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A Growing Health Crisis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Industry Responses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
The Digital Marketing Ecosystem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
Under the Public Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
Spending Power, “Kidfluence,” and “Fun Foods” . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
Probing the Digital Generation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
Multicultural Youth Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
Tapping into Childhood Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Constant Contact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
The “My Media Generation” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
Redefining Marketing in the 21st Century . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
“Engagement” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
360 Degree “Touchpoints” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
Reaching and Engaging Children in the New Digital Marketing Landscape . . . . . . . .29
Mobile Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32
Behavioral Profiling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
Digital 360 Buzz Campaigns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
Infiltrating IM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
Commercializing Online Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40
Brand-Saturated Environments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
Viral Video . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
Recruiting Brand Advocates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
Game-v
ertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
Advertising through Avatars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52
Creating a Healthy Media Environment for the 21st Century . . . . . . . . . . . . . . . . . . . . .59
Citations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69
Appendix: Multicultural Marketing in the Digital Age . . . . . . . . . . . . . . . . . . . . . . . . . . .83
7
8
Government agencies, public health
professionals, and consumer groups
have become increasingly concerned
over the role of advertising in
promoting “high-calorie, low-nutrient”
products to young people.
hildren in the U.S. are facing a growing health crisis due in part to poor nutri-
tion.
1
Youth who are significantly overweight are at much greater risk for experi-
encing a variety of serious medical conditions, including digestive disorders, heart and
circulatory illnesses, respiratory problems, and Type 2 diabetes, a disease that used to
s
trik
e only adults.
2
The
y ar
e also more prone to suffer from depression and other mental
illnesses.
3
An estimated 30 percent of boys and 40 percent of girls born in the United
States are at risk for being diagnosed with Type 2 diabetes at some point in their lives.
4
Minority youth populations have been disproportionately affected. For example, African
American and Mexican American adolescents between the ages of 12 and 19 are more
likely to be overweight (at 21 percent and 23 percent, respectively) than are non-Hispanic
White children in the same age group (14 percent).
5
The Institute of Medicine has called
on all sectors of society—industry, government, health professionals, communities,
schools, and families—to address this health crisis.
6
Experts point to a combination of economic, social, and environmental changes
over the last three decades that have contributed to these alarming health trends, includ-
ing: cutbacks in physical education programs; the relative decline in the cost of food; the
rise in fast food, convenience food, and eating outside of the home; and the increasing
availability of snacks and sodas in public schools.
7
A major factor is the disturbing shift in
t
he overall nutritional patterns among all children and adolescents, who now consume
high levels of saturated fat, sugars, and salt, and low levels of fruit and vegetables.
8
9
Interactive Food & Beverage Marketing | Setting the Stage
A Growing Health Crisis
C
Government agencies, public health professionals, and consumer groups have
b
ecome increasingly concerned over the role of advertising in promoting “high-calorie,
low-nutrient” products to young people.
9
In 2004, the Centers for Disease Control and
Prevention, under a Congressional mandate, commissioned the Institute of Medicine to
c
onduct a comprehensive examination of the role of marketing in children’s food con-
sumption. Based on an analysis of hundreds of studies, the 2005 report,
Food Marketing
to Children and Youth: Threat or Opportunity?
, found that “among many factors, food and
b
everage marketing influences the preferences and purchase requests of children, influ-
ences consumption at least in the short term, and is a likely contributor to less healthful
diets, and may contribute to negative diet-related health outcomes and risks among chil-
dren and youth.”
10
The study’s recommendations included a strong warning to the food
industry to change its advertising practices. “If voluntary efforts related to advertising dur-
ing children’s television programming are not successful in shifting the emphasis away
from high-calorie and low-nutrient foods and beverages to the advertising of healthful
foods and beverages,” the report said, “Congress should enact legislation mandating the
shift on both broadcast and cable television.”
1
1
Further government inquiries, public hearings, and press coverage have contin-
ued to focus attention on this issue. The Federal Trade Commission and the U.S.
Depar
tment of Health and Human Services held a series of workshops with industry and
consumer groups, issuing a report in 2006 that urged food and beverage companies to
engage in more responsible production, packaging, and marketing practices, including
de
veloping products that are “lower in calories, more nutritious, more appealing to chil-
dren, and more convenient to prepare and eat.”
