The song is mainly about his insomnia.
I think thats the reason he wanted old toys to come alive in his music video, just as if all those impossible things happen in his dreams.
Adam Young told the story behind the song to AntiMusic: "It was 2AM and I was sitting on the floor in my parent's basement with a MicroKorg on my lap.
I have insomnia and I've always had a tough time falling asleep for as long as I can remember. I wanted to sing about my inability to sleep in a whimsical way that portrayed the condition as lighthearted and almost more of a 'blessing' than a curse. It's ironic that when sleep and I cannot bring ourselves to meet is often when inspiration strikes hardest. I'd just been on vacation to Iowa the week before I wrote the song and was amazed at how many fireflies came out at dusk. I didn't really have to think about making a connection between insomnia and lighting bugs, it just sort of happened and the song basically wrote itself. It was a lot of fun."