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Jellycats and the rise of comfort collectibles | Toy Talk Newsletter

PLUS: How much should you be spending on PMAX

Author

Zihan Lyu
April 09, 2025 • Estimated Reading Time: 32 minutes

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Welcome to Toy Talk, your essential newsletter for toy eCommerce professionals.

Editor’s Pick 🌟

Curious to know the optimal way to allocate your Google Ads budget? Fospha’s latest analysis of top performers reveals key insights into balancing Performance Max (PMAX) and Paid Search:

🥇 How Top-Performers Do It: For the highest-performing 25% of brands, a strategic allocation of around 55% of total Google budget to Performance Max and 12% to Paid Search appears to be the sweet spot for driving results.

🏢 Size Matters: Note, this optimal allocation does vary slightly between different brand sizes. Top-performing small brands were found to have a 52% PMAX / 15% Paid Search split, while top-performing large brands allocated more to PMAX, with a 59% PMAX / 9% Paid Search split.

Why? With extensive product catalogs and diverse customer segments, large brands can leverage PMAX's AI-driven optimization, while smaller brands benefit from the precision targeting of Paid Search to capture high-intent traffic while still leveraging PMAX for efficiency

Unlock the full potential of your Google Ads budget! Fospha’s new Performance Max and Paid Search Playbook is your guide to cultivating cross-channel synergies, reducing wasted ad spend, and maximizing blended performance.

Sector Spotlight 🎥

ECONOMIC IMPACT

Recent tariffs on Chinese imports are causing significant pricing challenges for the board game industry, particularly affecting Stonemaier Games. The newly imposed tariffs potentially increase costs at every stage of the distribution chain, impacting pricing strategies and profitability. Marketers can glean insights from this scenario on managing supply chain disruptions and price adjustments due to international trade policies.

GAMING INNOVATION

Nintendo's announcement of Donkey Kong Bananza at the Switch 2 event marks a significant return to 3D gaming for the franchise, captivating marketers with an opportunity to engage audiences through nostalgia and innovation.

Set for release on July 17, this game reintroduces the character in a dynamic, modern way, likely appealing to both nostalgic consumers and a new generation. The accompanying high-energy trailer and scheduled launch align strategically with upcoming marketing campaigns, offering actionable insights for professionals aiming to leverage nostalgia-driven engagement.

BUSINESS EXPANSION

Hand2mind introduces its Numberblocks-themed educational toys to over 2,000 Walmart stores nationwide, enhancing accessibility and engagement for parents and caregivers looking to cultivate early math skills in children aged 2-6. The product line, stemming from an award-winning animated series, includes diverse offerings.

PRODUCT LAUNCH OVERVIEW

Nintendo's recent announcements have brought the Switch 2 into the spotlight, with official pricing set at $450, and pre-orders experiencing delays due to tariffs, impacting availability. The integration of NVIDIA's DLSS technology and ray tracing enhances gameplay appeal, while the comprehensive game lineup, including Mario Kart and Donkey Kong titles, underscores the console's robust market positioning.

COLLECTIBLE PLUSH TRENDS

The resurgence of plush toy collectibles, such as Jellycats, among adults is linked to economic and political uncertainties driving nostalgia and comfort pursuits. In 2024, adult female consumers significantly contributed to the plush toy market's growth, a trend prompted by the pandemic's demand for emotional security and stress relief. This trend offers marketers opportunities to explore cross-generational appeal and consumer psychology, connecting with audiences seeking comfort in childhood nostalgia.

Expert Insights✍🏼

Beyond the Tariffs: How Big Toy Brands Can Redefine Value and Win in 2025

Trump’s proposed reciprocal tariffs on all U.S. imports have jolted the global trade landscape—and for big toy brands, the implications go far beyond cost increases. With many toys dependent on global supply chains, from molded plastics to electronic components, this policy shift directly threatens pricing structures, margin stability, and seasonal forecasting. But it also offers a clear moment to re-strategize.

The modern toy buyer is more segmented—and more discerning—than ever. You’re not just selling to parents anymore. Gen Z collectors chase TikTok-driven exclusives. Millennial caregivers want educational toys aligned with their values. Sustainability-minded consumers are choosing toys made with purpose. Smart brands are already mapping distinct product strategies to each of these cohorts, not pushing one-size-fits-all product lines.

Tariffs put pressure on the bottom line—but they also force a new conversation around value. Packaging, once treated as an afterthought, can now be a conversion tool. Materials that support sustainability (and create magical unboxing moments) drive both content and differentiation. Think reusable containers, eco-friendly builds, and packaging that transforms into part of the play.

Digitally, toy brands can’t afford passive marketing. Social media isn’t just for buzz—it’s for trust-building. TikTok, Shorts, and Instagram Reels aren’t optional—they’re where today’s most influential toy reviews happen. Showcase toys in motion, highlight multi-functionality, and use influencers not for reach alone, but for resonance. A single trusted educator or parenting creator can unlock an entire demographic.

And don’t underestimate community. With price sensitivity rising, brand loyalty comes not from discounts—but from shared values and participatory brand experiences. Gamify engagement, spotlight fan creativity, and let your audience co-author the brand story.

Influencer Corner 📢'

We chatted with Amy J. Oelkers, TikTok’s GM, US Head of Commerce, about how the power of discovery on TikTok is driving commerce everywhere | TikTok for Business

📌 4 in 5 users are discovering brands through creators' recommendations.

📌 After discovering something on TikTok (via a creator), 45% of users continued searching for more information on the platform.

📌 1 in 4 users search within the first 30 seconds of opening the app (internal user data).

In our Shoptalk 2025 wrap up with ClickZ.com, one thing was clear | Lee Arthur

This industry is operating in a new reality. From full-funnel AI to omnichannel orchestration, the conversations weren’t speculative,they were tactical.

Here are the biggest shifts we heard on the ground:

🔹 AI is everywhere
“AI isn’t a concept -it’s a capability,” summed up by voices across the floor. From text-to-buy to media measurement, brands are moving from testing to scaling.

🔹 Omnichannel is baseline
“Omnichannel isn’t a trend - it’s the new baseline,” said Sam Carter, CEO at Fospha. The new standard is unified journeys online and off.

Optimization Hub ⚙️

BUSINESS MEASUREMENT FRAMEWORK

Breaking organizational silos is essential for building effective measurement frameworks, ensuring data-driven insights drive marketing success. By involving all stakeholders and focusing on real-world applications, businesses can align metrics with strategic objectives. Tailored frameworks improve communication and performance across departments, essential for today's competitive landscape.

SOCIAL MEDIA MARKETING

Instagram's new monthly recap feature provides creators with valuable insights into their content performance, including total views, follower engagement, and specific audience activity times. This feature aids marketers by offering actionable tips to enhance content strategy based on the unique behaviors of their audiences, fostering a more tailored approach to growth and engagement.

ECOMMERCE OPTIMIZATION

Adjusting the Google Ads bid strategy, specifically the Target ROAS, can enhance Shopping Ads revenue without reducing profitability for eCommerce businesses. Use Impression Share and Search Lost IS metrics to identify and rectify revenue loss. Gradual budget and ROAS adjustments ensure consistent performance improvement.

📲 Like what you’re seeing?

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