.7
million in celebrity endorsement fees), representing about 14% of the total amount they spent on
these promotional activities for the reported brands. The QSRs reported nearly $4.6 million for
teen-directed athletic sponsorships and celebrity endorsement fees, and $1.2 million for similar,
child-directed activities. These teen-directed expenditures comprised only 6% – and the childdirected expenditures only 1.6% – of the QSRs’ total expenditures in these two promotional
activity categories.
d. Events Marketing
Companies in all food categories reported expenditures for event marketing across the
youth spectrum.50 The largest amounts reported for child-directed event marketing came from
QSRs ($7.5 million), juice and non-carbonated beverage companies ($6 million), and baked
goods producers ($4.8 million). The largest amounts reported for teen-directed event marketing
came from the carbonated beverages (nearly $65 million), juice and non-carbonated beverages
($7.8 million), dairy ($4.1 million) and candy/frozen desserts ($3.9 million) companies. As a
22
Expenditures for Marketing Food to Children and Adolescents
percentage of total expenditures on event marketing for the reported brands, the baked goods
and breakfast cereal companies spent the most to reach children; approximately 100% of event
marketing expenditures for these reported brands were child directed, compared to 30% for the
QSRs. For teen-directed event marketing, the ratios were 81% (carbonated beverages), 52%
(juice and non-carbonated beverages), 45% (candy/frozen desserts), and 41% (dairy products).
e.
Philanthropic
Seven food and beverage categories engaged in child- or teen-directed advertising or other
product branding activities in conjunction with their philanthropic endeavors. The Special
Order required the companies to report the costs associated with both monetary and in-kind
donations that were conditioned upon or made in combination with the display of trade names,
logos, or other branded materials, but not the amount of the donation itself. QSRs spent the
most on child-directed philanthropic marketing – $10.2 million, which was 89% of their overall
expenditures on marketing associated with philanthropy for the reported brands. Carbonated
beverage companies spent $3.7 million to reach a youth audience, amounting to 51% of
their total philanthropy-associated marketing expenditures for the reported brands. The noncarbonated beverage companies spent $2.7 million, or 85% of their philanthropy-associated
marketing expenditures for the reported brands, to reach a youth audience. Fruit and vegetable
producers spent $1.8 million to reach youths, or 93% of their philanthropy-associated marketing
expenditures for the reported brands.
6. In-School Marketing
The companies spent nearly $186 million in youth-directed in-school marketing
expenditures for the reported brands, which accounted for 11.5% of overall youth-directed
marketing expenditures, and 67% of the total expended on in-school marketing for the reported
brands (including marketing at colleges and universities). As shown in Figure II.16, more
Figure II.16: In-School
Top 3 for Youth
140
120
Dollars (in millions)
than 90% of the youth-directed inschool expenditures was reported in the
carbonated beverages and juice and noncarbonated beverages categories ($169
million combined). The QSRs reported
$9.3 million in child-directed in-school
marketing, and the dairy promoters
reported nearly $4.8 million in teendirected in-school marketing.
100
80
60
116
40
53
20
0
23
Carbonated Beverages
Juice & Noncarbonated Bevs.
9
7
Restaurant Foods
All Other
Marketing Food to Children and Adolescents
Under the Special Order, in-school marketing included advertising or promotional activities
in or around a pre-school, elementary school, middle or junior high school, and high school,
including cafeterias, vending machines, school events, athletic events or fields, school buses,
and Channel One or other closed circuit television channels. The 44 companies also had to
report payments to schools or school systems pursuant to food and beverage contracts, as well
as philanthropic donations to schools or particular school clubs, teams, events, or programs.
The majority of in-school marketing expenses consisted of payments made or items provided to
schools under “competitive” food and beverage contracts, for products sold outside the school
meal program. The Commission recognizes that some of the expenditures captured by the inschool marketing category are not traditional marketing techniques aimed at children or teens.
Nevertheless, the payments and items provided to the schools allow access to the youth and are
crucial to the food sales directed to youth in the schools.
The Commission obtained expenditure data for in-school marketing from the four largest
bottlers of carbonated and non-carbonated beverages, as well as the beverage producers.51 The
QSRs provided the Commission with some data on expenditures associated with the sale of their
foods in schools. These data are likely under-reported, however, because in-school sales of QSR
foods tend to be conducted by QSR franchisees at the local or regional level, from whom the
Commission did not seek data.52 Likewise, the snack foods, prepared foods and meals, baked
goods, and candy/frozen desserts categories accounted for few in-school expenditures because
the vending contracts for these products are often coordinated by local and regional wholesale
food distributors from whom the Commission did not seek expenditure data.
7. Use of Cross-Promotions and Celebrity Endorsements
a. Licensed Cross-Promotions
The companies provided expenditure data on both licensing fees paid for and expenditures
associated with implementing marketing campaigns incorporating a licensed character or other
cross-promotion. A typical cross-promotion featuring a licensed movie or television character
tie-in involved expenditures for a license fee, television advertising, packaging and in-store
marketing, premiums, and company websites. See Section III for further discussion of crosspromotions.
As shown in Appendix Table C.4, the companies spent $208 million on youth-directed
marketing campaigns that used cross-promotions, representing 13% of all youth-directed
spending. As shown in Table II.3, cross-promotional expenditures were a substantially larger
portion of some food and beverage companies’ child-directed marketing expenditures. For
example, the fruit and vegetable producers spent 47% of their child-directed expenditures on
24
Expenditures for Marketing Food to Children and Adolescents
promotions that used crosspromotions. For QSRs, the
cost of promotional activities
that used cross-promotions
comprised 46% of their childdirected marketing expenditures.
In total, more than 78% of all
cross-promotion expenditures for
the reported brands were youth
directed.
In terms of dollars
expended, Table II.3 shows that
QSRs reported $74.4 million in
child-directed cross-promotions,
followed by producers of
breakfast cereals ($56.2 million),
snack foods ($17.1 million),
prepared foods ($8.6 million),
dairy products ($8.5 million),
and baked goods ($5.6 million).
The QSR figure would exceed
$430 million if self-liquidating
premiums were considered a
reportable expense under the
Special Order.53 These sums
dwarf the $4 million spent by
the fruit and vegetable producers
to implement child-directed
cross-promotions, as shown in
Figure II.17.
Table II.3: Reported Child and Teen Marketing That Uses
Cross-Promotions, Ranked by Percentage
Child 2-11
Food Category
Total Reported
Child 2-11
Marketing ($1000)
Reported Marketing That Uses
Cross-Promotions
Value ($1000)
Percentage
Fruits & Vegetables
8,410
3,977
47.3
Restaurant Foods
161,479
74,404
46.1
Dairy Products
29,572
8,474
28.7
Breakfast Cereal
228,983
56,247
24.6
Snack Foods
112,607
17,123
15.2
Prepared Foods & Meals
59,821
8,584
14.3
Baked Goods
61,147
5,648
9.2
Candy/Froz. Desserts
60,708
4,224
7.0
Juice & Non-carbonated Bevs.
