Consumer spending, podcast ads, in-housing: 5 interesting stats to start your week
We arm you with all the stats you need to prepare for the coming week and help you understand the big industry trends.
Retail footfall growth slows after reopening rush
Footfall across retail destinations was up by 4.5% last week from the week before, less than half the rise of 10.6% that occurred in the prior week – the first following the reopening of hospitality and leisure businesses.
The growth was driven by high streets, where footfall was up 6.8%, and shopping centres, up 4.7%. Footfall to retail parks declined by 0.7%.
Compared to last year, footfall was down by 40.2%, although this is the lowest decline since the start of lockdown.
Coronavirus pandemic drives record decline in marketing budgets
UK marketing budgets were cut by their highest levels in the more than 20-year history of the IPA Bellwether report, laying bare the impact the Covid-19 pandemic has had on the industry.
The net balance of companies cutting their marketing budget fell to -50.7% in the second quarter, down from -6.1% in the previous three months. This is a worse result than during the last recession, when the net fall hit -41.7% in Q4 2008.
Overall, 64% of respondents registered a decrease in spending, while only 13% said there was an increase. Many said they were forced to cut costs amid a severe decline in revenues.
Source: IPA Bellwether
Consumer spending declines by lowest rate since lockdown began
Consumer spending fell by 14.5% year on year in June – the smallest decline since lockdown began.
Spending on essentials grew 6.6%, largely driven by supermarkets. Fuel was down 33.8%, but that was an improvement on the 49.7% decline experienced in May.
Spending on non-essential items fell 22.3%, although this was less severe than the 49.7% decline in May, as the economy continued to emerge from lockdown.
Home improvement and DIY was up 31.3%, electronics 14.3%, and sports and outdoor retailers 50%. However, eating and drinking was down 56.4% year on year.
US podcast ad revenues near $1bn
US podcast advertising revenues will near $1bn in 2020, up 14.7% despite Covid-19. However, prior to the pandemic growth this year was estimated at 29.6%.
Direct-to-consumer brands are the top podcast advertisers, accounting for 22% of the market, followed by financial services on 16%.
News is the leading podcast content genre, capturing 22% of revenue, followed by comedy on 17%, and society and culture on 13%.
Source: IAB and PwC
Marketers redesigning their teams
Marketers are adapting ways of working during the Covid-19 pandemic, with many bringing functions in-house. These include
• 52% – Social media strategy
• 50% – Media strategy
• 48% – Traditional ad buying
• 44% – Production work e.g. video production
• 43% – Advertising
• 41% – Programmatic ad buying
Almost half (46%) of marketers also say they have adjusted their content marketing strategy, placing more focus on their vision and mission. Two fifths (42%) of marketers have adapted content or creative to be more emotional in nature.
Two-fifths (42%) of marketers agree that they will have to change the tone, content and messaging of their marketing assets over the next six months to a year.