[The following is an article I wrote for Playthings Magazine which appears in the May 2009 issue.]

When toy companies talk about new toy products, there’s often a lot of discussion around a toy’s play patterns. What is it about the toy that resonates with a child? What play patterns will the toy tap into? Will the play pattern extend across age and gender differences?

Sometimes answering play pattern questions like these are pretty straight forward, other times their answers are not as clear cut. Potentially even more complicated is describing the play pattern around a toy product tied to a virtual world or online experience. What kind of play pattern are we talking about now? How does the play experience through an avatar in an online world differ from that of a child playing with a physical toy in the real world?

These are hard questions to answer, but they are ones I’m betting more and more people will be asking in the world of youth marketing.

The 2008 American International Toy Fair was a big year for virtual world toy products. Unlike years before, 2008 saw many virtual world product announcements, a first for the show. Some of the biggest announcements came from the likes of Disney and Techno Source with Pixie Hallow and Clickables, iToys with the Me2 Universe, Ty with Beanie Babies 2.0 and TyGirls, and 10Vox with Tracksters and KooKeys. Each of these companies offered a virtual play experience through the purchase of a tangible toy product—the business model of preference being one in which the consumer buys a tangible product that grants access to an online world.

Fast forward to 2009. It seems almost every few days we learn of a new virtual world for kids. While a number of virtual worlds were announced on the show floor during the 2009 Toy Fair, even more were announced outside of the walls of the Javits Center. What was surprising was the number of new product announcements, not just updates to old products launched a year or two prior. Take note for the future: February could very well become the product announcement month of choice in the virtual world space. Such announcements started in 2008 and today appear to be picking up steam.

As you can imagine, any announcement attached to a toy industry event will include some tangible toy product as part of the virtual world offering. Most often plush toys are the vehicle of choice for promoting virtual worlds to kids, but changes are underway within the toy-related niche of the virtual world space. Just about anything these days can include a password key on a piece of paper to allow access to an online destination. Also added to the mix are new solutions that include USB thumb drives that plug into your computer and become the keys to playing in these online destinations.

When I look back on the last two years of tangible toy/virtual world product announcements, I notice two trends, in particular, related to the software portion of the announcement:

1. At the time when a company first makes a virtual world announcement, the virtual world is generally far from completion. If the virtual world has been in development for a long time and is in the process of a sizable public beta effort (meaning many actual consumers are testing the virtual world to flush out problems and improve the quality and stability of the product), this is a good thing. A sizable public testing effort should be the norm with all such products, but sadly it is not. As a result, first-year launches can be challenging for both the companies that make the products as well as the children who use them, typically resulting in poor reviews out of the gate.
   
   
2. After a product has officially launched, it tends to be improved and expanded upon as sales grow or as web traffic proves what is working and what is not within the virtual world. These sorts of improvements are generally seen with products that have been in the marketplace for at least two years.

As it relates to the overall offering of both the physical and virtual parts of the product, I have these additional observations related to the buying and selling of these items that can lead to consumer success:

• How “giftable” is the product? For example, one of the things I love about Webkinz is that the current line of plush toys makes for a great gift idea. They are priced right and are easy to give. Also, the cost to get online is attached to the purchase of the tangible item. This removes the burden from a child of figuring out how they may have to pay for the online experience.
  
  
• Related to cost, are there any hidden fees to gain access to the online world? Sometimes the purchase of the tangible product will not allow full access online. Some virtual worlds can be tiered or gated in a way that premium content is restricted until a credit card is used. A number of different financial models exist related the sale of such products. Be sure to ask if the purchase of the tangible good is the only fee involved or if other fees are part of the online experience.
  
  
• What kind of tangible toy selection is possible? Are there only a small number of items at one specific cost or are many SKUs available across a variety of price points? A variety of products and pricing options can be of benefit to sales.
  
  
• Is there more to the virtual world than just game play? Few of the latest virtual world announcements offer an experience beyond games. Two products to watch that offer something more include Jacabee’s The Jacabee Code, which promotes a unique approach to learning history and Tales 4 Tomorrow, a destination that is all about animal conservation (with plush toys from Fiesta).
  
  
• How deep is the online experience? How many activities and how much content is available? What is the mix of games to creativity tools? Newer sites may not have as much depth as sites that have been on the market for some time.
  
  
• Who does the product appeal to, boys or girls? Historically, very few of these virtual world offerings have had an appeal to boys 9 years old and older. However, this too is changing. New destinations with a greater appeal to boys include products like the car-centric Tracksters, Revnjenz (Revnjenz) and KizMoto (KizToys); and the dinosaur-themed Webosaurs (Reel FX) and Xtractaurs (Mattel).
  
  
• What about younger users? While it may be surprising to find even younger users interested in similar online destinations, many of the social and communication tools available to older users are just not of interest to younger users. Age-appropriate products for young users have been in short supply. However, Ganz recently announced a younger version of Webkinz called Webkinz Jr., and since 2007, Gigapals has offered an eponymously-named site with related toys for the same audience: ages 3 to 6. When thinking up products for younger children, consider the amount of reading and audio instruction provided within these worlds. This demographic may be computer savvy enough to get to your site, but they may still be challenged by the inclusion of too much text once they arrive there.
  
