It's cute. There's a book that goes with it yo tell the story. My kids get a kick out of looking for him every morning - it's the first thing they do! Just a fun Christmas tradition, another thing to liven up the season, more memories for the kids.
I think it's a toy you put in different places around the house. You tell the kids he is "watching" them to make sure they are behaving so Santa will make sure they are good boys/girls. IDK....I don't have one. I think it's creepy.