Unwrapping Christmas Spending with Starcount

Christmas, it’s the most wonderful time of the year. Spirits are high and against the twinkling lights and sparkly decorations, shoppers are starting to undertake the sometimes mammoth task of their Christmas shopping. We see the high streets come alive as crowds of shoppers flock to stores, presenting an ample opportunity for brands to get in front of receptive and engaged audiences using out-of-home (OOH) at Christmas time.

 

Christmas sales figures in the UK are unsurprisingly reported to be the highest in Europe, with Brits expected to spend over £600 on Christmas gifting each year. Popular gift categories include clothing & shoes, as well as food, beverages & alcohol. Despite a significant shift in online shopping over recent years, a substantial amount of the public’s hard-earned cash is still spent in physical stores around the Christmas period. Last year, it was reported sales in store saw a rise of 3.5% in the run up to December compared to the previous month, and as more people are out and about, OOH advertising will also benefit from the increase in footfall, positively impacting viewership figures. Although the lead up to Christmas Day is extremely important, sales post-Christmas also make up a significant portion of December spending. Last year from Christmas Day to the end of December, 58.3 million people were forecast to head to the high street in search of their post-Christmas bargains.

 

This year as we head into the Golden Quarter, we wanted to conduct a deep-dive into the motivations and intent around Christmas shopping, uncovering the best opportunities for OOH activations around this period. We are delighted to have collaborated with Starcount on this project, an advanced audience platform that integrates signals from social, demographic and banking spend transactions to reveal consumer motivations and behaviours. Together, we have identified three key categories (Alcohol, Clothing & Footwear, and Electronics & Technology) that present the best opportunities for OOH activations during the festive period. With December being an imperative month for spending within these categories, OOH can help a brand become front of mind at arguably the most important time of the year.

It’s no secret that alcohol spend over the Christmas period makes up a significant part of the festive budget. Whether you are hosting Christmas dinner or buying bubbles as a gift, the uplift in alcohol sales in December year-on-year is huge. Seasonal spending on alcohol is a key element of the festive economy and is often driven by targeted OOH campaigns, so we delved deeper to understand who is spending the most, and when.

 

We discovered 3 key findings when analysing alcohol spend data:

• The alcohol category sees the highest spend in Q4, specifically the month of December.
• The week leading up to Christmas was the largest week in terms of alcohol sales.
• The 35-44 age bracket spent the most, as well as those earning £100k+

 

It’s no surprise the alcohol category sees the highest spend in Q4, with an 8% increase compared to November. This increase is likely due to most festive celebrations occurring in December, especially the highlight of the season, Christmas Dinner.

 

Looking into the periods where alcohol spending is at its highest, we see an expected increase in sales throughout November and December, suggesting that consumers are stocking up for the holiday through physical, in-store shopping or alcohol delivery services – something that likely doesn’t happen at any other time of the year. Interestingly, the week leading up to Christmas Day was the largest week for alcohol sales in Q4, representing a WoW growth of 26% vs the week ending the 17th December.

Taking a closer look into the types of people who spend highly on alcohol during the Christmas period, we can see that the ages between 35-44, and with an income of 100k+ are the highest spenders in the alcohol category. This is likely due to this audience having a higher level of disposable income and will therefore indulge in products with a more premium offering, either for personal use or splashing out on family and friends over the festive period. Alcohol brands should keep this front-of-mind and allocate some of their OOH budget towards targeting last-minute buyers during the week of Christmas.

 

In accordance with this audience, we have hand-selected a few of Open Media’s sites that index perfectly against those who spend the most on alcohol at Christmas and would make a perfect canvas for alcohol brands’ campaigns: Our Trafford Centre sites (Landscapes, Portraits & D48), Wandsworth High Street, Hammersmith High Street & BOXPARK Liverpool.

 

By utilising these targeted locations during peak spending periods, alcohol brands can craft a highly targeted campaign, reaching the right audience at the perfect moment.

Whether as part of gifting or Christmas parties and festivities, spending on Clothing & Footwear at Christmas time surges every year. Interestingly, we are starting to see the once ‘Boxing Day Sales’ arriving earlier in the year.

 

We discovered 3 key findings when analysing Clothing & Footwear data:

• December is the highest spending month for the Clothing & Footwear category, seeing a MoM increase of 7% vs November.
• We witness two periods in December where spending peaks: the first week in December, and the week after Christmas.
• The people that spend the most in this category at Christmas time are those aged between 35-44, with low-mid income levels of £20-40k.

 

November & December are key months within the clothing and footwear category as people start to head out on their Christmas nights out and purchase items over the festive period, with December seeing a MoM increase of 7% vs November. This uptick is likely driven both by purchasing gifts and personal buying, and it’s important to note those who possibly don’t spend much on this category throughout the year spend more in Q4 when buying gifts.

