The Ethics of Targeting Young Minds: A Billion-Dollar Question

Should companies market to children? This question sits at the intersection of business interests, ethics, child development, and public health. Here’s what you need to know:

Quick Answer: Whether companies should market to children depends on several factors:

  • Age considerations: Marketing to children under 8 is widely considered unethical as they cannot recognize persuasive intent
  • Health impact: Food marketing has been linked to childhood obesity and poor nutrition
  • Parental autonomy: Marketing creates family conflict through “pester power”
  • Regulations: Many countries have restrictions, while the US relies mostly on industry self-regulation
  • Balanced approach: Educational content with transparent messaging directed at both parents and children is most ethical

The numbers behind child-focused marketing are staggering. Advertisers spend more than $12 billion per year targeting the youth market, with the average child viewing over 40,000 commercials annually. Children and teens directly spend almost $200 billion of their own money each year, while influencing family spending decisions worth another $165-670 billion.

What makes this issue particularly concerning is that children under age 8 lack the cognitive ability to understand that advertisements are designed to sell products. According to the American Psychological Association, young children cannot recognize advertising’s persuasive intent, making them uniquely vulnerable to marketing messages that shape their preferences, values, and behaviors long before they can critically evaluate them.

The debate extends beyond simple economics into questions about child development, family dynamics, and public health. Marketing to children has been linked to increased family conflict, childhood obesity, and the development of materialistic values that can persist into adulthood.

I’m Nicole Farber, and as the CEO of ENX2 Legal Marketing with over a decade of experience advising clients on ethical marketing practices, I’ve seen how the question of should companies market to children requires balancing business objectives with social responsibility.

Infographic showing children's influence on family purchases across categories: 97% breakfast choices, 95% lunch choices, 98% entertainment, 94% family trips, 60% computer purchases - should companies market to children infographic

Should companies market to children terms made easy:
do standards exist for marketing food and beverages to children
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Why Kids Matter: The Business and Psychological Drivers

Kids aren’t just cute – they’re marketing gold. Companies have finded that children represent a triple-threat market: they spend their own money, influence their parents’ spending, and can become lifelong loyal customers. It’s no wonder businesses are eager to win their hearts and minds early.

As children’s marketing expert James U. McNeal famously put it: “If you own this child at an early age… you can own this child for years to come.” This philosophy has driven billions in advertising aimed at securing brand loyalty before critical thinking skills fully develop.

Today’s marketing strategies for children are incredibly sophisticated. Did you know children as young as 3-4 can recognize brand logos before they can even read? By weaving beloved characters across TV shows, movies, and merchandise, advertisers cleverly blur the line between entertainment and advertising.

Direct & Indirect Purchasing Power

The piggy banks of today’s kids are surprisingly hefty! Children now have more spending power than any previous generation, with weekly allowances averaging around $30 in many developed countries. Kids under 12 directly spend over $11 billion annually, while teenagers contribute a whopping $189 billion to the economy.

But here’s where it gets really interesting – children’s true power lies in their influence over family purchases. They affect 97% of breakfast choices, 95% of lunch decisions, and an incredible 98% of family entertainment options. One eye-opening study found that children influenced $9 billion in car sales in a single year, with many dealers reporting that kids literally chose which vehicle the family drove home!

This phenomenon, known as “pester power” or the “nag factor,” has become a documented marketing strategy. As one brutally honest marketing executive admitted at an industry conference: “The way to reach kids is not to sell to Mom but to use ‘pester power’ to have the kids themselves act as the salesperson.”

Developmental Vulnerability

The ethical questions around should companies market to children stem from one crucial fact: kids simply aren’t equipped to evaluate advertising the way adults can. Research consistently shows that children under 7-8 years old:

  • Can’t reliably distinguish between commercials and regular programming
  • Don’t understand that advertisements are designed to sell products
  • Can’t recognize the persuasive intent behind marketing
  • Lack the critical thinking skills to evaluate advertising claims

According to the American Psychological Association’s Task Force on Advertising and Children: “It is unfair to target commercial persuasion at young children who lack the capability to evaluate biased sources of information such as television advertising.”

