Attention Cost of Living Christmas

How can retail brands’ winter campaigns still succeed during a World Cup?

LoopMe

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October 14, 2022 | 6 min read

As we enter into the retail industry’s Golden Quarter, the World Cup’s late November kick-off might throw a spanner in the works for brands’ Black Friday and Christmas campaigns — and will inevitably spark even greater competition for brands to achieve cut through

While LoopMe research into consumer sentiment with regards to retail spend this year shows that a large number of consumers aim to do their Christmas shopping in November and early December, the concurrence of these two huge events means the typical sentimental messaging of Christmas ads – and the attention they usually attract when the campaigns launch – may be misplaced or ineffective in the midst of a football frenzy. Moreover, while the tournament’s huge advertising opportunities coincide with the year’s top retail period, the rising cost of living is rapidly altering consumer behavior.

So how can brands remain match fit during the Golden Quarter to reach their audiences and drive ROI alongside the World Cup?

Competing for cut through

Despite the World Cup’s unusual timing, it will undeniably give its sponsors huge reach opportunities. Indeed, LoopMe found that over a third (39%) of UK survey respondents, one fifth (20%) in the US and 42% in Singapore are planning to or may watch the World Cup. But seeing as almost two-thirds (65%) of UK respondents, 67% in Singapore and nearly three quarters (72%) in the US already recognize the event’s sponsors, these notable brands have less work to do than smaller ones in terms of awareness; and they’re set to make big gains.

Sponsor Budweiser, for example, will profit from its exclusive rights to sell beer in the perimeters of Qatar’s stadiums despite the country’s alcohol restrictions, with non-alcoholic versions permitted inside the stadiums. Meanwhile, FIFA partner adidas has introduced “all in” or “nothing” options at the end of its YouTube ads for consumers to opt in to or reject their World Cup CRM comms, thereby streamlining their audience and retaining only highly engaged customers.

Aside from the notable brands sponsoring the tournament, others face huge competition to stand out among coveted World Cup slots. NBCUniversal had already sold around 90% of its World Cup ad inventory with 100 days to go, a phenomenal feat that’s a testament to the sporting event’s marketing prestige. The media company explained this as being due to advertisers’ eagerness to capitalise on the World Cup’s concurrence with the lucrative Golden Quarter, but advertisers also face challenges on this front.

The cost of living crisis casts its shadow

With the rising cost of living, it’s likely that this year’s Christmas will be less extravagant for many. LoopMe research recently found that half of UK consumers are consciously cutting back on spending and other reports indicate that 77% of consumers plan to cut costs this Christmas.

Therefore, brands’ media spend around the World Cup will need to be carefully planned to deliver ROI. This also has a knock on effect for the hospitality industry as consumers tighten their belts and go out less: 87% of LoopMe’s UK respondents plan to watch the World Cup at home, while only 7% plan to watch in pubs.

Moreover, 64% of UK audiences plan to watch the World Cup with their families, which perhaps wouldn’t be the case if they were watching in bars during a regular summer World Cup. As a result, the messaging brands would usually adopt for World Cup advertising may not land the same, and likewise, brands’ usual Christmas campaigns will have to compete with football-focused media and advertising.

Keeping shots on target

The classic advertising opportunities during the World Cup are in Linear TV, but in our increasingly digital world, brands have many other tools at their disposal. Advertisers should be smart with their spend, branching out to other channels to cut through the noise and reach their audiences in the right places at the right time.

One such solution is in-app advertising. ITV’s recent partnership with Snap, for example, will allow its advertisers to reach Snap’s vast audience – 90% of UK 13-24 year-olds – via World Cup highlights and reality TV content on Snap’s Discover platform. Our past surveys have shown that users are most responsive to ads that are contextually relevant, so this collaboration should be effective, connecting brands with highly engaged audiences on a platform they love.

We have also found that 20% of users are more likely to pay attention to interactive ads; while Augmented Reality (AR) has been used in retail to drive engagement for some time, brands are increasingly incorporating it into creative to boost conversions. ITV’s aforementioned Snap partnership will integrate AR filters into certain shows, while Vogue has also partnered with the social media platform to enable fashion try-ons.

Such advanced creative is especially important in the final quarter of this year, allowing brands to distinguish their targets when Christmas and World Cup-focused campaigns are running concurrently. But this must also be backed up by quality, user-consented data to enable insights into consumer preferences.

To bolster this information and better inform ad targeting, artificial intelligence (AI) is an important consideration. AI-enabled measurement tools can constantly analyse, and learn from, inputted user data, allowing for real-time campaign optimisation against hard metrics like brand awareness, consideration and purchase intent. This will enable brands to track consumer attention and their likely responses to ads during Q4’s particularly busy period.

While the World Cup presents a golden opportunity for many advertisers this winter, its unusual clash with the festive period means brands will need to think smart to raise their voices above the football chants. Careful selection and measurement of media channels will enable advertisers to create meaningful connections with their intended audiences, hitting the back of the net – and KPIs – every time.

Attention Cost of Living Christmas

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