Australian Consumers Show Signs Of Optimism: Study
Australians are showing signs of greater optimism about a COVID-19 recovery, with less people saying it will have a big impact on their personal finances and most expecting to delay purchases until the pandemic is over, a landmark new study from Audience Precision has found.
The ongoing global study*, called “COVID-19 – Marketers Action Plan”, is the first of its kind to look at trends spanning generations, from Generation Z to Boomers, and also across the top 25 per cent household income band, which reveals very different attitudes towards COVID-19 and spending patterns.
Gen Z are the most ready to spend up big as soon as the pandemic is over in Australia but have delayed their purchases until then, while Boomers are not delaying purchases to any significant degree. Millennials are the most cautious, becoming the ‘wait and see’ generation.
In Australia, all generations are less concerned and more optimistic about COVID-19 than the UK and US. Gen Z are the least concerned across all generations, along with Boomers, who also have the highest levels of optimism. High income earners are also the most optimistic but the second most concerned about COVID-19.
In terms of personal finances, Millennials have the lowest level of optimism, with 40 per cent saying COVID-19 will have a major impact on their personal finances, the highest of all generations.
Gen X were the second highest generational group to say COVID-19 will have a major impact on their personal finances (38 per cent), and 36 per cent of Boomers believe the same.
“This is the third wave of our ongoing COVID-19 research study, and we are finding that Australians are more generally optimistic. This represents a massive opportunity and brands need to capitalise on this momentum of positivity. Although across generations most will delay their purchases, they are ready to spend once the pandemic is over,” Audience Precision head of business development John La Rosa said.
“These are very encouraging signs for marketers and this further highlights the need to be ready to accommodate a surge in expenditure. It’s important to start to brand build now to ensure awareness is achieved prior to full pre-COVID-19 conditions. Marketers need to have agile and quickly executable strategies ready for further signs of a speedy recovery.
“There are key cross generational differences, however, which have major implications for marketers and brands. Although people approve of normal advertising, there are some shifts in expectations. Having a deep understanding of what your consumers’ wants and needs are will drive repeat purchase and build longer term brand loyalty, as we know that they will choose brands based on past experiences.”
Purchase category delays
The study also looked at 11 purchasing categories^ across generational groups with some diverse results when asked about which purchases they would most likely delay until the pandemic was over:
- Gen Z: technology items, luxury items, clothes, flights and concert tickets
- Millennials: cars, home appliances, clothes, tickets to events, luxury items
- Gen X: day to day items, vacations, concert tickets, cars, home appliances, sporting events
- Boomers: day to day items, vacations, flights, sporting events, concert tickets.
Among the top 25 per cent income band, holidays, flights, cars, luxury items and home appliances were the top five categories that were most likely to be delayed.
Purchase category priorities post-COVID-19
For younger audiences, fashion, smartphones and home appliances are high on their radar. As for the older generations, clothes, home appliances and home furnishings are in demand.
In terms of higher priced items, the top 5 categories that each generation and top income band will buy first are:
- Gen Z: Clothes, smartphone, home appliances, luxury goods and smart devices
- Millennials: Clothes, technology, smartphone, home furnishings and smart devices
- Gen X: Clothes, home appliances, home furnishings, technology and smartphone
- Boomers: Home appliances, clothes, home furnishings, technology and smartphone
- Top 25 per cent income band: Clothes, home appliances, technology, home furnishings and smartphone
Approval of marketing techniques during COVID-19
When looking at people who were planning to purchase specific major products and their approval of brand advertising techniques, normal advertising is more acceptable for experiences, flat screen TVs, mortgage/finance brands and wearable devices, which are all products that are relevant to lockdown/isolation, or they are aspirational products. However, normal advertising has taken a dip for gaming, automotive, gym equipment and holidays.
When looking at people who purchase minor products, most categories would benefit from normal advertising during this period (excluding books, health foods, skincare and sports apparel). It shows that the shorter purchase decision cycle and lower priced goods have more minimal impact from regular brand advertising.
Approval of marketing techniques across media channels during COVID-19
There is considerably more acceptance and approval for running regular advertising for Out-of-Home advertising, possibly due to anticipated lockdown laws easing.
Consumers expect ads on messaging apps, video pre rolls, ads on tablets, website advertising, sponsored content, retail sites and comments on social media to stay both informed and connected in these times.
