Brands spending £6bn on Christmas ads


Brands will be spending a record £6bn on Christmas advertising in 2017, according to a new report.


The study, from trade body The Advertising Association, found that the rise is being driven by intense market competition, especially within the retail sector, and the rise of big-budget campaigns.

It believes spending on ads has jumped nearly 40% in just seven years.

The figures come as campaigns by major retailers such as John Lewis, M&S and Asda get under way.

"There have been so many blockbuster campaigns over the last 10 years," says Karen Fraser, director of Credos, a think tank which compiled the forecast with the Advertising Association.
John Lewis' Christmas ads have become particularly anticipated by the public and advertisers in recent years.

A recurring theme in John Lewis adverts has been to take out branding and centre on stories to grab people's attention.

A survey of 1,000 Britons conducted on behalf of the Advertising Association calculating that half were not ashamed to admit they’d shed a tear after witnessing these adverts, while one in six went out of their way to ensure they were first to see an advert’s premiere.

Theo Theodorou, GM of EMEA, GroundTruth , commented on what this means for retailers: “With Christmas being the most important shopping event of the year, retailers bring out the big campaigns (and the ad budgets), with wonderful characters such as ‘Moz the Monster’ and ‘Paddington Bear’, capturing people’s imagination over the festive season.”

“As this is a critical time that can make or break a retail brand’s year, it’s imperative that retailers carry these experiences through to capture people in the moment and make the path to purchase as simple as possible. This where is where a location strategy comes strongly into play.”

“Location not only gives retailers the power to deliver an in-the-moment communication for when people are close by to drive those into store, but also builds a picture of behaviour to understand if people are in the market for certain products. This makes it easier for brands to be there in a digital world when consideration, and likelihood to purchase, is high.”

“The Advertising Associations figures are a great indication of how much these characters resonate with the British public. However, capturing people in the moment using a location strategy gives these characters even more room to shine, and even stronger probability of stores having a bumper Christmas.

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