Child advertising restrictions cut trade revenue in Brazil

Companies selling products and services to children have reported a 13% loss in revenues after it became forbidden to target children directly. The figures can be found in a survey released today (Aug 25) by The Economist Intelligence Unit, conducted at the request of the Alana Institute, a non-profit organization aimed at protecting childhood.

The impact was observed in retail, including fast food restaurants, foodstuffs sold in supermarkets, non-alcoholic beverages, toys, children's clothes, etc.

The Brazilian Association of Advertising Agencies estimates a 5% reduction in the participation of child advertising in the whole advertisement sector.

Alana Institute Isabella Henriques explains that the advertising of goods for children are only allowed if directed at the parents. “If ads address children directly, it is considered abusive,” he said.

Since 2014, a resolution by the National Council for the Rights of Children and Adolescents (CONANDA) prohibits as well as defines abusive advertising. The Brazilian Consumer Protection Code also forbids any form of advertisement that avails itself of children's lack of judgment and experience.

Positive effects

Romina Bandura, economist and consultant at The Economist Intelligence Unit, said that, despite the reduced revenues, the ban in child advertising in Brazil brought positive results to society, like the improvement in children's health, a reduction in child obesity, lower consumerism, and a decline in bullying. “These are benefits that exceed the costs arising from the prohibition,” she stated.

Online advertising

Bandura went on to note that a number of companies still fail to comply, particularly on new media, like the Internet. “This is impact that cannot be measured. We have few data on how new media are impacting children online. It's hard to be monitored and regulated. Brazil, for instance, ranks fourth in YouTube views,” she said.

The survey also found that over 50% of children and adolescents in Brazil went online in 2013, and 80% in 2014. “Even though Brazil bands [children advertising], enforcing [the rule] is still not properly done. We still see children's language, characters, toys,” Bandura said.

Translated by Fabrício Ferreira