Multi-Million Dollar CloudPets™ National Media Campaign Launches
Advertising Campaign Will Support Spiral Toys’ Premiere Line of Interactive Toys
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FOR IMMEDIATE RELEASE
LOS ANGELES, Calif. (April 14, 2015) — Today, mobile wireless technology company Spiral Toys (STOY) announced the launch of a $9.6 million national advertising campaign introducing CloudPets, its premiere line of Bluetooth Smart-enabled, interactive plush toys.
The media campaign began on April 7th, and consists of 30-, 60- and 120-second commercials running on top-tier children’s networks including Nickelodeon, The Cartoon Network, ABC Family and Disney XD, among others. The products will be sold over the phone and on the direct response site www.mycloudpets.com.
The campaign supports the official launch of the CloudPets toy line using a direct response retail approach. CloudPets was market tested last year through a direct response campaign that resulted in selling all 2,000 units almost instantly after the first ad ran on television. Spiral Toys Hong Kong has since increased the manufacturing capacity for this line and secured US distribution channels that will support a successful full-scale launch into the marketplace.
“Consumer demand for our original manufacturing run of CloudPets toys was overwhelming,” said Spiral president and CEO Mark Meyers. “With the launch of our overseas offices, we are primed to meet and exceed the present request and future orders to come. Spiral Toys is extremely well positioned for successful growth this year.”
The current CloudPets direct response marketing campaign will run through the end of the year. CloudPets are expected to have widespread retail availability with an MSRP of $39.99 per unit. CloudPets will be released into mass retail in Q3 of 2015 supported by television and digital advertising. By the end of the year, more than 3,800 individual CloudPets commercials will have run on the nation’s most popular children’s networks reaching an audience of millions.
“We’re proud of the technology and products we’ve created,” said Meyers. “The increased sales of CloudPets we expect from this campaign are a key part of our growth and revenue strategy throughout 2015. Following the release of our CloudPets toys into mass retail we will be starting our digital content distribution to kids and families”.
This advertising campaign is being funded by Spiral Toys' direct marketing partners and is part of our agreements with them whereby they fund certain aspects of the Spirals' marketing and advertising costs and provides working capital associated with CloudPets. In return, the marketing partners receive a portion of the retail sales revenues generated from the sale of the CloudPets product line. Consequently, there is no equity component to this and no resulting equity dilution to Spiral Toys or its shareholders. Spiral Toys collects revenue from 3 sources; manufacturing revenue, licensed royalties, and sale of digital content on Apple APP Store and Android Marketplace.
About Spiral Toys
Spiral Toys (OTCQB:STOY) is a California-based company dedicated to developing, marketing, and selling products and mobile applications in the mobile-connected space . Spiral has developed several technology platforms that enable it to acquire and engage consumers in the sale and marketing of physical consumer products and toys.
Spiral collects revenue on both the physical purchase of goods and the sale of digital content through Apple’s App Store and the Google Marketplace. Founded in 2011 by a former senior executive at Disney and Sony, the company has developed an integrated hardware/software/cloud solution that enables mobile-connected entertainment.
Spiral’s mobile-connected entertainment platform connects physical items to today’s top mobile devices through wireless technologies, creating a whole new type of interactive user experience. Spiral sells its products worldwide, and is developing additional applications based on its platform technology for several different verticals within the entertainment industry. The company also acts as co-developer with major entertainment studios.
This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including statements relating to expectations for the performance of Spiral Toys. The terms “expects”, “would”, “will”, “believes”, and similar terms are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by Spiral Toys in light of its experience and its perception of current conditions and expected future developments, as well as other factors that Spiral Toys believes are appropriate in the circumstances. Many factors could cause Spiral Toys’ actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. These risk factors and others relating to Spiral Toys that may cause actual results to differ are set forth in Spiral Toys’ periodic filings with the U.S. Securities and Exchange Commission (copies of which filings may be obtained at www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on Spiral Toys’ forward-looking statements. Spiral Toys has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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