12
In February 2007, the Federal
Communications Commission announced the establishment of a Task Force on Media &
Childhood Obesity, comprising food and ad industry representatives, consumer groups,
and health experts. The goal of the Task Force is to “build consensus regarding voluntary
steps and goals that the public and private sectors can take to combat childhood obesi-
ty.”
13
Last year, the Center for Science in the Public Interest (CSPI) and the Campaign
for a Commercial-Free Childhood (CCFC) announced their intent to file a suit against both
the Kellogg Company and Viacom, the corporate owner of Nickelodeon. The announce-
ment c
har
ged the companies with “directly harming kids’ health” because “the over-
whelming majority of food products they market to children are high in sugar, saturated
and trans fat, or salt, or almost devoid of nutrients.” The groups said they would “ask a
Massachusetts court to enjoin the companies from marketing junk foods to audiences
where 15 percent or more of the audience is under age eight, and to cease marketing
junk foods through websites, toy giveaways, contests, and other techniques aimed at that
age group.”
14
10
Interactive Food & Beverage Marketing | Setting the Stage
mid this mounting public pressure, food manufacturers and media companies
have launched a flurry of high-profile initiatives, including campaigns to promote
health and fitness among children and changes in some of their marketing practices.
15
Many of these efforts have garnered support and approval from public health profession-
als and f
eder
al regulators:
• In 2005, The Ad Council’s Coalition for Healthy Children—which includes more
than a dozen advertising organizations and food and beverage companies—
launched a campaign promoting pro-social messages to both children and
adults, to encourage physical activity, healthy food choice, portion control, and
good parental role modeling.
16
• That same year, Kraft Foods announced it would cease advertising some of its
most popular brands—including Kool-Aid, Oreo, Chips Ahoy, and Lunchables—to
children between the ages of 6 and 11 on television, in radio, and in print
media, shifting its product mix to more nutritious brands.
17
• In spring 2006, Nickelodeon launched a $30 million public service campaign, in
par
tnership with the William J. Clinton Foundation and the American Heart
Association, entitled “Let’s Just Play Go Healthy Challenge.” The centerpiece of
the effort was a “five-month miniseries documenting the lives of four real kids’
s
truggles to get healthy,” the final episode of which instructed kids to “turn off
their television sets on September 30
th
and go out and play.”
18
11
Interactive Food & Beverage Marketing | Setting the Stage
Industry Responses
A
• Working with former President Bill Clinton, Coca-Cola, Pepsi and Cadbury
S
chweppes announced an agreement in May 2006 to stop selling their sweet-
ened soft drink brands in elementary and middle schools.
19
•
In November 2006, the Children’s Advertising Review Unit, a self-regulatory body
of the Council of Better Business Bureaus that oversees children’s advertising,
announced revisions in its guidelines, including the addition of disclosure
r
equirements for “advergames” and other forms of marketing that blur the dis-
tinction between editorial content and advertising, and thus might be mislead-
ing to children 12 and under.
2
0
• That same month the Council of Better Business Bureaus and the National
Advertising Review Council (NARC) announced the launch of a new Children’s
Food and Beverage Advertising Initiative, “a voluntary self-regulation program
with 10 of the largest food and beverage companies as charter participants.”
The purpose of the new effort is to “shift the mix of advertising messaging to
children to encourage dietary choices and healthy lifestyles.”
2
1
• The Department of Health and Human Services, the Ad Council, Dreamworks
SKG, and Nickelodeon are launching a series of public service advertisements
featuring the characters from the movie
Shrek. The February 2007 White House
event announcing the initiative included a who’s who of major food and bever-
age company heads, representing General Mills, Coca-Cola, Kraft, Kellogg’s,
McDonald’s, Subway, and others.
22
12
Interactive Food & Beverage Marketing | Setting the Stage
hile these efforts are commendable, they must be viewed within the broader
context of the changing nature of advertising and marketing. The rapid growth of
the Internet and proliferation of digital media are fundamentally transforming how corpo-
rations do business with young people in the twenty-first century. The quintessential
“earl
y adopt
ers” of new technology, children and teens are eagerly embracing cell
phones, iPods, and a host of other new digital tools and quickly assimilating them into
their daily lives. Ninety-three percent of 12 to 17 year-olds use the Internet; more than
half of online teens (55 percent) use social networks.
