The Kids Category: Some Assembly Required…

Robby Yung, CEO

Kids Don’t Sound Like a Good Market

• Short attention spans

• Kids are easily satisfied (implication: don’t want to buy IAP’s)

• Kids don’t have much (any) money

• You can’t advertise (COPPA)

There’s a Bright Side…• Kids are loyal (brands!)

• Kids are impressionable - they’re more open to trying new things

• Kids love to play and play and play, racking up sessions

• Kids drive parent’s spending

Brand Loyalty

Why Brands?• Attract interest from loyal fans / user

acquisition

• Organic growth

• Inspire loyalty

• Stand out in a crowded field

• Incentivise developers

Subscription ContentParents• A walled garden of kid-friendly

content • Deep content that can engage

for hours on end - unlimited play

• No IAP / not predatory • Straightforward pricing model -

strong value proposition

Developers• The model parents prefer • Free app - download rate higher

than premium apps • Higher LTV • Platform rebate - 15% • Recurring revenue

Advertising / COPPA

• Children 13 and under

• No data collection

• No targeting

• Ad screening (kid-friendly)

• EU will be the same in 2018 but for kids up to 16

$37bn

$37bn

$53bn

$37bn

$53bn

$18bn

$37bn

$53bn

$18bn

$37bn

$53bn

$18bn

$37bn

$53bn

$18bn

$180bn

COPPA compliant

ads

$37bn

$53bn

$18bn

$180bn