Big Food, Big Tech, and the Global Childhood Obesity Pandemic - MAY 2021
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Big Food, Big Tech, and the Global Childhood Obesity Pandemic AUTHORS: Jeff Chester, MSW Kathryn C. Montgomery, PhD M AY 2 0 2 1 Katharina Kopp, PhD
Big Food, Big Tech, and the Global Childhood Obesity Pandemic | 2 Acknowledgments This report is part of a unique partnership of four organizations—Berkeley Media Studies Group, Color of Change, UnidosUS, and Center for Digital Democracy—working together to promote policies to ensure health equity for youth, communities of color, and other at-risk populations. The partnership is funded through a generous grant from the Robert Wood Johnson Foundation, which has also supported CDD’s ongoing research to investigate how contemporary digital marketing and Big Data practices impact young people’s health. We are very grateful to the Foundation’s commitment to these efforts. We also want to thank the following individuals and organizations who helped us with the writing and publication of the report: Jamie Bussel, Lori Dorfman, Gary O. Larson, and Burness Communications.
Big Food, Big Tech, and the Global Childhood Obesity Pandemic Introduction | 3 INTRODUCTION devastating. For decades, there has been a steady and disturbing rise in The coronavirus pandemic triggered a dramatic obesity among children and youth. For example, obesity rates among increase in online use. With tens of millions of families teens ages 12 to 19 have quadrupled remaining in their homes, people turned to the internet since the 1980s. According to the most recent public health data, 19.3 to order food, stay up with the fast-breaking news, percent of all youth between the ages and engage with family and friends. Children and of 2 and 19 are obese. For Hispanic, Black, and Native American youth, teens whose schools have closed relied on YouTube the rates are significantly higher. for educational videos, attended virtual classes on Children growing up in low-income Zoom and Google Classroom, and flocked to TikTok, households have disproportionately greater levels of obesity.7 This is not Snapchat, and Instagram for entertainment and social only a U.S. problem, but increasingly interaction.1 Industry analysts also reported a sharp rise a global problem as well. Worldwide, over 340 million children and in video gaming.2 adolescents (aged 5 to 19 years) were overweight or obese in 2016, according to the World Health Roblox, a popular 3D user-generated made digital media ground zero Organization.8 These children are at gaming environment for children, for their youth promotion efforts, much greater risk for serious illness, reported a jump of 35 percent employing a growing spectrum including Type 2 diabetes, high in active players since February of new strategies and high-tech blood pressure, heart disease, and 2020, “reaching 164 million by tools to reach into every aspect of depression.9 Overweight and obesity July, with around three quarters young peoples’ lives. Brands are are directly linked to changes in the of American children ages 9 to 12 partnering with “influencers” on diets of children and youth, which on the platform who collectively YouTube, Instagram, and other social are increasingly dominated by foods spent 3 billion hours on the site.”3 media platforms, weaving their that are high in saturated fats, salt “There are no movies to go to, no logos into the storylines of popular and/or free sugars, so-called “HFSS” sports to watch, and no playdates videogames, and targeting children foods, as well as soda and other to be had,” observed one trade with powerful, immersive video ads sugary drinks. It is widely known publication. “Watching and playing that pop up on their mobile devices.6 that the overwhelming majority video games provides them a safe These trends have contributed to of food and beverage marketing entertainment alternative.”4 another critical pandemic. Though targeted to children and teens it is unfolding at a slower pace, its promotes these unhealthy products. But this constant immersion progression is relentless, and its Research has repeatedly documented in digital culture has exposed impact on young people’s health is that marketing directly influences children and teens to a steady flow of marketing for fast foods, soft drinks, and other unhealthy products, much of it beneath the Constant immersion in digital culture has exposed visibility of parents and teachers.5 children and teens to a steady flow of marketing for Food and beverage companies have fast foods, soft drinks, and other unhealthy products.
Big Food, Big Tech, and the Global Childhood Obesity Pandemic Introduction | 4 between obesity and COVID, particularly among children and youth.14 “The evidence is clear,” explained a scientific study published in November 2020, “childhood obesity and COVID-19 are international pandemics. The clashing of the two diseases and the subsequent changes in the bioecological environment have placed children and adolescents at increased risk to develop obesity and exacerbate obesity disease severity.”15 Youth of color have been disproportionately affected by serious illness, hospitalizations, and death from COVID.16 “The Coronavirus is killing Hispanic, young peoples’ food and beverage but also its potential economic Black and American Indian children preferences, purchase requests, and trajectory,” with mortality rates at much higher numbers than their consumption. All of these trends rising by “more than 40% compared White peers,” according to a CDC have created what public health to Gen-Xers at the same age.”11 In report. “Of those killed by covid-19, researchers call a global “obesogenic many ways, these youth are the the illness caused by the coronavirus, environment.”10 “canary in the coal mine” for the more than 75 percent have been future of the nation’s health. Rather In the U.S., we can already see how Hispanic, Black and American Indian than reaching adulthood as the young people who have come of age children even though they represent most vital and healthy members of in the midst of this obesity crisis are 41 percent of the U.S. population.” society, they are burdened by a host showing signs of its negative impact One of the key factors identified by of chronic diseases, increasingly on their health. In 2019, Blue Cross the agency is the “underlying health compromised immune systems, and Blue Shield issued a report on the disparities among minority children shorter expected lifespans than health of the millennial generation, and