The segment is experiencing accelerated growth, driven by the new role of children in family consumption decisions. Companies like Netflix, Disney, and LEGO are already investing in specialized technologies to connect with these audiences safely and effectively.
Digital Advertising targeting kids U18 has become one of the fastest-growing segments in Latin America, with an estimated market of US$380 million this year. Behind this expansion lies a key shift in household consumption behavior:Minors no longer only influence purchasing decisions, but also make and manage their own money.
“Our studies reveal that 8 out of 10 parents recognize their direct impact on household purchasing decisions,” explains Demian Falestchi , CEO of Kidscorp, a pioneering company in the development of advertising technology for children and adolescent audiences in the region that this year projects to invoice US$ 15 million , 25% more than in 2024. “The most influenced categories include toys, entertainment, technology, fashion, food and travel.”
Market growth is a response to a structural transformation in consumer habits. According to industry data, one in three online users is under 18 years old, and most content is consumed through digital devices, spaces where specialized advertising solutions have traditionally been lacking.
“Ten years ago, we saw a clear need: as children migrated from TV to connected devices, there was no solution to reach them. Not even Google had it figured out,” Falestchi recalls, referring to the beginnings of Kidscorp in 2015.
The company, which started with an initial investment of US$75,000 from friends and family, works with more than 500 global brands such as Disney, Mattel, Netflix, LEGO, Adidas, Mercado Pago and Pepsico, as well as major advertising agencies such as Publicis, IPG, WPP Media, Dentsu, Havas and Monks.
Specialized technology for a regulated market
The main challenge in this market lies in regulatory complexity. Legal restrictions on collecting personal data from minors have required the development of specific technologies that allow audience segmentation without compromising children’s privacy.
“We’ve been using artificial intelligence, machine learning, and data mining for years to optimize our algorithms and data analysis, to segment and measure advertising without having to collect personal data from minors,” explains the CEO.
The Kidscorp platform works as a DSP (Demand Side Platform) that allows you to plan, activate, and measure digital campaigns with omnichannel reach, operating in environments such as YouTube, apps, games, connected TV, and Roblox. The system segments by age, gender, interests, and habits, complying with the highest privacy standards.
The company has maintained double-digit growth over the past five years, remaining profitable since its inception. In 2019, it received an investment from the largest company in the sector in the United States and Europe, but later repurchased the stake to maintain its independence when the investors were acquired by Epic Games.
“We were born with bootstrap DNA: we focused on independence, agility, organic growth, and a long-term vision,” Falestchi notes. To date, the company has invested around US$18 million in research and development.”
Currently, Kidscorp operates throughout Latin America, with a main presence in Mexico , Brazil , Argentina , Colombia, Chile and Central America , in addition to managing clients in the United States , Europe , the Middle East and Africa.
New opportunities and challenges
For the remainder of the year, Kidscorp presents a strategic innovation:the possibility of connecting in an integrated way with the entire family, not only with those under 18, but also with their parents.This expansion responds to the need for brands to build more coherent ties with those who truly influence and decide in the home.
“At Kidscorp, we engage parental audiences not based on their demographic profile, but rather on what they represent: moments, emotions, and actions that directly impact family dynamics,” explains Falestchi.
The executive projects that the advertising industry for U18 audiences will face greater regulation and specialization in the coming years, with artificial intelligence playing a key role in campaign automation, always within frameworks that prioritize children’s privacy.
“Only those who can make their margins by offering real and measurable value will survive.”, anticipates the CEO, who believes that the market is moving toward simpler and more direct structures, with fewer intermediaries and greater transparency.
