LLetters to Santa used to be filled with ideas from Argos catalogs and children’s TV ads, but for today’s kids who have grown up ‘swiping and streaming’, YouTube is now the main source of influence. This shift is evident in this year’s Christmas wish list, with some children asking for plastic toilets.

The holiday season is a critical time for the toy industry, with consumers spending approximately £900 million, a quarter of the annual sales, on dolls, games, and action figures.

Despite the high stakes, this year’s sales could fall short without a significant last-minute surge. Current data from Sarkana shows that spending is about 5% lower compared to 2023.

Reaching today’s kids in bulk has become a challenge, with traditional broadcast TV campaigns struggling to reach more than 30% of the targeted child audience. In contrast, over 80% of children aged 4 to 9 regularly access YouTube, and more than 70% play games, as reported by research firm Childwise.

Melissa Simmons, executive director of British toy company Circana, notes the shift from traditional TV advertising to digital platforms, saying that YouTube has become an integral part of children’s daily lives.

While online video sharing platforms like YouTube are increasingly seen as alternatives to traditional children’s television, the two mediums are converging. Many children’s favorite shows are now distributed on YouTube, blurring the line between television and online content.

As children spend more time watching videos online, toy manufacturers have adapted their strategies to align with these shifts. They now collaborate with popular online creators and integrate merchandising plans from the outset.

Spin Master’s Unicorn Academy is an example of this trend, with a multi-platform approach that includes movies, series, and toy lines to create a comprehensive franchise ecosystem.

Rachel Simpson Jones, editor of Toy World magazine, highlights the importance of storytelling and character-driven content in successful toy lines, reflecting children’s expectations shaped by their consumption of various forms of digital content.

YouTube, alongside other tech giants like Google, holds significant influence over children’s preferences, as noted by the Toy Retailers Association. Major toy brands are now leveraging YouTube channels to connect with young audiences and create engaging content.

In this digital landscape, trends can quickly emerge and shape the toy industry. Brands need to adapt rapidly to meet changing consumer preferences and capitalize on online platforms to reach their target audience.

With children’s tastes evolving rapidly, retailers face challenges in predicting which products will resonate with young consumers. The dynamic nature of children’s preferences, influenced by online trends, poses a constant challenge to the toy industry.