Festive advertising set to reach record high this Christmas

Corporate spending on advertising is set to reach a record high this Christmas as brands look to cash in on consumers’ appetite for festive storytelling.

Companies are set to spend a record £10.5bn in the UK on advertising over the Christmas season, according to industry trade body the Advertising Association and data provider WARC.

Many of the UK’s biggest brands have already released blockbuster Christmas ads this year, such as Debenhams, Marks and Spencer and John Lewis.

New research from Kantar has found that positive sentiment towards Christmas ads is the greatest its been since measurement began, with more than half of Brits surveyed by the firm “really looking forward” to seeing Christmas ads on TV. Over a quarter of people surveyed are most excited to watch the John Lewis ad, the firm said.

Last Christmas there was a “ramp up in humorous campaigns”, Lynne Deason, Head of Creative Excellence at Kantar, said.

“Gone are the days when all brands try to beat John Lewis at their own game with an emotional rollercoaster… brands are starting to invest in more unique and original ideas that tap into the zeitgeist,” she said.

“People might think festive ads appear too early, but creating momentum in the run up to Christmas is so important to performance during this crucial trading period. With some tough economic headwinds, the battle for shopper spend will be fierce,” Deason added.

There has been a clear shift away from television advertising, according to new figures. Brands used to compete for viewers’ attention with the kettle during ad breaks, but attention has now shifted to streaming services and social media, with online display advertising expected to rise by 15.8 per cent to just under £4bn.

“Christmas isn’t just starting earlier every year, it’s getting bigger,” said Gabby Ludzker, chief executive of marketing agency Rapp UK, told the Financial Times.

“The real pivot, however, is the skyrocketing increase in online media spend at 16 per cent — the highest uplift since last year of any medium. This reflects the massively accelerated advances in precision targeting, predictive models and the payback of personalisation,” Ludzker added.

The amount of money expected to be spent on TV advertising has fallen almost 5 per cent to £1.4bn, according to WARC.