The recent IPA Bellwether on marketing budgets in the UK has revealed that 2020 saw a fast paced decrease in spend as the effects of the pandemic naturally hit home. Now, as we continue to emerge from the worst of the effects, their forecasts are that there will be a net balance growth of 17.4% which would be the largest increase since 2018.
For the UK, this spend should total up to around £27bn for 2021, with another 7.2% growth predicted for 2022, so how will this be spent? It is clear that the main increases are predicted for Main Media Advertising (10.1%), Public Relations (7.4%), and Direct Marketing (6.8%). The cuts here are reserved for Events (-28.4%) which are still particularly struggling from Covid restrictions, but also Other Marketing (-5.4%) and Market Research (-4.95%).
For many, Main Media Advertising is a must for spend given the reach and benefits it can bring. However some of the other categories are, I believe, up for debate and it would be a mistake to purely dictate spending purely based on variable forecasts without acknowledging what exactly your priorities are and how best to connect with your consumer in order to garner their loyalty.
A new determined consumer mindset
We are gradually coming out of lockdown and consumers continue to be excited about it, indeed 88% of consumers from our latest retail survey results claimed that they have already taken advantage of physical shops being open to make purchases. They are emerging with a determined mind-set, using their new found online skills to narrow down their options before heading to the store to browse and make the final purchase. Now is the ideal time to have boots on the ground in retail areas rather than just generic PR pushes, helping them through their customer journey and promoting your brand to them.
The brand awareness required to engage this consumer can’t come out of Media Advertising or PR spend alone, other channels need to be utilised to ensure you are standing out in a sea of competition. Social media reach can help to a certain extent, however no amount of impressions will replicate getting face to face time with a shopper at the point of purchase. Importantly too, the data that comes from the physical interactions a person is able to provide can prove vital and brings incredibly valuable impact and insights in a short amount of time.
Footfall soars ahead of high-spirited summer
The retail environment is changing and has been particularly fluid over the past year, this data is critical to understanding the new trends that have emerged and forming (or re-forming) brand strategies. Insight from Kantar, online shopping fell in April for what was the second time in a row, and Springboard footfall data showed an increase of 88% week on week for the period that non-essential retail reopened after the 12th. All of this points to the fact that there are more shoppers out there than have been for 14 months, there is a chance here to connect with them while confidence is high and a (hopefully) high-spirited summer begins.
Online share of retail sales is decreasing, although the benchmark remains above the pre-pandemic figure, settling at about 36% in April vs 23% in 2020. This of course indicates the acceleration of a trend that has been growing for a while, but it does mostly remain product specific, and nothing will ever really replace the experiences that in store shopping can offer. The store now is becoming more of an experience hub as well as a purchase point. In-store marketing continues to have the power to not only increase actual sales, but also other key factors such as brand loyalty and even helping to drive social media interactions.
Staying ahead of the competition
When it comes to consumer electronics and large appliances in particular, many consumers will always prefer to touch a product and hear about its benefits first-hand rather than reading a specification sheet online. Hearing their input, from questions to reasons for purchase, can then be fed back directly to a brand, enabling them to react and stay ahead of the competition.
In this new age of retail, the smartest businesses will be the ones that can leverage ad spend across the board in order to reach consumers at every level relevant to them. Effective field marketing can step in to help exceed expectations.
To read the full article by Tom Harwood – Data and Insight Manager Gekko Group, please visit Retail Sector.