As the holiday season fast approaches, the iconic Christmas adverts have began flooding in, with companies to spending billions on promotional material.
The Advertising Association have announced a 40% increase in the amount spent creating Christmas advertisements over the last seven years, with a predicted £6bn to be spent on promotional material this quarter alone, a £140m increase from last year.
John Lewis’ heartwarming stories have remained at the forefront of holiday advertisements and this year, their ‘Moz The Monster’ campaign has been directed by academy award winner Michel Gondry, costing around £7m to make.
Meanwhile Marks and Spencer have featured the beloved Paddington Bear within theirs to coincide with the release of the second Paddington movie.
However amidst all of the festive stories, the financial undertones of advertisements shouldn’t be ignored and the use of emotive content to attract customers remains a crucial part of business profits.
Leo Rayman, chief executive of Grey London said: “The festive season accounts for such a significant proportion of sales that there can be no holding back on ad spend, a bad Christmas can make or break a company’s year.”
The impact of these advertisements clearly works as a study by the Trade Association found that for every £1 spent on advertising, more than £6 is returned back to the UK economy. However this Christmas has seen the prices of consumer goods rise to their highest year-on-year growth since March 2012 at an increased rate of 3.3%.
With the retail sector currently supporting over one million jobs, this means that the importance of advertising has become even more crucial than ever as retailers are are facing an uphill battle to attract consumers whilst real wages continue to fall.