Four decades ago, Joan Ganz Cooney and her colleagues created the gold standard for using mass media to educate children when they founded the long-running kids' program Sesame Street. Today, the Joan Ganz Cooney Center, the nonprofit research organization Ganz Cooney founded, is pushing for an overhaul of children's media legislation that may prove no less far-reaching.
The center's recent report, D is for Digital, analyzes the impact of digital media on kids and reaches some striking conclusions. "Federal regulatory bodies, such as the Federal Communications Commission, and voluntary industry, public interest advocacy and philanthropic organizations, should advance policies that protect children from commercialism," the center writes. "A revitalization of the Children's Television Act needs to be undertaken to modernize the child protections now called for in a digital age."
I heartily second the recommendation. I do not profess to be an expert on regulation, but I am a student of the impact of interactive media on children and young adults. I have been chronicling the explosion of virtual worlds for children over the past year and a half at Ypulse, a Web site that covers marketing to young people. Last autumn I held a conference on younger teens, or "tweens," and technology.
We clearly need to develop standards when it comes to kids' digital media. One of the major goals of the Children's Television Act was to increase the quantity of educational broadcast TV programming for children. But it was enacted in 1990 and predates much of the digital era. And other than subsequent FCC rules on digital TV and the Children's Online Privacy Protection Act, which prevents personal data collection from children under 13 without parental consent, there's a dearth of rules and guidelines for kids' digital media. What's more, the standards for what constitutes "educational" content are weak at best.
Digital media—whether delivered via the Internet, cell phones, Apple (AAPL) iPods, or mobile gaming devices—is saturated with ad-supported content. And unlike TV ads, much digital marketing is interactive and immersive. Even broadcast TV is changing how it delivers commercials in an age where multitasking youth have become adept at using ad-skipping technology like digital video recorders. Marketers are increasingly placing products within shows, or even crafting entire shows or vignettes around a brand, using so-called branded entertainment. For instance, various companies promote brands on youth-targeted networks like the CW through "content wraps," serialized vignettes that appear at various intervals throughout a show.
Companies including Disney (DIS) and Viacom's (VIA) Nickelodeon plan to spend hundreds of millions of dollars developing virtual worlds and casual games for kids; we're seeing the proliferation of Web sites connected to real-life toys, including Webkinz, Build-a-Bear (BBW), LEGO, and Mattel's (MAT) Barbie.
There's little doubt as to the reason behind these efforts. At this year's Consumer Electronics Show, a Mattel executive proudly announced that the company won't run any outside advertising in its Barbie Girls virtual world. Come on. The entire site is a Barbie ad. On Web sites like Stardoll, children under 13 can dress their avatars in virtual DKNY clothes.
There are no requirements or standards for labeling online advertising or for transparency around this type of sponsor integration within virtual worlds. There are also no requirements for any amount of educational content on commercial Web sites or any criteria for vetting kids' sites or electronic toys that claim to be educational.