4 minute read
Opinion - Generation Media
Where have all the children gone?
This month, Jonathan looks at the importance of having the correct data available to make the most efficient decisions for a media plan, in order to compete for attention within a pool of children at an almost 20 year low
In challenging times, there are a multitude of internal and external factors to be considered when it comes to economic decisions. Cost of living, transportation costs, labour shortages, the list goes on, and all have varying degrees of impact on business success. One thing that is often overlooked however, probably because there is nothing that can be done on a business level to impact it, is shifts in population.
Population dynamics affect all aspects of the economy. Given that one of the principle factors in driving this is the birth/fertility rate, it stands to reason that the toy industry will feel this effect more keenly than most, both positively and negatively. According to the Office for National Statistics, in 2021 (the last available census data), the number of 0-4 year olds in the UK was c.3.58m, the lowest point since 2006. The 0-4 year olds of 2021 are prime “toy age” in 2023-2024, meaning there are far fewer for toy brands to target. In fact, BARB reports that there are c.2.16m 4-6 year olds in the UK currently, which is an 11% decline versus the same point 10 years ago (Jan 2024 vs. Jan 2014). Compare this to the US, where US Census Bureau estimates place the 0-5 population at c.74.6m in 2024, a 1.4% increase versus 2014. Looking at mainland Europe, whilst comparable statistics aren’t available, the number of children under the age of 14 in Germany has increased to 11.14m in 2022, a 13% increase versus 2012.
Arguably, UK toy marketers have a tougher job than their international counterparts based purely on numbers. But what about mindset? Kids Growing Older Younger was a narrative used often in the last decade, and we have seen that more money has been spent on apps and video games for older kids. According to the Childwise Monitor 2023, children aged 7-8 in the UK received an average weekly income of £3.80 (pocket money and handouts). 54% of this same age group reported that they used this income to purchase toys. There are however a significant and growing number of categories that feed into their considerations, such as:
• Sweets and chocolate: 42%
• Computer/Console games: 20%
• Sports gear and equipment: 19%
• Clothes: 19%
• Going out (e.g. cinema): 16%
• Footwear: 11%
That’s a large number of core categories to compete with for kids spend. Coupled with the shifting population dynamics, it all adds up to having to invest advertising budgets more effectively than ever before - compounded further by factors such as cost of living, inflation, media budgets, etc. referenced upfront.
When planning 2024 marketing activity, it is more important than ever before to ensure that plans are as robust as possible. Not only from a cost efficiency point of view, but also targeting efficiency. The most effective way to do this is to ensure that all marketing activity is underpinned by children and parent specific research that has a direct impact on advertising.
For example, we know that YouTube is the primary source of video entertainment for children globally, but we cannot officially measure children’s impressions or views online due to COPPA and GDPR-K regulations. Therefore, it can often be easy to build a plan which offers incredibly low costs per view on YouTube as there is little way of verifying the end user. At Generation Media, we leverage regulatory compliant, contextual data, from Giraffe Insights’ Kids and the Screen study. This allows us to use our Children’s Data Management Platform to understand the channels and videos which are most popular amongst children’s demographics and design bid strategies around this. Without such unique data, there is a myriad of wastage and brand safety concerns to navigate.
This principle should also be applied to all aspects of marketing. Do you have the correct data available to make the most efficient selections and decisions before approving your next media plan? If not, how are you going to compete for attention within a pool of children at an almost 20 year low, whilst also competing against other categories for spend? For more information on how to better leverage your data to generate results, or how to improve the level of data you have access to, get in touch today.
