As we celebrate the festive season, the7stars has been looking into how brands have started to adjust to consumer needs in Q4. Despite a relatively negative year, and with the ongoing cost-of-living crisis showing no signs of easing, the Christmas season is still full of optimism.
The latest results of the7stars’ Quarterly Tracker (QT), from November 2024, embody this. When asked what emotions they feel most throughout the festive period, the top three for most Brits are happiness, excitement and relaxation. Nonetheless, when it comes to people’s personal financial situations, it would be remiss not to mention the concerns people have. 36% are apprehensive about being able to afford Christmas this year, though 61% will ‘definitely’ be shopping for Christmas presents, despite the economic gloom.
We have already seen how this resilience to spend during Christmas has impacted ad spend in Q4 2024. Total UK ad spend has grown faster than consumer price inflation this year, rising by 7.8% compared to 2023, with large increases being driven by Online Display and Search according to WARC. This reflects the industry’s confidence in the Christmas period as a powerful moment to deliver highly emotive, resonant messages about British brands that extend beyond the 25th of December. However, ad spend is not seeing wholesale increases across the board. TV, Mail, Newspapers and Magazines are all media channels that are forecast to receive a lower Christmas spend this year.
While Linear TV is forecast to reduce its numbers this year, it remains the third biggest media channel for advertising this quarter, and we shouldn’t be too quick to downplay its importance. Equally, SVoD providers such as Netflix are introducing ad tiers that are appealing to the British population and boosting the overall brand image by doing so. Research conducted by MTM demonstrates that value-for-money perceptions amongst these brands have already improved by 6-8% this year since the ad tier’s launch, highlighting the potential for the broader TV landscape to keep delivering for advertisers.
Focussing on the ads themselves, M&S has released the first 5-star Christmas ad of the season, according to System 1 Group. If this year is anything like 2023 – where 20 different creatives received the coveted 5-star award – M&S won’t be the only great ad we see before the new year. Expect to see many more adverts successfully touching upon the strong emotions that Christmas evokes in the coming weeks. The ad combines craziness and humour from celebrities like Dawn French, and continuity with the return of the Christmas fairy.
Christmas is undoubtedly the prime season for advertisers looking to connect with the mass market. Despite the economic crisis, audiences are still invested in the joy that Christmas can bring, and brands are following suit by investing in advertising at high levels. From the outset, the race for consumers’ hearts will be hotly contested and harder than ever, with only M&S currently succeeding ahead of the pack through major investment in celebrity, narrative and Christmas magic.
