Brands to spend record £9.5bn on Christmas advertising

It’s that time when businesses and companies start to increase their Christmas branding as they continue to adapt to certain trends. Below, we’ve been looking around the Internet at the trends that are arising this year in Christmas and how they could be affecting the market. If your business needs some branded or personalised festive branding, we’ll be able to help you. Taking research from Marketing Week, it’s interesting to see what to expect this Christmas.

The upcoming Christmas season is poised to witness a substantial surge in brand advertising expenditure, reaching an unprecedented £9.5 billion, according to insights from the Advertising Association and Warc. This notable 4.8% increase from the previous year is primarily attributed to the prevailing inflationary landscape.

Why do companies go with Christmas Branding?

Brands strategically diversify their investments, embracing both emerging and traditional media channels. Noteworthy projections include a substantial 20.2% increase in spending on broadcast video on demand, a 10.3% uptick in out-of-home advertising, and a 9.1% rise in online display advertising.

Do companies still spend time on Christmas marketing?

Despite experiencing a slight dip of 0.2% compared to the 2022 total, television remains a focal point, with an estimated £1.5 billion allocated in the final quarter. However, it’s important to note that real-term growth in the fourth quarter is expected to be modest, at just 0.3%, indicating a relatively flat market when measured at pre-COVID prices, as highlighted by James McDonald, Director of Data, Intelligence, and Forecasting at Warc.

While the data acknowledges the impact of inflation on increased spending, there is optimism that brands are recognising the intrinsic benefits of Christmas advertising. This extends beyond financial considerations, emphasising emotive display ads’ efficacy and performance marketing’s value within retail media environments.

What are you contributing to your business this Christmas?

The impending Christmas ad season is poised to be a significant driver for the advertising industry, contributing £430 million to the total market value for 2023. This seasonal contribution accounts for 47% of the overall growth experienced throughout the year, showcasing the substantial influence and strategic importance of holiday-themed campaigns.

Brands are adapting to the Christmas trends

Despite the trend of brands releasing Christmas ads earlier each year, this data suggests a deliberate and strategic move. Nearly half (48%) of adults find festive ads instrumental in shaping gift ideas, while an impressive 70% of individuals between 25 and 34 consider Christmas ads the ‘ultimate festive mood booster’.

Several leading brands, including Aldi, Asda, and M&S, have unveiled their Christmas ads early. Aldi’s offering, a whimsical Willy Wonka parody featuring Kevin the Carrot, has emerged as the most effective, garnering the highest possible rating of 5.9 stars according to System1.

What are the big organisations doing with their Christmas Branding?

Other prominent brands, such as M&S Food, Sainsbury’s, Vodafone, Coca-Cola, and Boots, have also achieved stellar ratings, scoring above 5 stars in ad effectiveness. This robust performance underscores the efficacy and impact of these early Christmas campaigns. It’s no wonder so much money is being spent in relation to Christmas branding.

Contact Purely Digital

Contact Purely Digital to see how we can help with your Christmas branding for your business. The team work around the clock to ensure your business will boom, and as we love quoting, there’s no reason not to speak to us. We can help with the artwork if this is also a requirement. Just contact Purely Digital today.

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