young adults. About 75 percent earlier generations. Researchers those born between 1981 and 1996, of those who died had at least one at the Harvard School of Public “the largest, most educated, and most underlying condition, and the most Health are already projecting that by connected generation the world frequent were asthma and obesity.”17 2030, unless current trends change has ever seen.” As the researchers dramatically, “nearly one in two According to the Rudd Center for explained, “Millennials are seeing adults will be obese, and nearly Food Policy and Obesity, food and their health decline faster than the one in four will be severely obese,” beverage companies aggressively previous generation as they age,” warning that “obesity will be the target African Americans, Latinos, with greater levels of hypertension, new normal in this country.”12 Native Americans and Asian-Pacific high cholesterol, and other chronic Islanders with marketing for foods physical illnesses, along with a Obesity has already been identified and drinks (such as sugary drinks rise in behavioral conditions like as a key underlying condition that and foods low in nutrition and depression and hyperactivity. “How makes individuals more vulnerable high in sugars, salt, and fats) that their health plays out in the years to contracting COVID-19, even contribute to these diseases and ahead will determine not only among young people.13 Numerous harm health.18 Almost no marketing the overall health of the country, studies have revealed strong links
Big Food, Big Tech, and the Global Childhood Obesity Pandemic Introduction | 5 is for foods and beverages that people. These efforts have created a of the federal Children’s Online families should eat more of, like powerful, pervasive, and immersive Privacy Protection Act (COPPA).20 fruits, vegetables or whole grains. digital obesogenic environment that is Over the years, we have closely Youth of color get what researchers harming children’s health, furthering followed the incredible expansion call a “double dose” of unhealthy health inequities, and contributing to of the technology industry and food and sugary beverage marketing, increasingly higher levels of disease its increasingly sophisticated because they are exposed both to in the population. advertising, data collection, and mainstream advertising campaigns marketing apparatus. We have We have been tracking the growth and to targeted efforts specifically documented the increasingly of the digital marketplace for more aimed at them through digital media, complex and highly technical than 25 years, beginning with the which they use more often and nature of digital food marketing, earliest commercial enterprises more intensely than do their white underscoring how different it is from on the World Wide Web in the 90s, counterparts.19 more traditional forms of advertising, when food and beverage companies and identifying the threats it poses The COVID-19 pandemic were among the first marketers to children’s health and wellbeing.21 underscores the urgent need to to establish kid-friendly branded address the childhood obesity crisis, websites on the internet. Using In this report, we explain how global and particularly to reduce young “product spokescharacters” such as giants in the food and beverage people’s exposure to unhealthy food Chester Cheetah and Snap, Crackle, industry are working together with promotion. This report focuses on and Pop, major brands sought to leading tech companies to ensure the role of both the food industry forge “one-to-one” relationships that unhealthy brands and products and the technology industry in the with members of “the lucrative are woven into the media and current global childhood obesity cyber-tot” category, engaging in cultural experiences that dominate crisis. It documents how Big continuous data collection from the lives of young people. These Food and Big Tech are working children who visited their websites. industries are now part of a large, together to enhance and expand Because of our concerns over these integrated, data-driven digital the promotion of unhealthy food practices, we spearheaded a national marketing system, fueled by Big Data, brands and products to young campaign that led to the 1998 passage artificial intelligence, and machine
Big Food, Big Tech, and the Global Childhood Obesity Pandemic Introduction | 6 learning. Our goal is to pull back the for Black and Brown youth. In have adopted policies to curb food curtain on this complex system and Part 4, we provide an overview marketing to children and youth, explain how it works, what it means of major regulatory and policy with increasing attention on the for young people’s health, and what developments in the U.S. and abroad. role of digital technologies.24 These should be done about it. In Part 1, Part 5 offers a set of principles and developments are part of a broad, we describe the changing nature of recommendations to guide U.S. growing international movement, the youth media marketplace, the policy making and develop corporate grounded in children’s fundamental rise of sophisticated new advertising responsibility initiatives in order to rights to health.25 Yet, in the U.S., technologies, and the many ways build a healthier digital environment both the tech and food industries that Big Data is continuing to for youth. have managed to circumvent, transform both the technology and undermine, and coopt policy efforts Scholars around the world have the food and beverage industries. to reduce the relentless, aggressive begun to examine digital food Part 2 focuses on three digital promotion of unhealthy products.26 marketing and its effects on young advertising markets that attract large Childhood obesity has largely fallen people.22 A growing body of numbers of young people, where off the national policy agenda. We academic research has documented food and beverage companies are argue that it is time to refocus public deploying a variety of new and the increasing presence of attention on these two industries, emerging techniques to reach and unhealthy food promotion, clear to develop policies for restricting engage them. Part 3 considers patterns of youth engagement with marketing of unhealthy foods to the implications of contemporary major brands, and influences on children, and to begin building a food and beverage marketing on health behaviors.23 Public health healthier digital environment for young people’s health, particularly authorities in Europe, the UK, Latin young people. America, and many other regions
