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PwC: Kids digital ad market to reach $1.2 billion by 2019

On the heels of receiving US$21 million in Series B funding, SuperAwesome CEO Dylan Collins explains why investment opportunities abound in the growing kids digital ad market.
September 11, 2017

As kids continue to up their digital media consumption, brands are following in formidableand fastfashion. According to a new report from PwC, the global kids digital ad market is expected to reach US$1.2 billion by 2019, with digital spending reaching 28% of total kid-focused advertising spend in the sector.

Commissioned by UK-based adtech company SuperAwesome, PwC Kids Digital Advertising Report 2017 finds that the under-13 digital media market is currently seeing 25% year on year growth.

As the online ad market grows, so too do concerns surrounding data privacy. Increasing data privacy requirements for kids’ activities onlinealready in effect by the US Children’s Online Privacy Protection Act (COPPA) and Europe’s new General Data Protection Regulation (GDPR)continue to drive demand for compliant digital media technology. PwC expects that a more streamlined kidtech with specialist platforms and technology that combine data privacy with extremely large-scale audience reach will evolve. In fact, PwC estimates that 10 to 20% of kids digital ad spend will be on compliant programmatic advertising by 2019.

“Our position in the kids market is that the more technology we get out there, and the more safety we enable, the greater number of dollars will come back into the market,” says SuperAwesome CEO Dylan Collins. Reaching 500 million kids monthly across mobile, web and online video, SuperAwesome’s tech ensures kid-safe advertising and  COPPA compliance for brands and publishers like LEGO, Warner Bros, Hasbro, Disney and Cartoon Network. “We want to have a much stronger ecosystem for kids and developers so they can be more sustainable, and then we can see more kids entertainment success stories over the next 12 to 36 months.”

Collins’ ambitions are being backed by a new US$21-million Series B investment round, which SuperAwesome received from Mayfair Equity Partners this month. SuperAwesome plans to use the funds to grow and improve operations, as well as expand geographically. The North American market, in particular, is a major target.

“The US has become our fastest-growing market. It is now our biggest by revenue for the entire company,” says Collins.

“I think many investors haven’t had a lot of exposure to the kids space, so it’s not on anyone’s radar. Although, I would say increasingly over the past 18 months that has really started to change,” he adds. “The digital kids space is really something people are starting to realize is one of the next big opportunities for investment.”

About The Author
Alexandra Whyte is Kidscreen's Online Writer. Contact her at awhyte@brunico.com

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