CHRISTMAS MARKETING SPEND UP FROM £6BN TO £6.8BN THIS YEAR
There’s no denying that Brexit uncertainty is having an impact across the retail sector by affecting consumer confidence. But a boost in Christmas marketing spend this year could be taken as proof of retailers’ optimism as they enter the festive period.
Figures from the Advertising Association (AA) shared by The Drum placed overall Christmas ad spend at £6bn last year, with digital media accounting for a larger chunk of budgets than TV. This trend is predicted to carry through to this year, with £6.8bn expected to be spent on Christmas advertising. TV ad spend will fall again, by 1% year-on-year to £1.4bn, while display ad spend is expected to increase to £1.75bn.
So, what are retailers’ main marketing spend priorities during the festive period?
Iceland’s top marketer, Neil Hayes, also quashed suggestions that ad spend would dwindle over the festive period due to the political and environmental environment. “Christmas happens every year and that’s what we are focused on – we’ll still be selling mince pies on the run-up to the 25th.”
Christmas has come even earlier for retailers this year due to consumers spreading out their shopping more, which has led to search budgets increasing.
The Guardian quotes AA’s chief executive, Stepehen Woodford, as attributing the strong growth in digital advertising to the fact that brands and retailers are following audiences and looking for channels where they can reach out to specific audiences effectively.
He continued: “Small and medium-sized businesses are also driving huge growth online. Twenty years ago small businesses had limited choices but now a one-person business can advertise using digital channels to 100 people if they choose to. It has also opened up routes for a small business to reach global markets.”
We’re sure you’ll agree that the very best Christmas marketing strategies are ones focused on creating compelling and impactful customer journeys. If you need some guidance, get in touch with us today to find out more about our services and previous work.