  
• If the online world allows its users the ability to communicate with one another, is the method of communication “canned chat,” “filtered chat” or “open chat”? In addition, what kind of monitoring is provided to prevent inappropriate conversation or cyber bullying?

It’s hard to easily describe the appeal of online worlds for kids. An answer may be found with the sense of independence or a feeling of being in complete control over the digital universe. There might also be an aspirational component to these worlds, as well, that is hard for an adult to fully understand. Part of this new play experience may be an extension of pretend play we’re all so familiar with, related to kids and toys in the real world. One thing is certain, virtual worlds are an expanding part of a child’s play options, however you choose to define the play pattern. And because new virtual worlds are being announced more frequently, chances are there’s one that’s a perfect fit for any girl or boy, or maybe even the child at heart.

Three years ago I bought my then seven year old daughter her first Webkinz. She has always enjoyed pretend play offline with the tangible toy and equally enjoys the virtual play online. Both methods of play are done either with friends or alone. These days she plays in the online Webkinz universe a few times a week. She plays games, collects in-world currency called KinzCash, and builds out her Webkinz living space in the virtual world. I asked her recently if she would show me around the online world she had built for her stuffed animal friends. What I saw looked like a sizable, and very detailed build out effort she calls home for her pets. I imagine the size of this virtual home reflects her years of play online and asked her how many Webkinz she owns today. She wasn’t sure, so I suggested we find all of her Webkinz, scattered about her room and around the house, and count them. How many Webkinz plushies did we find? 26 Webkinz in all! I knew she had a good number of them around the house, but was surprised by just how many.

Young fans of Webkinz have many pets in their collection. Sometimes many more than you think possible! Above is a photo of most of the Webkinz in my daughter’s collection. (Click image to see larger photo.)

She received her first Webkinz as a gift from me while I was doing research about the ever expanding online world for kids. After this flagship friend was received, a small number of birthday parties resulted in a few more as gifts from friends. A couple were even earned for successfully completing challenging at-home clean up requests. However, a majority of the Webkinz in her collection were purchased by my daughter, through diligent savings of her small weekly allowance.

If you have young children in your home between the ages of 6 to 10, chances are you’ve already heard the Webkinz buzz. While there are many tangible pets to choose from, and too many features online to count with many more being added regularly, let me pull back the curtain of this online destination to show just one small part of this universe. One central online activity includes the ability to build out a virtual home for your newly acquired animals. The more pets your child acquires, the bigger this virtual home becomes.

Illustrated translations of tangible Webkinz toys in the virtual world.

As many parents will probably already know, every Webkinz plush comes with a card that includes a secret code to gain entry into the Webkinz site. One of the very first activities you child will participate in online is decorate a place for your new pet to live. Your child will receive one “starter” room to decorate. Additional rooms can be added by either a.) saving up KinzCash by playing online games/activities to purchase additional rooms, or b.) through buying additional Webkinz in the real world. My daughter pointed out that you only get an additional room for the first ten Webkinz you buy. After that, no more free rooms. The rest can only be purchased online with KinzCash.

This map, stitched together from multiple screen captures taken within the Webkinz World, shows all of the rooms that have been purchased and designed within my daughter’s collection of Webinz online. She started with just one room and built out this large living space for all of her pets. Clicking on any one of the squares from this map within the Webkinz World will bring you into an orthographic view of the individual room itself. Note the different sizes and themes to each room. (Click image to see larger photo.)

Rooms can be decorated with a wide selection of items for purchase through the WShop, the online equivalent of a home furnishings store. There are plenty of items available to spark a child’s decorative imagination. Chairs, beds, games, TVs, wall paper, you name it. Also, some of the items you can acquire are considered “exclusive” and are only made available from “adopting” your 10th, 15th, 20th (etc.) pet. (Translation of adopting — the purchase of additional Webkinz in the real world.)

The front step to the WShop which displays all the different categories of home furnishings you can buy within the Webkinz World. Selecting a category will bring you deeper into the store, showing the store visitor pictures of the item they may wish to place within one of their pet’s rooms. (Click for larger individual images.)

There are three different room sizes and a small number of different themed rooms. For example, you can purchase themed rooms that reflect a certain holiday, like Halloween, or if your pet lives underwater you can purchase a water room. Your pet moves around the room by clicking on an invisible tile matrix that covers the floor of the room. Large rooms are made up of a 10 x 10 grid. There are also medium sized rooms, 7 x 7, and small rooms, 5 x 5. This grid system also helps with the positioning of items purchased from the WShop within the room.

There are three main room sizes available in Webkinz World and a variety of different themes as well. If one of your Webkinz is a fish, chances are you will want a water room. Ask your child what happens when a non-water animal enters a water room. (Click for larger individual images.)

I’m fascinated with the technical logistics of this room making activity within Webkinz. There are a number of individual parts that need to work perfectly together, and need to scale just right with every new addition to your child’s collection. If your child is a Webkinz fan, ask them how many pets they own. Ask your child’s friends as well. You may be surprised at the answer! I’m amazed at the number of Webkinz my daughter’s friends own. Just this week we met a new friend that had over 20 Webkinz in her collection. One boy in the neighborhood who she sometimes plays with boasts owning 46 Webkinz! What sorts of stories about Webkinz do you hear from your children? What do they like best about Webkinz? How many pets do they own? Thanks for reading and for sharing your comments below!

