The independent study of the "commercialisation of childhood" comes in response to ministers' alarm at research suggesting children recognise 400 brands by the age of 10.
Commissioned by the Department for Children, Schools and Families (DCSF), the review covers all aspects of how children come into contact with brands, including media and entertainment, marketing and promotion, commercial websites and sponsored events.
It will be headed by Professor David Buckingham of London University's Institute of Education who has promised to look at the "positive aspects" of children's involvement with the commercial world as well as the negatives.
Ed Balls, the DCSF secretary of state, said: "I want to know if advertising and shopping, and other influences such as media and entertainment, marketing and promotion, commercial websites and sponsored events are affecting our children's lives in any way. I want to know what these things are telling young people about how to behave and what to believe."
Baroness Peta Buscombe, the chief executive of the Advertising Association, which will give evidence to the review, said that it was an opportunity for the industry to demonstrate that its codes are working.
She pointed out that a "pester power" ban in the codes would become statutory in May as part of a new consumer protection law.