UK advertisers set to spend record £6bn this Christmas
2017 might have been a bumpy year for British politics and the UK economy, but advertisers are ready to help fill those stockings this Christmas and are expected to invest a whopping £5.93 billion in the final quarter of 2017 – a 37% increase since Q4 2010 and the largest ever seasonal advertising spend.
Data from the Advertising Association shows that investment in the run-up to the festive period has been on a steady upward trajectory for the last seven years – with year-on-year spend between Q4 2016 and Q4 2017 only seeing a slight slowdown compared with previous years.
In 2016, the £5.79 billion spent in the final quarter accounted for 27% of the total £21.3 billion spent on advertising that year.
For a number of sectors – specifically television and home cinema (66%), fragrances (58%), jewellery and watches (55%) and children’s toys and games – it accounted for more than half the total ad spend in the year.
UK consumers might be the biggest spenders on Christmas presents throughout Europe with an average spend of £291.60, but the British Retail Consortium has said this week that retailers will have “cause for concern” as they prepare for the crucial run up to the festive period as sales of non-food items grow at the slowest pace since records began (0.2%).
“The decline was driven by the worst performance of non-food sales since our record began in January 2011, as consumers appear to have opted for outdoor experiences and excursions during half term, over visits to the shops,” said Helen Dickinson, chief executive of the BRC.
“Real consumer spending power has been on a downward trend in the last year as the acceleration in inflation has caused shoppers to become ever more cautious in considering what purchases they can afford. Many now face higher borrowing costs, given the rise in interest rates, which will only serve to heap further pressure onto household finances.”
That’s the spirit
As companies such as John Lewis, Sainsbury’s and Marks & Spencer gear up to release their much-anticipated Christmas ads this week, the AA also looked into consumer attitudes towards the festive advertising period.
Nearly half (47%) of respondents claim to have been moved to tears by Christmas adverts they’ve seen or heard, while a third (33%) said they look forward to Christmas adverts more than any film release.
One in six (16%) said they have changed plans to watch the premiere of their favourite Christmas advert. [Lol/eyeroll – Ed.]