Yes there are advertisements in the YouTube Kids app. These are marked as ‘Ad’ and are preceded by an ad intro. Advertisements on YouTube Kids like all of the other content are targeted specifically at children. They also adhere to YouTube’s advertising policies which excludes items like drinks and food. There will be toy adverts. If you subscribe to YouTube premium you will have the option of removing adverts.
Along with this benefit you will also have the option of downloading online content for offline viewing and the ability to watch videos in the background while other apps are playing. YouTube Kids collects information around your child’s viewing. This will inform the types of advertisement and suggested videos they encounter.