COPPA 2.0 Is Coming: Transform Your Gen Z Strategy

Kidoz recently published a press release announcing our strong support for COPPA 2.0, the updated Children’s Online Privacy Protection Act.

The recent approval of COPPA 2.0 by the US Senate marks a pivotal shift in online advertising regulations, particularly impacting the way advertisers reach audiences under 17. When the updated Children’s Online Privacy Protection Act takes effect, companies like Kidoz, which specialize in safe and contextual advertising, are poised to see significant financial growth.

The Advertisers’ Perspective: A Shift in Ad Spend Towards In-Game Advertising

Advertisers are investing heavily in reaching teenagers through targeted ads on popular social media platforms like TikTok, Instagram, and Snapchat.  However, with COPPA 2.0 prohibiting targeted advertising for users under 17, this approach becomes less viable.

According to eMarketer, digital ad spending targeting U.S. teenagers was approximately $1.8 billion in 2023. With the new regulations, advertisers may need to redirect a significant portion of this budget to safe and compliant platforms.  This shift presents an opportunity for Kidoz, which already offers contextual advertising that aligns with COPPA 2.0’s guidelines.

As social media platforms face restrictions, advertisers are likely to explore alternative avenues, such as in-game advertising.  According to Newzoo, the global in-game advertising market was valued at $56 billion in 2023, with substantial growth expected as advertisers seek new ways to reach young audiences.  Kidoz, with its advanced technology and established presence in the gaming sector, is well-positioned to capture a share of this expanding market.

“Smart advertisers are already recognizing the shift and moving budgets to mobile games to establish their presence with Gen Z before the inventory becomes crowded and advertising rates increase,” said Jason Williams, CEO of Kidoz.

The App Owners’ Perspective: Higher Dependency on Safe Advertising

App owners are now obligated to adopt safe and contextual advertising solutions for all users aged 17 and under, significantly increasing the number of users subjected to such advertising.  This compliance requirement not only aligns with Kidoz’s offerings but also expands the potential user base for its services.

As of 2023, approximately 40% of app users globally are under the age of 17, according to Statista.  This demographic is a critical segment for app developers and advertisers, particularly in categories such as gaming, education, and entertainment.  With the enforcement of COPPA 2.0, app developers will need to ensure that their ad strategies comply with the new regulations, driving demand for Kidoz’s compliant advertising solutions.

Financial Implications for Kidoz

The mobile device penetration rate for teenagers over 13 in the U.S. is roughly 90%, according to Pew Research Center.  This demographic is highly engaged with mobile games, making it an extremely valuable market for advertisers.

With the new regulations, advertisers may need to redirect a sizable portion of this budget towards safer, compliant platforms.

“With COPPA 2.0 set to reshape the landscape, Kidoz management expects future revenue growth as the Company expands its market share amongst advertisers seeking safe, contextual targeting options,” concluded Jason Williams, Kidoz CEO.

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