The savvy data strategy fueling Barbie’s digital growth

Barbie has been busy retooling its media plans to meet the increasing online demand for its dolls. The Drum catches up with its top marketer, Lisa McKnight, who tells us how a smart data strategy, combined with flexibility, is helping sales pop.

In February, Barbie owner Mattel posted stronger than expected sales after parents snapped up Barbie dolls and Hot Wheels cars over the holidays, its revenues rising 10% to $1.6bn.

Physical toy sales have been buoyant these past 12 months as parents look to occupy tiny minds and hands in lockdown. Leading the growth for Mattel has been doll sales, which surged 9% in 2020. With stores closed, e-commerce has of course played a huge role in getting boxed Barbies to kids, with Mattel’s online sales growing more than 40% in 2020.

“We did see a huge migration to e-commerce last year, accelerating a trend that was already happening” explains Lisa McKnight, senior vice-president and global head of dolls at Mattel, speaking as part of The Drum’s ongoing Digital Transformation Festival.

She says her marketing team has had to ensure it has been in “lockstep” with external retail partners such as Amazon throughout the pandemic to ensure they’ve had the right assets and stock to push Barbie. However, a bigger shift has also been at play: a retooling of the doll’s data and demand creation strategy, which has helped boost sales via both third-party and owned channels.

Last summer, Barbie observed an uptick in search for its flagship Dreamhouse product. First launched in 1962, the Dreamhouse (much like Barbie) has evolved over the years but still features high up on Christmas lists. The first iteration was a modest pad built from cardboard, while in the 80s and 90s it got an upgrade with floral wallpaper and a luxurious elevator to take Barbie from floor to floor. Now the Dreamhouse features a home office, a second-storey pool with a slide and a plug-and-play design that allows for interactive online play.

“This is an item that’s typically marketed and has its peak sales during the holiday period because it’s an expensive, premium item and is often bought as a big gift. With summer camp and birthday parties canceled since mid-2020, we have saw parents look to spend a little bit more on presents and gifts that have a lot of play value.”

In response, Barbie’s marketing team initiated the Dreamhouse marketing blitz earlier than it typically would.