It was a revenue crash that few saw coming. In January 2020, YouTube dramatically changed the game for kids & family creators by disabling targeted advertising—a key monetization stream—on children’s videos to comply with COPPA regulations enforced by the FTC.

“Overnight, kids content creators lost 50% of their earnings on YouTube on average,” recalls Animaj co-founder Grégory Dray, who was working as the managing director of international for YouTube Kids at the time. To soften the blow, YouTube quickly launched a three-year, US$100-million fund to support the creation of original kids content on the Google-owned platform. But this measure had limited reach, and the fund ultimately benefited only a small number of creators, adds Dray.

Nevertheless, YouTube still dominates the kids entertainment scene, even in today’s challenging post-COPPA landscape. The average Gen Alpha child now spends up to 106 minutes a day on the platform, according to the 2024 edition of Precise Advertiser Report: Kids. But even with such a captive audience, getting the best returns these days takes more than just posting videos and hoping for the best.

UNDERSTANDING THE NEW NUMBERS

“In terms of viewership, you’re looking at multi-million views to be able to build any kind of revenue,” says TeamFalco co-founder and WildBrain Spark alum Nico Lockhart. A strong kids channel can have an RPM (revenue per mille—or 1,000 views—after Google has taken its cut) of US $1 or lower, notes Lockhart. More generally, creators typically earn anywhere from US$0.20 to US$8 per 1,000 views, depending on factors like video length and audience location—and children’s channels usually come in on the lower end of this scale. Audience geography is also a factor. “If you’re a heavily North American or European channel, you’ll get much higher ad rates,” Lockhart explains. “But in LatAm and Southeast Asia, the RPMs tend to be much smaller.”

Another big factor is seasonality, adds Charles Courcier, founder of Soupir—a Paris-based digital distributor that manages YouTube channels for kids shows including Grizzy & the Lemmings and Mystery Lane. He emphasizes the importance of developing a year-long YouTube strategy that prioritizes “peak monetization periods”—including October 15 to December 15, when RPMs are higher due to brands ramping up marketing efforts. Even certain days or weeks, like the third week of a month, can monetize better than usual. Setting realistic ROI expectations is key, notes Courcier. While YouTube is well-suited to monetizing an existing catalogue (as a second or third window) or launching low-cost, digital-first content, “if you’re aiming to fully finance a standard 52 x 11-minute series, it is not the right platform.”

AD CHALLENGES

At the top of the YouTube heap are a handful of kids companies (including Animaj, pocket.watch, Disney, WildBrain and Moonbug) with partner sales rights that allow them to monetize their own ad inventory and boost revenue. However, this requires an internal sales team that can establish a direct relationship with advertisers, as well as a large, steady audience. Animaj, for instance, generates 22 billion views on YouTube annually.

Dray says one possible solution is greater collaboration or consolidation among the big prodcos that have partner sales rights—something YouTube could help pave the way for with more support. “At least the companies that are successful at selling reservation media—securing ad placements at a preset rate—could aggregate more kids & family inventory at scale,” he suggests.

One of the broader challenges is that YouTube still struggles to effectively monetize its vast volume of kids content, Dray adds, estimating that kids & family content makes up 15% to 20% of all YouTube viewership. Meanwhile, the kids advertising market is valued at roughly US$4 billion, with half of that stemming from the US. “YouTube on its own cannot fill out the entire inventory,” he explains, adding that YouTube Shorts (which launched in 2020) have created even more inventory. Though these snackable clips have racked up huge viewership numbers, YouTube hasn’t yet found the right ad formats to monetize them effectively, says Dray. “The emergence of shorts has basically created even more inventory that is unmonetized.”

HOLISTIC VALUE

While YouTube may not be a reliable standalone income source, companies with very recognizable IPs—such as Miraculous Corp—are optimistic about the platform’s role as a brand ally that’s helping to expand franchises and even lift other revenue streams.

“Over the past year, we’ve launched 15 new Miraculous channels and entered several [underserved] territories,” says head of content partnerships and distribution Maria Doolan. She outlines a three- pronged strategy that encompasses publishing full episodes, building localized channels, and producing compilation videos to increase both watch time and ad inventory. “In parallel, original content continues to be a high-value driver of ROI, and we’re investing heavily in this area as part of our long-term strategy.”

As one example, the upcoming slapstick toon Miraculous Chibi (52 x three minutes) will launch on YouTube in Q4 before heading to other platforms, with Disney Branded TV and France’s TF1 having already bought the series for a 2026 rollout. Looking ahead, Miraculous is aiming to enhance monetization by leaning into new formats, including an original YouTube podcast launching later this year. It’s a timely move since YouTube has become the top platform for weekly podcast listening in the US (31%)—overtaking Spotify (27%) and Apple Podcasts (15%), according to 2024 Edison Podcast Metrics. Miraculous is also making YouTube Shopping a key pillar of its consumer products strategy, Doolan teases. “We’re beta-testing this feature [that] will enable us to offer more curated product selections, including limited-edition and exclusive drops.”

TO LIVESTREAM OR NOT TO LIVESTREAM?

While content livestreams can be monetized, opinions are mixed as to their benefits. Courcier says his data doesn’t show that livestreams significantly boost views/revenue on their own.

However, Miraculous Corp has embraced an “always-on” approach since launching its first livestreams in April. These have expanded into five languages so far, and the company plans to hit 20 by the end of the year.

“We’re seeing strong signals that our livestreams are positively influencing the algorithm and boosting performance across our channels,” says Doolan. While YouTube doesn’t charge a fee to host livestreams, in some cases, channels might need to invest in a third-party software solution to help with the technically complex process, notes Lockhart.

CRACKING THE ALGORITHM

To position a brand for the best possible returns on YouTube, consistency and volume are key—uploading content regularly keeps channels active in the algorithm. Longform content, such as one-hour compilations, can also become powerful revenue-drivers. “The longer the video, the more opportunities to insert ads—provided that the video can sustain enough watch time,” Dray notes.

Ultimately, a strong YouTube strategy includes a diverse mix of formats—shorts, themed compilations, livestreams and regular episodes—that collectively signal value to the algorithm. Lockhart points to some evergreen trends (like learning- and song-driven content) that perform reliably well on the kids side of YouTube. But his top advice for building a successful channel is to target underserved niches with content that feels familiar yet fresh. A perfect example of this is Gracie’s Corner (5.8 million subscribers), a channel that triggered massive growth by filling a gap for Black representation among musical and educational kids channels.

The best approach is to “find something where there’s a high volume of content, but do it better,” advises Lockhart. In the post-COPPA era, YouTube may no longer be the revenue engine it once was—but for creators and studios that treat it as a strategic tool rather than a sole income source, it still offers unmatched reach, discoverability and brand-building potential.

This story originally appeared in Kidscreen‘s Q4 2025 magazine issue.