How the DPDP navigates targeted advertising for children?

Authored by Devesh Gangal,  Senior Marketing Manager, Seclore

Advertising techniques have evolved significantly in the rapidly shifting digital landscape, with targeted advertising emerging as a vital tool for firms. This strategy uses data to personalize adverts for specific audiences, including youngsters. In India, as internet penetration rises, children are increasingly exposed to targeted advertising.

Understanding Targeted Advertising

Targeted advertising personalizes advertisements based on data obtained from individuals' online activities. This data includes surfing history, social media activities, geographical information, and more. Children are frequently exposed to commercials for toys, games, snacks, and entertainment content on websites, apps, and social media platforms.

The Reach of Targeted Advertising Among Children

Children in India are increasingly engaged in the digital world. They spend more time online thanks to affordable smartphones, broad internet access, and educational initiatives that promote digital literacy. According to recent statistics, a high majority of Indian youngsters have internet access, making them a valuable target demographic for digital marketers.

Positive Effects of Targeted Advertising on Children

1. Personalized Content: Targeted advertising can provide children with content that is relevant to their interests, possibly enhancing their online experience. For example, youngsters who are interested in instructional content may see advertisements for learning apps and educational games that can help them develop.
2. Awareness of New Products: Targeting advertising informs children about new toys and books to help them stay updated on the latest trends and innovations.
3. Support for Free Content: Advertising revenue supports many of the free internet platforms and services that youngsters use. By being more relevant and engaging, targeted advertisements may enhance the user experience and help sustain these platforms at no direct expense to the users.

Adverse Effects of Targeted Advertising on Children

1. Commercial Pressure: Targeted advertising can put commercial pressure on youngsters, affecting their choices and wants. Children, being impulsive, may feel compelled to purchase items they see in advertisements, resulting in materialistic values and consumerism at a young age.
2. Privacy Concerns: Collecting data for targeted advertising poses serious privacy concerns, particularly among children. There is a risk of data misuse, and youngsters may not wholly comprehend the consequences of disclosing personal information online.
3. Manipulation and Misleading Content: Advertisements can be manipulative, taking advantage of children's lack of experience and understanding. Misleading advertisements can lead to high expectations and disappointment if the product does not match the promised image.
4. Impact on Mental Health: Continuous exposure to targeted advertising has been shown to have an impact on children's mental health. Ads promoting unrealistic body images, for example, might lead to low self-esteem and body dissatisfaction.

 Regulatory Framework: The DPDP Act

Recognizing children's vulnerability in the digital environment, the Indian government passed the Digital Personal Data Protection Act (DPDP Act) in 2023. This Act seeks to protect personal data and guarantee that it is handled appropriately, with proper safeguards for children.

1. Parental Consent: The DPDP Act requires explicit parental consent before collecting or processing data from children under a specific age and guarantees that parents are informed of and have control over what information is collected about their children.
2. Data Fiduciary Responsibilities: Businesses operating as data fiduciaries must behave in the best interests of their data principals (in this case, children). This includes maintaining data security, transparency in data use, and accountability.
3. Restrictions on Targeted Advertising: The Act restricts child profiling and behavior monitoring. This restricts advertisers' capacity to target youngsters based on their online conduct, lowering the danger of manipulation and privacy breaches.
4. Penalties for Non-Compliance: The DPDP Act establishes heavy fines for non-compliance, encouraging firms to use ethical data collection practices and emphasize children's privacy and safety.

The Role of Parents and Educators

While regulations provide a framework for child protection, parents and educators must play an active part in navigating the issues of targeted advertising.

1. Digital Literacy: It is crucial to teach children about digital literacy. Children should be aware of the fundamentals of online privacy, the purpose of commercials, and how to recognize and cope with manipulative techniques.
2. Parental Controls: Parental control software can assist in monitoring and limiting children's exposure to improper information and excessive advertising. Parents can control their children's screen time and the types of advertisements they see.
3. Open Communication: Encouraging open discussion about internet experiences allows youngsters to feel comfortable discussing what they see online, including advertisements. Parents may help their children make educated decisions and understand the commercial motivation behind advertisements.
4. Educational Initiatives: Schools should include media literacy training to assist students in critically assessing advertisements and understanding the value of privacy. This instruction can help children make better judgments when using the internet.

The Future of Targeted Advertising

The future of targeted advertising, particularly for youngsters, will most certainly see stricter laws and ethical standards. Businesses will need to embrace more transparent and responsible advertising strategies as the public becomes more aware of the possible risks.

1. Ethical Advertising: Companies should create more ethical advertising techniques that protect children's privacy and prevent misleading approaches. This might include labeling advertisements clearly and eliminating information that could harm kids' self-confidence and mental health.
2. Technology Solutions: Advanced technology can provide better age verification and consent management solutions, ensuring compliance with regulations like the DPDP Act. AI and machine learning can be used to create age-appropriate content and advertising.
3. Corporate Social Responsibility (CSR): Businesses can incorporate CSR into their advertising campaigns by generating positive and informative content for children. Companies can positively impact children's development by encouraging healthy lifestyles, education, and creativity.

Conclusion

The influence of targeted advertising on children in India is a complex subject that includes both potential and concerns. While targeted advertisements can improve children's internet experiences by providing relevant content, they can create privacy problems, manipulation, and commercial pressure.

The DPDP Act takes a crucial step toward protecting children's data and ensuring ethical advertising practices. However, parents, educators, and companies must work together to navigate these obstacles and create a secure and empowering digital environment for children. As the world of digital media evolves, a balanced approach that encourages children's well-being while capitalizing on the benefits of targeted advertising is going to grow essential.

DISCLAIMER: The views expressed are solely of the author and Adgully.com does not necessarily subscribe to it.