NY Toy Fair 2009 – Cool Tech Find Number 2

Have you ever had something fall behind the couch, just out of reach, and you think to yourself “If I just could use my mental abilities to reach that item, I would have it by now.” Well, we’re a whole lot closer to successfully making this happen than ever before. Soon you’ll be able to channel that mental energy and grab that item by using your powers of the Force. That’s right! The Force.

At this year’s Toy Fair, the toy company called Uncle Milton announced their latest creation, the Force Trainer. It’s part of a collection of science products recently unveiled at the show called Star Wars Science.

The Star Wars Force Trainer comes with a headset that reads certain kinds of brain activity, and a base station that receives those brain signals. Inside the base station (the Training Station) is a ball (the Training Sphere) enclosed within a clear tube. As the headset captures focused thoughts from the user, it converts those signals into instructions to power a fan within the base station, which in turn lifts up the ball within the clear tube. The more the user concentrates, the higher the ball floats. The less concentration, the lower the ball floats. The voice of Yoda helps you attempt to master 15 different Force Training activities included within this technology toy.

The ability to capture brain activity and channel it towards some device may be something we see more of in the future. A number of video game companies as well as other business enterprises are exploring this brain wave capturing technology for commercial use. One company in the San Jose, CA area called NeuroSky appears to be the way out in front with developing the technology, and currently offers a licensing and training program to learn more about it.

The Star Wars Force Trainer will become available on July 23, 2009 and will sell for just under $120.

Now, if I could just use my newly acquired powers of the Force to find my car keys, I’d be on my way to saving the universe from powers of the dark side. Check out the video below to see how you too can master your feelings with the Force Trainer.

NY Toy Fair 2009 – Day 1 Cool Tech Find

On opening day of the 2009 Toy Fair event in New York City, I began my search for new toy products that include unique application of technology for the benefit of enhancing play. While I only covered a small fraction of the show’s floor (7 hours of isle wandering), I came across a few products that caught my eye. One being a digital facelift to the classic Rubik’s cube, promoted by a company called Techno Source.

Let me start off by saying that I am not a Rubik’s cube fan. I never could figure out those darn things. But I thought a couple of tech features applied to this toy were really groundbreaking.

First, users interact with this non-twisting cube by touching the different surfaces with a finger. It immediately comes across as an iPhone touch interface. Slide a finger along a row of lighted tiles made the cube “rotate.”

Next, the cube has a built in accelerometer used to determine the active display face. Once the accelerometer has figured out which way is up, it only allows the upward face to be changed through touch. This way a users holding the cube with both hands from the side will not alter the puzzle’s surfaces in unexpected ways.

There’s a button to give you a hint if needed. Also included is multiple levels of undo so you can roll the surfaces back to a point where you think you may have made a mistake. When the TouchCube is rested in its docking bay to be recharged, the cube puts on a unique visual display. Think of this as your new digital lava lamp.

The Rubik’s TouchCube is available for purchase in the Fall and is being offered for a suggested retail price of $149.99. Check out video below to see the product in action.

[The following is a brief article from my observations of watching over 3,000 commercials that target children. It was picked up by Playthings Magazine and is running in their February 2009 issue. I have many more thoughts and hours of edited video to share (teaser clip at end of article). If you're interested in additional findings, shoot me an email or give me a call.]

Most people use TiVo to fast forward through commercials. For eight weeks this past fall, I fast forwarded to the commercials. Specifically, to commercials aimed at kids.

My curiosity about television ads that air during children’s programming started quite by accident. While incorrectly programming my TV’s digital recording device, I inadvertently found a wealth of new product information being advertised to children. Intrigued, I began to watch what I’d captured.

The numbers game

In any given hour of children’s television programming—especially during shows that air on Saturday or Sunday mornings—you’re likely to find about 10 to 16 minutes of commercials, depending on the station being watched. That’s about 25 to 40 commercials in an hour. During that time, you’ll see ads that promote other children’s television shows, places junior might like to eat, shoes and clothes kids might like to wear … and a wealth of technology products they might like to do just about anything with.

In fact, it would seem that 60 to 75 percent of child-targeted commercial time is dedicated to promoting technology of all types. This includes both electronic and traditional toys, dolls, video games, virtual worlds and websites. As you can imagine, all the big toy names are buying up ad time in bulk; companies like Hasbro, Mattel and Disney, Spin Master, Techno Source, Jakks Pacific, MGA Entertainment, WowWee, Play Along and Crayola are all promoting through television.

Video games grab attention

Having started my experiment just before the holiday season, I found a number of companies I didn’t expect to see in such heavy rotation, like Nintendo, Electronic Arts and UbiSoft—all biggies in the video game world. In that same hour, you were as likely to see as few as two or as many as eight different commercials for Nintendo’s DS or Wii. And because this was during kids’ programming, Nintendo’s campaign didn’t include ads for the Wii Fit or other products primarily for adults.

Some big items that first jumped out at me with technology included toys that require being connected to a computer in order for kids to fully experience their value. Two toys of note were LeapFrog’s handheld Didj or Bandai’s Mega Mission Helmet, which includes a USB cable as part of the play experience. Build-A-Bear Workshop also ran a series of ads to promote a unique virtual world along side its tangible teddy bears. Commercials for other virtual destinations included Disney’s Pixie Hollow, Radica’s Funkeys and Cartoon Network’s own FusionFall, a massively multiplayer online game featuring characters from many of its most popular shows. According to advertisements, animatronic robots also continue to evolve, be it Thinkway’s Wall-E toys, Fisher-Price’s interactive version of Ming Ming from The Wonder Pets, or even Kota the robotic dinosaur from Hasbro’s Playskool division.

