The study investigates children's understanding of television advertising, with emphasis on differences between children of different ages (6- to 11-year-old children). Forty-two focus groups were conducted and grounded theory analysis was employed to discover, analyze, and discuss the findings and their implications. Findings suggest that children view advertising as more complex than has been suggested by perspectives employed by previous research. Overall, a positive relationship was found between age and understanding of the aims of advertising. None of the 6- to 7-, only a few of the 8- to 9-, and most of the 10- to 11-year-old children understood the role of television advertising. Topics such as sponsorship or the source of television advertising seemed to confuse children in all age groups. Only a minority of children in the older age group recognized the persuasive intent of television advertising. © 2010 Wiley Periodicals, Inc.