Big Food, Big Tech, and the Global Childhood Obesity Pandemic Introduction | 7 Big Food and the obesity crisis In 1969, when the White House held a conference on cost of food; the rise in fast food, convenience food, and “Food, Nutrition, and Health,” its primary concerns eating outside of the home; and the increasing availability were hunger and malnutrition, which were then causing of snacks and sodas in public schools.30 But one of the most “tremendous suffering” among American families and fundamental changes is the disturbing shift in the overall children around the country. Participants offered nutritional patterns among all children and adolescents, a comprehensive set of policy recommendations— who now consume high levels of saturated fat, sugars, and encompassing nutrition guidelines, nutrition salt, and low levels of fruit and vegetables.31 These patterns education, consumer issues, and food distribution—to are a direct outcome of changes in the food industry’s address the problems. These, in turn, eventually led production, distribution, and marketing systems. A number to “major expansions of the Food Stamp Program of researchers have documented the rising power and and School Lunch Program, authorization of the influence of the global food and beverage industry and its Supplemental Feeding Program for Women Infants and role in shaping the food environment.32 Multinational food Children, and improvements to nutrition labeling and and beverage companies, often referred to as “Big Food,” ingredient labeling.”27 have established “huge and concentrated market power,” explain David Stuckler and Marion Nestle. “Three-fourths But in 2019, when health and nutrition experts held a 50- of world food sales involve processed foods, for which year anniversary event celebrating the initial conference, the largest manufacturers hold over a third of the global the nation faced a far different nutrition problem. “While market.”33 Observes Charlotte Elliott, “The food industry calorie malnutrition in America has been largely eradicated, promotes a diet of highly processed, junk food and/or fast changes to our food system, accompanied by persistent food,” and has “indisputably transformed what we eat, poverty and increasing economic inequality have created how we eat it, and what we think of food.”34 a crisis of diet-related obesity, diabetes, and other chronic diseases, and widened other disparities in the accessibility Beginning in the early 90s, food manufacturers launched and affordability of nutritious foods,” the 50th-anniversary new product categories designed to take advantage of report noted. “Poor diet is now the leading cause of children’s increased spending power and independence.35 poor health in the U.S., causing more than half a million According to the Institute of Medicine, between 1994 and deaths per year.”28 In addition to documenting the sharp 2004 there were “3,936 new food products and 511 new rise in childhood obesity, the report noted disturbing beverage products targeted to children and youth.” Most changes in the media and advertising environment for of these child-oriented food and beverage products were children. “Despite repeated efforts to limit the marketing “high in total calories, sugar, or fat and low in nutrients.”36 of unhealthy foods and beverages,” the authors noted, During that same decade, as children began flocking to “children and adolescents continue to be subjected to an the internet, major brands such as Kellogg, Nabisco, Oscar onslaught of targeted advertising for the unhealthiest Mayer, McDonald’s, and Frito-Lay were among the first products across all media platforms.”29 to launch “advergames,” “branded environments,” and other online venues to foster brand loyalty and promote The aggressive marketing of unhealthy food and beverage a full range of fast foods, sugar-sweetened cereals, soft products is one of a number of trends over the past several drinks, and snacks.37 These early forays into cyberspace decades that have contributed to high obesity rates among quickly grew into a massive digital marketing enterprise, young people. Other contributing trends include cutbacks as food brands moved swiftly onto websites, social media in physical education programs; the relative decline in the platforms, interactive games, and mobile devices.38
Big Food, Big Tech, and the Global Childhood Obesity Pandemic Part 1: The Data-Driven Media & Marketing Complex | 8 PART 1: THE DATA-DRIVEN MEDIA & year-over-year increase in audience volume, and data from market MARKETING COMPLEX researcher Statista shows the eSports category as a whole is likely to reach Today’s youth are at the epicenter of an exploding digital US$1.79 billion in revenue by 2022.”47 As theaters closed and U.S. box-office media and marketing landscape. Their deep connection to receipts plummeted to almost zero, technology and their influence on purchasing are fueling gaming industry revenue overall the growth of new platforms, programs, and services, has risen dramatically, by more than 50 percent, and was expected and generating a multiplicity of marketing opportunities. to reach $160 billion by the end of Google has created a global business offering videos 2020, which is “more than books, music, or movies,” observed the and channels that target children and other young New York Times.48 Viewership people who are attracted by its entertainment and for video streaming has also risen. According to research from Nielsen, educational content.39 the cumulative weekly time viewers spent with streaming video during the second quarter of 2020 was 142.5 YouTube is now widely considered and young adults in 150 countries billion minutes, which amounted to the “number-one kids entertainment around the world.43 The popular an almost 75 percent rise from the brand,” a position it has held since video app is credited with helping year before.49 2016. As one leading youth marketing to drive growth in children’s social specialist noted, “the omnipresent app use by 100 percent in 2019 and The pandemic has also accelerated platform plays a central role in 200 percent in 2020.44 There is a the growth of digital advertising, shaping the evolving behavior frenzy of venture capital investment which witnessed “a historic shift of kids.”40 Though Facebook in the youth media sector, fueled in market share,” according to has seen some declines in teen by predictions that the generation reporting in The Financial Times, users, the larger array of social growing up in today’s digital media which predicted that digital media