And so, after consuming volumes of weekend commercials, I began to develop a sixth sense for advertising in the toy space. No matter when I watched, my newly acquired powers allowed me to notice other product differences across time slots. For example, preschool toys, on the whole, were promoted most heavily during weekday mornings. However, learning products’ ads have a different time slot; they aired during both weekday mornings as well as early/late evenings, presumably after parents have tucked their little ones into bed.

While toy advertising remained largely daytime fare, video games spanned all hours, but even then there were some surprises. Nintendo DS and Wii games’ ads could be found just about any time of day or night. However, commercials for Microsoft Xbox 360 titles only appeared during the day if the title being promoted was also released for the Nintendo Wii. Otherwise, Xbox-exclusive titles didn’t appear at all until later, during the nighttime hours.

And as much as there was to learn about technology products advertised on television, I stumbled upon a unique find regarding what was not being promoted. In all the time I watched, I did not see a single Sony ad. Not one for the PSP. Not for the PS3, nor for any Sony product whatsoever. I’m not sure what this means, but I found this absence odd—and surprising.

The other tech ‘toy’

After looking at so many child-friendly technology-based products, I also started to wonder about cell phones and kids. The number of kids ages 9 to 12 that own a cell phone is growing. Whether that’s good or bad, there’s no denying the trend. I asked myself, after seeing so many great Apple iPhone and iTouch commercials, how long would it be before I start to see similar Apple ads targeting children? Could Apple make a play for the younger set with an ultra-slick tech toy? Or could we also someday see cell phone plans being promoted specifically to kids during children’s programming?

Midnight madness

After the holidays, I noticed some differences in commercials for kids’ products; primarily, almost all of the toy offerings went away, literally evaporating the very first minute into December 25th. However, ads for video games, virtual worlds and web-connected toys did not. The difference between toy product and video game product promotion couldn’t be more striking as I watched in the days and weeks after the holidays. What does this say about the earning potential of technology toys in general? Can toys that are considered “platforms” benefit from ongoing advertising in the same way that video games do?

My exploration only included advertisements found on television, though there are a number of other media outlets where tech products for children can be promoted: online, magazines, radio, movies, email, even in-store events. While it may seem that technology products will be the future “must have” item for kids, I often remind myself that in order for toy companies to successfully benefit from a large investment in technology-based products, large advertising budgets must follow in order to increase exposure, revenues and profits to cover that investment. This might just mean that the economics for tech-free toys do not require as much of an advertising commitment, but product awareness certainly appears to benefit all.

Frankly, I can’t tell exactly what all of this says about the future of technology and kids, but I do spend a lot of time looking at the play patterns of children with traditional toys and how these patterns change when technology is introduced.

I think that if we see more technology at this month’s Toy Fair—more even than in prior years when companies did debut a lot of technology toys—we might well get a glimpse of an answer.

Most people use TiVo to record their favorite televisions shows. Currently I’m using it to watch commercials. For the last eight weeks I’ve been channel surfing to find for one thing… technology toys commercials. It’s pretty amazing what you can learn about this year’s crop of holiday toys by watching TV commercials that air on a Saturday morning. This is not to say that everything I see on air wasn’t announced many months earlier. I’ve seen a number of these same toy products announced at this year’s NY Toy Fair, the countries largest toy conference held ten months earlier.

I’m organizing my notes to write a longer article on technology toys for sale this holiday season. All kinds of interesting things are coming up by watching, like USB connect toys, digital cameras, experiences that are driven by a screen, be it a computer or a toy’s screen, virtual world tie-ins, and much more. I’m also noting many interesting trends related to video game advertisements. Almost as interesting is what is not promoted on air.

I welcome you to view the video clip below that includes a small sample of commercials that aired before the election. (Some toy companies held back on airing their advertisements until after the election.) Please fire away any questions you’re curious about. Where do you think the future of toy technology is headed? What do you notice? Thanks for watching!

Club Penguin celebrates its third anniversary! To mark the event, Disney and Club Penguin held a big anniversary party this past Friday in the heart of New York City. Excited fans and their parents could be found waddling around the festivities inside the midtown Manhattan Toys R Us and also across the street in the middle of Times Square.

Montage photo of Times Square event. (Click image to see larger photo.)

There were many things to do and see, as well as announcements to hear. The outdoor celebrations included personalities from Radio Disney and the Disney Channel. Entertainment included guest star appearances, many dance numbers on stage, and even a visit from Club Penguin co-founder, Lane Merrifield who thanked everyone for making Club Penguin such a huge success. The event was simulcast online through the Club Penguin website and also projected on the ABC Jumbotron! Nearby, a custom decorated tent, doubling as an igloo, looked like it jumped right off the webpages of the Club Penguin website. Tasty treats were on hand for all

A look inside the igloo. (Click image to see larger photo.)

the little ones and an amazing 3rd anniversary cake was made in honor of the celebration!

