Record client spend makes it a very merry Christmas for UK marketers

The latest Advertising Association/WARC Christmas ad spend figures forecast a record investment of £10.5bn for this ‘golden quarter’ – a hefty jump of 7.8% on the same period in 2023.

WARC’s director of data, intelligence, and forecasting, James McDonald, says: “While the golden quarter typically attracts elevated levels of advertiser investment for these reasons, the anticipated £760m rise in spend this year would be the largest increase on record if the post-pandemic recovery year of 2021 were excluded, with a total above £10.5bn yet another zenith for the UK’s market.”

Note the festive gift-giving is not evenly distributed across channels. Online media channels will receive the biggest boost with online display (including social media) up 15.8%, online radio up 8.8%, and broadcaster video on demand up 7.8%, while among ‘traditional’ channels, out-of-home rises 8.1%, and cinema is up 5.1% as festive family films like Wicked roll onto screens.

On the downside, TV is forecast to drop 4.3% year-on-year and Direct Mail by 4.2%.

Christmas Boots

The seasonal boost is a reason to celebrate for publishers, media, and creative agencies – especially as some brands are willing to explore and experiment with new approaches. For instance, nearly two-thirds of Boots’ ’Mrs Claus’ campaign comprises new marketing tactics designed to highlight its burgeoning suite of beauty products.

It’s working with more influencer content than ever and is investing in Reddit, Pinterest, and Snapchat while also looking to dominate YouTube with its festive messages. The retailer has even developed Boots Christmas-themed games in partnership with Activision to appear on Candy Crush and Bubble Witch Saga. This widening of tactics by Boots and others should be a boon for agencies that have developed services for these newer platforms and channels,

Pete Markey, CMO for Boots, has said elsewhere: “We’ll learn what works and what doesn’t work, and then we can refine and go from there. It’s really important that we keep evolving what we do. We’re a very restless business and not resting on our laurels for today.

“It’s central to our strategy at Boots that we are seen as innovators with the media we use.”

A twist on tradition

Creative shops are really showing off their chops with joyous and inventive festive work to an appreciative consumer audience. From ASDA’s animated gnomes to the Waitrose celeb-packed ‘whodunnit’ ad, Christmas is proving a great canvas to showcase creativity in a variety of ways.

As my colleague Jody Osman, chief growth officer at Propeller Group, sums up: “Amid a challenging year, brands are proving resilient and ready to innovate. With advertisers increasingly willing to push boundaries and consumers eager for new ways to engage, this season is looking less about following tradition and more about exploring new tactics.

“Marketers (and their agencies) have a unique opportunity to help brands stand out and connect in impactful ways, setting the stage for a year ahead of new beginnings.”

Deck the halls

So 2025 brings a fresh start and, at least in the UK, businesses now have some certainty around the government’s economic plans. Some forecasts suggest an upswing is on the way: the latest Media Budgets Survey from the World Federation of Advertisers and Ebiquity indicates half of global marketers are preparing to increase their media budgets.

The survey of 134 global brands gives some pointers on allocation – 42% of respondents intend to up their share of performance marketing and 24% their share of branding – a reversal of last year’s intentions.

Addressable, CTV, and retail media look set to be the big beneficiaries of an increase in investment.

This is certainly food for thought to go with your Christmas turkey, but in the coming weeks, the industry should just revel in the opportunities offered to display its amazing capabilities across both creative and media and dazzle current and potential clients.