Yoto taps into demand for screen-free audio for kids

An interactive audio platform Yoto is launching in Australia to provide kids with a screen-free device for entertainment and take advantage of the surge in interest for audio books.

Interactive audio platform Yoto is launching in Australia to provide Aussie kids with a screen-free alternative for entertainment.

A fast-growing new product category launches on Aussie soil this week with the arrival of Yoto, an interactive audio platform designed for kids.

The self-contained portable speaker system provides children with access to stories, music, and educational activities via a collectable set of cards which slot into the player.

The player, which can also stream podcasts and radio stations via an app for parents, is intuitively designed for kids aged 3 years and over to use independently.

The Yoto player is part of an emerging category of interactive audio devices for kids which aim to help parents find entertaining and educational alternatives to screens and digital devices. It’s also leveraging the huge growth of the audio category and audio books specifically, which are growing at over 25 per cent each year, according to Yoto chief operating officer Amy Wallace.

Speaking exclusively to The Growth Agenda, Ms Wallace said the local launch aims to leverage the significant consumer demand for the product, which was previously only available in the UK, US and France.

“We’ve never marketed to Australian customers or families and we have never had an affordable way for families to actually get the product. But through word of mouth from the UK and US, we’ve seen families ordering in bulk, or buying overseas, it became clear there’s this huge pent-up demand in Australia that we need to try and satisfy. It’s the natural next key market for us,” said Ms Wallace.

The British brand, which was initially funded by a Kickstarter program, officially launched in the UK in March 2020. The timing worked in the brand’s favour and it experienced strong growth during the pandemic, as parents searched for screen-free alternatives to entertain and educate children in lockdown.

Yoto’s growth was initially driven by word-of-mouth recommendations but the brand now harnesses integrated marketing activity and last week launched its first global online and out-of-home campaign, which will run across the US, UK, France, Canada and Australia.

Yoto reports that sales have consistently doubled year-on-year since its launch four years ago, hitting more than GBP 50m in revenue in 2023. Yoto boasts that more than one million children around the world have access to one of its products.

Ms Wallace said the US is the brand’s biggest market, although overall market penetration “is tiny”, Yoto experiences growth clusters in certain areas and is collecting data from these clusters to test marketing approaches for the Australian market.

Yoto’s vice president of marketing Jon Kell said the brand’s positioning as an alternative to screens remains a central pillar for the business, however it is not the only selling point to parents.

“Our latest research overwhelmingly shows that the reason customers use our product is to avoid advertising. Avoiding screen time came second, but advertising was first.”

“Parents are very aware that using screen-based devices provides advertisers with opportunities to push messages that parents don’t want their young children looking at, and our platform protects against that,” he said.

The brand has no plans to incorporate advertising on its platform or players. However, it does work with publishing houses and entertainment companies to license content, such as Disney, Penguin Random House, Universal Music Group, Harper Collins and a host of others.

Yoto has also partnered with companies such as Merlin Entertainment and the conservation charity Sea Life Trust to co-create dedicated content specifically for the platform as well as working with The Lego Group.

Yoto has also launched a ‘Make Your Own’ function which enables users to purchase blank cards and create and link their own content and audio.

Ms Wallace said it was part of the brand’s aim to inspire “the next generation of creative minds” and to enable safe independent play for kids.