platforms—with dozens of environment will consume even advertising was poised to overtake players such as Tumblr, Snapchat, more video content, much of it ad spending on traditional media for YouTube, and Instagram (owned commercially driven, on TV, mobile the first time. “The digital revolution by Facebook)—continues to attract phones, and other devices.45 in marketing under way since the and engage young people, many of millennium, when the internet Gaming and esports platforms whom are accessing these services accounted for under 2 per cent of are among the digital sectors on their mobile devices.41 The spending, has transformed the ad experiencing a dramatic uptick children’s mobile app market is also market at a pace and scale that far in users since the coronavirus becoming an increasingly profitable outstrips the advent of television in pandemic began.46 Twitch, for medium for advertisers, according to the 20th century.”50 example, “has experienced a 10% industry sources, with mobile usage among children “soaring,” making these devices the “#1 screen for fueled by predictions that the generation kids.”42 TikTok has quickly captured the interest of children, adolescents, growing up in today’s digital media environment will consume even more video content
Big Food, Big Tech, and the Global Childhood Obesity Pandemic Part 1: The Data-Driven Media & Marketing Complex | 9 AI, Machine Learning, and Virtual Reality: the New Frontier of Digital Marketing Artificial intelligence (AI), machine learning (ML), Snickers bar was temporarily reduced at 7-Eleven stores to help and virtual reality (VR) are among the technological drive purchases.55 This effort, which involved Google and MIT, innovations that are transforming the nature and won multiple Cannes Lion Gold awards. KFC used AI to create power of digital marketing. AI and machine learning a virtual “Col. Sanders,” who helped videogame players in are driving the growth of personalization and predictive China receive “real-time predictions” about e-sports. Fans went targeting. Specialized software can analyze large amounts “crazy” about the information it provided and KFC was able to of consumer behavioral and demographic data to create achieve one of its key marketing goals—making its brand “an and serve an advertising message tailored to a specific integral part of the game.” To receive the predictions, users had individual.51 Major tech platforms offer their own to “log into the KFC app,” and during the game, the virtual Col. personalization tools. For example, Facebook’s “dynamic Sanders also distributed coupons and invited “the audience to creative” application enables advertisers to generate order KFC online.” The Colonel KI (KCF-AI) campaign won multiple versions of various elements instantaneously— international marketing awards.56 including video, images, and ad copy—which can be Chatbots are another tool that relies on artificial intelligence tested in order to determine the correct combination that to simulate conversations with users. For example, Ruffles delivers the desired result.52 A key goal of this practice potato chips won a social media marketing award in 2019 for is “to inspire positive emotional resonance and reaction” an effort based in Mexico, which was described as the “first- about the product brand. Kellogg’s, Pepsi and McDonald’s ever promotional campaign launched within the WhatsApp have each taken advantage of Google’s “Director’s Mix,” platform.” By sending a unique code found on the Ruffles which “allows brands to dynamically embed text, audio package directly to the company’s branded chatbot (“Ruffilio”), or images within their videos to generate unlimited one could enter a major sports- variations of one video…. [B]rands themed contest to win various can customize their videos to AI and machine learning prizes. In order to build a stronger target specific audiences and adopt hyper-targeting strategies in are driving the growth connection between the brand and their video media plans,” Google of personalization and people entering the contest, Ruffles created “Small Talk,” its own “neural explained to advertisers. The tool predictive targeting. network that identifies intents from facilitates “mass customization” the consumers’ messages such as by taking “one base video and hobbies, favorite sports, favorite movies, relationships….” Four- overlay[ing] different visuals and copy, creating thousands and-a-half million messages were sent over a month, and the of iterations automatically.” This is then connected to what “average user spent 19 minutes per session registering codes and a person may be doing or has done—such as searching for talking with our bot,” according to the company.57 McDonald’s something or watching a video. By working with YouTube, says Google, marketers can use the online video platform has also used a chatbot connected to Facebook’s Messenger to “create hundreds or thousands of versions to match application to create interactive experiences.58 your audience segments.” Kellogg’s used the tool to promote The latest versions of immersive marketing technology take both Rice Krispies Treats and Pringles, reporting a positive advantage of recent developments in augmented and virtual impact on sales.53 Market research has shown that these new reality, which deliberately blur the lines between the real forms of “personalization” are effective at driving increased world and virtual worlds, making the experience even more sales and brand loyalty.54 intense and realistic. Augmented reality (AR) is defined by the Interactive Advertising Bureau (IAB) as “an experience that Food and beverage companies are incorporating AI strategies utilizes a camera to change or enhance something in the user’s into their campaigns in a variety of ways, with some earning real world.” Virtual reality (VR) “allows a user to be completely prestigious awards in the industry. For example, Snickers immersed in an environment of the marketer’s choice.”59 A developed an AI-based algorithm—called “Hungerithm”—to number of the standardized ad formats developed by the IAB monitor the “online mood” of social media users in Australia. are designed to foster these kinds of immersive experiences, When consumers were judged “hungry,” the price of the such as 360-degree video and “fully branded 3-D scenes.”60 New
