CDD

Publishings Digital Youth

  • Google + Ad Industry Study Shows Influencers on YouTube Sell Snacks, Toys, Alcohol

    Illustrates Need for 21st Consumer Safeguards for Unfair/Deceptive Marketing

    Sanjay Nazerali, Chief Strategist of Carat, a global media market leader in digital media, writes about how YouTube influencers are rewriting the marketing rulebook. Working in strategy at one of the world’s largest media agencies, I’ve witnessed countless pitches about influencer marketing and the growing power of creators. With engaged audiences in the millions and passionate fans hungry for content, YouTube creators are already an established channel for brands looking to run ads. In fact, Carat’s latest analysis suggests online video investment (including YouTube) can be increased by 3X compared to planned level. But increasingly, these influencers are also becoming attractive partners for deeper collaborations. Clients are initially enthusiastic, assuming this is the digital age’s answer to celebrity marketing and endorsement. Then the thorny business questions arise, such as: So what’s it actually doing for my brand? Do I do an endorsement or product placement—or what? Isn’t it just for millennials, beauty brands, and makeup tutorials? These have always been tough questions to answer. Even though almost everyone has been jumping on the influencer bandwagon, few understand what “influence” really is or how it works. Until now. Celebrity marketing and influencer marketing offer fundamentally different benefits for brands. Together with YouTube and Nielsen, my team analyzed the results of hundreds of brand and creator videos in the U.S. and the U.K to understand the impact of influencers for brands. It’s a critical first step in establishing a business-led rulebook for this new world—and it’s already changing how I approach my own plans. 1. Influencers are not the same as celebrities Influencers, however vast their reach, are absolutely not “today’s celebrities,” and celebrity marketing and influencer marketing offer fundamentally different benefits for brands. For instance, we found that celebrities are more effective at driving recall than creators (84% versus 73%). Given that a celebrity’s job is to be famous and memorable, that makes sense. Where YouTube creators really start to gain the upper hand is in deeper brand involvement. Brand familiarity is a good example. If we want to get an audience to really understand us, our work, our values, or our products, then collaborations with YouTube creators are 4X more effective at driving lift in brand familiarity than those with celebrities. When it comes to purchase intent, it’s an even match: our research found that influencers were just as likely as celebrities to drive buying decisions. Influencer marketing appears to play a fundamentally more pragmatic role. Why? My hunch is that it’s because fans feel very connected to the YouTubers they love. The best creators have formed authentic bonds with their fans, which means fans trust what they have to say, and turn to them for brand and product recommendations. 2. It’s not just a ‘beauty’ thing Beauty brands were one of the first to team up with influencers, and creators have established a huge presence among the YouTube beauty community. About 86% of the top 200 beauty videos on YouTube were made by creators rather than professionals or brands. But what’s interesting about our findings is just how far influencers stretch beyond the beauty category. We tested nine additional categories, including auto, alcohol, snacks, and toys. Across all nine categories, working with influencers leads to lifts in brand metrics, from familiarity to affinity to recommendation. In some categories, such as snacks and alcohol, they can have even more impact, driving significantly higher than average purchase intent. So the idea that influencer marketing is purely for young people who are looking at fashion and beauty brands simply isn’t true. 3. The ‘how’ matters as much as the ‘who’ Celebrity marketing has historically focused on endorsement, sponsorship, and product placement. Influencer marketing has developed far more options, and it’s important to understand which of these work best—and for which marketing goals. Deep thematic integrations with creators stand out as driving the highest results for brands. These are more involved integrations where the influencer plays a role in creating a piece of content – such as a demo – with the brand. It’s far deeper than product placement and it works more effectively. While there were many consistencies across categories, we also saw some nuances, which are important for clients to understand. We found that simpler brand integrations, like a product endorsement or just featuring a creator in an ad, also showed positive results for brand affinity in all categories tested. Of course, deep collaborations can be more than some brands are ready for. For some objectives and categories, simply running their own ads on YouTube creator content will still be the easiest and most effective way to tap into the power of these influencers. 4. Don’t lose sight of why people love YouTubers We often assume that the right influencer is either an aspirational version of our target audience or that they’re just like celebrities. Neither of these assumptions is correct, and it’s perhaps here that celebrity and influencer marketing differ the most. Whereas celebrities need to be trendy and stylish, consumers expect creators to be friendly, funny, and, yes, sometimes irreverent. Irreverence is interesting, because it drives credibility. Irreverence strongly suggests independence, and it’s this that builds trust. It can also be incredibly valuable for brands. If a creator usually ridicules things they don’t like, you can be sure that when they praise something, they mean it. Humour is also interesting, because it reflects a sense of community. YouTube helps forge a special relationship between followers and influencers, one that reflects a sense of co-ownership. This familiarity creates a degree of intimacy that makes the use of humour seem much more natural than it would do with celebrities. This is probably also why we see celebrities, such as Dwayne Johnson, increase their influencer scores when they get really active on YouTube. Prioritization and strength of attributes by gen X and gen Y associated with celebrities are different to creators. --- For the full article, visit http://bit.ly/2z6MHng (link is external) Is it Hype? Or is it Real? Decoding the Influence of YouTube Influencers Read more at http://newyork.advertisingweek.com/CALENDAR/-google-seminar-2017-09-26-1... (link is external)
  • Press Release

