Online Marketing Strategy Toy Brands Are Using to Drive Performance in 2025 

Once upon a time, a toy’s success depended on a blockbuster movie or a prime-time TV slot. But today’s kids aren’t glued to the television, they’re watching YouTube in the backseat, or at the restaurant, begging for toys they discovered from bite-sized clips on a portable smart device.

Click here for the full report: YouTube & it's Emerging Impact on the Toy Industry

Toy Manufacturers to YouTube Studio

We’ve entered the streaming-first generation, and with it, a seismic shift in how children discover, connect with, and desire toys. In this new landscape, YouTube has emerged as the most powerful strategy for toy companies looking to stay relevant and scalable...

The numbers tell a compelling story:

• 84% of children cite YouTube as their primary source of entertainment.
• 51% remember seeing their last toy ad on YouTube, not TV.
• 60% of parents say they’re more likely to discover a toy while co-viewing content with their child.

This shift is about more than just screen time - it’s about how trust, brand value, and children's product desires are built in a digital-first world. Children today are no longer just passive viewers; they are active participants in content ecosystems. They expect stories that evolve, characters they can interact with, and toys that are part of the worlds they see on-screen, whether that screen is a phone, tablet or CTV.

Create a YouTube Channel for Your Brand

Toy brands that once relied on traditional licensing partnerships, seasonal retail pushes or ad-slots are now finding themselves outpaced by agile, digital-native content strategies. Meanwhile, digital-first IPs (many created independently or by smaller studios) are scaling to global audiences through clever storytelling, consistent engagement, and algorithm-powered discovery. In this context, a YouTube channel for toy brands isn’t a campaign - it’s a scalable property asset and platform where brands can own their content. It can start as an animated series on YouTube and expand into games, merchandise, streaming deals, and even live events. It merges entertainment and commerce, turning content into both a storytelling device, marketing tool and independent revenue stream.

What makes YouTube so effective for toy brands?

• It’s evergreen, delivering year-round brand exposure instead of seasonal spikes.
• It’s interactive, meeting kids where they are and how they engage.
• It’s discoverable, leveraging algorithms to surface content to global audiences.
• Billions, is the ceiling. That's right, billions of views can be achieved by brands on YouTube (beat that Meta!) - and that's engaged views, not views from invasive advertising.

Most importantly, it’s a feasible option for toy brands to consider doing without big legacy studio backing. So what does a brand need in order to become the next big entertainment franchise on YouTube? First, you'll need a production partner (specifically an animation studio with expertise in 3D). Second, a YouTube strategy partner & not a generic 'social media guy/gal' - YouTube is a long game unlike other platforms where you're always chasing short-term 'viral' campaigns. The third and final thing you need to get started is a Creative Director. With this strategy on YouTube a Marketing Director will unlikely be equipped with the right skill set (as you're looking to impact the world of entertainment, not advertising). You want someone to lead your YouTube strategy who understands storytelling and building IP's that have true entertainment value.

YouTube has democratised media and entertainment opening new opportunities for emerging players. Consumer behaviour has evolved & the playbook has evolved with it. 

Making Money on YouTube

In an era where attention is fragmented and kids’ brand preferences are shaped by what they binge-watch, toy companies must think like entertainment studios. YouTube is no longer a marketing strategy, or place where you sponsor videos - it’s a business model. One that enables toy companies to build loyalty, expand monetisation, and stay ahead in an industry where digital storytelling now drives everything from awareness to retail demand.

For brands still clinging to the old model, this is the wake-up call: you’re not just selling toys - you’re building worlds. And in today’s market, those worlds start on YouTube.

At Magix Entertainment, we stay ahead of the curve by closely tracking YouTube trends and their impact on the toy industry. Every two months, we publish in-depth reports that analyse the evolving media landscape and what it means for toy brands. You can download the full report that inspired this post by clicking the graphic below, it’s completely free (no catches), just our findings in your hands.