The Importance of Christmas Advertising

Traditionally, in pre-Covid times, December brings with it many joys. Non-stop Christmas music on the radio, an extensive range of Christmas jumpers, the annual office party and of course, Christmas advertisements galore. Whilst the last few years have been different for us all, the plethora of Christmas TV ads continued. From Coca Cola’s big red truck, John Lewis’ annual offering and Aldi’s latest Kevin the Carrot adventure to the typical holiday and furniture sales. Christmas advertising is ingrained in society. But why is it so important for a brand to advertise so much more prominently during the festive season?

The first reason is likely the most common answer, sales and share of sales. It is suggested that UK consumers spend around £30bn in the quarter leading up to Christmas, so it makes sense that companies are wanting to attract consumers attention in the run up to Christmas. From in-store & online sales to merchandising opportunities (you only have to say Kevin the carrot to conjure up images of queues outside stores and astronomical resale values), the value of a Christmas ad is plain to see. Research shows that every £1 spent on advertising returns £6 to the UK economy. Since 2012, John Lewis have reported a 35% increase in sales and Sainsbury’s made £24 of profit on every £1 spent on their 2014 Christmas ad. It’s clear to see a Christmas campaign, when well executed, can benefit a company’s bottom line.

A second benefit is brand awareness. A strong Christmas campaign can have long lasting positive effects on a brand, just look at John Lewis, it’s become a seasonal event in the UK now. A third of brits just as excited about the premiere of a Christmas advert as they are about a film release, these ads are now an annual event for many households. Whether you’re targeting a youthful audience (hello, JD Sports!) or hitting the family audience (Lidl…), Christmas is the perfect time to create a connection in the current climate.

With £7.9bn expected to be spent this quarter on advertising across a range of platforms from digital to outdoor, a well-managed campaign will be key to setting yourself apart from your competitor.

We look forward to post Christmas results to see the winners and losers.

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