    Advocates Call on FCC to Protect Programming and Advertising Safeguards for Children's TV

    Commission Must Reject TV Industry Proposal to Undermine Public Interest Obligations

    WASHINGTON, D.C. – Advocates called today on the Federal Communications Commission (FCC) to reject an effort by major media companies to eliminate or weaken important rules for children’s television. The National Association of Broadcasters, Internet and Television Association (NCTA), CBS, Disney, Fox, Univision, and others have asked the FCC to significantly reduce advertising limits on children’s programming. Industry commenters also urged the FCC to reconsider rules that require broadcasters to provide quality educational programming as part of their obligation to serve the public interest. In comments filed today, Campaign for a Commercial-Free Childhood and the Center for Digital Democracy called on the FCC to reject industry proposals to repeal or modify the current rules. “The Trump Administration and the FCC should stand up for the rights of children and parents and reject this crass campaign by the broadcast lobby,” said Jeff Chester, executive director of the Center for Digital Democracy. “The broadcast industry receives billions of dollars in benefits from its free use of public resources, including invaluable rights to the airwaves. It is unconscionable that TV stations and networks want to kill off one of their few remaining obligations to the public.” In April, the FCC issued a public notice on its “Modernization of Media Regulation Initiative,” asking for suggestions about which of the FCC’s media-related rules should be modified or repealed. Media companies replied with a deregulation wish list that would allow them to use kids’ television programming to market directly to children. The major networks urged the FCC to relax its rules prohibiting product integration and product placement on kids’ shows, arguing that YouTube and other child-directed online services are not subject to those restrictions. Advocates responded by pointing out that internet and mobile providers are simply ignoring longstanding children’s media principles, which are based on child development, and that a lack of online regulation is not a good reason for the FCC to eliminate important safeguards for the millions of children who watch traditional TV. “It is extremely disappointing that broadcasters want to join the race to the bottom when it comes to exploiting children’s developmental vulnerabilities for profit,” said Josh Golin, executive director of the Campaign for a Commercial-Free Childhood. “Media companies want to gut longstanding safeguards because young people an incredibly lucrative market for advertisers. But research demonstrates that children are particularly vulnerable to marketing and benefit from rules that require ad limits and separation of programming and commercial content.” Advocates also oppose a request by the Internet and Television Association to repeal an FCC rule known as the “website display rule.” The FCC adopted this rule in 2004 to prohibit advertisers from engaging in “host-selling” to children, which the transition to digital broadcasting could otherwise allow. Angela J. Campbell, director of the Institute for Public Representation at Georgetown and counsel to some of the advocates, called the effort to repeal this rule disingenuous. “The media companies say the website display rule is unnecessary because television has rarely been used to interact and target advertising to children,” she said. “But at the same time, these companies engaging in a practice known as ‘programmatic marketing,’ which offers advertisers the ability to target ads to specific viewers of cable and broadcast television programming.” In addition, advocates oppose efforts by media companies to be relieved of their public interest obligation to provide educational programming for children, and to produce public reports to help the FCC determine whether that programming meets the obligations laid out in the Children’s Television Act. “The television industry made a commitment to serve the nation’s children by providing quality educational programs,” explained Professor Kathryn Montgomery of American University, who led the effort to strengthen the FCC’s rules on the Children’s Television Act. “However, broadcasters failed to live up to these minimal obligations and the FCC has been irresponsible in allowing the industry to evade one of its only remaining public interest requirements. Rather than considering elimination of these rules, the FCC (and Congress) should conduct an investigation into TV programming and advertising practices directed at children.” ---- The comments can be read via the attached PDF file below.
  • FameBit is an online marketplace that connects YouTubers with brands that are interested in advertising their products and services. This provides creators an opportunity to earn money with their content by partnering with brands that are relevant to their audience. Learn about Famebit, the Self-Service Influencer Marketing Platform. For more information, visit https://famebit.com/brands (link is external)
  • The Center for Digital Democracy (CDD) and Campaign for a Commercial-Free Childhood (CCFC), by their attorneys, the Institute for Public Representation, respond to the Federal Trade Commission’s (FTC or the Commission) request for comment on proposed changes to TRUSTe’s COPPA Safe Harbor program. TRUSTe has sought approval of changes to its COPPA Safe Harbor program that it states are necessary to comply with an Assurance of Discontinuance it recently entered into with the New York Attorney General’s Office (NYAG). While the proposed changes themselves do not appear objectionable, the facts leading up to this proposal strongly suggest that TRUSTe has violated its 2015 Consent Decree with the FTC by misrepresenting its practices for assessing operators of child-directed online services (Operators). CDD and CCFC ask the FTC to conduct an investigation of TRUSTe to determine if it has in fact violated the Consent Decree, and if so, to take all available enforcement action against TRUSTe. Further, to protect the privacy of children pending the outcome of the investigation, they ask the FTC to suspend TRUSTe’s COPPA Safe Harbor program. (Link to the full report attached below.)
  • News