This vulnerability isn’t a character flaw – it’s simply how brain development works. Young children are in what psychologist Jean Piaget called the “preoperational stage,” where abstract thinking is limited and egocentrism prevails. Their executive function (the brain’s control system) is still developing, making them particularly susceptible to marketing messages.

What’s especially concerning is that children’s recall of a single commercial is nearly 100%. As one researcher noted, “Children are like sponges: they remember exactly what they see in commercials.” This perfect storm of high retention combined with an inability to recognize persuasive intent makes them uniquely vulnerable audiences.

Marketing Channels & Tactics

Gone are the days when marketing to kids meant Saturday morning cartoon commercials. Today’s child-focused marketing is an immersive ecosystem that includes:

  • Traditional TV advertising (still powerful, with kids watching thousands annually)
  • Product placement seamlessly woven into children’s shows
  • Interactive branded websites and “advergames” that blur entertainment and advertising
  • Social media influencers who children trust and admire
  • In-app purchases in mobile games designed to be irresistible
  • School-based marketing through sponsored materials and tech donations
  • Cross-promotional tie-ins connecting movies, toys, and food products

Cartoon character used in advertising to children - should companies market to children

These modern tactics are often more subtle and engaging than traditional advertising. “Advergames” on branded websites, for instance, can keep children interacting with a product for 15-30 minutes—far longer than a 30-second commercial—while making it difficult for kids to distinguish between fun and marketing.

School commercialization raises particular concerns. Budget constraints have led many schools to accept corporate partnerships, creating what critics describe as “captive audiences.” Programs like Pizza Hut’s “Book It!” (rewarding reading with pizza) and Campbell’s “Labels for Education” embed brand awareness in educational settings where children naturally trust the messaging.

As one concerned educator observed: “When we allow marketing in schools, we’re essentially telling children that these products have our institutional endorsement.”

The digital landscape adds another layer of complexity with privacy concerns. While the Children’s Online Privacy Protection Act (COPPA) requires parental consent for collecting data from children under 13, enforcement challenges and loopholes persist in our rapidly evolving digital world.

For a comprehensive review of how food marketing impacts children’s health and behavior, the Federal Trade Commission’s report on food marketing to children and adolescents provides valuable insights based on extensive research.

Want to learn more about the impact of advertising on young minds? Check out our detailed analysis of how advertising affects children’s behavior and find effective yet ethical approaches to ads for kids.

Debate: Should Companies Market to Children?

The question of should companies market to children stirs up passionate opinions on both sides. Let’s explore this complex issue together.

Should companies market to children? Pro Arguments

Those who support marketing to children offer several thoughtful justifications:

Building future consumers is a key business strategy for many companies. Early brand relationships often create loyal customers who stick around for decades. As one marketing executive candidly shared with me, “It’s much easier to establish brand preferences with children than to convert adult customers from competitors.”

Educational content can be a positive aspect of child-focused marketing. Take PBS KIDS sponsorship messages, for example. These take a gentle approach that parents typically view more favorably than aggressive commercial messages. Many parents appreciate when brands support educational programming while keeping sales pitches subtle.

Parental gatekeepers ultimately control the purse strings and media exposure, proponents argue. “Parents have the final say in what their children consume, both in terms of media and products,” an industry representative told me during a recent marketing conference. This view suggests the responsibility lies with parents, not advertisers.

Economic benefits flow from child-focused marketing, supporting countless jobs and driving innovation in products designed specifically for children’s unique needs and interests. The children’s market has spurred development of everything from healthier food options to educational toys.

Developing consumer literacy happens naturally through advertising exposure, some argue. Children gradually learn to steer commercial messages, building critical thinking skills they’ll need throughout life.

