Market for children consumption is growing worldwide and hence the marketing effort. Marketers are keen to know the behavioural secrets to influence children’s consumptions. The promotional efforts are need to be more fruitful and focused, therefore imperative to understand the conceptual advertising literacy level of the targeted child consumers. In order to reveal the related facts, the study examines the conceptual advertising literacy level of children in India. In a computer assisted survey of 392 children between the age brackets of 8-12 years, the researchers examine their ability of advertising recognition, understanding of advertising selling intent and understanding of advertising persuasive intent regarding brand promotion efforts. Results confirm that advertising recognition and understanding selling intent is high in children but children do not acquire a clear understanding of advertising persuasive intent until the age of 9-10 years. Furthermore, children’s understanding of advertising’s selling intent emerges before their comprehension of its persuasive intent. KEYWORDS: Children, Advertising Literacy, Persuasive Intent, Selling Intent