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Brand Profile

Getting your digital shop in order

Tristan Brooks, managing partner at Havas Entertainment, looks at how toy companies need to embrace changes in the eCommerce world, and how they can access detailed data and sound advice.

I've had more eCommerce discussions with clients this year than any other and it’s no surprise with what’s going on in the market. Whether it’s optimising direct to consumer sites, scoping out TikTok Shop or needing to tidy up and grow the Amazon brand store, eCommerce has certainly been THE conversation. In challenging times, it makes sense for brands to focus on where they can take greater control over ROI, drive incremental growth and open new revenue streams - especially when high street retail has been slow for many.

There’s also growing noise from analysts speculating that we’re now entering a new era, with Chinese digital marketplaces like Temu and TikTok stealing share from the established platforms like Amazon, eBay and Google. Whilst it’s easy to get fixated on what’s shiny and new, toy companies perhaps need to take a more pragmatic approach, even in the fast-paced world of online retail where the evolution of marketplace and social commerce platforms, whilst inevitable, isn’t going to happen overnight.

The growing noise around TikTok Shop is a great example. TikTok has been very active marketing itself to the category, reaching out directly to toy companies with TikTok Shop being a core part of its evolving proposition.

So how should an advertisers approach TikTok and its eCommerce offering? TikTok and its fully integrated eCommerce offering is well worthy of exploration due to its scale and engagement. Firstly, marketers need to consider the platform itself, how have campaigns performed on TikTok to date, are the products right and on trend, or do they need to try something different and new? What are other brands doing in this space – both well and not so well?

The way TikTok has set up its offering, brands need to focus on three key pillars to launch a shop: creating and managing the store itself, media spend to pay for advertising to drive customer traffic to the store and an ongoing commitment to creating content tailored to TikTok to build momentum. Without media and creative working as one, the traffic needed to make this a success will simply not happen. It’s not something that can be hastily switched on either, needing a fully scoped out end-to-end plan. There are a lot of other factors to consider too; could launching a new commerce channel put strain on current retailer deals, and how will orders be fulfilled? Direct from the company warehouse or via TikTok’s fulfilment?

The reality is that TikTok Shop is in its infancy and may only work at present for the few who have relevant brands and deep enough pockets to dip their toes in to test.

TikTok Shop should not be a distraction from continuing to grow other established eCommerce channels like Amazon. We’d advise that funding for this should not be at Amazon’s expense, but should be seen as incremental. As Q4 fast approaches, we’d suggest a renewed focus on getting your Amazon stores in order as a priority.

Advertisers that have recognised the opportunity in Amazon through taking greater ownership of their content and advertising have thrived compared to their competition, stealing category share, while the more reserved have been slower to embrace change. Havas Market undertook a cursory audit of the category and found 9 out of 10 leading toy brands have significant opportunities to optimise their Amazon content and advertising, so there’s much to do (although there’s still time to make those changes in time for Q4). Many brands are yet to lean into Amazon Marketing Cloud, as well as data and tech available through Amazon to allow advertisers to increase performance. Amazon Prime Video now offers access to the size of audiences we were used to accessing on linear TV years ago, powered by in-market data to minimise wastage.

In summary, change is inevitable in the eCommerce world. It’s not only TikTok that’s bringing something fresh, but Amazon is evolving too. I would advise being wary of the hype and keeping your eye on what matters. Stay curious and where relevant, work with specialists who bring new expertise and thinking through their experience, talent, tools and technology to advise and help support your growth. Be prepared to embrace change, but make sure you underpin any strategy with a well thought through approach. There’s more data available than ever before, which can feel overwhelming. Often the best way forward is to lean into the experts to provide you with a clear path to growth.

If you need support or advice on any of the above topics, please do get in contact. tristan.brooks@havasmn.com.

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