PBS-style sponsorship message example - should companies market to children

A fascinating 2023 Kantar survey revealed that parents are 30% more likely to purchase a product mentioned by a PBS KIDS sponsor compared to one advertised on commercial kids’ programming. This suggests that softer brand messages in an uncluttered environment can be effective while maintaining parental trust.

As one thoughtful marketing professional explained to me: “When done right, marketing to children can build trust with both the child and parent, creating positive associations that benefit everyone.”

Should companies market to children? Con Arguments

Critics of child-targeted marketing present equally compelling concerns:

Cognitive exploitation tops the list of ethical concerns. Marketing to children under 8 takes advantage of their developmental vulnerability. The American Psychological Association didn’t mince words when they concluded it’s “inherently unfair” to target children who simply cannot recognize persuasive intent.

Health concerns are increasingly alarming. Children aged 2-11 view nearly 12 food and beverage ads daily on television alone, with a whopping 84% promoting foods high in saturated fat, sugars, or sodium. I was shocked to learn these numbers myself.

The health implications are serious: childhood obesity rates have tripled over the last 25 years. One public health researcher put it bluntly: “The food industry spends $1.8 billion annually marketing to young children, then we spend billions more treating diet-related diseases.” This connection between marketing and health outcomes should give us all pause.

Materialistic values often take root through early advertising exposure. By the time a young person reaches 21, they’ve typically seen over one million advertisements. Research suggests this bombardment can foster the belief that possessions are tied to happiness and self-worth.

Family conflict erupts from what marketers call “pester power.” We’ve all witnessed children begging for advertised products, putting parents in the tough position of either giving in or facing repeated conflicts. One mother shared with me: “I dread the cereal aisle when my daughter spots a favorite princess on sugary cereal. It’s not just about saying no—it’s about the tears and tantrum that follow.”

Psychological impact extends beyond the immediate purchase. Marketing often plays on children’s insecurities, potentially contributing to issues like poor body image, gender stereotyping, and even premature sexualization.

Privacy concerns have exploded in the digital age. Marketing to children online raises serious questions about data collection, profiling, and targeting based on behavior tracking—often without meaningful parental oversight.

Pro Arguments Con Arguments
Builds brand loyalty Exploits cognitive vulnerability
Can include educational content Promotes unhealthy food choices
Parents are ultimate gatekeepers Creates family conflict through pester power
Drives economic growth Fosters materialistic values
Helps develop consumer literacy Raises privacy and data collection concerns
Soft-sell approaches can be acceptable Contributes to childhood obesity epidemic

Policy & Ethical Frameworks Moving Forward

Given these competing perspectives, what thoughtful frameworks might guide us toward more ethical practices?

Age-based restrictions make intuitive sense to many experts who recommend prohibiting marketing to children under 8, when most develop the ability to recognize persuasive intent. Sweden took a bold step by banning all television advertising during children’s peak viewing hours back in 1991. Quebec went even further, prohibiting commercial advertising to children under 13.

The Quebec case offers fascinating insights. Researchers estimate the province’s advertising ban led to an $88 million reduction in fast food spending annually, along with higher fruit and vegetable consumption and lower obesity rates among 6-11 year olds compared to other Canadian provinces. These results suggest meaningful regulation can make a real difference.

Nutritional standards have emerged through industry self-regulation. The Children’s Food and Beverage Advertising Initiative (CFBAI) established voluntary nutrition criteria for advertising to children, but many critics point out that numerous products still fail to meet independent nutritional guidelines.

I was disappointed to learn that in 2011, an Interagency Working Group proposed stronger, science-based nutrition standards for foods marketed to children, but intense industry lobbying effectively derailed them. As one public health advocate told me with a sigh, “Self-regulation simply doesn’t work when profits are at stake.”

In loco parentis standard offers a thoughtful ethical approach. Some ethicists propose that companies should adopt an “in loco parentis” (in place of parents) mindset when marketing to children, effectively acting as surrogate guardians rather than just sellers.

