Children dont convert ads to sales, they get their mommies to do that for them.

I'm not married nor do I have kids, but I have definitely seen the effects of a child desiring something. Often that desire comes from the influence of an advertisement.

I dont think online ads have traditionally targeted young kids much because there is not really a reliable means to focus in on them. The demographic can be very specific (as far as age range). Pikluk could be an new way to target a specific age bracket on the internet, which would be very desirable to advertisers.

I hear you about the legal issue of blocking ads and replacing them with your own though. People might have serious problems with that..

Well, an advertiser is pretty dumb if they are trying to sell something to an 8 year old without a credit card. I imagine that a more likely target is a corporation trying to brand a child, like with General Mills's http://www.millsberry.com/.

Sure - I agree. But as far as I see it's harder to get 'branding advertising deals', than results based advertising.