Opinion - Generation Media

Digital trends 2022: The story so far…

Felix examines the latest trends in the digital space and how these can be used to the advantage of toy companies when considering their marketing plans.

2022 will see the Toys & Games market spend record volumes on digital marketing. So what trends do marketers needs to be aware as they immerse their brands in the digital ecosystem, and how should these inform strategy when communicating with children and parents?

Meta Meta Meta!

As the prevailing hot topic of late-2021, the Metaverse is becoming increasingly relevant to active marketing conversations and business directions. Notably, Disney has appointed an executive to oversee its metaverse strategy. The role will focus on developing Disney’s narrative and storytelling within the metaverse, alongside looking at innovative technology solutions to bring its history into the virtual world. Investment levels continue to increase worldwide, with billions of dollars being set aside. Facebook owner Meta is said to be investing over $7.4b on infrastructure and tech. This may come as a surprise to some; there has been a large drop in Facebook shares since its re-brand, but experts expect any revenue loss to be recuperated through a rise in ad expenditure driven predominantly through short form video content in 2022. Entering the virtual world can seem daunting, but brands are already there. It’s time to seize the initiative and start bringing your brands and characters from the physical world into the virtual.

NFTs and Crypto

Across 2021, we saw a large increase in the use of nonfungible tokens (NFTs) and this usage is only moving in one direction in 2022. The value attributed to digital assets and pieces of art is now viewed in its own right as a tangible commodity. It is predicted that over the next three years, in Europe alone, the market for tokenised assets will be worth £1.1 trillion. The tokenisation of assets from virtual and physical products is formed when sensitive data is converted into a token that stands in place for the more valuable product. Across the globe, brands have taken notice of this rise and are starting to form their own NFTs and crypto exchanges. A key example, prevalent in the USA, is trading cards. Users sign up to crypto providers to buy rare basketball and other collectible trading cards, creating another arm of their business. This can be replicated easily across multiple other fields including fashion, toys, collectibles and more. Consider your business, brands and characters and look out for opportunities to expand your digital currency.

Video adaptation

Whereas previously the ‘year of mobile’ was the steadfast topic, 2022 is the ‘year of video’. Unlike other areas, digital did not see an annual drop in advertising spend. A key reason for this was the rise of eCommerce but also the impact of video. We are yet to see the IAB’s H2 report from 2021 but given the increase of 49% in H1 2020 to 2021, we can confidently predict another rise. The UK’s digital spend in H1 2021 equated to a staggering £10.5b. Elements of video that is being brought more into mainstream (outside of the utilisation of short form on social) are the direct response and shoppable elements. Global eCommerce sales grew by nearly 30% last year and part of that rise was driven by online content becoming more ‘shoppable’. Social platforms have been a large driver of this, with brand stores directly integrated and the ability to click through connected TVs. Brand placement in content and clear calls to action, with adverts accompanying the video, allow users to watch the product in motion, then direct straight to purchase. Once toy brands establish stockists or their own eCommerce site solutions, it is a must have, especially when sales is the core KPI for video.

Eco awareness and brand responsibility

Across the globe brands are being questioned on their commitment to planet earth and future generations’ wellbeing. Within the UK, Extinction Rebellion continues to try and raise awareness and has moved from being a fringe cohort to a mainstream issue. Carbon credits can now be exchanged and offset against advertising and business decisions. Google is driving a movement across this field; supporting small business in understanding their impact on the environment and how they can start to rectify their actions. Adopting easy-to-remedy solutions, such as recycling packaging and greener distribution routes, is a start but other eco-friendly initiatives are also taking off. Aligning with sustainability will be key to brand reputation in the years to come, and taking affirmative action to promote this as a business will not steer you wrong in this climate. We’ve already seen toy brands taking initiatives, particularly in the creation of their products using recycled materials and within their packaging: the more than can be done, the more stand out the brand will have.

Tel: 0207 307 7906 felix.lewis@generationmedia.co.uk