Big Food, Big Tech, and the Global Childhood Obesity Pandemic Part 1: The Data-Driven Media & Marketing Complex | 10 measurement systems can document various impacts of AR consumer’s drink choices, process “contactless” payments, and VR ads on individuals, identifying such behaviors as “Gaze- and gather valuable data in the process.66 Homes are being Through” (“when a user views a VR advertisement and accepts automated through an array of personal digital assistants a call to action”) and “VR Session Time” (“the amount of time and “smart speakers,” such as Amazon’s Alexa or Google’s a user spent in the VR experience”).61 Other recent campaigns Nest, that monitor our activities and can prompt someone illustrate how major food and beverage brands have embraced to order more soda or chips, for example. In the last few AR and VR: years, a new generation of internet-connected toys has come to market, designed to react to a child’s behavior y Kellogg’s worked with the AR developer Blippar to in real time and “grow” with them as they become older, produce millions of cereal boxes that transformed the using software to retool a device’s functionality in order to packaging into a gaming experience, an “interactive correspond to a child’s developmental stage.67 Consumer jungle island, filled with different mini games to groups have already raised concerns about how these be unlocked.”62 “intelligent” playthings might be used to promote products y McDonald’s created a tray liner that interacted with to a child. With this “ongoing digitization of childhood,” mobile phones, integrated with Facebook Messenger, observes Professor Eva Lievens, “it can only be expected and offered various digital board games.63 that such connected or smart toys and devices will continue to be developed and marketed in coming years.”68 y Mountain Dew developed an AR app tied to the Walking Dead TV series that overlaid “digital images of zombies on the real world using a smartphone camera,” letting “fans see zombies in real-world environments and share the interactions on social media.”64 y Pepsi partnered with Facebook’s Instagram in the summer of 2019 to produce 230 million bottles of soda imprinted with mobile phone codes that triggered “full screen immersion” AR effects, with a goal of influencing “medium to heavy Cola drinkers,” including Hispanics, to purchase 20-oz. sizes of Pepsi.65 Food and beverage companies are also among the venture capitalists investing in the next generation of smart devices and services. Soft-drink companies have already installed “intelligent” vending machines that personalize a
Big Food, Big Tech, and the Global Childhood Obesity Pandemic Part 1: The Data-Driven Media & Marketing Complex | 11 ADTECH, KIDTECH, AND generation of AI and machine (See sidebar, “Redefining Contextual learning, “customer-engagement Advertising in the Big Data Era.”) As THE CHANGING DIGITAL suites” and other forms of “business a consequence, many of the “kid- ADVERTISING SYSTEM intelligence” software that can friendly” marketing operations do Big Data has transformed the deliver highly personalized and not differ substantially from those nature and power of contemporary optimized interactions with millions that are aimed at adults.74 marketing. Digital marketers are of consumers simultaneously.72 Marketing and advertising are also able to access, analyze and act Paralleling these developments is driving the design and functionality upon a wealth of data on individual a growing “KidTech” enterprise, of young people’s media experiences. consumers and their families which uses many of these same Far from being neutral spaces for gathered online and off, including advertising technologies, including social interaction, entertainment, purchasing behaviors, social media Big Data analytics, artificial and expression, digital platforms are communications, online interests, intelligence and computer-driven ad- structured to optimize engagement, location and geographic movements, buying strategies. KidTech services foster habitual behaviors, and financial status, health concerns, and other child-directed content maximize the impact of marketing emotional states and much more. providers have experienced a digital messages on brand loyalty and This data pipeline fuels a myriad “gold rush” worldwide, with eager product sales. The concept of of marketing and advertising investors and advertisers flocking engagement has become a linchpin techniques that are honed to deliver to support new start-ups as well as of tech industry Big Data strategy. results—from brand awareness to already established youth media Its purpose is to ensure that users direct sales.69 brands. A number of these services are continuously and seamlessly The technology industry—led have made adjustments to how they interacting with digital media principally by Google, Facebook, market to young people, in response platforms, responding to brands and Amazon—has established a to children’s privacy laws and online and marketing, and generating data complex, far-reaching, global media, marketing, and sales apparatus. Google and Facebook alone account Many of the “kid-friendly” marketing operations do not for the majority (nearly 60 percent) differ substantially from those that are aimed at adults. of digital ad spending worldwide.70 While the most influential, they are part of an integrated chain of relationships, which includes ad safety concerns.73 They claim they points. With children’s content—and agencies, data brokers, marketing are complying with privacy and attention—increasingly distributed clouds, data-management platforms, data regulations by using so-called across tablets, smartphones, ecommerce applications, artificial “contextual” marketing techniques streaming devices, and other intelligence ad specialists, media that place ads related to the content platforms, programmers and companies, measurement providers, being viewed, instead of the more advertisers are embracing new and many other specialized intrusive data-driven behavioral or interactive storytelling technologies, services.71 Many of these firms are programmatic practices that target including games, virtual reality part of the burgeoning advertising the viewers themselves and trigger and augmented reality experiences, and marketing technology privacy issues. However, contextual and creating advertising formats sector—known as “AdTech” or advertising has been transformed that can be integrated directly “MarTech”—that offers a growing through machine learning, natural into these powerful, immersive spectrum of automated ad software language processing and other environments, and designed to and tools, powered by the next advanced techniques, all of which trigger impulsive actions.75 use data to identify and target users.
