Advertisers are set to spend a record £10.5bn on Christmas advertising this season.
The data released by Advertising Association (AA) and WARC predicts a 7.8% increase from last year.
Online media channels, including online display (which comprises social media spend) is set to rise 15.8%; online radio 8.8%; and broadcaster video on demand (BVOD) 7.8%.
Out of Home is also set to rise 8.1%, while cinema is expected to increase by 5.1%, in line with new seasonal hits, Paddington in Peru, Wicked and Gladiator 2.
“The final quarter of the year is a critical one for businesses, large and small, to promote their wares in a battle for customer attention,” said Matt Bourn, Director of Communications, Advertising Association.
“The investment we see here in this Christmas advertising spend is an investment in growth which supports jobs up and down the country. As ever, we will see the very best of advertising with all the creative flair that the UK advertising industry can bring to help businesses secure fame and success.”
The data has been released along with research from Kantar, which shows that positive sentiment towards Christmas ads is the highest since measurement began, with 59% of people saying they ‘love’ Christmas TV ads, up from 51% in 2023.
Last year, 48% of consumers said they were ‘really looking forward to seeing Christmas ads on TV’, this figure has now lifted to 56%.
“Advertisers really raised the bar last year, and the festive fervour we’re seeing now reflects that,” explained Lynne Deason, Head of Creative Excellence at Kantar.
“When it comes to anticipating this year’s campaigns, John Lewis remains the powerhouse with one in four people saying it’s the ad that they are most excited to watch. Last Christmas there was a ramp up in humorous campaigns, a great way to make content stick in our minds. Gone are the days when all brands try to beat John Lewis at their own game with an emotional rollercoaster. There are so many creative ways to entertain people with advertising and that’s what people love so much at this time of year– storytelling, music, humour, celebrities etc – combined with the joy and meaning of the Christmas spirit.”
James McDonald, Director of Data, Intelligence & Forecasting, WARC added:
“Brands know that a well-crafted Christmas campaign can boost salience, anchor loyalty and drive impressive sales results to boot. It’s the time of year when media budgets swell, and creative teams pull out all the stops to deliver memorable messaging that resonates well beyond Boxing Day.
“While the Golden Quarter typically attracts elevated levels of advertiser investment for these reasons, the anticipated £760m rise in spend this year would be the largest increase on record if the post-pandemic recovery year of 2021 were excluded, with a total above £10.5bn yet another zenith for the UK’s market.”
