A recent study conducted by the Harvard T.H. Chan School of Public Health has revealed that social media companies collectively made over $11 billion in US advertising revenue from minors last year. The findings of this study have raised concerns about the need for government regulation in the social media industry, as the companies themselves have failed to effectively self-regulate. The researchers argue that implementing regulations and increasing transparency from tech companies could help mitigate the harmful effects on youth mental health and combat potentially harmful advertising practices targeting children and adolescents.

To determine the revenue figure, the researchers utilized population data from the US Census, as well as survey data from Common Sense Media and Pew Research, to estimate the number of users under 18 on popular platforms such as Facebook, Instagram, Snapchat, TikTok, X (formerly Twitter), and YouTube in 2022. They then incorporated data from research firm eMarketer (now called Insider Intelligence) and parental control app Qustodio to estimate the ad revenue generated by each platform in the US in 2022, as well as the amount of time children spent on each platform daily. By using this data, the researchers constructed a simulation model to estimate the total ad revenue earned from minors in the US by these platforms.

The negative effects of social media platforms on children have long been a focus of researchers and lawmakers. The personalized algorithms employed by these platforms can lead children to excessive usage, which can have detrimental effects on their mental health. This year, lawmakers in states such as New York and Utah have introduced or passed legislation aimed at curbing social media use among children, citing concerns about youth mental health and other related issues. Meta, the parent company of Instagram and Facebook, is also facing lawsuits from numerous states, alleging its contribution to the mental health crisis.

Bryn Austin, a professor in the Department of Social and Behavioral Sciences at Harvard and a senior author on the study, emphasized the lack of meaningful steps taken by social media platforms to protect children, stating, "Although social media platforms may claim that they can self-regulate their practices to reduce the harms to young people, they have yet to do so, and our study suggests they have overwhelming financial incentives to continue to delay taking meaningful steps to protect children."

While social media platforms do not disclose how much money they earn from minors, concerns about marketing to children have been raised by parents and experts for a long time, both online and offline. Online advertisements can be particularly problematic as they can be targeted directly at children, and the distinction between ads and the content they seek out is often blurred. The American Academy of Pediatrics highlighted the vulnerability of children to the persuasive effects of advertising due to their immature critical thinking skills and impulse inhibition in a 2020 policy paper. The paper noted that although school-aged children and teenagers may recognize advertising, they often struggle to resist it when it is embedded within trusted social networks, endorsed by celebrity influencers, or presented alongside personalized content.

As concerns surrounding social media and children's mental health continue to grow, the Federal Trade Commission (FTC) has proposed significant changes to a long-standing law that regulates how online companies can track and advertise to children. The proposed changes include defaulting targeted ads to children under 13 to the off position and limiting push notifications.

According to the Harvard study, YouTube earned the highest ad revenue from users aged 12 and under, amounting to $959.1 million. Instagram followed closely behind with $801.1 million, and Facebook generated $137.2 million. In terms of users aged 13-17, Instagram topped the list with $4 billion in ad revenue, followed by TikTok with $2 billion and YouTube with $1.2 billion. The researchers also found that Snapchat derived the largest share of its overall 2022 ad revenue from users under 18, accounting for 41%, followed by TikTok (35%), YouTube (27%), and Instagram (16%).