Econometrics for a UK toy manufacturer

A hard to reach audience

In recent years there have been huge changes in the way that children and young people access entertaining content. Children now spend more time on the internet than watching TV, 75% using a tablet and the vast majority on YouTube.

This is a predicament for toy manufacturers that want to build loyalty and sell at a premium price point. Children can avoid advertising by watching Netflix or BBC iPlayer and can be swayed to cheaper products that reach them on YouTube.

With Annalect OMD London, we carried out a comprehensive modelling exercise to establish whether advertising on traditional TV was still worth it, how best to use channels like YouTube, and the role of TV programmes that air on Netflix as well as traditional TV.

Changing shopping patterns

Christmas is always a critical time of year for toy retailing and this project covered off a range of advice on how best to time advertising and promotions to maximise revenue.

That said, shopping patterns have been changing, with more parents buying toys online, and high street toy retailing in decline.

New toy manufacturers with a strong presence online have achieved some success, and the project identified which of their initiatives have been most successful.

We also examined our client’s own efforts to improve availability online including partnerships with Amazon.

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