[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.

NY Toy Fair 2009 – Cool Tech Find Number 3

Portable entertainment devices for kids have been on an amazing journey over the last five years. Advancements with small video displays, fast and affordable chip sets, and battery technologies that last longer than ever before have brought fascinating possibilities to the marketplace, and to this year’s Toy Fair.

Enter the latest handhelds for kids: The iPix, a portable video player for the preschool set, and the VEO for older children. Both devices were part of a stellar rollout of products from toy maker itoys. The two products are similar in that they both contain a small, backlit video display for watching popular television shows from Cartoon Network, HIT Entertainment, Nickelodeon, and Nelvana. Both have enough onboard memory to hold up to sixteen half hour shows. Onboard lithium ion batteries can last up to six hours on a single charge. While both devices have similar guts on the inside, their exterior form factor is made to appeal to either a younger or older audience. The video choices for each device are also age appropriate for the two different age groups.

So just how do you transfer TV shows onto the iPix and VEO? Each device can be connected to a computer via the USB port. Once connected, a visit to a unique itoys website allows users to purchase their favorite TV shows and transfer them onto their iPix or VEO. The whole experience is similar to that of loading content onto an iPod, but these online tools are customized specifically for itoys products.

The cost of the iPix is just under $70 and half hour television episodes can be purchased for between $2.49 to $2.99 each. The VEO has the exact same pricing structure as the iPix. Watch for these technology toys to become available in June of 2009.

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.