Big Food, Big Tech, and the Global Childhood Obesity Pandemic Part 1: The Data-Driven Media & Marketing Complex | 12 Over the last ten years or so, there services are available throughout impressions are now only a tiny has been an explosion of research the world, and are used by many part of a highly complex system that focused on implicit persuasion companies to test ad techniques for includes detailed analytics covering techniques, which tap into deep products marketed to both adults the full range of a consumer’s emotional and subconscious and young people alike.80 Digital digital media interactions.83 New responses.76 For example, Nielsen, marketers are also drawing on metrics can monitor not only how which is a leader in the field of behavioral science to build features a viewer responds to an ad, but also neuromarketing, uses a variety into online experiences aimed whether that same user purchased of neuroscience techniques to at directing user behaviors and the product featured in the ad.84 The maximize the impact of digital influencing decision making. The media and advertising industries advertising on human behavior, tech industry uses the somewhat are exploring the creation of a new including electroencephalography benign term of “persuasive design” measurement standard designed to (EEG) to monitor brainwaves in to describe these practices.81 provide a “comprehensive view of order to identify “three key measures However, many of these design cross-platform, digital and mobile of engagement: attention, emotion, interfaces fall into the category measurement of content and ads and memory”; “facial coding” to of dark patterns, especially when among children and teens aged capture a variety of emotions; and they are intended to “benefit an two to 17.”85 This information is eye-tracking technologies to measure online service by coercing, steering, used to develop effective models how individuals engage with visual or deceiving users into making for targeting other young people. content on screens.77 Using these and unintended and potentially harmful Measurement can follow users’ other methods, marketers can design decisions.”82 movements, communications, and and refine advertising messages activities from moment to moment, Measurement and analytics systems so they can trigger “attention measuring their reactions to various have also evolved considerably, processing” and embed themselves advertising and sales appeals so and are now altering the overall solidly into an individual’s memory.78 the ads can be adjusted seamlessly operation of digital marketing, Through emotion analytics, marketers in real time. As a result, marketing with increasing focus on children. can determine how well a campaign techniques can be tested, refined, Simple, one-dimensional measures leverages unconscious processes and tailored for maximum effect. such as “clicks,” “likes,” views, and in consumers.79 “Neuromarketing
Big Food, Big Tech, and the Global Childhood Obesity Pandemic Part 1: The Data-Driven Media & Marketing Complex | 13 Redefining Contextual Advertising in the Big Data Era When it was originally developed many years ago, Google is adopting such an approach, explaining in contextual advertising in the online environment was the Fall of 2020 that “[a]dvanced contextual is the a simple proposition. An ad would appear on a page next generation of contextual targeting on YouTube. It that was connected to its content, often triggered by uses Google’s machine learning to better understand identifying keywords. For example, a news report that each channel on YouTube, including analysis of video discussed dining out would have an ad for restaurants or imagery, sound, speech and text.”87 Google plans to use a sugar-sweetened beverage. However, since contextual contextual ad applications to reach children, since under marketing did not facilitate the deep “engagement” and its recent settlement with the Federal Trade Commission personalization possible with behavioral targeting and for violating the Children’s Online Privacy Protection other data profiling techniques, contextual advertising Act, it announced it would no longer permit data-driven soon fell out of favor in the digital marketing industry. marketing on YouTube channels or content that target children 12 and under. SuperAwesome, now a division of More recently, thanks to sophisticated algorithms and EPIC Games (Fortnite), is just one of the companies that analysis, contextual advertising has become a much use contextual marketing to target kids.88 stronger—and potentially more intrusive—ad practice. It has been reshaped by artificial intelligence and machine- Digital marketers and tech companies claim that because learning technologies so that marketers can “now discern contextual advertising is not personalized or data-driven, web page sentiment, understand the nuance of language, it is appropriate for targeting children, and an acceptable ascertain the content and tone of images and video, and way of “monetizing” content. However, the role that even automatically configure ad creative to complement sophisticated AI technologies play, including when they context.” A person can be targeted based on what the are potentially combined with such data-dependent industry calls “sentiment”—where an ad appears along approaches as behavioral targeting, suggests that regulators, with content “whose mood or emotion resonates with a scholars, and public health experts need to examine this product or brand’s values or ethos.” Such targeting can be practice closely to determine how it is being used, whether driven through an analysis of the emotions “expressed in it functions as targeted or personalized marketing, and images and videos,” as well as understanding the “meaning” what its potential harms may be. of what is written, which makes it very effective with today’s online video and visually driven social networks.86 RESEARCHING DIGITAL to observe the digital behaviors and candy products. For tweens 9-12 of young participants.90 Reports and teens 13-17, YouTube was in first NATIVES are routinely released that reveal place, with Oreo, Hershey’s, Cheetos The food and tech industries the “Most Beloved Brands” and that and Doritos among the top ten.92 conduct detailed market research incorporate dozens of elements Google and Facebook have extensive on so-called “digital natives,” to determine a “Kidfinity Score,” research divisions, where they including monitoring young people’s a “proprietary measure of brand analyze young people’s interactions behavior on social media, mobile awareness, appeal and popularity with marketing.93 Facebook IQ, the and other platforms, and employing among six-to-12-year-olds.”91 In its social network’s market research ethnographers, psychologists, and “Brand Love” study in 2020, youth arm, reported the results of a study neuroscientists to probe the inner market researchers Smarty Pants it conducted with global parents to workings of children’s psyches and found that for children 6-8, their better understand “pester power,” brain processes.89 Marketing research number-one favorite brand was also known as the “nag factor.”94 firms are also creating private online McDonald’s, followed by YouTube, The study found that children have communities where they are able Oreo, M&Ms and many other snack greater impact today on family
