Research by Kantar has found that 50% of consumers are planning plan to spend less on Christmas this year due to the cost of living squeeze, with brands being urged to take account of people’s financial positions, particularly in their advertising campaigns.
In a shopper survey, one in three stated that they would cut back on their gift budgets for friends and family by over £25 per person.
Kantar highlighted that 37% of consumers are struggling with their financial situation, meaning retailers and brands will need to work harder to attract customers this year. The study suggests that the next few weeks will be especially critical for consumer businesses, with competition on the high street likely to be fierce right up to the big day.
While 5% of people surveyed said they have already bought all their presents, the number of those planning to leave their shopping to the last minute has nearly doubled from 4% in 2020 to 7% this year.
There has also been a significant increase in the number of people worried about Christmas, hitting 47% in 2022 – a rise of 15 percentage points since 2021. With the inflationary backdrop, Kantar stated that brands will need to ensure their Christmas advertising campaigns strike the appropriate note with the public. Only 18% of consumers strongly agree that they are looking forward to festive ads this year, down 5 percentage points since 2021. Some people also said they feel these ads set unrealistic expectations for spending.
Lynne Deason, head of creative excellence at Kantar, commented: “It’s been another tough year for many people and brands need to be careful to get the right tone this Christmas. We’ve seen a significant jump in the number of consumers who are worried about money and the emphasis for many will likely be on getting back to the true meaning of the festive season, focusing on togetherness, kindness and generosity.
“Brands must be sensitive to this emotional context and the reality of people’s financial positions, particularly in their advertising campaigns. There’s been a clear shift in public sentiment around Christmas ads, and brands will need to balance celebration and excess in their content in 2022. That doesn’t mean, however, that they should fall into the trap of gloomy, downbeat ‘sadvertising’. People still want to be uplifted, in fact even more so when times are tough. Brands that also take active steps to make a genuine difference to those in need this Christmas will be appreciated and remembered. Tesco’s donation to the Trussell Trust and FareShare is a good example.
“Christmas ads continue to play an important part in kicking off the festive season for many people and giving them a boost, but brands must ensure they deliver their messages in a way that doesn’t feel out of reach or out of touch this year.”
NAM Implications:
- “47% worried about Christmas” – says it all.
- Years ago, aspirational adverts in quality Sunday supplements often alienated readers unable to buy…
- …causing loss of readership as well as damage to the brands.
- So Kantar’s point re care needed in terms of advert positioning is well made…
- Along with their caution to avoid the other extreme of gloomy, downbeat ‘sadvertising’…
- …(not to mention the risk of patronising newly-in-need consumers)
- Those relying on Retail Media may be better able to navigate the fine-line required.
