.png)
A LOOK BACK AT DECEMBER 2022
EXECUTIVE SUMMARY
December typically represents a month of high spends for UK households, with the build-up to and observation of the festive period on the agenda for most.
However, with total consumer expenditure in 2022 falling by 0.8% on the previous year, it’s clear that economic pressures have driven the cost of living to new hights, impacting consumer’s average disposable income considerably.
This Insight Insider edition will consider how businesses have responded to these trends. In particular, we will analyse the reaction to valued-led behaviours, integral for businesses to understand, as they look to retain customers within a particularly difficult market.
CONSUMER BEHAVIOUR
One such value-led behaviour is the increased use of credit for purchases, as evinced by total unsecured debt in the UK market outpacing pre-pandemic levels. As a result, buy now, pay later businesses have seen significant growth, with 13% of online shoppers using Klarna to pay for online purchases in the past year, for instance.
Another that has come to dominate value-led judgement is added value from purchases, including loyalty/reward schemes. Their use by leading grocery players has had a material impact on value judgement. In fact, 51% of grocery loyalty/reward scheme members say promotions via such schemes have made them shop with one retailer over another in the past year.
Source: Mintel's 'December UK Retail Briefing 2022
ADVERTISER RESPONSE
Advertisers have responded to these trends within print throughout the month of December.
Klarna, for example, increased their year-on-year expenditure within press by +234% to £178k in the month of December, promoting their buy now, pay later services. In December creatives, they stressed the benefits with copy including ‘The Season of (smarter) Giving’, to appeal to consumers seeking value.
Similarly, Specsavers increased their year-on-year expenditure within press by +234%, to £503k in the month of December, promoting the added value their service can bring to prospective consumers. More specifically, their creatives highlighted the home visits that opticians can conduct.
THE OPPORTUNITY
The Opportunity to follow in these advertisers’ footsteps, and target audiences seeking out value, is one that Canopy can facilitate through our various print channels. More specifically, our print solutions provide advertisers with a way to stand out, delivering high-impact, retained messaging.
For example, a slatted reveal mailer has been used by the likes of Virgin Holidays to communicate seasonal deals, encouraging engagement from those who interact with the messaging.
Similarly, the likes of Beer52 have used foiled inserts to bring attention to their special offers in order to create stand out. In the below creative, we can see how a foiled offer brings attention to a voucher, emphasising value for prospective customers.
To learn more about these opportunities and attract consumers seeking value, don’t hesitate to contact our team at: MARKETING@CANOPYMEDIA.CO.UK