    Groups Call on Facebook to Disclose and Explain Its Collection of Psychological Insights About Its Youngest Users

    Facebook Told Marketers It Can Detect Teens Feeling 'Insecure' and 'Worthless'; Data Could Be Used to Drive Products Based on Mood and Using Manipulation

    Facebook should immediately release all documents describing how it collected and analyzed psychological information it recently (link is external) collected about its youngest users, some as young as 14, and college students, Public Citizen and a coalition of 25 groups said in a letter (link is external) to the corporation today. The groups are concerned about how this information might have been used or may be used in the future by marketers and others to take advantage of young people’s emotions, all without users’ knowledge. Marketing companies and Facebook have secretly moved to tap into teens’ emotions and developmental vulnerabilities strictly for profit, the letter says. The groups want to know how the data was used, when it was used, how many users were impacted and the names of the companies that received the data. “What began as a way for college students to keep in touch has morphed into a platform for brand-saturated marketing and psychological manipulation,” said Kristen Strader, campaign coordinator for Public Citizen’s Commercial Alert campaign. “It is incumbent upon Facebook as a cultural leader to protect, not exploit, the privacy of young people, especially when their vulnerable emotions are involved.” According to The Australian (link is external) newspaper, Facebook presented research to one of its advertisers that shows it collects sensitive data regarding young users’ emotions and “mood shifts.” The research detailed how Facebook can analyze sensitive user data in real time to determine how young users are communicating emotion, and at which points during the week they are doing so, the letter continued. Facebook’s research was conducted without users’ knowledge, which raises ethical concerns. “Because Facebook plays such a powerful role in the lives of teens, it must adopt a policy that respects and protects them,” said Dr. Kathryn Montgomery, professor of communication at American University and a consultant to the Center for Digital Democracy. “This should include not only strong safeguards for its advertising and data practices, but also clear limits on the kinds of research it conducts for marketing purposes. Under no circumstances should marketers be using emotional states, stress levels, biometric information or other highly sensitive data to target users. And this should apply to both young people and adults.” “Facebook needs to come clean and publicly release the full internal document, reported in The Australian, describing how Facebook collected and analyzed psychological information on high school students, college students and young users, said Finn Lützow-Holm Myrstad, European Union co-chair of the Transatlantic Consumer Dialogue. “The burden of proof is on Facebook to document publicly that they don’t collect and use such information. We are concerned that companies don’t overreach and abuse their users’ fundamental right to privacy and data protection.” The public, its users and elected officials have a right to know how pervasive this research was, who was affected and how the company will ensure it does not occur again, the groups said. The only way to fully address those concerns is to publicly release the internal document and related materials, accompanied by a more detailed explanation from Facebook of what was intended, what happened and the company’s actual practices, the letter says. —30— --- See full PDF of letter to Facebook below.
  • CDD Executive Director, Jeff Chester speaks on Congress’ dismantling of the FCC Privacy Rule with CNN’s Jake Tapper on March 29th, 2017.Full interview available at http://www.edition.cnn.com/videos/tv/2017/03/29/internet-privacy-rules-c... (link is external).
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  • Reports

