Unveiling the Future: 5 Eye-Opening Stats to Revolutionize Your Week

Trust in supermarkets lowest since horsemeat scandal

Consumer trust in UK supermarkets has hit a new low, reaching its lowest point since the horsemeat scandal in February 2013. Consumer group Which? surveys around 2,000 shoppers, asking them to rate supermarkets on a scale from -100 to +100. The latest result reveals a meager score of +30, with the previous record low being +24 during the horsemeat scandal.

The sector's confidence score has plummeted to a record low of +30 in the current decade, displaying a significant drop from its performance during the pandemic. In May 2020, supermarkets garnered a confidence score of +68, receiving accolades for their efforts in expanding home deliveries during the surge of Covid infections.

In stark contrast, supermarkets have recently gained attention due to allegations of 'greedflation', profiting from the escalation of food prices. Research reveals that fewer than half of shoppers believe the sector is genuinely concerned about serving their best interests.

According to research conducted by Which?, consumers are still facing the challenge of managing the cost of food shopping. More than half of the respondents (54%) indicate that they are purchasing cheaper products, while 48% are opting for budget ranges. Additionally, nearly a quarter (24%) admit to going without certain foods, and 15% mention skipping meals.

Older adults make up just 4% of people featured in ads

Just 4% of people cast in ads last year were over the age of 60, according to an analysis of 126,000 global ads by CreativeX.

Ads featuring older adults account for approximately $124m (£98.5m) in advertising expenditure. Surprisingly, only 3% of advertising budgets are dedicated to this demographic, despite the fact that people over 60 make up almost a quarter (23%) of the UK population. It is crucial to note that this age group possesses significant purchasing power, with around a quarter of the world's total spending power belonging to those aged 60 and above.

However, the representation of older people in ads also tends to perpetuate stereotypes about aging, which is concerning. A substantial majority (65%) of the older individuals portrayed in advertisements are depicted in domestic or family environments. In contrast, less than 1% of older adults featured in ads are shown in professional or leadership roles.

Female representation in advertising is known to be inadequate, particularly for older women. Only a minuscule proportion of ads, less than 2%, feature women over 60. Comparatively, 10% of women aged 26 to 59 are portrayed in leadership or professional roles, but this percentage dramatically diminishes to less than 1% for women above the age of 60.

Most marketing leaders intend to invest in generative AI

Around two-thirds (63%) of marketing leaders say they plan to invest in generative AI in the next 24 months, finds research from Gartner.

A majority of 56% believe that generative AI offers more potential rewards than risks.

On average, marketing leaders allocate 25.4% of their budget to technology. However, there was a decline in marketing leaders' utilization of their marketing technology capabilities in 2023, dropping to 33% compared to 42% the previous year.

The current complexity of the technology ecosystem hinders its full utilization, with 16% identifying it as the primary obstacle to maximizing capabilities.

Marketers who fail to fully utilize technology, despite allocating a significant portion of their budget towards it, may encounter pressure to reduce spending. Research shows that organizations that utilize over 50% of their marketing technology stack are much less likely to be asked to cut their martech budget.

Source: Gartner

Food inflation decelerates in August

In August, food inflation reached its lowest level since September 2022, falling to 11.5% from 13.4% in July. This figure is also below the three-month average of 13.1% and marks the fourth consecutive decrease in the food category.

Fresh food inflation has reached its lowest point in 12 months, currently standing at 11.6%, marking a decline from 14.3% in July. Furthermore, ambient food inflation has also decreased to its lowest level since January, currently at 11.3%.

Additionally, general shop price inflation has dropped to its lowest point since October 2022. In August, it recorded a rate of 6.9%, down from the previous month's rate of 7.6%.

According to the CEO of BRC, Helen Dickinson, deflation in various categories such as meat, potatoes, and certain cooking oils has contributed to this trend. However, she mentions that the decrease would have been even greater if alcohol duties had not been increased earlier this month.

NielsenIQ's head of retailer and business insight, Mike Watkins, explains that the recent unpredictable weather has affected consumer demand. As a result, some high street retailers have increased their promotional activities, and food retailers have extended their price cuts. This is happening as the inflationary pressure from supply chains continues to decrease.

Source: BRC and NielsenIQ

Global advertising spend forecast to surpass $1trn in 2024

According to projections from Warc, global advertising expenditure is set to exceed $1trn (£788bn) next year, as the global economy rebounds from inflation. The market is expected to grow by 4.4% this year, reaching $963.5bn (£739.5bn) worldwide. However, the UK market is likely to experience a decline of 1% in US dollars terms in 2023.

Europe as a whole is anticipated to experience slow growth in 2023, with ad spend increasing by only 0.6%. The UK stands as the largest ad market in Europe, accounting for a 4.6% share. However, the UK's projected decline this year stands out in comparison to other major markets in the region. Spain is expected to grow by 5.6%, Italy by 3.2%, and Germany by 2.7%.

Looking ahead to 2024, the global ad spend is forecasted to rise by 8.2%, reaching the significant milestone of $1 trillion. The rate of growth in Europe is also expected to be stronger than this year, with a growth rate of 3.6%, driven by improving economic conditions. In line with a July forecast from the AA/Warc, UK ad spend is projected to grow by only 1.1% in real terms next year.

Five companies—Alibaba, Alphabet (Google's parent company), Amazon, Bytedance (owner of TikTok), and Meta (parent company of Facebook and Instagram)—are expected to remain dominant in the global ad spend. It is predicted that they will capture over 50% of the global ad spend this year, and their dominance is forecasted to grow further next year, reaching a share of 51.9%.

(Source: Warc)