Big Food, Big Tech, and the Global Childhood Obesity Pandemic Part 1: The Data-Driven Media & Marketing Complex | 14 purchasing decisions, including McDonald’s U.S. chief marketing (AT&T), Omnicom and Publicis— “38% of parents’ decisions about officer explained, they “set have recently launched a new quick service restaurants (QSR), 25% trends” and “set the tone for how initiative to “elevate multicultural of decisions about non-alcoholic [companies] enter the marketplace.”98 marketing effectiveness” through beverages, and 17% of decisions As a 2018 report entitled the Alliance for Inclusive and about packaged foods.”95 “Descubrimiento Digital: The Multicultural Marketing (AIMM).103 Online Lives of Latinx Consumers” The alliance has developed a new observed, “In a period of population metric—known as a “cultural TARGET MARKETING shifts, fragmentation, and intense insights impact measure,” or TO MULTICULTURAL competition for attention, Hispanics “CIIM”—to assess how effective are using technology and social advertisers are with Asian YOUTH media to rewrite the rulebook. Americans, Blacks, Hispanics, and Minority youth—particularly African Their combination of relative youth, LGBTQ communities. The CIIM Americans and Hispanics—are one demand for cultural connectivity score evaluates the “impact and of the fastest growing demographic and nuanced content has placed effectiveness of cultural insights in sectors in the U.S.96 As a consequence, Hispanics at the center of trendsetter ads and programming and how these the United States is becoming a culture.”99 Another study urged have the potential to affect sales “majority minority” country, where brands to target children in bilingual lift.” Variables include “inclusion Black and Brown populations will households as “sherpas,” who can and acknowledgement, respect be a numeric majority in just 25 “translate the language, interpret for culture, creates cultural pride years. How well brands engage with brand and product purchases, and reflects cultural values, uses these young people could determine and demystify new services and positive role models and provides success or failure. Communities of technologies” for their families.100 for authentic cultural depictions.” color already have “buying power” of Food and soft drink companies draw According to AIMM, those brands or $3.9 trillion, and given their youth from an ongoing flood of market products with a suitable CIIM score and life expectancy, these consumers research to design the most powerful experience significant increases have a higher “lifetime value” than and effective target marketing in two key marketing industry “White Non-Hispanics,” according campaigns for engaging with Black metrics—brand perception and ad to industry studies. Nearly half of and Brown youth.101 These aggressive effectiveness. AIMM’s initial CIIM Generation Z is made up of Black marketing efforts can shape the research assessed key segments of and Brown youth.97 Marketers preferences for unhealthy food and consumer buying from these groups, conduct intensive research to beverages, according to researchers, including foods and beverages (such identify behaviors, values, popular and exacerbate existing health as “regular Cola drinks, [but] not celebrities, music genres, and other disparities affecting communities diet,” and energy drinks). Among the attributes of these “multicultural” of color.102 brands that had their ads reviewed youth, who are in the forefront of to see whether they achieved the Major food and beverage companies, objectives proposed by CIIM were all the key digital behaviors—early retailers, online platforms and Pepsi, General Mills, Kellogg’s, and leading adopters of mobile advertising agencies—including McDonald’s and Burger King.104 device use, social media, online Coca-Cola, General Mills, Kellogg’s, video, and gaming applications. As McDonald’s, Walmart, Google, Xandr Marketing efforts can shape the preferences for unhealthy food and beverages, according to researchers, and exacerbate existing health disparities affecting communities of color.
Big Food, Big Tech, and the Global Childhood Obesity Pandemic Part 1: The Data-Driven Media & Marketing Complex | 15 Food Insecurity, Racial Justice, and Industry Accountability In a 2020 article in the journal Obesity, health researchers These concerns were echoed by a group of faith-based reported on the food industry’s work to support investors who sent letters in December 2020 to 21 international relief efforts, noting that many major companies, including Coca-Cola, Kraft, Unilever, Pepsi, companies—including PepsiCo, Coca-Cola, Burger Amazon, Dollar Tree and other food, beverage, restaurant King, and KFC—have contributed money, donated and retail brands, as part of an initiative “meant to force medical supplies, and distributed free food. While these a reckoning with how corporate policies and practices corporations “have been applauded for their actions and may reinforce systemic racism through the development have garnered massive public support,” the authors also and marketing of food and beverage products.” One of the point out that the same companies “aggressively market investors working with the Interfaith Center on Corporate ultra-processed foods and beverages” that are associated Responsibility (ICCR), which led the effort, explained that with obesity and other related diseases. Moreover, the food “the economic and health distress caused by the pandemic industry has repeatedly opposed attempts by the health only makes corporate responsibility around themes of sector to regulate marketing. “If large-scale preventive nutrition and race more real and urgent.” The investors measures to reduce obesity and chronic diseases had asked “companies to examine how their business models, been taken earlier, COVID-19 complications would not operations, and value chains may directly or indirectly be as severe among people with these conditions, and contribute” to health inequities, and urged them to commit health disparities would not continue to be widened,” the to developing accessible and affordable nutritious foods. authors argue. “If we wish to treat obesity seriously by ICCR and its allies, which represent more than $2 trillion promoting healthier environments and societies that can in assets under management, urged the companies to better respond to health challenges, such as the current curtail “manipulative and unfair marketing and promotion COVID-19 pandemic, then there is no doubt that the food practices,” including through the use of data and digital industry’s strategies are working against this goal and marketing.106 should be effectively regulated.”105 FOOD CORPORATIONS Science and Data Strategy Center behaviors.110 All of this information of Excellence, which “analyzes all flows continuously into Coca-Cola’s BECOME BIG DATA data captured across Coke’s digital data center, where it is mined COMPANIES ecosystem.”107 As the senior vice for insights. “We have more data Some of the largest food and president of strategy, planning, and now than we have ever had in the beverage corporations—including decision science explained, the past,” explained the company’s Coca-Cola, McDonald’s, and company, through its extensive decision science VP, noting that Pepsi—have, in effect, transformed data operations, is “embracing a “the key is figuring out what data themselves into Big Data full rethinking of how beverages you need and how to wrangle that businesses, acquiring specialist are sold and delivered at every step data. This is where the real magic firms, establishing large in-house of the supply chain.”108 Working happens, and where we see so much operations, and hiring teams of data with Google, the beverage giant potential growth.”111 scientists and technology experts is deploying artificial intelligence PepsiCo has made major investments to direct these systems. With these to help drive its digital marketing in its in-house consumer data enhanced capabilities, they can more and loyalty programs.109 Coke also operations for North America, which effectively engage in ad targeting— operates over 40 interconnected analyzes information on consumers whether on the leading platforms or social media monitoring facilities for its targeted marketing and media through their own mobile apps. For worldwide, which use AI to follow buying. A Pepsi executive explained example, Coca-Cola North America customers, analyze their online that the company is has established its own Decision conversations, and track their
