Social media algorithms target lower-income youth with risky 'easy money' ads, study shows

"Young people with fewer financial resources, especially boys, are the most exposed to advertising about how to make easy money. So confirms a pioneering study by Pompeu Fabra University (UPF), which has for the first time analyzed how the socioeconomic level and gender of young people influences the customized advertising they receive on TikTok and Instagram. Among other data, the study reveals that the percentage of lower-class youths who receive ads about risky financial products (15%) almost doubles that of their upper-class peers (8%)."

"The research is based on an online survey of 1,200 young people from all over Catalonia aged 14 to 30 that evaluated the contents of advertising videos that appear spontaneously on TikTok and Instagram. On these networks, young people from lower socioeconomic backgrounds receive the most ads related to risky financial services (such as quick loans, investing in cryptocurrencies...), betting, online gaming or content promising easy income and flexible jobs with few requirements."

"In contrast, the only type of advertising that frequently appears for upper-class young people is related to travel and leisure. The results of the study were recently published in an article in the journal Communication & Society. The main author of the article is Carolina Sáez, a researcher with the Communication, Advertising and Society (CAS) research group of the UPF Department of Communication, who has conducted the research under the supervision of CAS director Mònika Jiménez."

An online survey of 1,200 young people aged 14 to 30 across Catalonia evaluated advertising videos that appear spontaneously on TikTok and Instagram. Young people from lower socioeconomic backgrounds receive more ads related to risky financial services, betting, online gaming, and content promising easy income or flexible jobs with few requirements. Lower-class youths receive ads about risky financial products at 15%, almost double the 8% rate among upper-class peers. Upper-class young people most frequently see advertising related to travel and leisure. Gender differences appear, with boys especially exposed to advertising promoting quick-money schemes. Advertising customization on these platforms correlates with both socioeconomic level and gender.

Read at Phys