This approach asks a simple but powerful question: “Would a responsible parent encourage this product or message?” It challenges marketers to go beyond mere legal compliance to meet higher ethical standards when children are the audience.

Media literacy education empowers children to become more informed consumers. Research consistently shows that teaching children about advertising techniques helps them develop critical thinking skills that last into adulthood. Both schools and parents can play important roles here.

Transparent disclosures help older children distinguish between entertainment and marketing. For younger children, however, such disclosures may be ineffective given their cognitive limitations—a crucial distinction we shouldn’t overlook.

Infographic comparing COPPA regulations and CFBAI voluntary guidelines - should companies market to children infographic

The Ottawa Principles, developed by the Stop Marketing to Kids Coalition, offer a comprehensive framework worth considering. These principles recommend restricting commercial marketing of all food and beverages to children 16 and under, implementing independent monitoring mechanisms, defining marketing broadly to include packaging and digital communications, and ensuring regulations are statutory rather than voluntary.

For a deeper understanding of the ethical considerations in advertising to children, the National Center for Biotechnology Information has published an excellent scientific research paper on advertising ethics that explores these issues in depth.

As a marketing professional at ENX2 Legal Marketing, I’ve advised many clients that the most ethical approach combines several strategies:

  • Target the adult co-viewer rather than speaking directly to the child
  • Provide genuine value through educational content or positive social messages
  • Maintain complete transparency with both children and parents
  • Avoid exploiting developmental vulnerabilities
  • Consider the long-term impact on children’s wellbeing, not just short-term sales

The question of should companies market to children doesn’t have simple answers, but thoughtful consideration of these various perspectives can help us find a more balanced path forward. For more insights, check out our guide on How to Market to Children and Everything You Need to Know About Marketing to Children Regulations.

Conclusion

So, should companies market to children? The answer isn’t black and white – it’s a question that requires nuance, ethical consideration, and a deep understanding of child development.

For children under 8, who simply don’t have the cognitive ability to recognize when someone’s trying to sell them something, direct marketing is tough to justify ethically. Their minds are like sponges – absorbing messages without the filters that we as adults take for granted.

For older kids, there’s more room for responsible engagement, especially when marketing includes educational content, transparent messaging, and brings parents into the conversation. The best approach respects both the child and the family unit.

At ENX2 Legal Marketing, we’ve seen how the most successful brands build trust with both children and parents. These companies don’t just chase short-term sales – they think about the long-term relationship they’re building with families.

The digital landscape keeps evolving, bringing new challenges and opportunities in how we communicate with young audiences. What doesn’t change is our shared responsibility to protect vulnerable minds while also preparing kids to steer an increasingly commercial world.

When I talk with clients about this topic, I often ask them to consider not just whether they can market to children, but whether they should – and if the answer is yes, how they might do so in a way that benefits rather than exploits young minds. The companies that get this right aren’t just doing good business – they’re helping shape healthier values for the next generation.

For businesses trying to steer these complex waters, having guidance from experts who understand both effective marketing and ethical considerations makes all the difference. At ENX2 Legal Marketing, we pride ourselves on helping clients develop strategies that succeed commercially while upholding the highest ethical standards.

The balancing act between business interests and social responsibility isn’t easy, but it’s necessary work. The most forward-thinking companies recognize that respecting developmental vulnerabilities and prioritizing child wellbeing isn’t just the right thing to do – it builds stronger, more trusted brands in the long run.

What are your thoughts on marketing to children? We’d love to hear your perspective on this important conversation. The dialogue around this topic matters, and your voice deserves to be part of it.

Marketing to Children

Nicole Farber
Nicole Farber
CEO and owner of ENX2 Marketing, Nicole Farber is a marketing consultant who specializes in digital marketing and getting your business on the right track. With degrees in business and informational technology, Nicole has a track record of turning around failing businesses as well as offering a fresh look at taking your marketing to the next level. An expert in law firm marketing, Nicole is a member of the American Bar Association as well as a member of its Client Development and Marketing Forum Committee of the Law Practice Division.