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  • Toy Talk Newsletter - 1.30.2025

Toy Talk Newsletter - 1.30.2025

Plus: Nostalgia wins - why retro toys are making a big comeback 🎮

Author

Rafe Houston
January 30, 2025 • Estimated Reading Time: 8 minutes

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Welcome to Toy Talk, your essential newsletter for toy e-commerce professionals.

Editor’s Pick 🌟

📊 REPORT

Fospha's latest research reveals the true halo effect of top marketing channels on Amazon revenue. It's a must-read for any brands selling on Amazon in 2025.

Sector Spotlight 🎥

STOCK PERFORMANCE

Hasbro's stock modestly rose, lagging behind the S&P 500's gains. Projected earnings of $0.34 per share signal a 10.53% drop, with revenue expected to fall 20.7%. The stock holds a Zacks Rank of 3 (Hold) and trades at a premium Forward PE ratio, indicating strategic market positioning.

TOYS MARKET INNOVATION

The European toys market is anticipated to see significant growth, forecasting an increase of USD 10.39 billion from 2025-2029. This surge is driven by AI-enhanced market strategies and a broadened product portfolio, focusing on toys that promote creativity, play, and cognitive skills development, including STEM and tech-augmented toys. E-commerce platforms and strategic collaborations expand market accessibility, with sustainability and eco-friendly practices at the forefront of industry transformation.

Addressing the issue of counterfeit toys, which undermine brand integrity and pricing strategies, remains critical. Despite these challenges, the industry landscape—energized by tech partnerships and innovative approaches—presents vast opportunities for growth. Capitalizing on strategic insights into consumer behavior can help toy manufacturers reinforce their market position. By aligning with emerging technological trends and cultural shifts, digital marketers can effectively engage parents, children, and Gen Z consumers, enhancing brand visibility in a fast-evolving market environment.

RETRO TOYS REVOLUTION

Nostalgia transforms consumer behavior as retro toys like Care Bears and Pac-Man surge in popularity, a goldmine for digital marketing and eCommerce. With revamped Eighties and Nineties toys dominating spaces like London's Toy Fair, industry professionals uncover strategic avenues to amplify brand engagement among parents, children, and Gen Z.

TOY AUCTION HIGHLIGHTS

LCG Auctions' 2025 Winter Premier features over 130 items, headlined by rare "Masters of the Universe," G.I. Joe toys, and sealed iPhones. Prominent items include an AFA 80 "Battle for Eternia," Defiant G.I. Joe space vehicle, and first-release iPhones. These collectibles highlight burgeoning market interest and strategic auction positioning.

ARCADE GAMING GROWTH

Technavio projects a $1.99 billion growth in the arcade gaming market from 2025-2029, primarily driven by increased physical activities and VR integration. The market faces challenges like high costs of machines but remains dynamic due to affordability, social experiences, and emerging virtual reality trends. Strategic insights highlight opportunities for marketers.

Influencer Corner 📣

Sam Carter on LinkedIn: I've witnessed firsthand the struggle brands face in understanding ad spend impact, especially across channels like Amazon.

It comes down to 1 core issue.

It's simply not possible with user-level attribution for brands to track what's going on in Amazon.

This leads to challenges in understanding the halo effect of top-of-funnel ads (on e.g. Youtube, Meta, TikTok, Snapchat) on Amazon sales, and comparing the ROI of Amazon Ads to other platforms.

Barry Hott on LinkedIn: Stop overthinking your ads!

Too many marketers obsess over finding that “one magic element” that makes an ad work.

While compelling storytelling matters (it absolutely does), success often comes down to unexpected factors you can’t predict:

• A random detail in the frame
• The comment section taking off
• Something you only notice AFTER the ad goes viral

Jessie Healy on LinkedIn: Is bad product page copy blocking your customers from buying?

Spoiler alert - it probably is (I see it in 80% of pages I look at).

Steal my checklist to harness consumer psychology and persuade more customers to RUN to your checkout: 🏃‍♀️

Optimization Hub ⚙️

ADVERTISING INNOVATION

Amazon Ads launched Brand, an AI-optimized capability on Amazon DSP, to transform TV advertising by targeting audiences based on shopping signals. This innovation enhances brand awareness and conversion effectiveness, allowing advertisers to leverage advanced machine learning for strategic impact without sacrificing control or transparency, showing promising early results and industry potential.

ADVERTISING INNOVATION

Elevate Your Brand and Master Strategic Marketing in an Unstable Social Media Landscape

Marketers face challenges due to social media instability, with platforms like TikTok, Meta, and X under scrutiny. To ensure brand safety, marketers should leverage in-platform controls, embrace diverse cross-platform strategies, and employ techniques like Marketing Mix Modeling for data-driven decisions to navigate evolving digital landscapes effectively.

PERFORMANCE MEDIA

In the face of challenging macroeconomic conditions, 62% of marketers prioritize performance-driven media investments. Key performance indicators such as awareness, sales lift, and return on ad spend remain focal points. Most marketers handle retail media metrics in-house, underscoring the importance of reliable measurement tools for future success.

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