Half of consumers plan to spend less this Christmas
Half of UK consumers plan to spend less at Christmas this year, as inflation drives up prices and the cost of crisis beds.
Gifts will be one area in which those looking to save will cut back. Among those consumers looking to spend less, one in three say they will cut their gift budgets by at least £25 per person.
About 5% of the more than 1,000 UK consumers surveyed said they had already bought all their gifts, while 7% indicated they would leave shopping until the last minute.
Nearly half (47%) consumers are worried about Christmas this year, an increase of 15% from 2021. With so many consumers worried about the cost of Christmas, brands need to be careful about the tone they cast in their festive advertising, research suggests. . Only 18% of consumers agree they are looking forward to Christmas ads this year, down 5% from 2021.
“Brands need to be sensitive to this emotional context and the realities of people’s financial situations, particularly in their advertising campaigns,” says Lynn Dyson, Head of Creative Excellence at Kantar.
“There has been a definite shift in public sentiment around Christmas advertising and brands will need to balance festivity and exuberance with their content in 2022. However, that doesn’t mean they should fall into the dreary ‘sad advertising’ trap. People still want to rise, but rather Actually more so when times are tough.”
Nine out of 10 marketers plan to invest in the metaverse over the next five years
More than nine in 10 (91%) marketers intend to invest a percentage of their marketing spend in the metaverse over the next five years.
Many marketers are making a significant investment in the metaverse, with 50% planning to invest more than 10% of their budget in the region in 2023. Nearly 700 global marketers were surveyed by digital experience platform Sitecore, including 300 in the UK. Of those, 81% believe there will be widespread adoption of metaverses in the next five years. Two in five say they have already seen a compelling metaverse use case that could lead to a return on investment in their business.
Despite believing in the potential of the metaverse, marketers also recognize that there is a lack of consumer understanding of the concept. Nearly two-thirds (65%) of those surveyed feel consumers do not fully understand the idea of the metaverse, with nearly eight in 10 (78%) planning to work harder to educate consumers about the metaverse.
The research also included a survey of more than 2,000 consumers, showing that only 30% consider themselves “metaverse enthusiasts”. However, they are open to devoting more time and money to social media, with two-thirds of consumers stating that they expect to spend more on social media than they currently do.
While Meta was found to be the preferred metaverse provider for more than two in 10 (22%) marketers. The research shows that there is no dominant platform in the region yet, with 45% of marketers surveyed stating that they have no preference for where they will build their metaverse projects.
Shoppers are turning to special labels and discounts to manage inflation
British shoppers plan to use three main coping strategies to help combat the rising cost of living, according to new data from NielsenIQ.
This includes monitoring the overall cart cost (26%), choosing supermarket brands instead of brands (27%) and shopping at discounts more frequently (23%).
The shift from brand to private label is already underway, with supermarket brand sales up 6% in the last 12 weeks, compared to just 2.4% increase for branded goods. The brand fared better than the bakery brand, with sales up 1.9%, for example.
The private label now accounts for 53% of consumer goods spending, up from 52% a year ago, according to NielsenIQ data.
There has also been a ‘small shift’ away from fresh to frozen foods, with Mike Watkins, head of retail and business at NielsenIQ in the UK, noting that ‘spend on fruit and vegetables, fresh meat, fish and poultry has fallen a bit,’ and that ‘spend on sweets and soft drinks’. .
Shoppers are also returning to supermarkets, with in-store visits up 6.5% year on year, while online visits are down 9.3%. Therefore, the share of online consumer goods sales fell to 10.9% from 11.1% last month.
Most consumers will pay up to £10 to avoid the influx of ads
More than half (52%) of consumers say they would pay up to £10 to avoid ads on the streaming service, with four in 10 (37%) willing to pay between £10 and £25 a month.
In the UK, 40% of respondents are willing to pay to skip ads while streaming content, which means 60% are targets of the ad-supported model. This is higher than in other countries such as the United States (55%) and Germany (45%).
This indicates that there may be potential for an ad-supported streaming market in the UK. Especially as more than a quarter of British consumers are considering cutting their SVOD subscriptions in the next three months to save money amid the cost of living crisis.
That’s more than the number of consumers considering canceling their media subscriptions to music streaming apps, podcasts, or print media subscriptions. 23% of those surveyed have already cut media subscriptions.
There are differences between age groups in how viewers respond to ads on their streaming services. Newborn babies, who may be accustomed to ads while watching TV, are least willing to pay to skip ads (58% say they are “somewhat unwilling” or “completely unwilling”). In contrast, 67% of Generation Z respondents were “very willing” to pay.
Over a quarter of UK consumers make the majority of purchases online
More than a quarter of British consumers (29%) now make more than 80% of their purchases online. This is a significant increase from 11% in the pre-pandemic period.
In the survey of 4,000 shoppers across seven different markets conducted by business communication service Esendex, those who live in the UK are likely to have changed their shopping habits over the past few years. While the percentage of British consumers who do the majority of their shopping online has increased by 18%, in France it has only increased by 8%.
Those who live in the UK are also some of the most impatient (along with shoppers in France and Italy) when it comes to customer service. More than half admit they are frustrated if they have to wait more than five hours for a response.
Contact centers have always been the preferred channel for consumers and brands to stay connected. However, the survey found that this is now the preferred option for less than half of the UK population (43%), and that shoppers prefer email or contact customer service via SMS or WhatsApp.
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