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Kids brands are shifting dollars into their digital ad buckets, say industry insiders, which is good news for category leaders Nick.com, Disney.com and CartoonNetwork.com.

But at the same time, per buyers, the digital kids space is far more competitive than just a few years ago, as virtual worlds and kids-oriented ad nets attempt to corner market share. Also, non-ad-supported outlets like the iPhone and the Nintendo Wii continue to siphon away kid hours.

Unlike the general market, the online kids ad segment has been historically dominated by TV players Nickelodeon, Disney and Cartoon Network. But according to sources, between 50 percent to 75 percent of dollars being spent on kids Web properties these days are not part of integrated TV packages—a significant shift from recent years.

Read the full story on Media Week