WASHINGTON – Advertising junk food on television has enticed children into unhealthy eating, leading to a sharp increase in obesity and diabetes, according to a report issued yesterday by a prestigious national science advisory panel.

Reporting to Congress, the Institute of Medicine, a government-chartered institution, said most foods and beverages marketed to children are high in calories, sugar, salt, and fat and low in nutrients. It called on the industry and restaurants to create more healthful products – and shift advertising to promote them. Congress should consider encouraging the industry with awards and tax breaks – but if necessary, step in and mandate changes, especially for ads aired on TV.

“This is a public health priority of the highest order,” the institute said, citing a tripling of childhood obesity in the past 40 years and a doubling in the last decade of Type 2 diabetes cases among children and youth.

The institute found that children between age 2 and 15 currently influence about $500 billion of purchases a year, compared with $295 billion in 1993. In 2004, food and beverage companies spent an estimated $10 billion to market foods to America’s youth and the number of new food products aimed at kids is growing at a far faster rate than food products in general.

The long-awaited report represents a consensus of a panel of 16 members who came from varied backgrounds: nutritionists, advertising and marketing experts, child and adolescent development professionals, and entertainment executives. Panel members, in interviews, said they were surprised they were able to agree on their strong findings, given that wide divergence of backgrounds.

The American Advertising Federation, which represents food marketers, advertising agencies and media firms, criticized the Institute for failing to note many of the changes food companies have made in the past year. Some fast-food restaurants such as McDonald’s, are offering kids more healthful alternatives, including milk and apples. Pepsico Incorporated has mandated that half of its new products be healthy, while Kraft Foods Incorporated announced this year that it will stop advertising its less nutritious products on television and radio and in magazines aimed at children under 12. Many food companies have also sponsored fitness campaigns and curriculum at schools and youth clubs.

“It’s disconcerting that the report doesn’t bother to recognize the specific industry initiatives that have been under way for the past year to combat childhood obesity,” the federation’s president, Wally Snyder, said.

The institute’s report was based on more than 120 studies of the effects of marketing It noted that most of these studies focused on television ads, although every year they account for a smaller proportion of marketing as manufacturers turn to other strategies, including Internet advertising, mobile phone ads, product placement in movies and video games and viral marketing, or trying to create buzz about their products. In fact, the study said, only 20% all food and beverage marketing in 2004 was devoted to traditional TV, radio, print, and billboard marketing.

Many marketing dollars are instead going to product placement, in school marketing, special events marketing and licensing popular characters to sell products – for instance, Sponge Bob Squarepants in ads for candy, Spiderman in ads for Pop-Tarts and Winnie-the-Pooh in ads for sugared cereal.

The institute said that such popular characters should only be used to promote products that support healthful diets. At the same time, television, and other entertainment media should incorporate storylines that promote healthful eating.