70,432
3,343
4.7
Carbonated Beverages
77,171
225
0.3
TOTAL
870,329
182,249
20.9
Teen 12-17
Food Category
Total Reported
Teen 12-17
Marketing ($1000)
Reported Marketing That Uses
Cross-Promotions
Value ($1000)
Percentage
Breakfast Cereal
71,266
32,495
45.6
Snack Foods
51,354
12,660
24.7
Fruits & Vegetables
6,236
958
15.4
Dairy Products
38,307
5,315
13.9
Baked Goods
39,649
3,292
8.3
Prepared Foods & Meals
17,931
1,220
6.8
Candy/Froz. Desserts
98,998
3,169
3.2
Carbonated Beverages
474,192
8,909
1.9
Restaurant Foods
145,008
1,420
1.0
Juice & Non-carbonated Bevs.
108,606
658
0.6
1,051,546
70,096
6.7
TOTAL
Companies in several food and beverage categories reported teen-directed expenditures for
cross-promotions that were not substantially duplicative of expenses reported as child directed.
These categories included snack foods ($12.7 million), candy/frozen desserts ($3.2 million), and
carbonated beverages ($8.9 million).
25
Marketing Food to Children and Adolescents
Figure II.17: Reported Child Marketing Expenditures
and Portion Using Cross-Promotions
250
Uses Cross-Promotions
Dollars (in millions)
200
No Cross-Promotions
150
100
50
0
Carbonated
Beverages
Restaurant
Foods
Breakfast
Cereal
Juice &
Noncarbonated
Bevs.
Snack Foods
Candy/Froz.
Desserts
Prepared
Foods & Meals
Baked Goods
Dairy Products
Fruits &
Vegetables
b. Celebrity Endorsements
The companies were asked to provide both the fees paid to celebrities to serve as endorsers,
as well as the expenditures for marketing campaigns that involved the use of a celebrity
endorsement in other promotional categories, such as in television advertising.54 As shown in
Appendix Table C.4, the companies spent a total of $26.8 million on youth-directed promotions
featuring celebrity endorsers, representing 1.7% of all youth-directed spending. Thus,
implementation of celebrity endorsements represented a much smaller part of youth-directed
marketing than did the implementation of character licenses and other cross-promotions.
The dairy promoters reported the largest expenditures on teen-directed campaigns featuring
celebrity endorsements, which totaled $13.9 million (including $275,000 in endorsement
fees), and represented 44% of all celebrity endorsement costs for the reported dairy products.
Companies marketing candy and frozen desserts reported more than $5 million for use of teendirected celebrity endorsements (including $1.3 million in fees), accounting for nearly 97% of
all marketing that used celebrity endorsements for the reported candy/frozen dessert brands.
Additionally, QSRs reported $1.9 million for youth-directed celebrity endorsements (including
$402,000 in endorsement fees), accounting for 56% of all use of celebrity endorsements for
the reporting QSRs. Appendix Table C.4 contains detailed data on expenditures for each age
category for marketing using celebrity endorsers.
26
Food Marketing Activities Directed to Children and Adolescents
III. Food Marketing Activities Directed to
Children and Adolescents
A. Introduction
In response to the Special Order, the Commission received thousands of samples and
descriptions of advertising and promotional activities from the 44 target companies. These
samples covered the entire spectrum of advertising and promotional categories covered by
the Special Order: television, radio, and print advertising; company-sponsored websites, ads
on third-party Internet sites, and other digital advertising, such as email and text messaging;
packaging, labeling, point-of-purchase displays and other in-store marketing tools; advertising
and product placement in movies, videos, and video games; premium distribution, contests, and
sweepstakes; cross-promotions and celebrity endorsements; marketing activities in schools;
viral and word-of-mouth marketing; sponsorship of events, sports teams, and athletes; and
philanthropic activity tied to branding opportunities.
The companies provided samples for those activities for which they had reportable
expenditures, as discussed in Section II, as well as for activities that met the Commission’s
criteria for marketing directed to children and adolescents but for which there were no reportable
expenditures. In some cases, particularly for new media such as the Internet, promotional
activities may have required little or no financial investment in order to reach the intended
audience.
Broadly speaking, nearly every food product category engaged the full spectrum of
advertising and promotional activity formats. One exception was the fruits and vegetables
product category, which tended not to use the traditional media of television, radio, and print.
Fruit and vegetable companies did, however, use licensed characters and marketed them in
much the same way as other food and beverage companies: via company websites, in-store
displays, and product packaging. Third-party licensed characters and company proprietary
“spokescharacters” – animated versions of animals, people, or even the food itself – were used
heavily in marketing to children, but also were used to reach teens. Celebrity endorsers, on the
other hand, were almost exclusively employed in advertising directed to teens and “tweens”
(those between the ages of 8 or 9 and 13 or 14). For the most part, other promotional activities
reported were used to reach both children and teens.55
The responses to the Special Order show that product marketing campaigns directed to
youth typically are fully integrated: a child might first see an ad on television for a food product;
27
Marketing Food to Children and Adolescents
the child would then encounter related promotional displays or product packaging in a retail
setting or restaurant; the child might receive a related toy or other premium immediately upon
purchase of the product or might be directed to the product website to enter a package UPC or
other code to participate in sweepstakes or to receive “points” redeemable for prizes or digital
content, such as ringtones; once on the website, the child might interact with the brand through
online games or by sending “e-cards” (electronic greeting cards) or “send-to-a-friend” viral
marketing messages to others.
Part B of this Section of the Report focuses on marketing activities such as crosspromotions, new media, unmeasured traditional promotional activities, and in-school marketing
that previously have not been systematically analyzed across the youth spectrum for broad
categories of food products. Thus, use of traditional measured media, such as television, is
described only in the context of cross-promotions.
In addition, Part C of this Section provides an overview of market research reported by
companies on the success and impact of various promotional techniques directed to youth.
Finally, in Part D of this Section, the Commission reports on information provided by the
companies relating to advertising campaigns and techniques that focused on particular gender,
racial, or ethnic segments of the population. Companies provided much of this information
on a general audience basis, with a small amount examining a target audience of children and
adolescents.
