Marketers commit to investing in brand
More than 60% of global companies remain committed to investing in their brand despite the impact of the Covid-19 pandemic. IT and technical services sectors are most likely to maintain brand spend, at 41%, followed by manufacturing/engineering/industrial on 34% and professional services (34%).
More than two-thirds (68%) of marketers also say business resilience has become more important due to the crisis. It now ranks as the top business priority, whereas last year it came in fourth. Assurance of future levels of cash flow was cited as more important by 59%, while profit growth saw a 28% drop in those rating it a priority.
Source: IPA/Financial Times
Digital ad spend falls 5% in first half of the year
Digital advertising spend fell by 5% in the first six months of the year as the pandemic hit the sector. However, this is a relatively low decline given UK GDP fell by 20.4% in the second quarter and total ad spend is expected to decrease by 15.6% year on year in 2020.
The display ad market saw a slight incline at 0.3%, with video ad spend up 5.7% reflecting the growth of digital streaming. Investment in search advertising was down 3.7%, while spend on mobile devices fell by 1%.
Classified ad spend declined 33% year on year.
Source: IAB UK
Growth of China’s top brands outpaces global brands
China’s 100 biggest brands gained 12% in value in 2020, with their worth increasing by $106.8bn to $996.4bn.
Alibaba remains the most valuable Chinese brand, up 9% to $153.3bn, followed by Tencent up 9% to $151bn. Premium alcohol brand Moutai was among the fastest growing, with its value up 47% to $53.8bn, putting it in third position.
Fourteen of the 24 categories grew in value, with technology contributing a quarter of the ranking’s total value and retail around a fifth. Entertainment saw the highest growth for the second year running, rising 221% in value as people spent more time online in lockdown, while education grew by 92% as the increasing popularity of online learning was further stimulated by Covid-19.
The top risers include education provider Xueersi, up 120%, alcohol brand Wu Liang Ye, up 116% and financial services firm Lufax, up 80%.
Source: Kantar BrandZ
Consumer spending rise hits highest level since February
Consumer spending increased by 2% year on year in September, marking the biggest rise since February 2020.
Spending on essential items rose 6.1%, with grocery spend up 15.4% as a quarter of consumers admitted to stockpiling items such as tinned food and toilet roll in case of shortages.
Spend on non-essential items was up just 0.6%, although this is the first rise since February. Home improvement and DIY spend was up 25.7% and furniture up 28%.
Clothing spend rose by 4.2%, while spend in bars and pubs increased 9%, with consumers saying they now feel more confident visiting their local.
Areas that declined include overall travel spend, which was down 63.1%, while hotels, resorts and accommodation performed better with spend down 18.1%. Restaurant spend was down 18.7%.
Consumers become more concerned about the environment
Social media conversations about our pollution footprint have increased by 400% over the past six months, while 73% of global consumers believe environmental issues are either as important, or more important, compared to before Covid-19.
Some 72% believe companies have a responsibility to address those issues. A further 26% say they find purpose-led brands more appealing and 30% say they are more likely to recommend purpose-led brands.
The majority (92%) of people have a desire to lead a sustainable lifestyle, but only 16% do something about it.