Why It’s Important for Brands to Adjust Strategies as Consumer Behavior Changes

by INDUSTRY KNOWLEDGE TEAM, The Insights Family

When looking to buy a toy, families today have access to more information than ever before‭. ‬Before the internet‭, ‬the only information that was readily available to prospective purchasers was marketing material from the brand and word-of-mouth testimonials‭. ‬Now‭, ‬there is a plethora of data available online from third parties‭, ‬customers‭, ‬and respected sources‭, ‬empowering customers to shop with confidence‭. ‬Families are able to search social media and different educational platforms to do in-depth research into the products they are purchasing‭.‬

It is crucial for brands and intellectual property‭ (‬IP‭) ‬owners to understand their target demographic in order to engage the family audience‭. ‬In previous generations‭, ‬there was a degree of information imbalance between brands and consumers‭, ‬spotlighting the demand for more informed purchase decisions‭. ‬As a result‭, ‬customers were more susceptible to marketing and more likely to make‭ ‬impulse purchases‭. ‬As parents have access to more information before they make a purchase‭, ‬they are more likely to seek out reviews‭, ‬influencer opinions‭, ‬and online discussions to make sure they are informed with all the facts‭. ‬

Globally‭, ‬Generation Z parents are approximately 16%‭ ‬more likely to plan out their purchases‭, ‬while millennial parents are 19%‭ ‬more likely to plan out their purchases when compared to parents ages 55‭ ‬and up‭, ‬who are more likely to act impulsively in their‭ ‬purchase behavior‭. ‬In the U.S‭., ‬millennial parents are more than twice as likely to plan their purchases when compared to those‭ ‬in the oldest generation we survey‭.‬

With all of this information available to the modern consumer‭, ‬it has become difficult for brands to cut through the noise and connect with shoppers in order to build meaningful relationships‭. ‬Customers are less brand-loyal‭, ‬or rather‭, ‬not as inclined to purchase one brand’s product offering when they have access to freely available information to make a purchase that they consider the best quality‭ ‬and value for money‭. ‬Parents in every country we survey‭, ‬with the exception of Japan‭, ‬rank quality as the No‭. ‬1‭ ‬factor for why they trust a brand‭.‬

The amount of information available digitally means that today‭, ‬parents are much less trustworthy of advertisements than generations prior‭. ‬Our data shows that trust in TV advertising correlates positively with age‭. ‬Globally‭, ‬parents ages 18-25‭ ‬are 41%‭ ‬less likely to trust TV commercials than those ages 56‭ ‬and up‭. ‬

Younger parents are more likely to seek out organic messaging from digital sources they trust‭. ‬As a result‭, ‬globally‭, ‬parents between the ages of 18-25‭ ‬are approximately 72%‭ ‬more likely to trust influencer recommendations than parents ages 56‭ ‬and up‭. ‬Similarly‭, ‬younger kids have the same affinity toward endorsement-based recommendations‭. ‬Last year‭, ‬we measured more than a 30%‭ ‬global increase in kids of all ages saying that celebrity or influencer endorsements are important when purchasing a product and supporting a brand‭. ‬

As influencers become more integral in providing a relatable and trustworthy brand touchpoint with consumers‭, ‬it is likely that‭ ‬we will see an increase in brands utilizing them in advocacy-led marketing campaigns‭. ‬However‭, ‬we predict that this will soon become a two-way relationship‭. ‬There will be a new wave of brands co-creating with their audience‭, ‬offering new customization and‭ ‬personalization options‭, ‬and allowing them to play a significant role in shaping brands’‭ ‬long-term vision‭.‬

The most popular influencers in the kids space are often YouTubers‭. ‬Currently‭, ‬Ryan’s World‭ ‬is the No‭. ‬1‭ ‬YouTube channel among kids ages 3-12‭ ‬in the U.S‭. ‬Fans of‭ ‬Ryan’s World‭ ‬are 98%‭ ‬more likely than the average kid ages 6-12‭ ‬to purchase a toy related to their favorite YouTuber and 78%‭ ‬more likely to‭ ‬purchase a toy related to their favorite TV show‭. ‬This shows how avid followers of influencers are more engaged with licensed toys than the average kid‭. ‬This signals an opportunity for brands and IP owners to look to YouTubers for licensing opportunities and as a platform for product endorsements‭. ‬

Toy purchases are a family decision‭, ‬with both kids and parents forming an opinion on which brands to support‭. ‬As companies look‭ ‬to engage families that have access to more information than ever‭, ‬it is clear that advertising‭, ‬marketing‭, ‬and licensing strategies must change‭. ‬The future promises exciting opportunities for developments in this industry in terms of product development‭,‬‭ ‬influencer engagement‭, ‬and sales platforms‭. ‬‮»‬

‭*‬All statistics are taken from the last six months of data collected by Kids Insights‭ (‬Sept‭. ‬2021-March 2022‭).‬

The Insights Family is the global leader in kids, parents, and family market intelligence, providing real-time data on attitudes, behaviors, and consumption patterns. Kids Insights surveys 7,780 kids every week between ages 3-18. Parents Insights surveys more than 3,800 parents of kids between ages 1-16 every week. Both services operate in 22 countries across six continents and in total survey more than 469,040 kids and 228,800 parents per year. Download your free copy here.

This article was originally published in the June 2022 edition of the Toy Book. Click here to read the full issue!