Across the street, inside the Toys R Us store, many additional surprises awaited which includeda number of new Club Penguin books (I think I saw four different books), plush penguins (I’m going to guess about 12

Online and offline anniversary cake. (Click image to see larger photo.)

different characters), and many new Club Penguin toys. Computers were set up for kids to try their hand at Club Penguin for the first time and additional tables were nearby so visitors could play the latest games now available including a Club Penguin branded Mancala and a card game called Fast Flippers. Users could even test out the soon to be released Club Penguin Nintendo DS title called Elite Penguin Force. The official Club Penguin blog also announced a series of Club Penguin trading cards that will be available sometime this coming November.

So, what’s noteworthy here? Well, aside from the party, a number of things. After watching the Club Penguin business for more than a couple of years, I am impressed with how Disney has proceeded after the acquisition of Club Penguin. I had a fear that the sweetness and innocence of the Club Penguin site would be lost through this acquisition and would soon become a site cluttered with advertisements. I am thrilled to report that the Club Penguin site is even better today than it was before the Disney acquisition. The only visible change is a separate webpage with information on where Club Penguin toys can be purchased. This is, however, located outside the Club Penguin world.

Also, the folks at Disney and Club Penguin have spent a lot of time trying to determine how best to grow this virtual world beyond the sizable user base they already have. First, you can see the Club Penguin website has just become international, with the inclusion of Portuguese as a language option in addition to English. Not an easy undertaking considering the live monitors needed to watch the site’s activity very closely. I’m betting you’re going to see more languages added here soon. Second, instead of the typical revenue approach offered through monthly subscriptions often used with other virtual worlds for kids, Club Penguin is extending revenue support through physical product that include numerous ties back to the website. The new products announced at the anniversary celebration include special physical “coins” attached to the plush penguin dolls and codes woven into games and books that unlock unique Club Penguin rewards. For example, within the Club Penguin world, an activity can ask for the special word found on page 46 paragraph 2 word 14 of one of the new books, and once this word is entered into the activity, prizes await. Also, it’s been stated that coins collected in the new Nintendo DS game can be transferred into a child’s online account too. Pretty cool! Now the cynic in me might say this is too much consumerism, but I have to acknowledge the amazing commitment to quality and careful thought put into these new products. A child does not have to be a paid subscriber of the site in order to take advantage of these rewards.

The solitary subscription model and in-world advertising approach to grow a children’s virtual world is looking like an outdated thing of the past. Club Penguin and Disney are positioned to capitalize on it’s consumer product strength to grow Club Penguin numbers like no other virtual world offering for kids can. Waddle on Club Penguin! Waddle on!

Video of the Club Penguin anniversary event in NYC’s Time Square.

[The following is an article I wrote for the October 2008 issue of Playthings Magazine. For those unfamiliar with Playthings, it is the oldest (over 105 years in circulation!) and most widely respected professional toy magazine in all of North America. Playthings reports on the business of play as well as trends that not only impact the toy industry but also children across the globe.]

Social networking, social media, virtual worlds; the Web 2.0 world is on fire, and sites that touch on some part of social media are rapidly growing. Sites that allow individuals to come together, form online communities, and share thoughts and different media types in a virtual way are feeding this ever-changing way to engage with others online.

Plain and simple, people are social creatures. It’s wired into our being. The concept of social networking is not new. It’s been part of our DNA since the dawn of time. Some researchers think that our desire as humans to socialize is an instinct that plays a part in our survival. Only recently has the term “social” been applied to interacting online, allowing individuals to become virtually engaged with others who share common interests across the street or around the globe. And social network destinations are not just for adults and business people, they’re of great interest to kids. Many adults may first have become aware of social networking sites through high profile business acquisitions with noteworthy online companies like MySpace or Club Penguin. Kids, on the other hand, often learn about child-friendly equivalents by word of mouth, from friends at school or the playground.

But just what are the current growth trends? What is the makeup of existing social networking sites today and how—and better yet, why—are kids interested in them? Where are the new opportunities yet to be explored by future businesses? How can a traditional toy business better integrate these new virtual play patterns into existing physical products?

Worlds worth watching

One way to begin chipping away at these questions is to take a look at the wealth of social network products available on the market today. There are literally dozens of sites that people young and old use.

In fact, once a list of social networking sites is identified, a clear demographic split can be seen, and two distinct user groups emerge. One group includes children ages 12 and under; the other includes teens between the ages of 13 and 18.

What is this age group distinction about? In part, the separation has to do with privacy laws that protect young children online. Another factor is that each group comes to these products with a different set of social interests. There are also differences in communication style across the age groups as well as access to and understanding of different technology types.

Before building our list of sites, it’s important to identify the critical social networking features these destinations have in common. The criteria used for this article includes features that allow its user base to communicate with one another in a real time or a delayed manner using open chat, filtered chat, or canned chat —the three main methods of communicating online through such sites. The ability to communicate with other members in these sites is usually, though not always, accomplished through interacting in a virtual world. First, let’s take a look at a list of destinations that appeal to children age 12 and under.

Next, a similar list can be created for popular social networking services that appeal to users between the ages of 13 and 18. The method of communication in these sites for older users tends to be more open-ended and less likely to be monitored or filtered when compared to sites for their younger counterparts.

When the above two sets of data are mapped out over time and placed on top of each other, adding up the number of new social network products launched within each year for both age groups, some interesting trends present themselves.