Big Food, Big Tech, and the Global Childhood Obesity Pandemic Part 1: The Data-Driven Media & Marketing Complex | 16 making a “significant change in how assortment, merchandising, tracking, predictive analytics and we really market to our consumers marketing and other needs at modeling, algorithm-based targeting, by building this direct, dynamic and the point-of-sale.” Pepsi has also and measurement.116 Powered intimate one-to-one relationships developed a “cutting edge insights by all these Big Data capabilities, with billions of people globally.”112 It platform,” known as CLEVr.113 McDonald’s global mobile app is able has developed a “fully addressable to establish a direct link to each of its McDonald’s data operations have consumer database” (called customers, anticipating their menu grown dramatically in the short time “Consumer DNA”) that enables it requests based on past selections since they were established, “laying to “see a full 360 degree view of our and behaviors, targeting them with the human capital foundation for consumers.” With multiple data personalized offers, encouraging the data-driven future,” according to points on 110 million households instant responses through mobile the company.114 Through its Silicon in the U.S., Pepsi is able to develop payment systems, and conducting Valley-based “McD Tech Labs,” the personalized messages to reach in-store surveillance to document fast-food giant is working on data- people on all their devices and apps, the impact of the marketing on science projects involving AI and such as when they are viewing actual sales.117 In 2019, McDonald’s machine-learning algorithms, natural streaming video or watching online made a significant investment in language processing, and Big Data games. It has invested in machine Plexure, a “mobile engagement” analytics to “transform the customer learning, AI and other technologies company specializing in giving QSRs experience.”115 Its purchase of AI- designed to measure audience the ability “to build rich consumer based technology company Dynamic behaviors more effectively, such as profiles” and leverage the data “to a new “ROI (return on investment) Yield expanded the fast-food giant’s provide deeply personalized offers Engine.” One of PepsiCo’s Big Data data portfolio to include a real-time and content that increase average platforms, called “Pep Worx,” is “personalization engine” that can transaction value” and help generate a “cloud-based data and analytics identify individual customers “across other revenues. One of its specialties solution that identifies valuable any channel, including web, mobile is designing personalized messaging shoppers by location and develops web, email, advertising channels, that triggers the release of the brain insights to help retailers make and apps,” utilizing a spectrum chemical, dopamine.118 (See sidebar, decisions on things like product of powerful tools, including data “Tapping the Plexure Principle.”)
Big Food, Big Tech, and the Global Childhood Obesity Pandemic Part 2: Targeting Youth Across the Digital Media and Marketing Landscape | 17 PART 2: TARGETING YOUTH THE INFLUENCER ECONOMY ACROSS THE DIGITAL MEDIA AND In the fall of 2020, as many MARKETING LANDSCAPE restaurants continued to struggle with financial hardships resulting The food and beverage industry is drawing from a from the coronavirus pandemic, growing arsenal of powerful tools in this vast digital McDonald’s partnered with a popular rapper to launch a meal in marketing and Big Data system to reach and engage his name and promote it to teens. young people across the entire media landscape. In the The “Travis Scott Meal” combined “all” of the music artist’s favorites following pages, we focus on three major arenas of digital —“a Quarter Pounder with cheese, culture that are having particularly powerful impacts on bacon, onions and lettuce; medium youth, commanding more of their attention, altering their fries with BBQ sauce; and a Sprite.” The campaign was so successful behaviors, and attracting huge amounts of advertising that within a week, there was a dollars. Some of the largest purveyors of unhealthy shortage of ingredients for the meal at some of the fast-food chain’s beverages, fast foods, and snacks have moved aggressively locations. McDonald’s immediately into all three of these areas. followed the celebrity-endorsed meal promotion with another one on a similar theme, this time First, we investigate the lucrative explanation, we have written about naming it after J. Balvin, the popular “influencer economy,” which has each of these sectors of the industry Reggaeton musician. The Big Mac, become a highly profitable sector of separately, but, in fact, they work fries and Oreo McFlurry combo online marketing, with a growing together as a system, where the lines was offered at a special discounted number of entertainment celebrities, between them are often blurred or price to make it more attractive sports figures, and social media nonexistent. This is especially true to young people, who were also “stars” promoting junk food brands to for young people, who see all media promised the McFlurry free of their followers. Secondly, we explore as part of their fluid 24/7 digital charge if they ordered through the rapidly expanding online gaming world. As we will show, the food the McDonald’s mobile app. Both and esports sector, which has, in and beverage industry is inserting campaigns included T-shirts and many ways, subsumed and eclipsed its brands across this expanding, other branded merchandise featuring other digital media platforms and integrated system, seizing the the musicians.120 The marketing services, and is quickly becoming powerful symbols of youth strategy paid off for McDonald’s, not an important forum for teen and culture. Marketers are developing only increasing fast-food sales, but youth culture. Finally, we examine strategies and techniques designed also helping to boost the company’s the digital transformation of to harness the unique capabilities stock price, generating a trove television, which now encompasses of each platform and to tailor their of valuable consumer data, and not only conventional broadcast and efforts—and sometimes the products sparking major press coverage and cable, but also streaming (known themselves—to the demographic social media publicity, including as “OTT,” for “Over the Top”), as characteristics and behavioral on Facebook’s Instagram and the well as an expanding array of patterns of their young targets.119 TikTok app. Some observers noted online video services. For clarity of that the partnerships with the Black
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