Ad placements in channels that fill a consumer’s need have become more widely accepted.
Price and locally made being key motivators for consumers to purchase brands again, along with previous brand experience. This is evident particularly for Gen X, Boomers and high income groups. Interestingly, the brands that reached out to the consumer via CRM programs are not looked upon overly favourably. Brands that had a positive brand image and were seen to be supportive and helpful delivered greater cut through than brands that were not.
Spending time with media channels and social media
Across traditional channels, most Australians have spent the most amount of time with broadcast television during COVID-19 restrictions across all generations, followed by reading more books and audio books, listening to radio, reading more newspapers and reading more magazines.
Gen Z are least likely to engage with traditional media channels, instead opting for digital and social feeds as their preferred source of news and entertainment.
Across digital channels, streaming content (SVOD and BVOD) and listening to music streaming services were most popular across all groups, followed by watching more videos (such as YouTube), listening to podcasts and creating videos (such as Tik Tok).
Unsurprisingly, Boomers are the least engaged and interactive with these platforms, instead opting for what they know and trust for their content preferences through traditional channels.
All groups are spending more time on social media channels. Most are watching more news coverage on social media channels, followed by spending longer on messaging services, spending more time on computer/video games and spending more time on apps.
Sources:
*Methodology: To identify attitudes and behaviours during the COVID-19 outbreak, the study was conducted by Audience Precision’s research partner GlobalWebIndex in 17 countries with research in field from 22 to 27 April. It included a sample size of 1,073 Australians who are internet users aged 16 to 64.
^ The 11 purchase categories are: clothes, home appliances/devices, home furnishings, insurance, luxury items, personal electronics, smartphone, technology/smart devices, cars, flights and vacations/trips.
Latest News
‘A Very Rare Breed Of Creative’ – Clemenger BBDO hires Chief Creative Officer
B&T's chatting with Clems boss Dani Bassil on Adrián Flores CCO appointment. We never got to Italian or Thai herbs.
Concrete Playground Debuts Innovative Urban Exploration Platform With Lexus As Launch Partner
Concrete Playground announced the launch of its redesigned website in partnership with Lexus. This partnership introduces a new era of urban discovery, enabling a deeper, more intuitive engagement with cities through a state-of-the-art digital platform. Revolutionised Digital Experience Concrete Playground’s website has undergone a significant transformation, designed to enhance the way users interact with their […]
Mindshare And The Brand Agency Take Top April’s New Business Rankings
Which agencies soared like an eagle for the month of April? As in stellar performance, not Eddie the hapless ski jumper.
Suntory BOSS Coffee Fuels Ambition With New Campaign From It’s Friday
Does your workplace have a strict, policed illegal drug policy? Then Suntory BOSS Coffee will have to do.
Resolution Digital Wins MyPlates Media Account
The best thing about personalised number plates is it makes spotting wankers on the road far easier. And drug kingpins.
Debunking The “Three Year Lie”: A New Approach To Retail Digital Strategy
This columnist says it's wrong to claim digital always has a three-year pay off. Has no opinion on the seven-year itch.
TV Ratings (06/05/2024): The Farmer Is Back And He Wants A Wife
It was a good night for lovers of farming and love.
The Growth Distillery Unveils The New Rules Of Influence
The New Rules Of Influence has arrived. And there appears to be no "difficult second album" syndrome here.
Whittaker’s Launch New Brand Platform, ‘Hello Chocolate Lovers’ Via Bastion Shine
New Zealand chocolate brand continues its insidious march into the Aussie market. Much like New Zealanders themselves.
Tyro Shows They Are ‘Into Business Big Time’ With New Brand Campaign Via Howatson+Company
Think finance isn't funny? Think again with this fun work. Yes, it still applies to funeral homes & Clive Palmer ads.
IAB Study Finds 66% Of Advertisers Have Five Or Less Years Experience With Affiliate & Partnership Marketing
Study finds advertisers & agencies not overly experienced with affiliate marketing. The opposite to networking drinks.
Optus Names NBN boss Stephen Rue As New CEO
In what would've been a delicious irony, alas this Optus news didn't get leaked in a major security beach.