[NOTE: This line chart above showing the two sets of historical data layered on top of one another did not make it into the magazine article. I am adding it here to the blog post only. -ST]

It’s impossible to ignore the recent growth in new social networking products launched each year that target children ages 12 and under. In 2007 alone there were at least 13 such products announced for this demographic. And 2008 is shaping up to be a banner year for new announcements. During this year’s Toy Fair, I counted 12 new social networking and virtual world announcements, products that have, for the most part, yet to go live. What’s surprising is that over the same time frame, social networking products that appeal to teens have remained somewhat steady in new business starts and consistent year over year. Yet, both demographics are experiencing significant activity in new membership growth and Web traffic month after month. So why is it that the younger demographic is experiencing a greater surge in business startups? Let’s explore a few theories that may answer this question.

Not all social networking products that are appealing to teens are developed specifically for teens. These destinations are often developed to appeal to audiences over the age of 18, but have found success with users between the ages of 13 and 18. Conversely, almost all sites for kids ages 12 and under are intentionally developed for these younger audiences.

It’s possible that older users of social networking products are more loyal to a specific social networking site, whereas the younger demographic is more transient in its social networking choices, preferring to use multiple sites over time instead of staying with just one.

The younger demographic may have greater turnover in users and shorter life cycles (churn) with social networking products that target them than their older counterparts. In the children’s magazine space, for example, it’s not uncommon to hear that an audience base and related subscriptions changes every 18 months. The same could be true for an online world created for younger audiences.

Many younger social networking services are tied to consumer products like plush toys or are affiliated with on-air television programming, whereas services targeted at older users are usually not. While an older demographic has more expendable income than the younger, it may also be a harder group to sell a specific consumer product to in a social networking manner based on ever changing consumer tastes.

Social network destinations that appeal to our older group may see significant growth in add-on services like widgets and other related micro businesses and technologies, whereas the younger social networking destinations do not have the ability to tie in other, similar business extensions.

While both age groups use avatars to represent themselves in an online world, the younger services rely more heavily on avatar use than services for older users. Representing oneself with an avatar online may have greater appeal with younger users.

Services targeting older users take advantage of additional forms of social engagement, like media exchange (photos, music and video). These are offered in addition to engagement through written communication. Few destinations for younger audiences offer the same opportunity to share different media types.

Social networking services for older users do not need to mask a user’s identity, though identities can be hidden, changed and altered at will. Younger services hide all possibility of making oneself identifiable online. The need to protect the identity of young users is a clear distinction that separates the two groups.

Revenue models differ as well. The services for older users rely heavily on ad-driven models. Some younger services also rely on “in world” advertisement but can also take advantage of tangible product sales and/or monthly subscription models.

A number of toy companies have taken steps into the online social networking world for kids, resulting in varying degrees of success. Some companies simply offer an online destination alone while others offer a tangible product (like a plush toy) together with a virtual product, each touching on a different play pattern or desire. Webkinz World and Club Penguin are often cited as exemplary successes in the kids’ space. Others, less so.

Almost, but not quite right

An offering like Mattel’s Barbie Girls is a high profile example of a site that hit kids’ engagement levels correctly but fell short with the related MP3 product that tied into it. It was a case of a strong online solution with a weak tangible product. Ty’s Beanie Babies 2.0 has the opposite problem. Ty’s plush toys are loved by many a child but its online offering falls short in ongoing engagement after its initial use.

It’s easier to correct an online shortcoming by continuing to evaluate, test, build and expand such sites than it is to correct a problem with a tangible consumer product once it’s in the marketplace, but getting both virtual and physical products correct from the first day of launch is vitally important. In the early days of Club Penguin, before the official launch of the site in October 2005, an earlier iteration of Club Penguin called Penguin Chat existed for a couple of years. It was extremely limited compared to other social networking products offered today. But the creators of Club Penguin continued to build and add to this first step with additional features and games. The same is very much true for Ganz’s Webkinz World. Both sites’ initial offerings were smaller than they are today, built largely on a shoestring budget, sweat equity and love, but both offered an acceptable level of quality content, quality experience and user engagement with kids right from the start.

Looking towards 2009, we will continue to see even more ways to engage in virtual worlds, resulting in unique and specialized methods of socializing and participating in communities online. Some technology products for holiday 2008 will connect to the Web via USB ports. Additional connectivity through cell phones or other mobile technologies could provide ongoing social opportunities when access to a computer is not available. Stay tuned for more innovation and opportunity in this ever-changing, ever-expanding online world for children, teens and adults alike.

Last week I attended a conference called the Sandbox Summit in New York City. The Summit was a day long event with many noteworthy speakers who are software and content creators, child development experts, and reviewers of technology toys for children. The event’s main theme? The power of play and its ability to help facilitate learning.

Opening

During the opening keynote, speaker Andy Berndt, managing director of Google’s Creative Lab, described how almost everyone can remember a favorite toy when they were young (link to audio of presentation.) Andy shared his favorite play activity, that being a creative experience which involved the process of inventing new bicycles. When he was a child, what he did was take apart many different bicycles, and because bicycle parts for the most part are standardized in terms of their bolt sizes and screws used to make them, he was able to recombine different bicycle parts into unique, unusual, and exciting combinations. One could say that Andy’s open ended experimentation with bicycle parts was on par with play experiences found in Legos, K’Nex, Lincoln Logs, Erector Sets, and the like. What is it about Andy’s creative experience that can lead to insights on how best to help facilitate a love of learning? Read on.