 

Looking at the peak spending period across Q4, we witness two key periods within December where spending rises; the first week of December and the week following Christmas. The latter increase is likely fuelled by stores starting their Boxing Day sales early, with people wanting to build their wardrobe for the festive season. Brands should consider these two key moments when planning campaigns, targeting both early gifters and last-minute shoppers to influence purchasing decisions effectively.

Focusing on the demographics that spend the most in this category during Christmas, individuals within the 35-44 age band are the top spenders, likely purchasing clothing for both themselves, their children, and potentially even their parents. Additionally, those earning between £20-40k are spending the most in the category during this time

 

The table below highlights Open Media sites that perfectly target the audience of those who spend the most on Clothing & Footwear during Christmas. Targeting select sites during key times within the festive period aids in the successful execution of OOH campaigns at this important time of year. Those sites include: Coventry Central, Newcastle Metrocentre, Trafford Landscape & Portrait, Swansea Central and our Trafford D48.

Despite economic challenges over the past few years, Electronics & Technology (E&T) remain a popular gifting category over the festive season. Driven by Black Friday and Cyber Monday, we see an uplift in spending within this category each year as Christmas lists continue to be populated with the latest tech items.

 

When analysing the data from the E&T category, we discovered 3 key findings:

• The highest spending month was in November.
• Brands should align their E&T campaigns with the two key Q4 periods of sales: Black Friday & Boxing Day.
• The age group spending the most in this category are those in the 25-34 age bracket, with an income of £100k and over.

 

Contrary to the previous categories we have analysed, E&T spending during the festive season peaks in November rather than December. This is due to Black Friday & Cyber Monday sales going live with people aiming to get the best deals on their E&T purchases. Brands should keep this trend front-of-mind when planning their E&T campaigns, as consumers tend to make purchasing decisions earlier in the year. This presents a golden opportunity for E&T brands to launch their Christmas campaigns in or before November, and capture consumer attention when it matters most.

 

The graphs below clearly illustrates the impact of Black Friday, with a significant spending spike during November. The following weeks, however, fall short of this peak. Interestingly, there is a smaller uptick in spending after Christmas, likely driven by consumers spending their Christmas money and taking advantage of the Boxing Day sales. Brands should therefore not only prioritise the timing of their campaigns, but also ensure they create impactful and memorable campaigns that resonate with consumers even after the festive season comes to an end.

All age brackets are shown to spend more money on E&T in November vs October and December. However the data shows younger audiences, more specifically those aged 25-34, are more likely to spend within this category as they engage with new technology products compared to older age groups. Also, it is important to note another key audience within higher income bands of 100k+ spend the most within this category, and are likely to capitalise on the discounts available during Black Friday and the subsequent weeks in November.

The table below highlights Open Media’s sites that engage the best with the target audience of the higher spenders on E&T at Christmas. These sites are a handful of our LFD network: BOXPARK Wembley, Coventry, Hammersmith, BOXPARK Liverpool.

It is evident from our research with Starcount that shopping in these categories remain a key part of the festive season, with consumers splashing out both on their loved ones and themselves. Key dates in the calendar such as Black Friday means the E&T category sees the most spending in November, and the earlier advent of the Boxing Day sales mean consumers are spending more pre-Christmas than ever before. It is therefore important for brands to take note of key consumer shopping periods and consider how they impact spending when planning campaigns.

 

Mindsets are also seen to play a key role in Christmas spending, with consumers likely to spend more and become more generous at this time of year. OOH campaigns can play a key part in consumer mindsets, with strategically placed festive campaigns impacting on Christmas shoppers in retail locations.

It is important for advertisers to take note of these key category-dependent time scales to ensure their campaign hits consumers at the perfect moment for purchasing intent. Alongside reaching consumers at the right time, brands should ensure they are advertising in OOH locations to the right audience, and for each category we have hand-selected the Open Media sites that allow advertisers to perfectly tap into these high spenders across the Christmas period.

 

Alcohol:  35-44 age, 100k+ income, activating during the week leading up to Christmas: Trafford Centre sites (Landscapes, Portraits & D48), Wandsworth High Street, Hammersmith High Street & BOXPARK Liverpool

Clothing & Footwear: 25-34, £20-30k income, activating during two key moments in December: Coventry Central, Newcastle Metrocentre, Trafford Landscape & Portrait, Swansea Central and our Trafford D48.

Electronics & Technology: 35-44, 100k+ income, activating during Black Friday & the following weeks in November: BOXPARK Wembley, Coventry, Hammersmith, BOXPARK Liverpool.

 

Get in front of the right consumers, in the right place, at the right time this Christmas using OOH. To find out more how Open Media can support you in the run up to the Golden Quarter, get in touch here.