With the Transformers dominating the toy scene in the 1980's (along with G.I. Joe and He-Man), transforming robots were everywhere. Bonkers thought they could boost sagging sales with this promotion. I personally never had one but several grade school classmates did....they were so cool. Not to be confused with Kronoform , this was but a cheap knock-off, one of many that came up during the 1980's.
The Robot watch was most likely the only toy you could bring to school and not have it taken away. The watches from my childhoods were most likely not obtained from this ad (mail away? $3.95? Three bonkers wrappers?) but probably from vending machines in the mall or maybe a few were even one of those cool Kronoforms. Man, I wish I had one now...that would be cool. I did a search on Ebay...$50! Did you have a robot watch as a kid?