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Rokenbok CEO Paul Eichen on the company’s success despite no commercial advertising.
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They're having a blast -- isn't sure sign of the times company is bypassing traditional advertising.
Like commercials are relying solely on the Internet to get their products sold what rock -- -- A company I had never heard -- into my computer savvy kids got home from due to the ball things.
This is a company that is going against the grain they took their toys -- a big box retailers like Toys 'R' Us and target.
And they spend nothing on commercial advertising nothing zero -- She is if it works all -- -- is the founder.
CEO Brock and -- mr.
rock and rock might -- would call you because that's the name of your channel.
Pretty amazing I would bet you almost every adult doesn't realize.
That this is how kids look for toys right now -- -- a two and a six year old when they see their friends with a toy.
They come homosexual -- -- YouTube -- two year old asks me to do it and they -- -- look at the videos on YouTube and explored the toy.
Before they buy it in this a pretty new phenomenon.
Yet they're advertising on YouTube is pretty new -- and being able to make our videos which is just so much fun.
And easy is pretty new to with the kind of equipment and the small amount of space that we have today dedicated -- our.
Offices but at.
How the production costs.
Compare because I mean you're videos are very elaborate it's not like you're just sitting there you know shooting someone building and playing with the -- It is like you've shot a commercial although they're much longer at the same time obviously.
You don't -- to -- on YouTube writer do you -- that channel.
The channel doesn't cost us a thing but someone we sponsor the videos it does so.
We're looking for a child that likes to watch trash trucks are bulldozers.
And then we'll have one of our video sponsored over on the side.
And that's how they find the rock -- mark channel to begin with.
The production costs -- once we built the stage we actually use interns from local universities and we have one employee part time.
That works on the content and now with today's.
Equipment and how much these young people know about doing video it it costs almost nothing to produce these wonderful -- videos yes -- Percentage basis you've gone to almost zero to find your advertising cost you on hold out about that this -- take.
He pulled out of Toys 'R' Us and target -- on the Internet you only sold directly to families why did you decide to do that.
Well that most of our sales -- -- special beat -- retailers like zany brainy and -- could -- -- imaginary him and all of those chains collapsed along with most of the independent retailers.
And so the whole business model for.
Doing column manufacturers wraps and going to trade shows just really didn't make sense anymore so we decide to see if we could remake ourselves as a direct marketing company.
Even Toys 'R' Us or target I mean that's a central place to go for toys -- it's not like you're a little -- company I mean.
All the parents I don't know about you and have the Muni you seem like you have a pretty big percentage of the market doesn't make sense for you to be in target -- Toys -- Us.
People tend not to want to -- Iraq and -- and less they've seen a demonstration.
And it used to be that -- the stores would support our demonstration tables.
And keep them running and fixing them but they don't wanna do it anymore they just wanted to go back to a traditional advertising model.
And so we demonstrate on the Internet now it's so much easier to do we do these wonderful videos and -- on YouTube and our website -- people get an idea of what this is all about.
And just works great.
It's really it's working for you guys you say that businesses sales grew by 25%.
Last year I imagine your margin is even better.
As long as sales are growing because you cut out the middleman you're not giving a percentage of -- stores.
You're not spending money on advertising deep toys and the only industry would this would work were kids and be willing to go online and look at the product -- Do you think it's applicable to other -- kinds of business -- Yeah I think that they had this work will work for lots of need each manufacturers because of allows you to target so carefully who you wanna talk to.
If you're on YouTube and you're watching music videos are sponsored videos are gonna show up but if you're watching trash trucks they're -- -- every time.
So as manufacturers figure out exactly who they wanna talk to they can pick a video motif an advertisement advertise against it.
Melissa if you don't if you don't -- -- wanted to show you I think your kids -- familiar -- don't vote portion of our system that's for older kids.
But we make the world's greatest pre -- blocks to I just want to show those as well.
Do you have come real quick I do OK so this is -- this is typical this is how looks like maybe a -- lower simple -- -- okay but just.
Just like our regular construction system what we're doing is engineering stuff for the kids can build really really cool models.
And then this is all compatible with that same system that -- boys are playing where -- and it just -- right on up.
All right see yourself good -- marketing and advertising -- you -- not right in their and we -- trying to get away all -- thanks for coming -- we appreciate it.
Thank you Melissa he's -- marketer right coming up.
