Federico Grinstein

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On March 3, 2016, Federico Grinstein commented on YouTube Kids: The start of a new trend for kids’ online consumerism? :

Thanks Swati for this blog post – I didn’t know YouTube Kids before and will definitely use with my nieces/nephews.

On the business side, I agree with your analysis in regards to the incredible opportunity that exists in monetizing how much kids will be increasing their time in online devices. Specifically in terms of advertising, the difference in investment that companies do for targeting kids is astonishing: it is rare to find online ads that target this segment. I think there is an incredible opportunity in monetizing ads for kids, and probably it will not just be in regards to platforms like YouTube but for entire devices like the Fire version for Kids. In regards to a potential subscription-based model for YT kids, as someone that comes from an emerging market, I always find it a bit challenging to believe that such model would work when there’s so much free content available out there. I still have not met a single person that pays for YouTube Red, but it will be interesting to see how that changes as they incorporate unique features/content – specially in developed markets where users have a higher willingness to pay. I imagine also that parents will be more willing to pay for contents for their kids than for themselves, so my thoughts might be incorrect.

In regards to policy, we have all seen how Google has adapted to the multiple policies around the world. I do not think that restrictions in the kids’ segment (specially if they already affect ads in other media) will have a severe impact in their revenue. However, as long as restrictions that exist in TV or radio are not present in online, Google should definitely capitalize these differences to attract more advertisers.

Finally, I do wonder however if Google is the right company to tackle this opportunity. Google knows its users very well – young adults, or adults searching for specific things in their browsers, and they can feed them targeted ads. However, Google does not know kids at all. And their employees have never served them before. Maybe partnering with other companies that work with the segment (such as Media companies like Disney) could allow them to understand kids better and develop a solution that could prove profitable.