Top British brands to lose £50bn in value
The top 150 most valuable British brands could lose up to 14% of their cumulative value – a drop of £47.5bn compared to their valuation before the coronavirus pandemic. Globally, brands could lost £706bn in value as a result of the outbreak.
There is a big variation in impact between sectors. Categories including telecoms, utilities and food are expected to experience a ‘limited impact’ or no brand value loss. Automotive, spirits, media and engineering are expected to see ‘moderate impact’, which results in up to 10% in brand value loss.
The restaurant, beer, banking, apparel, retail and travel sector are expected to see ‘heavy impact’ – a loss of up to 20% of their brand value.
Source: Brand Finance
Covid-19 boosts time spent with media
The UK’s social distancing measures due to the coronavirus outbreak are expected to lead to a 4.7% increase in media time in 2020, with people spending an average of 10 hours and 33 minutes per day with media.
Digital media will see the largest increase, with time spent up 9.3%. TV time is up by 6.2% to an average of three hours per day – the first growth since 2009.
However, time with newspapers and magazines (not including digital versions) is expected to drop by four minutes to an average of 40 minutes per day.
Major purchases ‘not on the agenda’ during coronavirus lockdown
Consumers are not expecting to make major purchases as lockdown continues in the UK. People’s propensity to make major purchasing dropped to -52 this month – 51 points lower than in April 2019.
Overall, consumer confidence has stabilised from the historic drop seen at the end of April. But this means consumer confidence is still at -34, 21 points lower than it was in April 2019.
People’s feelings about the economic situation over the past 12 months have dropped by 21 points compared to March 2020 and 14 points compared to a year ago – now sitting at -44. Feelings about the economy over the next 12 months have also dropped to -56.
Marketers prepare for job losses
Marketers are expecting job losses for the first time as the impact of the coronavirus outbreak is felt across the industry. Almost a third (31.2%) of marketers plan to reduce employment over the next three months. By comparison, 17% hope to expand hiring and 51.5% foresee no change in staffing levels.
That means a net balance of 13.9% expect to have lower levels of employment in three months’ time compared to now – the first time this has happened since the survey began collecting data in 2016.
The figure is a steep drop from the previous quarter, when 4.9% expected employment levels to be higher, and the 2.7% figure from the same quarter last year.
Consumers feeling ‘overwhelmed’ by email marketing
Consumers are starting to feel “overwhelmed” by the amount of email and social media marketing they are seeing.
The study of 4,045 consumers across five regions (including the UK) found that 47% feel they are receiving too many email marketing messages, while a further third (35%) feel overwhelmed by the amount of social media marketing – rising to 44% among British consumers.
This varies by demographic, however. For example almost two-thirds (61%) of Gen Z believe they are being sent too many marketing emails, while 55% of those currently looking for work think the same. Among those who are retired, only 34% feel overwhelmed.
Source: Epsilon-Conversant and CJ Affiliate