This Christmas, British advertisers are preparing to spend an unprecedented £10.5 billion on festive campaigns, according to the Advertising Association and data analysts at WARC. The surge represents a significant 7.8% increase from last year’s spending of £9.7 billion, marking the highest annual growth outside of 2021’s post-pandemic boost since records began in 1982.
Major brands like Marks & Spencer, Aldi, and Waitrose have already launched their holiday adverts, with online advertising taking centre stage. Traditionally, television has been the prime platform for Christmas campaigns, with brands vying for slots in popular soap opera breaks. However, this year, spending has shifted towards digital platforms. Advertising on search engines is expected to grow by nearly 9%, reaching over £4 billion, while online display ads, including social media, are forecasted to jump by 15.8% to just under £4 billion. In contrast, TV advertising spend has dropped by almost 5% to £1.4 billion.
Why Online Advertising is Taking Over
According to Gabby Ludzker, CEO of Rapp UK, the trend reflects the rising effectiveness of online media in targeting consumers. “The real game-changer is the dramatic increase in online media spend, up 16% from last year,” she notes. Advances in precision targeting and personalised marketing allow brands to connect with consumers more effectively, making digital platforms an attractive choice for Christmas campaigns.
James Murphy, CEO of Ogilvy UK, describes the festive season as the “UK’s Super Bowl of marketing.” He explains that Christmas adverts have evolved beyond simply showcasing products, with a strong focus on storytelling and engaging audiences emotionally.
Iconic Ad Campaigns of 2023
Last year’s memorable campaigns included Aldi’s popular Kevin the Carrot toy and Coca-Cola’s festive themes. This year, Aldi brings back Kevin in a new adventure, while Waitrose has enlisted actor Matthew Macfadyen, and M&S features Dawn French. Meanwhile, John Lewis’s Christmas campaign, narrated by Samantha Morton, centres around the tagline “Give Knowingly” and tells the story of a heart-warming surprise gift — a pink jumper.
Growth in Other Advertising Channels
Advertising on streaming platforms and broadcaster video on demand (BVoD) is also on the rise, reflecting changing viewer habits. Cinemas, too, are set to see a boost in advertising spending, particularly with highly anticipated films like Paddington in Peru, Wicked, and Gladiator 2 releasing this season. Cinema ad spending is expected to grow by 5.1% as brands tap into holiday movie audiences.
In conclusion, the UK Christmas advertising landscape is evolving, with digital platforms now playing a dominant role in reaching consumers. As spending hits record highs, brands are leveraging technology to create targeted, personalised campaigns that engage audiences in new ways — setting a festive tone that is both bigger and more digital than ever.
Source: (FT.com)
