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  • Ecomdigest Toys Newsletter - 11.07.2024

Ecomdigest Toys Newsletter - 11.07.2024

PLUS: Mad Mattr In-Store Demo Drives Customer Engagement

Author

Sophie Bruxner-Randall
November 07, 2024 • Estimated Reading Time: 7 minutes

Editor’s Pick 🎯

YouTube surpasses forecasts in Alphabet's Q3 earnings call

Google parent Alphabet's Q3 earnings call revealed YouTube's impressive performance, bringing in nearly $9b in ad revenue—a 12.2% increase year-over-year. This substantial growth, typically undisclosed by Alphabet, signals the platform's rising dominance in digital advertising.

👉 Fospha highlighted this upward trend in their their latest report, identifying YouTube as the second-fastest-growing ad channel for eCom brands by ad spend.

While YouTube currently reports the highest CPA among Google channels as brands adapt and optimize their campaigns, its increasing popularity reflects a broader shift toward brand-building channels for long-term growth. The platform's potential for driving brand growth makes it one to watch in coming quarters.

Niche Nuggets 🔎

Smyths Toys' new Christmas ad campaign captures children's excitement upon hearing the brand's name. A playful bleeped version offers humor for parents. The ad launched on November 1st across platforms, the campaign highlights the brand's irresistible appeal. Smyths also revealed its Top 10 Christmas toys, enhancing festive anticipation.

ToyChamp, a Belgian toy retailer, is expanding by acquiring over 200 Intertoys stores in the Netherlands. This move follows ToyChamp's previous purchase of seven Intertoys mega stores and its recent acquisition of nine Fun stores. With 41 branches in Belgium and the Netherlands, ToyChamp is also a majority shareholder of DreamLand. This strategic expansion aims to enhance ToyChamp's European retail presence.

The acquisition includes 95.1% of Intertoys BV, with no major changes planned for the business model or management team. This ensures job security for over 1,400 Intertoys employees. The sale, pending approval from the Dutch Consumer & Market Authority, is expected to improve the financial health of Intertoys' parent company, Mirage Retail Group.

Relevant Play introduces an in-store demo display for Mad Mattr, a soft, moldable material. This compact display enhances shelf appeal and encourages purchases by allowing hands-on interaction. Retailers can order displays with specific minimum orders. Mad Mattr is non-toxic, gluten-free, and never dries out, ensuring easy cleanup.

Amazon's Virtual Holiday Shop offers an immersive 3D shopping experience, featuring over 300 top gifts and toys. With interactive elements and AI tools, it simplifies holiday shopping. Explore diverse selections from brands like LEGO and Disney, and enjoy a seamless, engaging journey to find perfect gifts for everyone.

JAKKS Pacific defied a tough retail climate with a 4% net sales increase to $321.6 million in Q3. ToysConsumer Products rose 7%, driven by significant growth in OutdoorSeasonal Toys. However, Disguise saw a 10% decline. Gross profit increased slightly, despite a year-to-date decline.

Spin Master's Q3 2024 earnings reveal a 34.8% increase in toy revenue, driven by the acquisition of Melissa & Doug. Despite declines in digital games and entertainment, the company effectively integrates new assets, achieving cost synergies and maintaining growth strategies. Spin Master remains committed to maximizing shareholder value.

Leading Voices 📣

Jamie Bolton reveals how top eCommerce brands drive resilient growth:

🌐 Diversification is Key: A diverse channel mix acts as an “insurance policy” for brands amid rising CPAs and a challenging market.

🔄 Stay Agile: What worked last year may not work today. Top brands adjust their strategy over time, adapting to new growth levers as they mature.

📊 Measurement Matters: With channel diversity comes more complex measurement needs. Only with full-funnel attribution can brands assess their channel mix and remain agile.

For a full rundown, check out the full post!

Performance Pulse 📈

Front Row, an acceleration company, helps brands optimize e-commerce strategies on platforms like Amazon. By leveraging Deal Days, brands can boost sales and visibility. Success requires planning, unique offerings, and nurturing customer loyalty. Effective SEO and affiliate marketing are crucial for sustained growth and maximizing long-term benefits.

LinkedIn's new research highlights the effectiveness of connected TV (CTV) campaigns for reaching decision-makers. With LinkedIn's CTV ad options, you can extend your marketing to platforms like Paramount and Roku. This approach could enhance your campaign's reach, especially among influential LinkedIn users who regularly consume CTV content.

Brands are shifting focus this holiday season, emphasizing social media content like hauls and unboxing over traditional e-commerce. According to Digiday Research, companies are refining strategies, including gift guides and catalogs, while adjusting discounts and revenue expectations. Insights from industry professionals highlight evolving marketing tactics and competitive dynamics.

Ecomdigest is a Contentive publication in the DTC Ecommerce division