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- Ecomdigest Toys Newsletter - 09.19.2024
Ecomdigest Toys Newsletter - 09.19.2024
PLUS: Can Innovation Revive the Slumping Toy Industry's Stock Performance?
Specialty Bites 🍪
Disney and Topps have expanded their trading card deal to include global distribution of Disney, Pixar, and Marvel cards, alongside Star Wars. This collaboration will feature both physical and digital cards, with new Marvel collections launching in Q1 2025. The partnership aims to enhance the fan experience worldwide.
FINANCE & TOYS
Toy Innovation: Can It Revive Stock Performance?
Toy companies have been facing some challenges. Despite some optimism for 2024, the industry's still facing a slump. Hasbro and Mattel both predict a slight downturn, and investors aren't exactly throwing confetti. The average price-to-earnings ratio for toy stocks is a measly 12.3x for 2024, compared to the S&P 500's 22.6x. Historically, toy stocks have been a safe bet during economic downturns, but not anymore. Why? Lack of innovation, plain and simple.
Remember the good ol' days of He-Man, Trivial Pursuit, and Cabbage Patch Kids? Those were the times when toy companies knew how to spark joy even in a recession. Fast forward to today, and what do we get? More Transformers and Minions. Yawn. The pandemic and the Toys R Us bankruptcy haven't helped either, stifling creativity and limiting retail space for new ideas.
But let's not write the obituary for the toy industry just yet. It's resilient, filled with smart, entrepreneurial businesses who can turn things around. When innovation finally makes a comeback, investors might just rediscover the defensive charm of toy stocks. Until then, we'll be waiting for something truly exciting to hit the shelves.
BUSINESS PARTNERSHIP
Bonkers Toys Partners with Canspan BMG for Q4 Digital Marketing
Bonkers Toys has enlisted Canspan BMG for its Q4 digital marketing, following a successful Aphmau campaign. Dan Meyer of Bonkers Toys praises Canspan's strategy and results. Jamie Berman of Canspan is excited to work on popular brands like Skibidi Toilet and Ninja Kids. Products are available at major retailers.
BUSINESS INSIGHTS
Exciting First Year for Xplore Brands: A Promising Future Ahead
Xplore Brands had a challenging yet successful first year, securing strong selections and innovative products for autumn-winter. Rebranding accelerated growth and broadened opportunities. Exciting new launches include Bitty Boomers, My Arcade, and Tubbz. The company is moving to a bigger office and showroom, anticipating further success.
Performance Platters 🍽️
DIGITAL MARKETING
New report reveals essential digital marketing trends for 2024
Fospha's latest report, "The State of E-Commerce H2 2024", reveals crucial trends that will shape your marketing strategy. What's inside:
📱 How the major platforms' KPIs have trended in 2024, and where you should be investing.
🚀 How to access Paid Social's huge scaling potential.
✨ The most effective Google channel of 2024.
🎯 Full-funnel strategies for Meta, TikTok and Snapchat
Let's break down the platform-specific insights:
TikTok: Emerging as a powerhouse for efficient new customer acquisition
Meta: Maintaining strong performance with competitive CAC
Snapchat: Experiencing rapid growth, particularly effective during peak shopping periods
"These findings underscore how impactful platforms like Meta, TikTok and Snapchat continue to be for driving sales - yet how underinvested they remain. It's incredible to see that brands can triple spend in Paid Social before becoming unprofitable. Success now lies in diversifying across the entire funnel, understanding the nuances of each platform, and continuously optimizing to unlock more scaling potential."
DIGITAL MARKETING
TikTok: The New Frontier for Toy Marketing
TikTok is revolutionizing toy marketing with its vast reach and engagement-driven algorithm. Brands can go viral without hefty budgets, leveraging user-generated content and trends for authentic promotion. Key strategies include maximizing ads, choosing the right creators, and continuous analysis. Now is the time to join TikTok Shop.
WPP and Coca-Cola topped the 2024 Cannes Lions creative charts, with Coca-Cola winning 17 awards. WPP was named Creative Company of the Year. Heineken and Apple followed in the rankings. The United States was the most creative country. The LIONS Creativity Report highlights impactful creativity driving growth.
ECOMMERCE INNOVATION
Shopify and Roblox Partner for In-Game Shopping Revolution
Shopify partners with Roblox to integrate in-game shopping, allowing brands to sell physical items directly within the game. This collaboration targets Roblox's 80 million daily users, with a full launch in 2025. Shopify's president highlights the endless possibilities, emphasizing the future of immersive commerce in the digital world.
MARKETING INSIGHTS
Five Trends Shaping Brand Collaborations Today
We Are Social's new study highlights five trends reshaping brand-creator collaborations: creators reinventing themselves, relatable realism, influential allies, credible creativity, and extreme influence. Brands should adapt to these shifts, partnering with creators through lifestyle changes and focusing on relevant, stable content over aspirational luxury.
Ecomdigest is a Contentive publication in the DTC Ecommerce division