UK advertising trends

The UK economy is growing, which helps the UK advertising business rebound. As of 2018's first quarter, advertisers increased investments in digital advertising by more than 10%, not a surprise. What was a surprise was the increase of 12.5% in spending on radio advertising by 12.5%, a very strong result for this medium.

Another surprise was the increase in national newspaper advertising. Newspaper advertising spend had been decreasing since the end of 2010--until now.

Digital is, of course, a major focus for many advertisers. Yet transparency and trust remain a concern. The UK Competition and Markets Authority recently warned several influencers that any sponsored/commissioned posts on social media must be clearly marked as such.

Because celebrities and social media stars have millions of followers, what they post can make a difference in brand recognition, awareness and preference. That's why, says the senior director of the CMA, consumers should be 'clearly told whether a celebrity is promoting a product because they have bought it themselves, or because they have been paid or thanked in some way by the brand'.

Meanwhile, the Advertising Standards Authority is looking closely at marketers targeting children. It recently told Cadbury, Chewits, Squashies, KFC and Kellogg's to stop targeting children with digital adverts for foods that contain large amounts of fat, sugar or salt. For more about how the ASA protects children and vulnerable audiences, and for examples of banned adverts, see its explanation here.

What's happening in the UK toy industry?

That's the question at the London toy fair, where hundreds of suppliers show their newest products and brand extensions to thousands of wholesale and retail buyers. And, of course, the media are invited (but no children). Above, from the Toy Fair Blog, a view of the giant show, which is taking place this week.

The Toy Character Parade is one of the special events that offer a preview of some of the branded characters consumers will see on store shelves later in 2018. In addition, electronic toys are, of course, still amongst the hottest items sought by consumers and, therefore, by retail buyers. Collectable toys are currently popular; also selling well are characters and brands already known to children and parents, such as Pokemon.

The Toy Fair also features a design seminar for students planning a career in the toy industry. Students not only hear from experts, they network with toy firms and design firms to learn more about internships and career possibilities.

As for the toy industry, UK sales of toys decreased a bit in 2017, to £3.4 billion. One reason: the rise of mobile games. Another reason: children spending more time in front of a screen (TV, phone, tablet, laptop). The decrease follows several years of sales increases. Will toy sales increase or decrease in 2018 as parents try to balance the amount of time children spend with screens/mobile games against the time spent playing with other types of toys?  

Peppa Pig Goes Global

Peppa Pig, just 10 years old this year, has taken the preschool branding world by storm. Her animated TV series is produced in UK studios and shown worldwide. Peppa even has her own Royal Mail stamp and a theme park, Peppa Pig World, in Hampshire. Coming soon, Peppa's part of a theme park in Milan will be even larger as the brand becomes popular throughout Europe.

Peppa merchandise is a multimillion-pound business. In the UK alone, Peppa products account for £200m in revenue. Worldwide, Peppa products are worth £640m in revenue. This turnover includes revenue from a deal with Mattel's Fisher-Price toy unit.

From January, 2015, Peppa will be in Walmart stores, part of a deal by EntertainmentOne with Jazwares to expand the brand in the US market. Peppa also has new retail agreements in Paris and the French market, building on the brand's higher awareness and preference.

Watch for Peppa on TV, in stores, in theme parks, online, and wherever parents and grandparents are looking for a fun brand suitable for preschool boys and girls.

Marketing to kids--yes or no?

In a recent Sixth Sense/YouGov survey, 49% of UK adults said yes, it's OK to market to children. The other half of adults surveyed think it's NOT OK to market to children.

As the debate continues, some adults are signing online petitions posted by Leave our kids ALONE. This group wants to ban advertising messages targeting children who are 11 and younger. One member wrote an opinion piece for the Guardian, pointing out the rising tide of marketing surrounding children at school, at home and in daily life.

The Advertising Standards Authority, which regulates UK ads and is looking closely at the issue of marketing to children, tells the BBC: 'Regulation in this area is deliberately strict, but proportionate and based on the best available evidence'.

Changes in media technology are responsible, in part, for adding urgency to the question of whether marketers should target children. An article in Marketing Week notes that 'The rise of digital communication channels and in-school advertising, in particular have been singled out as stress points by parents who claim there is a lack of control over messaging to youngsters'.
 
On the other hand, the 8-16-year-olds polled in the Sixth Sense/YouGov research said they recognised the reason for advertising's existence. Nearly all were aware that ads seek to get them to buy. In other words, as long as children understand what marketing is about and why it's all around them, they are better positioned to analyse the messages and make a more informed decision about how to react.

Still, some marketers are choosing to curtail marketing to youngsters. Coca-Cola is no longer going to advertise to  children under 12 in any market. Effectively, however, this means not advertising in media where children make up more than 35% of the audience.

The debate continues: What are the ethics of marketing to children?