The Importance of Play and its Relationship to Learning

The next speaker who I thought did a fantastic job of providing an overview on the importance of play and the learning opportunities that come from play was Nancy Schulman, the director of the 92nd Street Y Nursery School in New York City (link to audio of presentation.) Nancy shared with the audience that one of the best things about her job for the last 18 years was the wonderful opportunity to watch young children play. With that experience she has learned a great deal about the benefits of play not just for preschoolers, but for all ages.

Nancy expressed that educators, psychologists, and even the American Academy of Pediatrics have great concerns today about the quality of children’s play, how children play, and the quantity of time children play. Parents on the other hand express a lot of concern around wanting their children prepared for success at a very early age. Through her work, Nancy speaks with many parents. One of the greatest anxieties she hears from parents is that they want to be sure their child has every advantage, making sure that before they’re five years old they’ve mastered a second language, mastered every sport they might possibly play, and excel at playing a musical instrument as well. While child professionals are encouraging more open ended play in a child’s life, sadly most parents aren’t paying much attention to these recommendations.

When Nancy was asked “What types of skills do kids learn through play? And why is that meaningful in terms of a child’s lifelong appreciation for learning or confidence in their ability to learn?” she responded first with a quote from child development expert David Elkind of Tufts University:

“Play is not a luxury, but rather a crucial dynamic of healthy, physical, intellectual, social, and emotional development at all ages.”

Nancy then discussed each of these developmental benefits and how child initiated play can lay the foundation for learning:

• Social – “Through play, children learn to interact with others. Play prepares children for morale reasoning. They figure out how to resolve a problem with a friend independently.”
  
  
• Intellectual – “They learn to recognize and solve problems. Children get that feeling of mastery that only comes from when they’re challenged but not frustrated at the same time. In academic areas, play is linked to creativity, imagination, and problem solving skills and it lays the groundwork for successful learning experiences in reading, writing, math, and science. If you think about what children do when they play, it’s very language rich. They are interacting with words and language all the time and learning communication skills.”
  
  
• Physical – “In terms of physical development, they can develop through play fine motor skills, gross motor skills, overall strength and integration of their muscles, their brains, and their nerves. It sets apart a start in their lives for healthy living and fitness, which of course, can counter obesity as well.”
  
  
• Emotional – “Play is Joyful. It is probably one of the greatest underpinnings for later adult happiness. It can’t be underestimated how much happiness and joy have in terms of learning as well.”

Survey of Kids Opinions about Play

The next speaker who offered some additional insight into what kids think about their favorite play objects was Peter Shafer, Vice President of Harris Interactive (link to audio of presentation.) Peter shared with the audience a recent online survey conducted in collaboration with the Sandbox Summit of 1,353 US children ages 8 to 18.

There was a wealth of data to digest in this presentation that spoke to tween and teen toy preferences as well as video games and digital toy products. In general I found this data interesting in that it backs up many gut assumptions about what different age groups prefer in their toy playing experiences.

One observation, it appears the definition of a “toy” was intentionally left undefined in this survey. Did survey respondents think a toy was a traditional toy, a technology toy, or maybe even a video game? Parts of the survey appeared to suggest what the differentiation of a toy was while other questions were not as clear.

Here are a few pieces of data I found interesting to pull out of the Harris Interactive Sandbox Summit survey press release:

“How much do you agree or disagree with the following?”
Summary of Strongly/Somewhat Agree

I call your attention to a couple of specific items from the survey (colored in light blue.) For the 8 to 12 age group the most popular response for a toy product was that it should be “entertaining” whereas with the 13 to 18 year old group there is a great appeal in products that “make me think”.

Best Practices for Developing Playful Products

After the Harris Interactive presentation, Carly Shuler, a Cooney Fellow from Sesame Workshop’s Joan Ganz Cooney Center and educational technologist Carla Engelbrecht Fisher delivered a presentation called “Fun Follows Function: Ten Tips for Developing Quality Toys”. Below I briefly outline each tip, but you can download an audio recording or download a PDF copy of the PowerPoint presentation here.

1. Bridge the gap between industry and academia – This first tip strongly suggests the benefit of bringing together multidisciplinary teams (child development experts, content experts, pedagogy experts, etc.) This first tip is one my company follows frequently. There’s a great paper by Brian Winn and Carrie Heeter, both from Michigan State University, about the important balance needed (and often the necessary heated debate) that comes from working collaboratively with multidisciplinary teams. A copy of this paper can be downloaded here.)
   
   
2. Incorporate research and testing in your product development and discovery process – Any amount of testing, large or small, will have a beneficial impact on your product’s development. From informal focus and user testing groups to serious product research efforts there’s a research approach that can fit your budget.
   
   
3. Track what users do in your product – There’s lots to be learned from watching how your target audience interacts with your product either informally or through data collection. Spend time analyzing what you find.
   
   
4. Read some research – Become familiar with the basics of developmental psychology for the specific age group your developing for. Doing this will help avoid reinventing the wheel. A handout was shared at the conference with many great places to jump start your research reading list. A copy of this reading list can be downloaded here.
   
