Released: November 22, 2006

Toymakers’ marketing tricks

Source: Bruce Horovitz, USA Today

Every year at this time, visions of sugar plum profits dance through the heads of toymakers and retailers. Many take aim at the most susceptible target: kids.

Almost half of all kid-targeted toys, games and gadgets sold this year will be bought in the final quarter. Kids through age 14 will influence $160 billion in spending in November and December, says James McNeal, author of “The Kids Market: Myths and Realities.”

That leaves marketers little time to make a Santa-size impression.

Meanwhile, slipping toy sales have raised the stakes. Last year, sales dipped 2% to $21.9 billion, reports market researcher NPD Group. Some categories went down like a kid on a slide: plush toys by 14%, board games by 8%.

What’s a toymaker to do? Advertise like mad.

Last year, marketers spent $1.4 billion per month marketing to children — 15% more than the year before, McNeal says. “I call it ‘surround selling.’ “

Mattel Brands President Neil Friedman says Mattel will spend half its ad budget — estimated at $460 million by Advertising Age — in the fourth quarter.

Read Full Article: Toymakers’ marketing tricks