This festive season is set to witness a monumental investment in Christmas advertising, with brands poised to spend a record-breaking £10.5 billion.
- Data from Advertising Association (AA) and WARC forecast a significant 7.8% increase in advertising expenditure compared to the previous year.
- The surge includes major rises in online display, broadcaster video on demand, and out-of-home advertising channels.
- Research indicates an upswing in positive public sentiment towards Christmas adverts, adding excitement to the season’s campaigns.
- Industry experts highlight the strategic importance of well-crafted holiday advertising in boosting brand visibility and sales.
The upcoming Christmas period is expected to experience an unprecedented level of spending on advertising, with industry players projected to invest a staggering £10.5 billion. This figure represents a marked increase, as highlighted in the recent data released by both the Advertising Association and WARC, illustrating a 7.8% rise from the previous year’s expenditure.
Among the advertising channels experiencing significant growth, online display advertising, which encompasses social media spending, is predicted to climb by 15.8%. Online radio advertising sees an 8.8% increase, while broadcaster video on demand (BVOD) is set to rise by 7.8%. Further, out-of-home advertising channels anticipate an 8.1% increase, with cinema advertising expected to grow by 5.1%, buoyed by new releases such as ‘Paddington in Peru‘, ‘Wicked‘, and ‘Gladiator 2‘.
Matt Bourn, Director of Communications at the Advertising Association, remarked on the critical nature of this final quarter for businesses striving to capture consumer attention. He described the investment as a growth engine that supports employment across the country. Bourn also emphasised the role of creativity within UK advertising, noting its capability to unlock business success through skilled storytelling and innovation.
Supporting this optimistic outlook, Kantar’s research reveals that public affection for Christmas ads has reached the highest levels since records began, with 59% of viewers expressing love for holiday TV adverts, up from 51% in 2023. Excitement about viewing these ads has also increased, with 56% of consumers eagerly anticipating them compared to 48% last year.
Lynne Deason, Head of Creative Excellence at Kantar, noted the bar-raising efforts of advertisers in previous years have contributed to the heightened festive enthusiasm. She pointed out John Lewis as a standout example, mentioning that a quarter of respondents look forward to their holiday campaigns. Additionally, humour has been increasingly integrated into advertisements, offering an effective means of engagement with audiences.
James McDonald, Director of Data, Intelligence & Forecasting at WARC, commented on the powerful impact of well-strategized Christmas campaigns. Such campaigns are known to enhance brand presence, secure customer loyalty, and boost sales. Advertising budgets typically expand during this period, with creative teams committed to crafting compelling messages that leave a lasting impression.
As brands gear up for this unprecedented season of holiday advertising, the anticipated spending reflects not only commercial aspirations but also a shared cultural enthusiasm for Christmas.