   
5. Become an observer – Watch kids at play in the real world or even on YouTube (a cool suggestion offered by Carla). Watch how kids interact with products, visit playgrounds, schools, toy stores. Note what’s on the shelf and where it’s located. Also be aware of what’s on sale, it may provide a tip for what’s not selling.
   
   
6. Break the traditional model of one child per screen – Think outside tradition single player models. Think multiple players, or better yet, how can you actively encourage inter-generational participation! Think outside the keyboard box, consider alternative input devices (dance pads, guitars, balance boards.) Consider how you could combine virtual and physical worlds in new ways (like the success Webkins achieved with dual play patterns online and offline.)
   
   
7. Leverage consumer market trends for learning – Consider user generated content, online video, or casual game approaches. Be aware of these every changing trends and you just might find one that will greatly elevate the success of your product.
   
   
8. Go beyond the “3 R’s” – Think 21st Century Skills: Creativity, critical thinking, collaboration, communication. For more on 21st Century Learning Skills, download this presentation from the May, 2008 Joan Ganz Cooney Center’s first annual symposium.
   
   
9. Become familiar with various game mechanics – There are many different game mechanics that could increase interest and engagement in your product. Some old mechanics can be made new again with the newest technologies.
   
   
10. Tap into your own childhood – Everyone has childhood experiences that can help shape your product for the better. Tap into your own experiences as well as those around you.

Note about Virtual Worlds

Kids and virtual worlds was touched on a few times throughout the day but I thought the following statement was worth calling out in its own section. Peter Shafer of Harris Interactive indicated that we will see explosive growth in the area of virtual worlds specifically for kids. The numbers cited were that there are about 80 virtual world destinations for kids today and by the end of 2010 there will be more than 150 virtual worlds to choose from. For a current list of virtual worlds available, I have the following link to share.

Takeaway

So what’s the key take away for developers, innovators and creators of playful learning products for kids, whether traditional or technological? Here’s the secret sauce that was repeated over an over again through words and through examples:

• Make the play experience as open ended as possible. Think about opportunities for vast exploration, not a limited path of play. Include opportunities to fail as well as ones to succeed. Let each child develop their own unique path to play, one that is customizable enough that it appeals to a single user and flexible enough that multiple users can find their own unique approach.
• Bring together a variety of child experts.
• Become familiar with research.
• Watch your audience, get familiar with your audience, test with your audience.
• Try something new! Break the habit of relying on the same old technology and user input solutions.
• Think 21st Century Skills

Nancy Schulman also offered this sage advice:

“If your child can’t play with a toy in at least three different ways, leave it behind.”

And one last thought for making the next greatest learning toy, digital or otherwise… Think bicycle parts.

Referenced Products and Videos

Here’s a list of digital products and online YouTube videos that were referenced throughout the Summit.

The New York Times recently ran a short article called Preferring the Web Over Watching TV which cited a few stats regarding TV and web habits of 10 to 14 year olds. The article was based on a study conducted by DoubleClick Performics. In the article it stated:

• 83% of children ages 10 to 14 spent an hour or more a day using the Internet
• 68% of children ages 10 to 14 spent an hour or more a day watching television
• 72% of the children online have at least one social networking profile on a site like MySpace
• 60% of this online group said they never or rarely read blogs (Don’t latch onto this stat. Read more below.)

I thought these stats were great to find, but I wanted more. Much more. So I started searching online for any additional information about this DoubleClick Performics report. While I didn’t find the full report, I did find this gem of a release many weeks earlier called New Data Shows the Tween Scene is Online written by Stuart Larkins, VP of Search Operations at DoubleClick Performics. The article was posted on a site called Chief Marketer. This report appears to have been written from data gathered in an online survey of more than 1,000 tweens in the 10 to 14 age group. In this post the following additional stats could be found:

• Almost 50% of this group go online more than three times a day with each visit lasting at least a half an hour.
• 29% of children ages 10 to 14 spent an hour or more a day listening to radio
• 10% of children ages 10 to 14 spent an hour or more a day reading newspapers
• 5% of children ages 10 to 14 spent an hour or more a day reading magazines

As it relates to social networking for this demographic, the article states:

• 54% have a profile on MySpace
• 35% have a profile on Facebook
• 45% have a profile on some other social networking site
• 64% visit social networking sites at least once per day
• 34% spend four or more hours a week on social networking sites

In terms of this demographic reading blogs:

• 8% frequently read blogs
• 31% occasionally read blogs
• 40% rarely read blogs
• 20% never read blogs

What I find interesting about these stats in terms of this demographic having a MySpace or Facebook account is that both online services state in their Terms of Use (Myspace, Facebook) that users must be at least 13 years of age or older to use the site. Since the publicly available information from this report is not broken out by individual age, you have to wonder:

a.) What percentage of kids ages 10 to 12 report using MySpace and Facebook?

b.) Should we assume that the majority of these social networking statistics only apply to 13 and 14 year olds?

c.) Could it be possible that kids in the 10 to 14 demographic are over reporting their actual use of these sites because it’s a “cool” thing to say you have a profile on MySpace and Facebook?

Jennifer Kotler, AVP of Domestic Research at Sesame Workshop, presented a similar report a couple of months ago at the Joan Ganz Cooney Symposium and the Kid Power Xchange conference, but with a focus on 6 to 9 year olds. I’ll share more on her findings in a future post.