B. Specific Promotional Activities
1. Cross-Promotions and Third-Party Licensed Characters
One of the most consistent themes in advertising directed to children and adolescents –
appearing in nearly all promotional formats and for nearly all product categories – was the
use of cross-promotions and third-party licensed characters to promote foods, beverages, and
restaurants. Companies used cross-promotions to advertise nearly every type of food product,
including QSR children’s meals, breakfast cereals, candy, snacks, and beverages, as well as
fruits and vegetables and dairy products, and the campaigns generally were integrated across
promotional formats. The focus of a cross-promotional campaign was typically a child- or teenoriented movie or television program, but cross-promotional arrangements were also developed
for toys,56 websites,57 theme parks and other children’s entertainment venues,58 video games and
consoles,59 and youth and professional athletic leagues.60
Media companies often entered into cross-promotional arrangements with multiple
food companies to promote an individual film or television program. Thus, characters from
28
Food Marketing Activities Directed to Children and Adolescents
Nickelodeon’s Nick and nickjr programming were used to promote QSR children’s meals,
canned pastas and soups, snack crackers, snack chips, cookies, clementines, baby carrots, bagged
spinach, yogurt, macaroni and cheese, lunch kits, children’s frozen meals, fruit snacks, and
breakfast cereals. Animated characters from Cartoon Network programming appeared on labels
and packaging for QSR children’s meals, fruit snacks, snack crackers, yogurt, macaroni and
cheese, breakfast cereals, frozen desserts, and fruits and vegetables. Sesame Street licensed its
characters only to fruit and vegetable companies as part of its Healthy Habits for Life program.
Disney characters appeared on packages and store displays for fruit snacks, breakfast cereals,
candy, yogurt, frozen waffles, toaster pastries, macaroni and cheese, and fruits and vegetables.
Multi-brand food companies often included several individual food products, spanning multiple
food categories, in their cross-promotions. For example, one packaged food company utilized
cross-promotions with the films Cars, Over the Hedge, Ice Age 2, and Open Season to market
multiple products, including its children’s frozen meal, pudding, canned pasta, and popcorn
products.
Below is a comprehensive list of the media properties that the target companies reported
using in cross-promotions to children and adolescents in 2006:
••
The Adventures of Jimmy Neutron: Boy Genius (canned pastas and soups,
snack chips)
••
American Idol (candy, cookies, toaster pastries)
••
The Ant Bully (QSR children’s meals, non-carbonated beverages)
••
Avatar (QSR children’s meals, fruit snacks)
••
The Backyardigans (fruit snacks, fruit)
••
Barbie: Fairytopia (breakfast cereals, toaster pastries)
••
Batman (canned pastas and soups, fruit snacks)
••
Blue’s Clues (breakfast cereals, fruit snacks, fruit, yogurt)
••
Care Bears (fruit snacks)
••
Cars (QSR children’s meals, fruit snacks, snack bars, breakfast cereals, toaster
pastries, frozen waffles, canned pasta, pudding, cookies, snack crackers, popcorn,
yogurt, non-carbonated beverages)
••
Charlie and the Chocolate Factory (candy)
••
Charlotte’s Web (QSR children’s meals)
••
The Cheetah Girls (macaroni and cheese)
••
Chicken Little (fruit snacks)
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Marketing Food to Children and Adolescents
••
The Chronicles of Narnia (QSR children’s meals, breakfast cereals, cereal bars,
snack chips, fruit snacks, toaster pastries, packaged salads)
••
Clifford the Big Red Dog (QSR children’s meals, fruit juice, snack crackers,
breakfast cereal)
••
Curious George (QSR children’s meals, breakfast cereals, snack cakes, fruit juice,
bananas)
••
Danny Phantom (canned pastas and soups, children’s frozen meals, frozen desserts)
••
Disney Princesses (breakfast cereals, fruit snacks, yogurt, frozen waffles, toaster
pastries)
••
Doogal (QSR children’s meals)
••
Dora the Explorer (breakfast cereals, canned pastas and soups, snack crackers, fruit
snacks, cookies, fruit, yogurt)
••
Dragon Booster (QSR children’s meals)
••
El Chavo animated series (cookies)
••
Elmo and other Sesame Street characters (fruits and vegetables)
••
The Fairly OddParents (snack chips, macaroni and cheese, fruit snacks, frozen
desserts)
••
Finding Nemo (fruit snacks)
••
Flushed Away (QSR children’s meals, breakfast cereals, snack bars, snack crackers)
••
Foster’s Home for Imaginary Friends (QSR children’s meals)
••
Go, Diego, Go! (fruit snacks, yogurt)
••
Goosebumps (QSR children’s meals)
••
Happy Feet (QSR children’s meals, snack crackers, breakfast cereals, yogurt, fruit
snacks, baked goods, carbonated and non-carbonated beverages)
••
Hello Kitty (fruit snacks)
••
Holly Hobbie and Friends (QSR children’s meals)
••
I Spy (QSR children’s meals, fruit juice)
••
Ice Age 2 (QSR children’s meals, yogurt, fruit snacks, cereal bars, breakfast cereals,
toaster pastries, frozen waffles, children’s frozen meals, canned pasta, pudding,
cookies, snack crackers, popcorn, carbonated and non-carbonated beverages)
••
King Kong (fruit snacks, snack cakes, cookies, carbonated beverages)
••
Klutz (QSR children’s meals)
••
Lady and the Tramp (carbonated beverages, snack cakes)
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Food Marketing Activities Directed to Children and Adolescents
••
Leroy & Stitch (fruits and vegetables)
••
The Lion King (fruit snacks)
••
Little Einsteins (breakfast cereals)
••
The Little Mermaid (QSR children’s meals, breakfast cereals, candy)
••
The Littlest Pet Shop (QSR children’s meals)
••
Looney Tunes (QSR children’s meals, fruit snacks, fruits and vegetables)
••
Madagascar (fruit snacks)
••
Mickey Mouse Clubhouse (breakfast cereals)
••
Monster House (frozen pizza)
••
Monsters, Inc. (fruit snacks)
••
My Little Pony (fruit snacks)
••
¡Mucha Lucha! (fruit snacks, frozen desserts)
••
Nanny McPhee (food service pizza and burritos served in schools)
••
Nintendo characters such as Mario and Donkey Kong (QSR children’s meals)
••
One Tree Hill (carbonated beverages)
••
Open Season (QSR children’s meals, breakfast cereals, children’s frozen meals,
popcorn)
••
Over the Hedge (QSR children’s meals, yogurt, snack chips, snack cakes, popcorn,
carbonated and non-carbonated beverages)
••
Paz the Penguin (fruits and vegetables)
••
Peanuts (QSR children’s meals)
••
Pirates of the Caribbean (QSR children’s meals, candy, frozen waffles, fruit
snacks, breakfast cereals, lunch kits, popcorn, non-carbonated beverages, fruits and
vegetables)
••
Polar Express (popcorn)
••
Robots the Movie (fruit snacks)
••
Rudolph the Red-Nosed Reindeer (breakfast cereals, snack cakes)
••
Rugrats (fruit snacks)
••
Scooby-Doo (breakfast cereals, snack crackers, macaroni and cheese, fruit snacks,
yogurt)
••
Shrek (breakfast cereals, macaroni and cheese, yogurt, fruit snacks, snack crackers,
cookies)
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Marketing Food to Children and Adolescents
••
Sony PlayStation characters Spyro the Dragon and Crash Bandicoot (popcorn)
••
Spider-Man (QSR children’s meals, breakfast cereals, cereal bars, cookies, pancakes,
fruit snacks, snack crackers, snack chips, sliced cheese, macaroni and cheese, frozen
desserts, non-carbonated beverages)
••
SpongeBob SquarePants (QSR children’s meals, breakfast cereals, snack crackers,
macaroni and cheese, lunch kits, fruit snacks, cookies, yogurt, fruits and vegetables)
••
Star Wars Episode III (fruit snacks)
••
Strawberry Shortcake (QSR children’s meals)
••
Stuart Little 3 (QSR children’s meals)
••
Superman Returns (QSR children’s meals, breakfast cereals, milk, cereal bars, snack
chips, snack crackers, fruit snacks, packaged pasta, carbonated and non-carbonated
beverages)
••
Surf’s Up (popcorn snack)
••
Teenage Mutant Ninja Turtles (fruit snacks, fruit juice)
••
Trollz (QSR children’s meals)
••
The Wiggles (fruit juice)
••
The Wild (QSR children’s meals)
••
Winnie the Pooh (fruit snacks)
••
Winx (fruit snacks, fruit juice)
••
Xiaolin Showdown (breakfast cereals)
••
Yu-Gi-Oh! (QSR children’s meals)
••
Zoom (QSR children’s meals)
a. Anchoring Cross-Promotions with Traditional Measured Media
Food and beverage companies and restaurants frequently anchored their cross-promotions
in traditional measured media, particularly in television advertising. Companies reported using
television ads as part of their cross-promotions for a wide variety of food products, including
QSR children’s meals, breakfast cereals, children’s frozen meals, frozen waffles, toaster
pastries, cookies, candy, snack chips, macaroni and cheese, fruit snacks, yogurt, and spinach.
