Consumer spending, podcast ads, in-housing: 5 interesting stats to start your week

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.

Source: Springboard

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.

Source: Barclaycard

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.

Source: LinkedIn