    The New Age of Food Marketing

    How companies are targeting and luring our kids — and what advocates can do about it

    This report provides a snapshot of five categories of marketing tactics used by fast food, snack food, and soft drink companies to target children and adolescents. These categories include: 1) creating immersive environments; 2) infiltrating social networks; 3) location-based and mobile marketing; 4) collecting personal data; and 5) studying and triggering the subconscious. Descriptions of these categories along with examples from the food and beverage industry are provided. The report concludes with a discussion of what advocates can do to protect children and adolescents from these harmful marketing tactics.
  • News

    Federal Trade Commission Must Stop “Influencer” Marketing Targeting Kids on YouTube and Other Digital Sites

    Complaint Filed Against Unfair and Deceptive Practices Used by Google, Disney’s Maker Studios, DreamWorks-Owned AwesomenessTV, and Other Companies, by Leading Advocacy Groups

    The Center for Digital Democracy (CDD), Campaign for a Commercial-Free Childhood (CCFC) and Public Citizen filed a complaint at the Federal Trade Commission (FTC) today asking for an investigation and enforcement action against Google (a subsidiary of Alphabet, Inc.), Disney’s Maker Studios, DreamWorks-owned AwesomenessTV, and two other companies for the unfair and deceptive practice of targeting “influencer” marketing toward children. The complaint documents how several marketing companies—Collab Creators, Wild Brain, Maker Studios, and AwesomenessTV—produce and distribute ads and other commercial material targeting children that masquerade as content. It also details how Google encourages and benefits from the production of child-directed influencer videos and distributes these ads to children on its YouTube and YouTube Kids platforms. These “influencer” ads take unfair advantage of kids, who do not have the ability to recognize that companies use social media and YouTube celebrities to pitch toys, junk food, and other products. The groups also called on the FTC to release policy guidance that makes clear that using influencers to persuade children to buy a product or urge their parents to buy a product is unfair and deceptive. “Child-directed influencer marketing is misleading to children because their developing brains do not process or understand advertisements the way adults do—especially advertisements disguised as content,” said Laura Moy, Director at the Institute for Public Representation (IPR) at Georgetown University Law Center, which represents the groups. Existing FTC regulations require that advertisements be disclosed as such—which many influencer ads fail to do—but the complaint also makes clear that better disclosure alone is not a sufficient remedy because it “would not negate the inherent deceptiveness of child-directed influencer marketing.” As a result of the FTC’s inaction, marketing companies—backed by Google and others—are increasing investments in their influencer marketing practices with harmful results. “In many cases these advertisements cause children to want unhealthy and costly products,” Moy pointed out. “As this marketing practice expands even while evidence mounts that it is harmful to children, it becomes increasingly urgent for the FTC to make clear that the practice is unfair and deceptive under the law.” According to the complaint, the FTC can reverse the trend of harmful influencer marketing directed toward children by issuing policy guidance that makes clear that existing laws serve as a safeguard to protect children from these advertisements. The complaint analyzes the influencer marketing apparatus, and the role that Google and so-called Multi-Channel Networks (MCNs) such as Disney’s Maker Studios play in orchestrating the growing use of this tactic. It highlights how these companies use “influencers” who are young or popular with kids to sell junk food, toys, and more. The complaint identifies highly-popular YouTube channels like EvanTubeHD, Baby Ariel, Meghan McCarthy, the Eh Bee Family, and Bratayley, each with millions of subscribers, and how they present videos of child stars unboxing toys, playing games, and enthusiastically sampling junk food. The complaint provides several examples of such videos, including one where Baby Ariel and her family sample Jelly Belly brand jelly beans as part of a game called “BeanBoozled.” In another video, on EvanTubeHD, the child influencer is seen unboxing a Lego Police Patrol Boat. Neither video indicates that it is an advertisement, and both videos can be found intermingled with non-sponsored content on YouTube Kids. Google facilitates, promotes, and solicits these videos because they are popular with children, which increases the company’s ad revenues. “It’s time for the FTC put a stop to child-directed influencer marketing,” explained CDD’s Executive Director Jeff Chester. “Companies like Google are knowingly taking advantage of children and their parents by unleashing a torrent of stealth digital ads disguised as programming supposedly suitable for kids. As the country’s leading consumer protection agency, the FTC has a mandate to protect the public—including our children—from practices we know are both unfair and deceptive.” “Parents have no idea that the adorable ‘friends’ their children like to watch unbox toys are really stealth marketers,” said CCFC’s Executive Director Josh Golin. “It’s time for the FTC to take swift and decisive action and protect children from a practice that has long been prohibited on children’s television.” “Corporate predators are using young Internet influencers, admired by kids, to hawk their wares to children, even to young children,” explained President of Public Citizen, Rob Weissman. “The marketers and the advertising platforms enabling and promoting this activity should be ashamed. But since they’re not, we need the FTC to act to end their outrageous practice.” CCFC and CDD have also previously filed complaints with the FTC concerning child-directed marketing practices on YouTube Kids and YouTube. Todays’ complaint can be found at: http://www.commercialfreechildhood.org/sites/default/files/FTCInfluencerComplaint.pdf (link is external)
  • Blog