23
Approximately 70 percent of chil-
dren 8-11 go online from home. Of those, 37 percent use instant messaging and 35 per-
cent play games.
24
Fifty-seven percent of online teenagers post their own “user-generated
content” on the Web, including photos, stories, art work, audio, and video.
25
This expansion of digital media in children’s lives has created a new “marketing
ecosystem” that encompasses cell phones, mobile music devices, broadband video,
instant messaging, videogames, and virtual three-dimensional worlds.
26
This new ecosys-
tem is not separate from television, but rather encompasses all media, including tradi-
tional over-the-air broadcasting, which will become completely digital by 2009. As a
recent trade publication observed, the new media offer marketers the opportunity “to
reach kids 24/7—or at least any hour before bedtime.”
27
As f
ood and beverage companies announce changes in their TV advertising,
they have already begun to shift their marketing into a broad array of new-media efforts.
“The eyeballs have moved,” a Burger King executive told a 2006 Association of National
13
Interactive Food & Beverage Marketing | Setting the Stage
The Digital Marketing Ecosystem
W
Advertisers conference, as he explained his company’s major push into digital
m
arketing.
28
S
ome industry observers have suggested that the public pressure over con-
cerns about childhood obesity may be accelerating the “migration” by food companies
into these “alternative platforms.”
29
Many of the same corporations engaged in pro-
s
ocial, anti-obesity campaigns in the United States are also playing leadership roles in the
new global digital marketing frontier, directing a number of research-and-development
(R&D) initiatives to create the next generation of interactive advertising, much of it tai-
l
ored specifically for young people.
A snapshot of recent and current marketing efforts by some of the top food and
beverage brands popular with children and teens offers a glimpse into the variety of digi-
tal strategies that are quickly becoming state-of-the-art—and increasingly present in chil-
dren’s lives—in the contemporary media environment:
• In 2005,
McDonald’s launched a “mobile marketing” campaign to “create a
compelling way to connect with the younger demographic,” as 600 of the
chain’s fast food restaurants in California urged young cell phone users to text
message to a special phone number and receive an instant electronic coupon
for a free McFlurry dessert. McDonald’s also encouraged youth to “download
fr
ee cell phone wallpaper and ring tones featuring top artists,” and to email the
promotional website link to their friends. To help bolster the campaign, ads on
buses, billboards, “wild postings” near high schools, and even skywriting air-
planes pr
omoted the “Text McFlurry 73260” message.
30
• When Nickelodeon bought the highly popular online game, Neopets, in 2005, to
become part of the new TurboNick website, one of its goals was to “monetize”
the huge amount of traffic the game site enjoyed by inserting more brands. In a
game where the object is to keep your Neopet alive by feeding her regularly
(ensuring your repeated visits to the site), executives envision a future scenario
in which game players “will be feeding their pets with food products from major
brands.”
31
Among the major food companies already involved in “advergaming”
on Neopets are
Frito-Lay, Nestle, Kellogg’s, Mars, Procter & Gamble, General
Mills, Kr
af
t Foods, McDonald’s
, and Carl’s Jr
./Har
dees
.
32
• In 2006, the Online Marketing, Media and Advertising Conference named
Burger King an “Online Marketing All Star” for its pioneering new-media cam-
paigns. The “first advertiser to sponsor downloadable TV shows on a social net-
working site,” Burger King partnered with Fox Broadcasting to distribute
episodes of the TV channel’s show “24” on the highly-popular MySpace (owned
by NewsCorp, which also owns Fox).
33
• For the 2007 Super Bowl, Frito-Lay’s Doritos (a subsidiary of PepsiCo) worked
with Yahoo! to create a “Crash the Super Bowl” contest and website. The chip
company promised to air at least one “user generated” commercial during the
show. Doritos set up a special website—“SnackStrongProductions.com”—where
viewers could view the final five contestants, vote for their favorites, and “tell a
friend” about t
he contest via email.
34
• Kraft’s Oscar Mayer is working with a new-media marketing company,
MangoMOBILE, t
o offer the brand’s classic jingle as a ring tone on cell phones.
Results will be measured through MangoCRM, MangoMOBILE’s targeted mobile
subscriber database, which offers its clients “real measurable data on any type
of exposur
e or interaction that customers have had with a brand.”
35
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Interactive Food & Beverage Marketing | Setting the Stage
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