Print advertising of cross-promotions was used for snack cakes, milk, carbonated beverages,
and canned soup. Occasionally, products were embedded in the television program or film to
enhance the cross-promotion. For example, one carbonated beverage was cross-promoted, via
packaging, in-store advertising, and the Internet, with the teen television drama One Tree Hill.
32
Food Marketing Activities Directed to Children and Adolescents
Products were shown within the program, in addition to being advertised in standard television
ads appearing during or adjacent to the show.
b.
Reliance on Packaging and In-Store Displays
Companies frequently relied on packaging and in-store displays as mechanisms for
advertising their cross-promotions. Typically, media companies permitted use of their
copyrighted images from films and television programs directly on product packaging and
displays. These images usually were featured prominently on the front of the package, with
additional, related content, such as games, trivia, and sweepstakes or contest information,
provided on the back. Packaging also advertised the availability of promotion-related premiums
inside the package or through the product website. In other cases, the packaging itself served
as the premium, such as a popcorn carton that had a cut-out picture frame featuring third-party
licensed characters, or a candy dispenser that was also a toy thematically tied to the promoted
film.
Some product labels explicitly encouraged consumers to watch or buy the particular cartoon
or movie being promoted. Other packaging directed the consumer to a website to play a game
featuring the licensed character. In a few examples, a licensed character provided nutritional
messages. In addition, some produce companies utilized licensed characters to promote fruit and
vegetables in stores by using character images on produce bags and placing stickers or tags on
loose items.
How it works:
A fruit and vegetable company used a cross-promotion with Discovery Kids
character Paz the Penguin to get children’s attention in stores and to remind parents
to buy fresh produce for their children. The character’s name and image were
featured on hanging tags used in cold-case produce sections. In-store events with
Paz the Penguin in 10 cities featured give-away activities for children, stickers,
coupons for parents, and product samples.
Many supermarkets and QSRs displayed materials cross-promoting movies, movie DVDs,
television events, athletic teams or events, or sweepstakes. One cereal cross-promoted with a
movie had stand-alone kiosks featuring an interactive video game that children could play. Noncarbonated beverage displays at restaurants and convenience stores promoted the chance to win
video game consoles, children’s books, or free children’s meals. Posters at QSRs promoted toy
33
Marketing Food to Children and Adolescents
availability with purchase of a children’s meal. Frequently, cross-promotions involved rebate
offers that were advertised on product packaging and on point-of-sale displays.
c.
Rewarding Children and Teens with Premiums
A key feature of a cross-promotional campaign was nearly always the distribution to
children of toys, stickers, games, or other items, often found in packages and QSR children’s
meals, or available with proofs of purchase or by inputting a package code on a food product
website. QSRs in particular were apt to use toys linked to cross-promotions of new movies,
popular children’s television programming, or classic children’s toys as a means of marketing
their “kids’ meals” to children. Toys were generally sold in a series, encouraging children to
purchase multiple meals so they could collect each separate toy. Premiums included figurines of
film and television characters, plush toys, toy trucks and cars, puzzles and games, including toys
for outdoor activities, and functional objects such as calculators, rulers, watches, wristbands, and
water bottles. Restaurants also frequently structured their cross-promotions to include toys that
would appeal to both girls and boys, such as a promotion for one quick-service “kids’ meal” that
gave children the option of a G.I. Joe toy or a Bratz toy, and another promotion that offered the
option of a Polly Pocket fashion doll or a toy Hummer vehicle.
Packaged food companies also frequently distributed thematically linked premium items
with their products. Examples included trading cards, back-to-school kits, movie posters,
stickers, iron-ons, video games, activity books, bobble-head dolls, toys, pencil toppers, bowls
and utensils, personalized license plates, key chains, and figurines, which typically carried
branding for the media property and/or the food brand.
For many DVD releases, food and media companies partnered to offer cash back or a certain
quantity of free product when consumers purchased the DVD and/or the food item. Rebates and
discounts were also available for cross-promotion themed toys. Companies that were engaged
in cross-promotions with theme parks and other youth venues provided discounts on tickets or
admission.
Other premiums were distributed to children and teens through sweepstakes.61 Crosspromotions with films might offer a sweepstakes to win a trip to the film premiere, or to win a
family vacation related to the movie’s storyline. An example of a sweepstakes prize created to
appeal to children ages 12 and under was a contest to win a dream tree house offered as part of a
children’s frozen meal product’s cross-promotion with the children’s film Open Season. Others
were geared toward adolescents, including a candy company’s cross-promotion contest with the
movie Pirates of the Caribbean that offered cash prizes, iTunes downloads, and screensavers.
34
Food Marketing Activities Directed to Children and Adolescents
Companies frequently targeted contests to certain age groups by limiting eligibility for prizes,
such as to adolescents ages 13 and over, or to youth 14 or younger.
Targeted sweepstakes:
In connection with the release of children’s film Charlie and the Chocolate Factory,
one candy company ran two sweepstakes aimed at children and teens. In the first,
open to ages 16 and under, game pieces in packages offered children the chance to
win a trip to Wannado City theme park to be a candy-maker for a day, invent a new,
limited edition candy product, and receive a “salary” of $25,000. In the second,
open to all ages, children who found a “Golden Ticket” in the packages of one of five
participating candy varieties could win one of five grand prizes, each of which was
based on one of the child characters in the movie. Prizes included a trip to Europe,
$10,000 in cash, a shopping spree, a fantasy sports camp adventure, and a video
animation studio tour. Runner-up prizes for the sweepstakes included movie kits
containing a DVD, T-shirt, poster, and other movie-related items; MP3 players; and
candy.