Indy Enigma Delivers Signage For NSW’S First Purpose-built Surf Park
Is the fear of shark attack holding you back from a professional surfing career? This new surf park could be the ticket.
Houston Ramps Up Creative Capability, Appoints Two Senior Creatives
Houston - we don't have a problem! Well, not anymore with the appointment of these other-worldly recruits.
JCDecaux Secures All Major Bus Advertising Contracts Across Sydney
Do you like your ads to arrive 25 minutes later than scheduled? JCDecaux now boasts Transport for NSW's bus ad contract.
CommBank Launches The Brighter Side TV On 10 And 10 Play
Commbank teams with 10 for a new financial literacy program. Pensioners and the unemployed are advised not to watch.
IMAA Announces Next Female Leaders Of Tomorrow Programme
Here's a top initiative by the IMAA that B&T's proud to get behind. Unlike the 20 hotdogs in 20 minutes challenge.
Fast 10: Avid Collective’s Luke Spano On Building Deeper Relationships With Local Publishers & Advertisers
Avid Collective's Luke Spano takes on B&T's fast 10 questions. Well, 11 if you include "did you have a nice weekend?"
QMS Boosts NSW Billboard Network With Australian Turf Club Agreement
The QMS team seemingly now the ones to ask for a hot tip at Rosehill after partnering with the Australian Turf Club.
VMO Signs Deal With Stockland Shopping Centres
Often visit Stockland malls only to forget the very reason you came in the first place? Let VMO give you a gentle prod.
Day Management Appoints Paramount’s Tim Wall As Head Of Talent And Publicity
Paramount's Tim Wall exits the TV business after 12 years. Confesses the Rove years were the most taxing.
Poppet’s Postive Party Celebrates First Birthday At New HQ
Think first birthdays and fairy bread and dirty nappies spring to mind. Not to say it didn't happen at this one either.
Enjoy A Hahn Solo… And May The Fourth Be With You
If anything, this campaign does beg the question - at what age does Star Wars cut off as a cultural phenomenon?
DMARGE Founder Unveils Creator-Led Social Media Agency Feedstar
New creator-led social media agency Feedstar to be aimed directly at Gen Zs. Well, they'd hardly want print, would they?
TV Ratings (02/05/2024): A total of 1,753,000 Aussies Witness Port Adelaide’s Defeat
Seven's AFL numbers almost double that of the NRL last night. The NRL still easily winning for ruptured ACLs.
Hotglue Cashes In With La Trobe Financial Digital Media Account
Hotglue staffers learning their cashflows from their collaterals today after nabbing La Trobe Financial's digital media.
M&C Saatchi’s Sydney Creative Lead Exits
B&T's stopping short of calling it a revolving door at M&C at the present, but there's definitely heat on the hinges.
Taylor Swift’s Music Re-Enters TikTok As Universal Pens Landmark Deal
Yes, B&T may have spent 152 hours failing to get Taylor Swift tickets, but, as you'll read here, it's all behind us now.
HAVAS Red launches inaugural Influencer White Paper
Havas Red has debuted its first influencer white paper. Unless you print it out in colour, of course.
Two Sides Global Campaign Reports Increasing Greenwashing As Organisations Focus On Sustainability
New report confirms greenwashing's on the rise. Apparently Mars' 'work, rest & play' claims also under investigation.
Aruga Launches New HQ & Changed Ownership Structure
PR agency Aruga proves Brisbane is 'so hot right now'. So hot in fact, Adelaide's had to go on anti-anxiety meds.
Delicious & American Express Partner To Launch Month Out 2024 In Sydney
Cost of living got you eating noodles prepared in the two-minute style? Why not live vicariously through this.
Aussie Ad Market Continues Decline In March
The belt-tightening in adland shows signs of a turnaround soon. Bar the belt-loosening at the all-you-can-eat buffet.
VMA Focuses On Skills And Training For Members
If there was a post-COVID hangover (bar the anti-vax ranters) it was the rise in skills shortages. Here's another one.
Nearly 90% Of Consumers Want Transparency About AI Images, Finds Getty Images Report
Study finds consumers want transparency around AI images. Couldn't care less about photoshopped magazine covers.
The National Breast Cancer Foundation Partners With VML To Boost Funds
Anyone else feel we've exhausted the office morning tea for cancer? B&T proposes the office moonshine still instead.