GumGum, the advertising technology leader, today released new findings from its global holiday shopping survey of 3,000 consumers in countries including the UK, the U.S., and Germany. The research reveals widespread financial caution among UK shoppers as they prepare for the festive season, with a majority planning to reduce their holiday spending.
Key findings include:
- Worries Run High: Almost three-in-four UK shoppers (70%) said they are concerned that factors like inflation, the job market, and interest rates will impact their holiday spending.
- Most Plan to Cut Back: A majority (53%) say they will reduce holiday spending this year, with just over 15% planning to cut back significantly and nearly 38% planning to cut back slightly. Only 7% expect to increase their budgets.
- Budgets Stay Tight: Nearly half (48%) of UK shoppers expect to spend £375 or less on holiday gifts and celebrations. Within that group, almost one-fifth (17.5%) are budgeting under £150, while almost one-third (30%) plan to spend between £150 and £375.
“In difficult economic times, when shopping budgets are constrained and consumers are overwhelmed by holiday ads, brands need to adapt their marketing strategies or risk losing visibility,” said Peter Wallace, General Manager for EMEA & JAPAC at GumGum. “Festive ads must offer relevance and value to consumers by delivering the right message in the right context. This approach ensures that campaigns resonate and encourage action, even when budgets are tight.”
GumGum’s survey also revealed how UK shoppers plan to allocate their holiday spending and where they’ll make tradeoffs:
- Gifts Are Non-Negotiable: Gifts led as the number one priority for 38% of UK shoppers, followed closely by travel at 37%. Food and drink were the top choice for 17%, while decorations and charitable giving were the top choice for 2% of UK consumers.
- Decorations on the Chopping Block: When asked what they would reduce first if forced to cut back, almost one-third (31%) said decorations would go, while 29% pointed to gift costs. Over a quarter (28%) would prioritise cutting back on travel/visits.
- Peak Shopping Moments: More than a quarter (28%) of UK shoppers said they’ll do most of their holiday buying on Black Friday or Cyber Monday, while over one-third (38%) plan to shop in early December. Just 11% said they will wait until the last minute.
- Omnichannel Dominates: Over three-quarters (77%) plan to shop both online and in-store, highlighting the continued value of a hybrid shopping model. Another 12% will shop exclusively online, while only 11% will shop exclusively in-store.
"This festive season, UK shoppers are more cautious and focused on value," said Peter Wallace. "To deliver successful holiday ads, brands must engage with consumers at the right moment and in the right place, whether that’s in-store or online. The key is ensuring that every impression brings value instead of adding to the noise."