Finally, a common method for distributing cross-promotion related prizes to children
and teens was to provide access to content online or opportunities to instantly win items via a
website. These types of prizes were available upon entering a UPC or other code from product
packaging onto the website. In this way, children were given opportunities to win toys, video
games, movie tickets, and other prizes tied to the cross-promotions.
d. Interacting with Cross-Promotions via the Internet
As part of their cross-promotions, many food companies dedicated space on company
websites or product sites to advertise the promotions. Similar to packaging and store displays,
website content prominently displayed copyrighted images from the cross-promoted films and
television programs. QSRs featured unique web pages for toys sold during cross-promotions.
Frequently, websites featured an interactive component tied to the cross-promotion, such as
an online game featuring the licensed character or an opportunity to win an instant prize related
to the promotion. Some websites incorporated the licensed characters into free downloads
offered at the sites, such as wallpapers, screensavers, coloring pages, and e-cards. In some cases,
media companies allowed movie trailers and extra footage to appear on food company websites
advertising the cross-promotion.
35
Marketing Food to Children and Adolescents
Online promotions also commonly involved content on a partner website, such as a media
company’s website for the licensed film or television program. As part of their cross-promotions,
food companies placed banner, skyscraper, and pop-up ads on partner websites, and often the
media company and food company sites hyperlinked to each other’s related content. In some
cases, media partners streamed video ads for the food products on their websites or hosted online
games incorporating the food products. Food companies also paid unrelated third-party websites
to run banner ads for their child- and teen-directed cross-promotions. One QSR offered codes
on its company website that could be used to access additional content on partner websites or
console-based video games tied to the cross-promotion.
Promotion via a partner website:
For a cross-promotion for its television character Danny Phantom, Nick.com
featured sponsored logos and streaming video ads for a children’s frozen meal
product. Banner ads directed children to the “FUN GAMES” on the food product
website, promoted a contest on the food site to win a Danny Phantom video game,
and told children to “look for these meals in your grocer’s frozen food section.” In
addition, the frozen meal product served as a sponsor of Nick.com’s New Game of
the Week, which enabled the food company to display a branded billboard ad while
Nick.com’s online video game loaded and to have banner ads and a product logo
visible during game play.
e. Edible Cross-Promotional Items
There were many examples of food products with “limited edition” line extensions devoted
specifically to the cross-promoted movie, television show, cartoon character, toy, or website.
Such products included candy, canned soups, pastas, breakfast cereals, snack crackers, cookies,
fruit snacks, snack cakes, toaster pastries, cereal bars, yogurt, children’s frozen meals, and frozen
waffles shaped like or co-branded with licensed characters from television shows or motion
pictures popular with children or adolescents. Sometimes, the food itself was imprinted with the
cross-promotion. For example, one snack chip brand was imprinted with trivia questions related
to cross-promotions with films, including The Chronicles of Narnia and Spider-Man 3, and other
media properties.
f. Case Studies
Cross-promotions were widespread in 2006, tying foods and beverages in all of the covered
categories to about 80 movies, television shows, and animated characters that appeal primarily to
36
Food Marketing Activities Directed to Children and Adolescents
youth. Two examples of movies that were cross-promoted with a wide variety of food products
were Pirates of the Caribbean and Superman Returns. Cross-promotions with these films used
the full range of promotional techniques, and were directed to both children and teens.
i.
Pirates of the Caribbean
In July 2006, Pirates of the Caribbean: Dead Man’s Chest was released in cinemas across
the country with an MPAA rating of PG-13.62 To coincide with the film’s release, food and
beverage companies and restaurants ran cross-promotions involving a range of foods, including
QSR children’s meals, fruit, frozen waffles, fruit snacks, breakfast cereals, popcorn, lunch kits,
and candy directed to children and adolescents. Advertisements took the form of television and
in-theater ads, Internet advergames, specially marked packaging, limited edition line extensions
inspired by the movie, premiums, prizes, and in-store displays.
One QSR cross-promotion featured the Pirates movie on the restaurant’s “kids’ meal”
packaging and promoted movie-related toys (“loot”) via in-store and drive-thru posters.
Packaging for a candy brand displayed company animated spokescharacters dressed as pirates
and characters from the Pirates movie, and some packages were designed to look like swords.
Consumers who bought certain breakfast cereals or frozen waffles could mail in for a skullshaped bowl or a bandana, and other packages offered free movie popcorn or provided a skull
strobe light key chain as an in-pack premium.
A produce company created special in-store displays and tags for pineapples and bananas to
promote the movie and direct consumers to a website where visitors could “plunder” rooms and
get free movie-related holiday posters. Similarly, the website for a children’s lunch kit product
described the in-pack premiums and the chance to play advergames related to the movie. A
cereal company’s branded online environment for children promoted Pirates on the marquis of
the town’s virtual movie theater.
Packaging and point-of-sale displays for candies promoted a Pirates sweepstakes for a cash
prize. A QSR cross-promotion included a “Search for the Golden Treasure” game in which kids’
meal purchasers could instantly win a trip to Disney Parks. The website for a popcorn brand
featured a Pirates cross-promotion, in which consumers could enter the UPC number from the
product package to win a prize.
One candy company created limited edition candy products, including “White Chocolate
Pirate Pearls” (featured in a television ad in which an actor from Pirates talked to company
animated spokescharacters), “Shipwreck Treasure Mix” (in which “sea green” candies turned
gold in your mouth), and “Jack’s Gems” (printed with pirate-themed images, like a skull and
37
Marketing Food to Children and Adolescents
bones). Similarly, a packaged foods company marketed a limited edition frozen waffle stamped
with images based on the movie, as well as fruit snacks in treasure shapes.
ii.
Superman Returns
The Summer of 2006 also saw the release of Superman Returns (rated PG-13), and food and
beverage companies licensed the Superman character for use in television ads, on packaging,
in store and restaurant displays, and on the Internet. Products advertised in Superman crosspromotions included carbonated and non-carbonated drinks, breakfast cereals, pasta, snack
foods, and QSR children’s meals. One dairy marketer used the lead actor from Superman in
its “got milk?” milk mustache print ads. Limited edition cereal, snack, and pasta products took
the shape of the Superman shield, and a “Buffalo wings” snack flavor was created to coincide
with the film. Product samples were given out at movie premieres and other venues. Branded
carbonated beverages were placed in the film itself. A restaurant offered Superman outdoor
flying toys as children’s meal premiums, together with online activity challenges and the
opportunity to track and compare individual progress; it also sponsored an online sweepstakes
to win a laptop computer. Food company websites promoted the movie by telling the movie’s
back-story, offering online games (find Lois Lane or find Superman, for example), revealing
Superman trivia, and affording the opportunity to win prizes with a code found in or on
packages. Superman-themed prizes – promoted on packages, in stores, and on the Internet –
included a vacation trip to various U.S. landmarks; branded T-shirts, towels, and travel gear;
video games; a $1,000,000 reward for the capture of villain Lex Luthor; and other cash awards.
