Social media (SM) platforms are often perceived as free services that allow users to connect, share, and engage with content. However, beneath the surface, these platforms operate as sophisticated attention and data marketplaces. Their real business is not about providing a service but rather brokering user attention and data to advertisers who want to market products, often in highly targeted ways, including to teenagers geolocated near schools.
Unlike traditional businesses that sell tangible products, SM platforms generate revenue by capturing and holding user attention. Every time someone scrolls, watches a video, or engages with a post, they contribute to the platform’s most valuable asset: their attention. The longer users stay engaged, the more data the platform collects, and the more advertising opportunities it can offer to businesses.
To maximize profits, social media companies collect vast amounts of user data. Every post, like, comment, and share helps these platforms build detailed user profiles. These profiles allow SM companies to segment users into specific groups based on their interests, behaviours, and demographics. For instance, a person who frequently engages with fitness content might be placed in a segment for health and wellness advertisers.
Data brokers and social media platforms can also use geolocation tracking to refine their ad targeting. If a teen has location services enabled on their smartphone, social media platforms and third-party data aggregators can detect frequent visits to specific places, including schools. Advertisers, such as fast-food chains and snack companies, can then purchase access to these location-based audience segments and deliver targeted ads to teens who are in or near school zones. (1)
Social media apps use geolocation tracking to monitor user’s real-time and historical movements through a combination of GPS, Wi-Fi networks, and Bluetooth beacons. (2) GPS tracking provides precise location data, while Wi-Fi networks help determine proximity to specific places, such as a school or a store. Bluetooth beacons, which are often used in malls, stadiums, and retail locations, can detect when a user is near a specific product or display. This means that even if a teen isn’t actively using an app, their location can still be tracked. For example, if a teen visits a shopping mall every Friday evening, their phone may passively send this data to the app, allowing advertisers to recognize patterns in their behaviour and target them accordingly.
The data collected through geolocation tracking is often sold to data brokers, which are companies that compile, analyze, and sell consumer data to businesses for advertising purposes. These brokers aggregate information from multiple sources, including social media activity, app usage, and even purchase history, to create detailed user profiles. This data allows advertisers to segment users based on their habits, routines, and preferences. For instance, if a teen frequently visits a gaming arcade, a data broker might sell this information to gaming companies, which can then target the teen with ads for the latest video games or gaming accessories. In some cases, this data is so detailed that advertisers can even determine the times when users are most likely to be in a particular location, ensuring that ads are shown at moments when they are most relevant.
In addition to location tracking, social media platforms use behavioural targeting to refine the ads users see based on their interests and interactions. This means that the content a teen engages with, such as liking posts, following certain accounts, or watching specific videos, helps determine the types of ads they will be shown. For example, if a teen frequently watches videos about baking, follows dessert recipe pages, and comments on posts about new snack products, the platform’s algorithm may classify them as someone interested in food and beverages. As a result, they might start seeing ads for new snack brands, local bakeries, or limited-time promotions from fast-food chains. The more they engage with related content, the stronger the association becomes, making their ad experience even more personalized.
When it comes to ad delivery, social media platforms use a combination of geolocation and behavioural insights to determine when and where an ad appears. This means that ads are not just based on interests but also on a user’s physical location at a given time. If a teen opens their social media app during school hours, for example, they might see ads tailored to their environment, such as promotions for nearby cafés offering student discounts. Similarly, if they are near a movie theatre on a Friday night, they might receive ads for new movie releases or concession stand deals. This hyper-targeted approach ensures that ads reach users when they are most likely to act on them. For instance, if a teen walks by a fast-food restaurant and receives a push notification offering a 20% discount on their favourite meal, the combination of convenience and relevance increases the likelihood that they will visit the restaurant.
This kind of marketing is not just theoretical, it has already happened. For example, McDonald’s has previously used Snapchat geo-filters to target teens near high schools with promotional deals.
So why does this matters for parents, caregivers, and educators?
The ability of advertisers to target young users raises ethical concerns, particularly when it comes to food advertising. Research has shown that teens are highly susceptible to marketing influences, and targeted ads for unhealthy food can contribute to poor dietary habits. (3) Furthermore, the passive nature of data collection means that many teens (and their parents or caregivers) are unaware of how much personal information is being used for marketing purposes.
Parents and educators play a crucial role in helping teens navigate the digital landscape, starting with teaching digital literacy. Social media platforms are not just spaces for connection and entertainment—they are also powerful marketplaces for attention and data. Teens need to understand that the content they engage with, from the videos they watch to the posts they like, is being analyzed to shape their online experience. By explaining how algorithms prioritize certain content and how their engagement fuels advertising strategies, parents and educators can equip teens with the skills to critically evaluate what they see online. For example, discussing how a simple search for a pair of sneakers can lead to a flood of shoe ads across multiple platforms can help teens recognize the mechanisms at play.
One of the most effective ways to reduce ad targeting is by managing geolocation settings. Many teens may not realize that their location is being tracked even when they aren’t actively using an app. Parents and educators can guide them through the process of disabling location tracking on social media platforms and other apps to minimize data collection. This can include turning off GPS tracking, adjusting privacy settings, and limiting app permissions. For instance, showing a teen how to prevent an app from accessing their location when it’s not in use can significantly reduce the likelihood of location-based ads. Regularly reviewing these settings together can help reinforce the importance of digital privacy.
Beyond geolocation, it’s essential to discuss data privacy and the concept of a digital dossier, the collection of data points that companies compile about users over time. Teens should understand that their online behaviours, including the content they consume, the websites they visit, and even the apps they install, contribute to this digital footprint. This data can then be used to create targeted advertising profiles. Helping teens visualize this process, perhaps by demonstrating how data brokers work or showing real examples of ad targeting based on browsing history, can make the issue more tangible. Encouraging them to think before they click, avoid oversharing personal details, and use privacy-focused browser settings can all contribute to greater control over their digital identity.
Another key aspect of digital literacy is promoting critical thinking about advertisements. Teens should be encouraged to ask themselves why they are seeing a particular ad and what tactics are being used to grab their attention. For example, they can analyze whether an ad uses urgency, exclusivity, or peer influence to create a sense of need. A discussion about influencer marketing can also be valuable, helping teens recognize when a seemingly authentic recommendation is actually a paid promotion. By fostering a mindset of inquiry and skepticism, parents and educators can help teens become more mindful consumers of digital content.
Parents, caregivers, and educators can advocate for policy changes that protect minors from overly aggressive advertising, particularly in areas like unhealthy food marketing. Many advocacy groups and policymakers are pushing for stricter regulations on targeted advertising to young users, recognizing the impact that digital marketing has on teen behaviour. Supporting these efforts, whether by staying informed, signing petitions, or engaging in discussions with lawmakers, can contribute to broader systemic changes that prioritize youth well-being over corporate profits. By taking an active role in both education and advocacy, parents and educators can help create a safer, more transparent digital environment for the next generation.
By recognizing that social media platforms operate as attention and data marketplaces, parents, caregivers, and educators can better prepare youth to use social media with awareness, skepticism, and intention. Teaching youth and teens to navigate these platforms critically ensures they are not simply passive consumers but informed onlife participants.
Ultimately remember, when it comes to social media platforms and technology we are not their customers, we are their inventory!
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References:
1/ https://www.franchisewire.com/geofencing-secret-weapon-of-fast-food-franchising/
2/ https://www.business.com/articles/how-can-beacons-integrate-with-traditional-marketing/
