普华永道-儿童网络广告市场分析（英文）-2019.5-18页_1mb

Kids Digital Media Report 2019 Summary

Core Content

This report provides an analysis of the global kids digital media landscape, focusing on advertising trends, platform usage, regulatory changes, and the evolving role of kidtech in supporting safe and compliant content for children.

Key Market Trends

• Market Growth: The global kids digital advertising market is expected to grow at over 20% annually from 2018 to 2021, reaching an estimated $1.7bn by 2021.
• Shift to Digital: Brands are increasingly moving advertising spend to digital platforms due to the rise of digital consumption and the need for compliance with regulations.
• Compliance and Safety: Compliance with privacy laws such as COPPA and GDPR-K is becoming a priority for brands, with compliant digital content expected to grow significantly.
• Platform Dominance: YouTube remains the largest platform for kids digital entertainment and advertising, despite concerns around brand safety. It is projected to account for 25% of kids digital ad spend by 2021.
• Content Distribution: Kids digital ad spend is distributed across various platforms, including kids broadcasters, VOD platforms, YouTube, and social media.

Decline in Kids TV Audiences

• Decline in TV Consumption: Kids TV audiences are declining as children increasingly prefer digital alternatives.
• Fragmentation: TV reach and effectiveness are being eroded by the fragmentation of time across digital platforms like YouTube, Netflix, and games.
• Effectiveness: Despite growth, digital channels are not yet seen as as effective as TV in influencing product sales.

Kids Online Adoption

• Rapid Growth: 62 million kids globally went online for the first time in 2018, representing over 40% of the total net new internet users.
• Internet Usage: One-third of internet users globally are kids, and their online time is increasing, especially in the UK.
• Parental Concerns: Parents are increasingly concerned about safety and compliance for their children's online activities.

Regulatory Landscape

• Privacy Laws: Regulations like COPPA (US), GDPR-K (EU), PIS (China), and PDPA (India) are expanding to cover more children, potentially protecting up to 800 million kids by 2021.
• Enforcement: Significant fines have been issued in the US for non-compliance, with COPPA enforcement actions increasing in scope and severity.
• Global Impact: The expansion of these laws beyond Western markets is expected to increase the size and growth of the digital segment.

Advertiser Preferences and Challenges

• Key Factors: Advertisers prioritize safety, compliance, reach, and scale when choosing platforms to reach kids.
• Platform Preferences: Compliant digital content is expected to grow to 38% of the market by 2021, while YouTube and VOD/OTT will continue to dominate.
• Brand Safety Concerns: YouTube is seen as a key platform, but brand safety concerns persist, leading some brands to pause or reduce spending.

Investment and Innovation

• Investment Trends: There has been significant investment in the kidtech and digital kids sectors, with FAANG companies leading the way.
• Kidtech Solutions: A kidtech ecosystem is emerging to support brands in advertising to kids safely and compliantly, especially on YouTube.
• Content Investment: Major platforms like Apple, Disney, Netflix, and Amazon are investing heavily in subscription-based kids content, which is not ad-funded.

Market Forecast and Outlook

• Digital Share: The share of digital in total kids advertising spend is expected to grow from 15% in 2016 to 37% by 2021.
• Non-Digital Spend: Non-digital advertising is expected to grow at a slower rate, with digital advertising continuing to outpace it.
• Structural Tailwinds: The growth of digital kids advertising is supported by increased smartphone/tablet usage, performance marketing, and expanding privacy regulations.
• Potential Threats: Subscription platforms and screen time restrictions could limit the growth of digital advertising.

Conclusion

The global kids digital advertising market is set for significant growth, driven by increased digital consumption, regulatory changes, and investment in kidtech solutions. While YouTube and VOD platforms remain dominant, compliant digital content is gaining traction, and parental concerns are shaping advertiser strategies. The future of the market will depend on the implementation of new regulations and the continued evolution of kidtech tools.