    need-to-know 1076

    Programmatic Applied to Kids Market; Not Truly "COPPA Friendly"

    Announcing REX: the world’s first kid-safe programmatic exchange Today (link is external)marks a major milestone in the kids digital media industry. We’re extremely pleased to announce the launch of REX, the world’s first kid-safe, COPPA-compliant programmatic exchange. COPPA and GDPR forbid profile or cookie-based targeting which has, until now, removed all programmatic options (and hence automation) from the kids industry. Part of AwesomeAds (our kid-safe ad server) REX guarantees that all automated ad requests are 100% kid-safe and COPPA/GDPR compliant. For the first time ever, REX makes it possible for advertisers across the world to programmatically reach the kids audience in a fully compliant, 100% kid-safe way. The kids space hasn’t had this capability (in any compliant sense) until now. REX genuinely shifts the entire industry forward. How does it work? At this point, our engineering team (about a third of the company) is probably the most experienced technical team in the global digital kids’ sector. This was a pretty helpful starting point. REX acts as a comprehensive kid-safety filter; it removes all non-compliant elements from each ad tag to ensure nothing can track users, before placing every creative through our ad content review process. Only then is it served through our COPPA-certified AwesomeAds platform, earning our SAFE AD watermark. Explained by our Chief Product Officer, Joshua Wohle: “REX inserts itself between the publisher and the exchange, taking the role of a firewall. It inspects the requests going out, stripping it from any PII before sending it through to the exchange. The exchange then considers the request and buyers can start bidding on the inventory. Once the winning bid is returned to the publisher, REX again intercepts it and removes any trackers that could be collecting PII before sending it on to the publisher. All of this happens in real-time, allowing for a full programmatic flow whilst ensuring compliance to all parties involved.” In order to bring this unique offering to the kids industry, we’re working alongside Rubicon, one of the biggest programmatic exchanges in the world. They provide real-time bidding and integration with all buyer systems across the globe. Combining our infrastructure in kid-safe technology and our exclusive kids inventory with their real-time bidding architecture, we are able to open up programmatic to the world’s biggest trading desks and DSPs across the kids market.
  • Here you will find the CDD Presentation to Institute of Medicine of September 2015.