Other premiums included posters, game cards, discounts on Superman toys, lunch kits, activity
books, a door hanger, and wallpaper downloads. Superman products were advertised across age
groups, from young children to adolescents.
2. Brand Recognition Activities
In addition to the widespread use of cross-promotions with third-party licensed characters
and other properties in marketing to children and teens, several companies – including QSRs, a
produce company, and cereal, snack, baked goods, and candy makers – have successfully created
their own animated spokescharacters. These characters are based on animals, people, the food
product, and even utensils, and are used in advertising and promotions to increase recognition
of products and brands. Spokescharacters generally are associated with a particular product or
product line, and their success is documented by the fact that many have endured for generations
of children.
Stories about the characters and fictitious biographical information appeared in television
ads, on packages, and in online videos. The stories were augmented by websites and packaging
38
Food Marketing Activities Directed to Children and Adolescents
that used the characters in games, involved children in solving mysteries, and offered related
prizes or premiums, such as “collectible” character cards. Spokescharacters also made
appearances at events; one snack food brand offered a contest where the winner’s school would
have a celebration party with a “live” appearance by the character.
In 2006, a candy company and Marvel Comics created a series of print and online comic
books, promoted via in-store displays and through the company website. Comic book pages
portrayed each candy piece as a unique character. Print ads directed children to the Internet
where they found printable games with instructions to use the candy as game pieces. Codes on
product packaging could unlock additional game levels on the website.
As part of the effort to increase brand awareness through the use of spokescharacters and
other advertising techniques, a number of companies have successfully developed their own
lines of branded merchandise for sale at retail outlets, or have licensed third parties to sell
merchandise branded with food company trademarks and characters.63 In addition to serving a
promotional purpose by increasing consumer familiarity with and loyalty to particular products
and brands, these activities typically profit the company through licensing fees, royalties, and
product markups.
Food-branded merchandise may be developed for use by a general audience, or by children
or adolescents. Thus, children may wear pajamas that carry a cereal logo, while teens may
decorate their lockers at school with message boards branded with their favorite candy bar.64
Some companies also entered into marketing agreements with toy companies to produce cobranded toys, including race-cars, dolls, and Play-Doh, which children could use to make models
of their favorite snack cakes. These branding opportunities increase brand recognition among
the parent purchasers, as well as the child or teen end-users.
One candy company reported being contacted by educators (including the Secretary of the
Department of Education) in the mid-1990s with requests to use company brands and images
in educational materials, such as counting books, to help children learn math in a creative way.
Following these inquiries, the company entered into an agreement with a publishing company to
produce books on math topics, as well as holiday and birthday books. The agreement to publish
these branded children’s books terminated at the end of 2006.
3. Other Promotional Activities
a. Internet and Digital Advertising
More than 30 of the 44 target companies reported online, youth-directed advertising
activities. Online activities included dedicating space on a company website to child- or teen39
Marketing Food to Children and Adolescents
focused content; developing independent websites for particular child- or teen-directed food
products or promotional campaigns; purchasing ads on third-party websites to promote a food
item or promotion; and using a range of other digital marketing techniques, such as email
newsletters, downloadable screensavers and wallpapers, podcasts, and “webisodes,” to reach
children and adolescents.
Many companies designated portions of their websites as dedicated child or teen zones.
Other companies had independent websites for products that were child- or teen-focused,
in which all of the content was directed to those audiences. In some cases, unique websites
were created for specific promotions. One energy drink company closely tied its promotional
activities to extreme sports popular with teens by hosting several websites dedicated to different
sporting activities, such as paragliding, skydiving, motorbike racing, and kiteboarding. Childand teen-directed website content often featured bright colors and graphics, and images of
children and adolescents; teen websites occasionally used darker colors and graphics.
Many websites allowed children and teens to view the companies’ television ads for the
products, but at least one company had a policy that television ads would not be automatically
streamed to child viewers online. Some carbonated beverage companies reported interactive
website features that allowed consumers to create their own videos using clips the companies
provided of food products and extreme sporting activities.
Advergames were a frequent feature on child- and teen-directed food company websites,
appearing on websites for products such as snack chips, fruit snacks, seeds, candy, cookies,
cereals, dairy products, cocoa, children’s frozen meals, restaurant food, frozen waffles, canned
soups, fruit, and non-carbonated beverages. Product packaging often directed consumers to
online games, with a chance to win a prize; companies occasionally rewarded children who
entered codes from product packaging with access to additional game levels. In some cases,
the games were designed so that consumption of the food product by the game’s characters was
an objective for players.65 One candy website featured a teen-directed advergame in which
players operated a virtual skill crane machine in an effort to retrieve candy bars with the crane;
successful players had a chance to win iPod Nanos, as well as real candy.66 Another candy
maker, however, had a company policy not to promote games that encourage consumption of
products, while a packaged food company’s policy prohibited online games that included any
type of excessive product consumption. The packaged food company’s policy also required that
games targeted to or frequented by children must include an “activity break” every 30 minutes,
pausing website action and encouraging children to engage in a “more active” pursuit.
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Food Marketing Activities Directed to Children and Adolescents
Occasionally, food product websites had social networking components, where children
could create personal avatars – computer representations of themselves – and interact with a
virtual community. On one candy website, children could create avatars and accumulate virtual
currency by playing advergames that they could use to purchase digital merchandise, such as
screensavers, instant messenger (IM) icons, and clothing for their avatars. On a cereal website,
children could buy clothes and furniture for their avatars with virtual currency earned by playing
online games, pick a neighborhood to live in, and shop for the company’s cereal brands at a
virtual grocery store. Some websites allowed children to take a quiz to determine what variety of
food product best suits their personality.
Case study:
In 2006, one milk marketer initiated an online campaign targeted at teens. The
campaign website aims to teach teens about the consequences of their beverage
choices using interactive educational content and trivia quizzes. On the website,
teens encounter bright colors and graphics, scrolling elements, and numerous
overlapping, interactive, multi-media components. The website has dynamic content,
with multiple rooms teens can enter to find out more information about celebrity milk
mustache endorsers, download free content such as wallpapers, MP3s, and IM icons,
and enter sweepstakes. Teens can create their own milk mustache advertisements
and upload their photos to share with others. Throughout 2006, the marketer also
ran an online auction in which teens collected milk carton bar codes in order to bid
for prizes from popular brands. Prizes included subscriptions to teen magazines,
sportswear and sporting equipment, video games, bicycles, DVD and MP3 players,
guitars, jewelry, clothing, mobile phones, and televisions. Teens could also sign
up to receive email newsletters from the marketer and send “tell-a-friend” emails
to others. The campaign was promoted via banner ads on third-party websites,
which showed celebrity milk mustache endorsers popular with teens, such as David
Beckham and Sasha Cohen. Finally, the milk marketer sponsored a MySpace.com
profile page for the campaign that allowed teens to download milk mustache ads as
wallpapers for their computers, displayed a David Beckham video ad, and featured a
“make your own milk mustache ad” interactive game.
