Christmas is one of the most spotlighted seasons for creativity. In November, the Advertising Association forecast that ad spend this Christmas season would reach record levels, with an almost 8% increase on last year’s spending.

Keen to get ahead in the race for consumers’ hearts, minds and wallets, the first ads were already on air in October. But are brands and retailers hitting the right note with consumers, many of whom are anxious about how they will cover the cost? To a lesser extent, consumers are also conscious of the impact that such intense buying events have on the planet, recently highlighted in the Netflix documentary Buy Now! The Shopping Conspiracy.

Research we conducted (among a nationally demographic sample of 1,000 consumers) found that, despite being excited about the festive holiday, almost one in four respondents were anxious and concerned about the impact of spending on their finances. Even if people aren’t necessarily anxious about their spending, almost nine out of every 10 participants surveyed ( 87%), are looking at how they can mitigate the impact of the cost on their already stretched finances.

More than a third ( 38%) for example, said they would look for discounts and promotions, and other mitigation strategies included setting a strict budget ( 25%); choosing a cheaper brand or store ( 20%); and buying gifts and food earlier to spread the cost ( 19%). One quarter ( 25%) said they would reduce gift purchases altogether, while 21% said they would use savings to cover the cost. Just 7% said they would spend as much as they wanted.

A recent report from affordable credit platform Plend found that while all sections of society are still struggling with their finances, the impact of the cost-of-living crisis has been disproportionately severe for ethnic minorities and women – 72% of whom are struggling to repay credit. 

In a season that traditionally celebrates giving generously, 2024 is looking to be a cost-conscious Christmas for many people. The question is whether brands and retailers are acknowledging this worry about cost in their communications strategies sufficiently enough that consumers feel heard.

This year’s flock of festive ads certainly do a great job of tapping into our emotions, evoking the nostalgia and traditions of Christmases past and the importance we place on spending precious time with friends and family. Yet the pressure to sell is clear and highlights the enormous challenges facing the retail sector this festive season. The British Retail Consortium says retailers are challenged by increasing costs, limited investment capacity and dragging demand, with high consumer concern about finances, particularly for bigger ticket items.

In many ways, the Christmas ads’ strong focus on generous gifting ignores these demand draggers and in particular the consumer concern about how they will afford the additional expenditure when they are already struggling to pay for everyday essentials and the growing awareness of how conspicuous consumption impacts the planet. For some consumers, more mindful consumption has become a badge of honour in the same way that conspicuous consumption acts as a display of wealth.

Only TK Maxx’s Festive Farm ad nods to the need to navigate costs carefully today, with its ‘spoil all your loved ones for less’ message.

Fight to give consumers a seat at the table

Incorporating robust and considered consumer insights into brand communications and creative strategy is essential. Consumers balance the perspectives of creative teams, the business, and other stakeholders, providing a diverse and ‘real world’ view that can act as a guide for how their audiences are engaging with the brand communication.

Big issues like anxiety about finances or over consumption are too important to consumers for brands to completely ignore.

Be seen to do the right thing

The advertising playbook at Christmas is rarely going to talk about buying less, or our responsibility to the planet. However, being empathetic to the impact that the season can have on people and planet is an important topic for brands to consider.

If winning Christmas comes at the expense of people’s finances, their anxiety and costs to the planet, are we really talking in the right way and about the right things? Celebrating generosity in all its forms; be it time and energy, family and friendships, togetherness and celebration, not just consumption, is a powerful brand narrative to play this season. As brands get squeezed by pressure to deliver the bottom line, this may come at the expense of building deeper brand relationships and being seen by consumers to do the right thing. Having clear insights into what makes consumers tick, what their hopes and fears are and what the season really means to them is critical to fuel creativity and drive connection.

This allows brands to embrace risk-taking instead of reinforcing conformity and stops favouring safe choices over ground-breaking ideas. The consumer perspective can help creative ideas to grow and develop and make sure the impact we leave behind is jingle bells all the way for both brands and consumers.

Kurt Stuhllemmer is partner at Hall & Partners