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6.8 billion invested into Christmas adverts, but do the views transcribe into sales?

This year UK high street sales fell at the fastest rate since 2008, with big high-street brands requesting a tax cut to safeguard them from rival online stores. However, despite the current economic climate of retail, a record breaking £6.8 billion has reportedly been spent on the production and airing of Christmas adverts this year.

The big question is, do Christmas TV adverts increase sales and really benefit the big brands behind them, or are they a product of fierce competition between companies to attract consumers, during the run up to Christmas.

 

Extravagant Christmas Spending Yields A Fall In Revenue

The eagerly anticipated unveiling of Christmas adverts has become a growing trend in recent years. Come November we are sat on the edge of our seats or poised waiting, phone in hand, ready to see what brands have to offer, and whether they will be better (read- more cinematic, extravagant, or with a cuter character) than last year. Walker’s Crisps spent a whopping £9 million this year for Mariah Carey to make an appearance to promote their festive flavoured crisps and M&S instructed the director behind Beyoncé’s ‘Single Ladies’ video to run their festive advert. Equally, not ready to give up their crown as the festive favourite, John Lewis spent a reported 7 million on their #ExcitableEdgar advert which was released mid-November.

 

What About Digital?

According to research, 9 million of us logged onto YouTube and watched the 2019 John Lewis advert within the first two weeks of it being live.

Retailers such as ASOS are one company that does not advertise through television. ASOS solely promote through digital platforms such as their social media sites, via online articles and through their website.

An increase in online streaming platforms such as Netflix and Amazon Prime, mean adverts can be skipped and content is judged in an instant on Social Media. Baring this in mind, adverts need to work even harder to capture the consumer’s attention and get potential buyers talking.

What is concerning is that retailers have actually experienced a fall in sales during the Christmas period, with a 2% drop in revenue overall. So how is this justified and what makes the difference between sales success and failure?

 

The Secret To Christmas Adverts Success (Hint-Dry Those Eyes!)

When it comes to the Christmas adverts, success often relies solely on an emotional concept to grip the public. Research suggests that if a Christmas advert is done correctly the retailer will typically earn back the cost of the advert in a single day of shopping over the festive period.

A study on 3,000 consumers was conducted by Kantar to determine if Christmas adverts have an influence on peoples shopping habits. The study was concerned with investigating whether retailers would buy from the supplier short term or contribute to the brands growth in the long-term. The questions they used to gauge the study included whether the advert was enjoyable, emotional, attention grabbing and memorable. They also touched on whether it would influence them to purchase a product from the retailer.

Ask yourself this – as a business owner would you plough money into advertisements that are not reaching their full potential?

 

Emotive Content Is Not Just For Christmas

Take a lead from the Christmas campaign winners – a powerful digital marketing strategy and strong content that creates an emotional response is key to success, and not just at Christmas, it needs to be part of your game plan whatever the time of year.

Contact us today for advice on how we can get your brand noticed.