Pitching It To Kids

Whatever one's opinion of it, the Neopets franchise is expanding. Neopets Inc. has revenues of more than $15 million annually and is turning a profit after just four years in business, says Dohring. Neopia now exists in nine languages, including Chinese (Dutch is next). The company is growing with a line of merchandise, including stuffed animals, toys and a trading-card game. Fueling that growth is Dohring's advertising pitch, which has attracted some major, if reticent, clients. Disney, General Mills and Universal Pictures, contacted by TIME to discuss their business with Neopets, declined to comment. Asked about McDonald's association with the site, Kathy Pyle, the fast-food company's director of kids' marketing, said, "McDonald's wants to be integrated into the online experience. We have been doing it for entertainment purposes, not directly selling." McDonald's, however, is offering Neopets toys in Happy Meals, cross-promoted on the site.

Internet advergaming isn't limited to Neopets. Food manufacturers in particular are luring kids to their brands with similar offerings. Postopia.com, a popular Kraft Foods site, offers a full arcade of games, some (like the Pebbles Quarry Adventure) linked to sweetened cereals and drinks like Kool-Aid. Look closely at the bottom of the home page and you can see the fine print: "We, at Post, want to let you know that this page contains commercial advertising where we mention products we sell."

Plenty of other corporate initiatives are under way to grab kids' attention. WalMart has been drawing kids (and their parents' pocketbooks) to its stores with a marketing concept called "retailainment." In one version last fall, kids visiting WalMart received Bob the Builder coloring books and could go on a "safety scavenger hunt" that led them to the toy, hardware and infant-and-toddler departments. What's going on? Preschoolers are now considered a "highly marketable segment for certain products," says a recent report by MarketResearch.com. Though you probably already know that if you have a toddler in the house.