Food companies purchased banner ads, pop-up ads, and streaming video ads on thirdparty child- and teen-directed websites, such as Nick.com, CartoonNetwork.com, Disney.com,
SIKIDS.com, and MTV.com, and social networking sites MySpace.com and Xanga.com. These
41
Marketing Food to Children and Adolescents
ads contained hyperlinks to the food product websites, and often linked directly to promotional
features of the site, such as advergames. Some companies that advertised their food brands on
third-party websites, such as Nick.com, imported games from those sites onto their own food
product websites.
Food and beverage companies and restaurants made available to children and teens a wide
variety of free, downloadable and printable content, including coloring pages, stickers, ironons, activity books, mazes, tic tac toe, and other games. These frequently, but not always,
incorporated food product branding. Free downloadable content for teens included screensavers,
wallpapers, ringtones, digital music files, and layouts for MySpace pages.
Many companies offered email newsletters.67 Through newsletters and “kids’ clubs,”
companies kept children and teens apprised of new products and new promotional offers
available through their websites. Some beverage companies reported contacting teens by text
message to alert them to new promotions, while one packaged food company had a policy not to
engage in cell phone-based promotional or marketing activity targeting children under 12.
A few companies utilized podcasts – downloadable audio files, often similar to radio
programs – and “webisodes” – online video episodes resembling television shows – to reach
children and teens through their websites. One candy brand’s website featured weekly podcasts
of Ryan Seacrest’s American Top 40 radio show, incorporating ads for the brand spoken by Mr.
Seacrest. Another candy brand developed original content for a series of webisodes featuring
musical group the Black-Eyed Peas, in a fictional storyline relating to the candy brand. One
child-directed website for a snack cracker brand had a series of webisodes centered on the
product’s animated spokescharacters. Cereal companies also featured webisodes starring
animated spokescharacters on their product websites.68
b. Word-of-Mouth and Viral Marketing
Word-of-mouth and viral marketing encompass a variety of promotional techniques that aim
to increase discussion of a food product or brand among consumers, and to encourage consumers
to share branded messages with one another. Many companies reported their viral marketing
efforts together with their other online promotions, such as their company websites. These
efforts typically consisted of e-cards and “send-to-a-friend” emails children and teens could
send from food product websites that displayed product branding and, frequently, hyperlinks
back to the website; companies also provided branded instant message icons that children and
teens could use when sending messages to friends.69 E-cards were sometimes tied to a particular
holiday or occasion, such as a birthday. One company website had “tell-a-friend” messages that
could be sent by email or instant messenger, and also provided code that could be copied onto
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Food Marketing Activities Directed to Children and Adolescents
relevant online message boards. In one case, a company allowed children to send an email to
friends challenging them to play a game on one of the company’s food brand websites, despite
having a policy of not engaging in Internet communications or activities, including websites,
blogs, or games, targeting children under 12.
Other viral promotional tools directed to teens and used by a few companies included
company-sponsored blogs and social networking profiles.70 One flavored milk brand had a
website dedicated to a mock political campaign that incorporated a blog. The same brand
sponsored a user-generated video contest, inviting consumers ages 14 and older to submit videos
and vote for their favorites at MySpace.com; the grand prize was a trip to New York to watch
the winning video being screened in Times Square, while people voting on videos could win
an iPod. As discussed above, one milk marketer sponsored a MySpace.com profile page for its
teen-targeted online promotional campaign.
Word-of-mouth activities frequently involved the recruitment of a group of consumers
who could share promotional messages about brands with their peers; these consumers were
referred to as “ambassadors” or “connectors.” For example, one candy brand hired a group
of snowboarders as ambassadors to hand out promotional DVDs and product samples at
snowboarding venues. A flavored milk brand had an online brand ambassador program with a
dedicated website featuring member profiles, message boards, and activity reports. Members
earned points by engaging in online and offline promotional activities for the brand; points
could then be redeemed on the website for gift cards, branded apparel, and other merchandise.
Members also provided feedback on surveys and research questions. For example, a dairy group
recruited “teen connectors” to provide feedback on materials for a new promotional campaign
and to talk to others about the campaign and its messages. All reported word-of-mouth activities
appeared to be teen directed; one candy company reported having a company policy prohibiting
word-of-mouth marketing to children under age 13.
c. In-store Promotions and Packaging
Food marketers used a variety of point-of-sale materials to attract the attention of shoppers
and their children, including teens. Examples of in-store marketing at grocery stores included
product-specific bins, racks, or display cases picturing animated children and other characters
designed to appeal to children, or extreme sports, major sporting events, or catchy slogans to
appeal to teens; “shelf-talkers” (small hanging shelf signs), tear pads, hanging signs, and floor
ads; signs advertising free professional sports-related paraphernalia or discounts on theme park
admission; holiday-themed packaging and displays; and signs promoting chances to win toys,
school supplies, athletic equipment or training, ringtones, electronics, trips, and equipment for
43
Marketing Food to Children and Adolescents
schools. Contests were promoted by store displays that drew attention to information or entry
codes on product packages.
Other in-store promotions were mini-events involving branded vehicles, product sampling,
circus-like activities, and the distribution of toys or other paraphernalia. Juice sampling at WalMart stores, for example, was combined with the distribution of coloring and activity books
that featured Teenage Mutant Ninja Turtles, Winx, and Curious George, and conveyed messages
about eating five fruits and vegetables a day. A beverage bottler provided equipment for a family
festival at store locations. The festival had auto racing simulators, inflatable play equipment,
games, kiosks with video game trailers, an interactive robot, the opportunity to “star” in a music
video and take home a DVD of the performance, and free promotional items such as hats and
shirts.
Fruit and vegetable companies also used in-store marketing to reach parents and their
children. Several companies had marketing tie-ins with Sesame Street’s Healthy Habits for Life
program, featuring Sesame Street characters and program icons on produce displays, packaging,
or the produce itself. One company created a special fruit stand with a tie-in to Little League
Baseball. Another used an apple display to promote a sweepstakes cross-promotion with Radio
Disney and Playhouse Disney. Another fruit company created an in-store radio spot and used
product giveaways and hanging signs called “wobblers” in cold-case produce sections where an
animated character reminded parents to buy fresh produce for their children. The same company
engaged in a joint campaign that used posters and “wobblers,” brochures, and in-store events to
encourage families to eat more fruit, and provided ideas for making fruit snacks.
