4 minute read
Opinion - Generation Media
Embracing the digital evolution in the toy industry
Tyler Milner explores how media consumption trends, especially among younger generations, are driving changes in media strategy and spend across channels and platforms.
IThe toy industry is undergoing a digital evolution. Media consumption habits are changing across all age groups, but particularly among younger generations who quickly adapt to new technologies and platforms. As toy marketers, we must also adapt our strategies to align with these changes to both stay relevant and ensure our media is as effective as can be.
Digital is dominating
Year-on-year investment growth in digital media is not a new trend. The IAB (Interactive Advertising Bureau) estimated that the total digital ad market spend across all categories was £29.6b in 2023, an +11% increase year-on-year (similar to the previous year's growth). However, the Toy market has seen this increase accelerated much more: younger generations are more comfortable and engaged with digital media due to being introduced at a young age. Consequently, there has been a significant shift in media budget allocation over the last few years. Until 2022, the majority of media spend in the category was on linear TV, as this was where the viewers were. However, in 2023 digital now dominates. We estimate that 64% of the category's spend is now directed towards digital channels, a trend expected to continue into 2024 and beyond.
The big screen persists, but with a digital shift
While linear TV viewership is declining, kids and parents are not abandoning the big screen completely.
Instead, the emergence of smart TVs is driving a shift towards on-demand services such as Disney+, Netflix and YouTube. We have found that 68% of YouTube ads for kids' content were seen on the big screen in Q1 2024, up from 56% in 2023. This is advantageous for marketers as we can reach these same audiences through Connected TV (CTV) using advanced targeting that we are accustomed to in digital, making it much more cost effective. By adopting this devicebased approach (with contextual targeting), we are more able than ever before to replicate the impact of linear TV from 10 years ago, delivering advertisers’ messaging en masse on the biggest preferred screen in the home.
Short form content and gaming:
the new frontiers Younger generations are increasingly gravitating towards short form content. They use multiple platforms such as TikTok, Instagram Reels and YouTube Shorts as their primary sources of entertainment. Giraffe Insights data shows that YouTube remains the most popular platform, particularly with younger children, but TikTok is gaining popularity with older kids and is twice as popular with kids aged 11-12 than with those aged 7-8. Similarly, gaming is a significant source of entertainment, playing a pivotal role in the daily habits of young people. Looking at children aged 7-9 as an example, we see over 75% play games regularly, with 50% of boys playing for 10+ hours per week.
With children spending considerable time on social and gaming platforms, media strategies should focus on creative and interactive content that connects with their audience in a fun and authentic way. At Generation Media, we work with digital partners who not only ensure a brand-safe route into gaming, but also showcase the greatest innovation in the market to ensure advertisers continue to test - and win - in this ever-evolving space.
Embracing innovation and testing
Given the digital dominance we’re witnessing in 2023 and H1 2024, it’s essential that advertisers take a digital-first approach to planning. The digital landscape is constantly evolving, so it’s important to stay up to date with trending platforms, content and formats. CTV, short form video platforms and gaming are the current growth areas, but as new platforms emerge, advertisers should be willing to experiment and test. Newer formats often deliver better results by enabling brands to differentiate themselves more effectively.
It is imperative for brands to keep up to date with the latest and greatest trends in kids’ and parents’ media (digital and beyond). Generation Media can organise a free innovation workshop to explore how 2024-2025 plans can be transformed by new and effective ideas.
Contact@generationmedia.co.uk
