Australian Consumers Show Signs Of Optimism: Study

Australian Consumers Show Signs Of Optimism: Study
SHARE
THIS



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.

Please login with linkedin to comment

covid-19 Gen Z

Latest News

Voting For B&T’s 30 Under 30 People’s Choice Awards Is Now Open!
  • Media

Voting For B&T’s 30 Under 30 People’s Choice Awards Is Now Open!

The entries for B&T‘s 2021 30 Under 30 Awards have, tragically, closed for another year. Now though (drumroll please), you can vote for our People’s Choice award! In the time-honoured tradition of award shows across the globe, we’re handing over voting power to you, the people. Use it wisely. The People’s Choice award is exactly what […]

Taboola To Give $500,000 In Free Advertising To Women-Owned Businesses As Part Of International Women’s Day
  • Media

Taboola To Give $500,000 In Free Advertising To Women-Owned Businesses As Part Of International Women’s Day

Taboola, a global leader in powering recommendations for the open web, helping people discover things they may like, today announced the launch of #RecommendHER, a new global initiative to run during March 2021, that will provide $500,000 of free advertising on its network to women-owned businesses. This initiative empowers women-owned businesses to make a larger […]

BWS & M&C Saatchi Celebrate Mardi Gras With Store Makeovers & Drag Queen Deliveries
  • Campaigns

BWS & M&C Saatchi Celebrate Mardi Gras With Store Makeovers & Drag Queen Deliveries

This Mardi Gras weekend, BWS celebrated by bringing the glitz and glamour with store makeovers and drag queen drinks deliveries. Together, BWS and M&C Saatchi brought this project to fruition in three of the retailer’s Sydney stores near the Sydney Mardi Gras precinct – BWS Paddington South Dowling Street, BWS Paddington Oxford street and BWS […]

DDB Marks International Women’s Day By Recreating Iconic Phyllis Robinson Speech
  • Media

DDB Marks International Women’s Day By Recreating Iconic Phyllis Robinson Speech

In honor of International Women’s Day, DDB has recreated Phyllis Robinson’s, the agency’s first female copywriter, most iconic speech using the voices of women from around the world. Dubbed the first lady of Madison Avenue’s creative revolution, Phyllis was a foundation employee of Doyle Dane Bernbach back in 1949. She was a pioneer known for […]

Sunday TV Wrap: Ultimate Tag Premieres To Play Chasey With The Competition
  • Media

Sunday TV Wrap: Ultimate Tag Premieres To Play Chasey With The Competition

Sunday evening saw the premiere of Seven’s new game show Ultimate Tag which, as you might expect from the title, is an elite game of tag where every day Australians try to outrun ‘pro-taggers’ in a range of different obstacle courses. Ultimate Tag secured 447,000 viewers, cementing it as the eighth most-watched TV of the night. […]

Sportsbet Goes In-House For Latest Lunacy
  • Campaigns

Sportsbet Goes In-House For Latest Lunacy

Sportsbet has unveiled its latest campaign featuring the Elite Average Games and the ever-popular Aussie larrikin Gary Flynn, the Wheelie Bin Sprint champion. Developed by Sportsbet’s in-house team, in collaboration with production partner Palomina, the latest campaign features 6 x new sporting events and locations and is the second iteration of Sportsbet’s Elite Average Games […]

Double J Shares The Fifty Game-Changing Women Of Australian Music For International Women’s Day
  • Media

Double J Shares The Fifty Game-Changing Women Of Australian Music For International Women’s Day

For International Women’s Day, Double J has released their list of the fifty game-changing women and gender-diverse artists in Australian music. The list includes artists like Biftek, Courtney Barnett, Jess Mauboy, Julia Jacklin, Julia Stone, Kasey Chambers, Kylie Minogue, Meg Mac, Missy Higgins, Olivia Newton-John, Thelma Plum, and Tkay Maidza. To celebrate the list, which shares the […]

Samantha Armytage To Leave Sunrise
  • Media

Samantha Armytage To Leave Sunrise

Armytage, co-host of Seven’s morning show Sunrise, has announced her intention to depart the role, which she has held since 2013. According to a press release from Seven, the decision comes with the network’s “full support”, with new projects announced at a later stage. Armytage said, “the time has come for the sun to set on […]

Foxtel Doubles-Down On Women’s Sport For International Women’s Day
  • Media

Foxtel Doubles-Down On Women’s Sport For International Women’s Day

The Foxtel Group today marked International Women’s Day with a series of new initiatives to increase the visibility and accessibility of women’s sport on Foxtel and Kayo and through the Foxtel magazine. Foxtel Group chief content and commercial officer Amanda Laing said: “As Australia’s largest and most experienced producer and broadcaster of elite sports, we […]

UN Women Australia Ask ‘When Will She’ll Be Right?’ In New Campaign, Via The Monkeys
  • Advertising

UN Women Australia Ask ‘When Will She’ll Be Right?’ In New Campaign, Via The Monkeys

To rally the country to get behind the UN’s goal of achieving equality for women globally by 2030, UN Women Australia has unleashed ‘When Will She’ll Be Right?’, a powerful campaign that focuses the spotlight on gender inequality in Australia. Created by The Monkeys, part of Accenture Interactive, the campaign hijacks our popular saying, “She’ll […]

WPP AUNZ Women Talk International Women’s Day
  • Media

WPP AUNZ Women Talk International Women’s Day

WPP AUNZ has a long-term commitment to welcoming and supporting diversity and inclusion across all its teams. It says it cannot truly deliver upon our commitment to providing the very best solutions to our clients without ourselves being reflective of the wide-ranging variety of individuals that make up the rich cultures of the countries we […]

by B&T Magazine

B&T Magazine
Digital News Sites Up 8% YOY, With SMH Retaining Top Spot
  • Media

Digital News Sites Up 8% YOY, With SMH Retaining Top Spot

Latest emma figures show news brands continue their digital growth trajectory with an eight per cent increase for the 12 months to December 2020. The latest release of emma (Enhanced Media Metrics Australia) for the 12 months to 30 December 2020 shows an eight per cent increase in digital readership compared to the same period […]

Xandr Shares Comprehensive Approach To Identity
  • Marketing

Xandr Shares Comprehensive Approach To Identity

Xandr today shared insight into its multi-faceted approach to identity solutions, to facilitate high-value transactions for buyers and sellers following the deprecation of third-party cookies and device IDs.

When It Comes To Brand Building, Less Isn’t Always More
  • Opinion

When It Comes To Brand Building, Less Isn’t Always More

In this guest post, Hulsbosch’s creative director Marcel Wijnen, casts his design eye over what truly makes a brand and says it’s all about being true and essential… To do simple – and to be original – is a truly tough task. Not impossible, but not easy. Naturally, we can get lost in ‘striving for simplicity’ […]

Opinion

by B&T Magazine

B&T Magazine
South Australian Supermarket Chain Foodland Launches ‘Mighty’ New Campaign, Via KWP!
  • Advertising

South Australian Supermarket Chain Foodland Launches ‘Mighty’ New Campaign, Via KWP!

South Australia’s largest independent supermarket chain, Foodland – with its unforgettable jingle “Foodland, the mighty South Aussies, yeah” – will launch a new campaign on 7th March. The campaign coincides with the chain’s $251m expansion program to open twenty-five new stores, revamp fourty-seven and create 2,500 new jobs over the next five years. Agency KWP! […]