Food marketers reported employing a variety of design elements and visual cues to
make product packaging appeal to children and adolescents. As previously discussed, a great
deal of packaging incorporated characters from television and movies, as well as company
spokescharacters. Design elements included bright or contrasting colors; graphics suggesting
speed or explosiveness; themes of “fun,” athleticism, energy, or being “cool”; and animated
characters. Some fruit snacks and canned soups and pastas, for example, depicted explosions of
color in or around the food and portrayed images of children or young teens.
Some product packaging incorporated the word “kids” into the product name or stated
that the product was “for kids.” Packaging for one company’s canned soup and pasta products
promoted a contest to win a week-long vacation at a mansion in Hawaii; the packaging showed
photos of children as the winners and directed children to the company website, encouraging
them to enter with the statement, “Kids, you can win!”71 Some flavors for beverages had fun- or
quirky-sounding names appealing to children and adolescents, such as “twisted,” “surge,” “rage,”
44
Food Marketing Activities Directed to Children and Adolescents
“kick,” “slam,” “bite,” “fierce,” “flashing,” and “blast.” Another element was the shape of the
container, which sometimes was specifically designed to appeal to children.
Some product packaging and QSR packaging, trayliners, and cups contained jokes or games,
such as word searches, mazes, matching games, trivia games, and cut-outs. For example, a
breakfast cereal had “double vision” packaging that promoted hidden games. Another included
3-D glasses to view the imagery on the box. Other packaging promoted the food itself as a form
of amusement, such as by including a special dispenser for the food, or advertising that the food
was wearable like jewelry or had unique textures, tastes, colors, or shapes with a holiday or
animal theme.
d.
Premiums
Premiums – found in packages, served with QSR children’s meals, or available with proofs
of purchase – are popular in food marketing. Often, the same premium cut across multiple food
categories. For example, packaging for oranges and breakfast cereals included a coupon for
admission to a theme park. Beverage companies offered point systems tied to product purchases,
in which purchasers accumulated proofs of purchase and redeemed them for various types of
merchandise through a company website.
Premiums offered by the target companies in 2006 included action figures; game cards;
video games and video game console-branded apparel; free movie and video game rentals; DVD
games; interactive movies; music CDs; digital music downloads, music players, and ringtones;
free issues of child and teen magazines or access to a subscription-only website; clothing apparel
and iron-on decals; child spoons and “sippy” cups; backpacks and lunch boxes; spy or decoder
rings and glasses; flying disks; temporary skin tattoos and tongue tattoos; toy cars; special
product dispensers; collectible trading and game cards and collector soda cans; sports cards,
magnets, stickers, and books; novelties based on motion pictures and movie popcorn; movie and
sporting event tickets; apparel and equipment related to a specific sports figure or team; sports
equipment; discount coupons for ski areas, theme parks, circuses, zoos, and aquariums; discounts
on summer camps; discounts on toys and stuffed animals; activity books and finger paints; toys
served with QSR children’s meals; and codes for use in online virtual worlds. Some of the
premiums appealed more directly to teens, such as the music downloads and ringtones, and video
game cross-promotions. Others appealed to parents and their children, such as an offer for a kit
of activities for family night at home; and others to youth and their athletic teams, such as eraser
boards for athletic coaches and an official team book.
Some premiums related to health and fitness included a step counter inside a breakfast cereal
and a snack food package containing an activity poster touting “fitness fun.” Another marketer
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Marketing Food to Children and Adolescents
placed stickers with licensed characters on individual fruits and vegetables, which children could
then apply to special sheets to track their consumption.
Premiums often came in the form of prizes offered through sweepstakes and contests.72 In
2006, children and teens had the opportunity to win a range of products and services, including
cash; college scholarships; magazine subscriptions; a supply of the food product; electronics
(televisions, digital music players, video game consoles, cell phones, cameras); ringtones;
toys; sports equipment and athletic apparel; sports trading cards; vacations and trips to theme
parks, extreme sporting events, and movie premieres; tickets to movies, concerts, sporting
events, and Teen Choice Awards; sports clinics and camps; music downloads; the opportunity
to appear in advertising for the product; a trip to a beach party with cast members from a show
popular with teens; and opportunities for children to participate in professional sports events
as a “sideline kid,” “kid’s captain,” “kidcaster,” bat boy/girl, or mascot, or to meet players.
Sweepstakes sometimes spanned multiple products and food categories. For example, one
company’s sweepstakes, which involved free music downloads and the chance to win bonus
songs, was touted on packaging for breakfast cereal, fruit snacks, and baked goods. As discussed
in this Section, many of these contests cross-promoted third-party media properties, and many
sweepstakes and contests were conducted online.
e. Celebrity Endorsements
Food and beverage companies hired celebrity actors, athletes, singers, and musical groups
to serve as endorsers for their products in advertisements and at events, on packaging and pointof-sale materials, and in sweepstakes and contests. Whereas characters from popular television
programs and movies were licensed for promotions to both children and teens, celebrity
endorsers were used almost exclusively in marketing directed to teens and tweens. In 2006,
a milk marketer’s Internet-based teen-directed promotional campaign included celebrity milk
mustache ads by athletes David Beckham, Alex Rodriguez, and Sasha Cohen; singers Beyoncé
Knowles, Kelly Clarkson, and Carrie Underwood; and actors Mischa Barton and Raven Simone.
Celebrity endorsers were featured in print ads, on the campaign website and MySpace page, in
banner ads on third-party websites, and on posters used in schools; celebrities also served as
judges in the organization’s Scholar Athlete Milk Mustache of the Year contest. The marketer
auctioned a trip to the David Beckham Soccer Academy on the campaign website.
One candy company reported having a celebrity gold card program, in which celebrities
could sign up to receive samples of new products and branded apparel; celebrities were
encouraged to use these items for parties or travel, or as donations to charity events. Various
candy companies used musical performers Jesse McCarthy, the Jonas Brothers, and the Black
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Food Marketing Activities Directed to Children and Adolescents
Eyed Peas to promote their products at in-store events, in television and website advertising,
and, in the case of the Black Eyed Peas, through a series of original webisodes available at a
dedicated website and promoted via print ads, point-of-purchase materials, online banner ads,
and movie theater video ads.
Celebrity athletes were occasionally used as endorsers for products that sought to align
themselves with particular sports or sports in general. For example, a snack seed brand that
marketed itself to children and teens involved in youth baseball used celebrity endorser Derek
Jeter in website ads and an advergame. A snack meat brand that sponsored extreme sporting
events paid BMX biker Dave Mirra to endorse the brand; Mr. Mirra appeared at events and on
the company website, and his name was used on a contest to win $5,000 to revamp a park. A
beverage company used basketball player LeBron James for various promotions. He appeared
online, on containers, and in point-of-sale materials, as well as in television ads and an MTV
promotion. Fans could help to “choose his theme song,” enter a contest to meet h
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