Jun 11, 2019

Children's advertisers move their business away from YouTube

Reproduced from a PwC chart; Chart: Axios Visuals

A new report out Tuesday from PwC finds that by 2021 more children's advertisers will shift their budgets away from YouTube and channels that are non-compliant with children's privacy laws.

Why it matters: Almost a billion kids will be covered by digital privacy laws by 2021 around the world, thanks to new regulations being introduced in Europe (GDPR Kids), India (PDPA) and China (PIS), per the report, commissioned by SuperAwesome, a platform used to power kid-safe technology.

Be smart: This will intensify as regulators globally commit to children's privacy law enforcement. The FTC said earlier this year it will seek to extend liability to individual executives in companies acting illegally.

Yes, but: The report finds many of the major content services that have dedicated, vetted content for children are subscription-based, like Netflix, Disney+, Apple and Amazon.

  • "For the media companies, big winners in kids sector are those investing in advertising-based video on-demand services (AVODs), like Viacom," says SuperAwesomeCEO Dylan Collins.

By the numbers: The report estimates that kids digital ad spend will reach $1.7 billion worldwide by 2021, roughly 37% of total kids ad spend. This number projected to grow even further as more investments are made in kids tech.

  • To date, YouTube is the largest kids digital entertainment and advertising platform. While YouTube Kids has gained some traction with children, the report finds that the app has had little traction with advertisers to-date.

Go deeper: YouTube CEO apologizes to LGBTQ community but defends actions

Go deeper

Centrist Democrats beseech 2020 candidates: "Stand up to Bernie" or Trump wins

Bernie Sanders rallies in Las Vegas, Nevada on Feb. 21. Photo: Mario Tama/Getty Images

Center-left think tank Third Way urgently called on the Democratic front-runners of the 2020 presidential election to challenge Sen. Bernie Sanders on the South Carolina debate stage on Feb. 25, in a memo provided to Axios' Mike Allen on Saturday.

What they're saying: "At the Las Vegas debate ... you declined to really challenge Senator Sanders. If you repeat this strategy at the South Carolina debate this week, you could hand the nomination to Sanders, likely dooming the Democratic Party — and the nation — to Trump and sweeping down-ballot Republican victories in November."

Situational awareness

Warren Buffett. Photo: Daniel Zuchnik/WireImage

Catch up on today's biggest news:

  1. Warren Buffett releases annual letter, reassures investors about future of Berkshire Hathaway
  2. Greyhound bars immigration sweeps
  3. U.S. military officially stops offensive operations in Afghanistan
  4. America's future looks a lot like Nevada
  5. Centrist Democrats beseech 2020 candidates: "Stand up to Bernie" or Trump wins

America's future looks a lot like Nevada

Illustration: Sarah Grillo/Axios

Today's Nevada caucus will foreshadow the future of American politics well beyond 2020.

Why it matters: The U.S. is in the midst of a demographic transformation, and the country's future looks a lot like Nevada's present. Today's results, in addition to shaping the 2020 race, will help tell us where politics is headed in a rapidly changing country.