Exciting Insights to Kickstart Your Week: UK Advertising Growth, Post-Purchase Communication, and Retail Footfall
Get ready for the week with these intriguing stats: UK ad growth forecast for 2024 downgraded, LGBTQ+ individuals want brands to voice political opinions, retail footfall on the rise, consumers open to post-purchase communications, and Black Friday revenue sees a 14% increase from last year
UK ad growth forecast downgraded for 2024
The forecasted revenue growth for the UK ad market in 2024 has been revised down to 4.6% from the previous 5.3% estimate by GroupM. This downgrade is attributed to challenges such as increased interest rates and business costs in the UK, as well as a decrease in the creation of new businesses, particularly after Brexit.
The creation of new businesses in the first nine months of 2023 decreased by 15.4% compared to pre-pandemic levels, according to the Office for National Statistics.
Despite the challenges, the UK continues to be the largest advertising market in Europe, with ad revenue projected to increase by 4.4% this year. Digital advertising is especially prominent in the UK, expected to make up 82.5% of all revenues in 2024, demonstrating its significant role in the market compared to other forms of advertising.
Source: GroupM
Most LGBTQ+ people believe brands should express opinions on political matters
A majority of the LGBTQ+ community feels that it is important for brands to take a proactive stance on political and social matters.
Statistics show that around 60% of LGBTQ+ individuals believe that brands should openly express their views on political and social issues, in contrast to 41% of non-LGBTQ+ individuals. Additionally, 59% of LGBTQ+ members express a desire for brands to actively participate in addressing social issues.
Results:
According to research by Outvertising, 64% of LGBTQ+ individuals would reject a brand if its views did not match theirs, compared to 50% of the general population. Additionally, 58% of LGBTQ+ consumers prefer advertising that supports LGBTQ+ rights, while only 10% of the rest of the population shares this preference. Furthermore, the LGBTQ+ community is also more interested in advertising that addresses gender issues like #MeToo (45% versus 8% in the non-LGBTQ+ population), environmental rights (63% versus 35%), and human rights (62% versus 24%).
Source: Outvertising and YouGov
Retail footfall shows signs of recovery
In November, total UK retail footfall saw a 0.7% decrease compared to the same month last year. While there is still a slight decline compared to 2022, it marks a significant improvement from October's 5.7% decrease in footfall.
Some major UK cities experienced an increase in footfall, including Edinburgh (5.7%), Leeds (3.1%), and Birmingham (2.5%). However, others such as Belfast (-7.6%) and Glasgow (-4.5%) saw more notable declines.
November experienced the highest retail footfall levels since July, despite a mix of factors. Storm Ciaran disrupted trade at the beginning of the month, but early Christmas shopping at the end helped boost levels. Sensormatic Solutions retail consultant EMEA Andy Sumpter notes that the recent increase in footfall was driven by price and promotions-sensitive shopping behaviors, with discounting events such as Black Friday seeing a 52.4% rise in footfall week-on-week.
Source: British Retail Consortium/Sensormatic IQ
Consumers receptive to post-purchase communications from brands
A majority of consumers (59%) have greater trust in post-purchase delivery updates coming directly from the retailer or brand, as opposed to a delivery partner.
Additionally, over half (54%) of survey participants express interest in receiving personalized offers within tracking or delivery updates, indicating an opportunity for brands to engage with consumers at this stage.
The top offer that respondents wanted in tracking update communications was discount codes (61%), followed by free delivery on their next purchase (56%).
There is potential for brands to have positive post-purchase communication with consumers, but it is also important for them to ensure a good experience. Approximately half of consumers say they would be likely or somewhat likely to leave a negative review if delivery is delayed or if they receive an unsatisfactory response to a query about the location of their order.
Source: IMRG/Scurri
Black Friday revenue grows 14% versus last year
Black Friday sales surged by 14% this year, outpacing inflation, as consumers eagerly hunted for discounts.
According to data from Visualsoft, an ecommerce platform, the volume of Black Friday orders increased by 12% compared to last year. The average order value also saw a modest growth, rising by 2% from 2022 levels.
During the entire Black Friday to Cyber Monday promotional period, revenue surpassed inflation rates. The average increase for the four-day period was 8%, with Black Friday revenue rising by 14% and Cyber Monday revenue increasing by 15%.
Certain categories experienced significant sales growth compared to the previous year. The flooring, rugs, and carpets category saw an impressive 88% increase in revenue during the Black Friday to Cyber Monday period. Additionally, vaping sales were up by 40% year over year.
Electrical goods, a category commonly linked with Black Friday, saw a 31% decrease from Black Friday to Cyber Monday compared to last year. However, the sector did experience a surge in sales leading up to Black Friday, indicating that consumers were making early purchases to secure their desired items.
