Dentsu Study: Aussies Cutting Back On Travel, Booze, Insurance & Healthy Eating As Cost Of Living Bites
Just over half of Australians are struggling financially and not making enough money each month to make ends meet, dentsu’s second annual proprietary consumer sentiment report Read the Room revealed.
Compiled of more than 4300 Australians, the Read the Room report is aimed at understanding consumer sentiment towards the household budget, and how and where Australians plan to shift their spending.
Key findings include:
- Half of Australians claim that they are struggling financially and not making enough each month to make ends meet
- 71 per cent of Australians living with kids claim their ability to purchase and eat healthy food on a regular basis has been negatively impacted by rising food costs
- Over half of Australians surveyed are buying less alcohol as they previously did due to its increased cost
- 40 per cent of Australians report buying cheaper alcohol due to increased costs while over half of Australians have refrained from buying as much alcohol as they previously did due to the increased cost.
- Eight per cent of Australians have recently cancelled a health, home or car insurance policy
Building on last year’s survey, the report offers further insights into how key consumer segments are responding to the changing economy, the cost-of-living crisis and rising interest rates.
Australians are drastically reprioritising their money as certain expenses begin to be perceived as a luxury
Half of Australians surveyed believe having more than one video subscription service, such as Netflix, Stan or Disney+, is a luxury rather than a necessity, while 33 per cent view having a single subscription is a luxury, compared to 12 per cent who consider it a necessity.
More than half (60 per cent) of Australians consider purchasing a new mobile phone every year as a luxury, while nearly half of Australians (43 per cent) believe eating out on a regular basis is a luxury, with this increasing to 59 per cent when eating out at expensive restaurants. Some 40 per cent of Australians report buying cheaper alcohol due to increased costs while over half of Australians have refrained from buying as much alcohol as they previously did due to the increased cost.
While the report indicates the drastic effects of the Reserve Board’s 12-interest rate rises since May last year from 0.1 per cent to 4.1 per cent on consumer sentiment, it also reveals that compared to last year, Australians show greater confidence in certain aspects of the economy, with 50 per cent reporting higher confidence in the stock market, up three per cent year-on-year, and 46 per cent believing that Australian inflation will be brought under control, up two per cent from 2022.
David Halter, chief strategy officer at Dentsu Creative ANZ, said: “The second iteration of our Read the Room research paints a very real picture of how Australians are responding to inflation, rising interest rates, and stagnant wages.
“We believe the household budget is the bedrock for consumer brand success and as this scenario continues to play out, it is fundamental for businesses to have strong insights into how the whole nation is feeling and intending to behave to ensure they are best oriented to meet their customers’ needs and can be responsive as they change.
“No single category will go unaffected as Australians tighten their belts, cut back on expenses, and seek out cheaper alternative brands to make their household staple. The proportion of people who feel that they have money left over after meeting commitments is at its lowest point since 2015.
“Businesses must be thinking about their marketing strategies as the economic conditions shift and continue to invest. There are pockets of opportunities everywhere and our research helps identify them within the doom and gloom headlines dominating the news cycle. Read The Room reminds all of us to remain focused on the customer,” said Halter.
Dentsu’s Read the Room report breaks Australians into five groups – the Rich & Ready, the Bet Hedgers, the Wealthy & Unwise, the Suffering & Scared, and those Living for Today – to help marketers and business leaders read between the doom and gloom of news headlines and to better understand different consumers and their changing needs.
“Knowing which group your core consumers are in is the first step for any marketer navigating the current economic conditions. The key takeaway from our second wave of research is the Baby Boomer generation are less affected than younger generations who are really feeling the pinch of cost-of-living, with the 55+ category a real opportunity for many brands to find growth.
“For businesses, the key questions are where does your product or service sit, and is there an opportunity to reframe, reposition or re-promote to align with real needs? Economic uncertainty is almost business-as-usual now, but marketing and product leaders must be routinely thinking about how changing circumstances are affecting their customers.
“For many businesses, understanding who to attack and defend is now crucial. It’s integral to be able to diagnose where your product or services sits and if it is a necessity, a treat, an on-hold or a luxury item as the economy situation continues to change at pace.”
Latest News
History Has Arrived: It’s The Cairns Crocodiles Inaugural Shortlist
Pen the acceptance speech and ready your best thongs and muumuu, because the Cairns Crocodiles shortlist has arrived.
Fast And Furious: Top Gear Australia Launch Thrilled Motorheads, Car Entusiasts And Guests
B&T is still no closer to knowing who the new Stig is, except that she is a woman and a ridiculously fast.
TV Ratings (02/05/2024): Seven’s The 1% Club Wins The Night
The 1% club did not live up to its name when it comes to TV ratings last night.
TRA Welcomes Raft Of New Hires; Bolstering Expertise Across Markets
Insights and research agency TRA announces slew of new hires. Still no news on the return of marble wash denim, however.
CX Lavender Hires Boston Consulting Group’s Kim Verbrugghe as Chief Strategy Officer
CX Lavender announces new strategy hire and channels 'acoustic folk act at local RSL' for the publicity pic.
Opinion: Community standards, will they be the death of us?
This columnist is talking community standards. Sadly not those people who put dogs in trolleys in supermarkets.
Tegel gets heads bobbing with new free-range chicken platform
Sure, there's a lot of moral considerations when buying a chook. Yet, not as baffling as buying eggs or canned tuna.
Study: 66% of Aussie men believe masculinity is under attack
Two-thirds of Aussie blokes say masculinity's under attack. That said, sales of Solo lemon drink appear robust.
‘Equal Writes’: Canyon reveals new campaign and refreshed brand for women and non-binary writers
As this brand redesign again proves, nothing beats black on white. Well, white on black in this instance.
Icon Agency bolsters consumer and integrated offer with major hires
Icon Agency unveils new recruits. As press photo confirms office moustache competition now a lay-down misère.
Clemenger launches agricultural graduate program
Has Farmer Wants A Wife triggered an interest in dagging & hay balers? This grads program may resonate.
Levi’s Appoint UM As Global Media Agency For $217m Account
Levi's are the jeans for rockstars, models & the cool kids. Although that's not stopped dads from ruining their image.
QMS Nabs Sean Rigby From oOh!media
Things set to get spicy at the next Outdoor Media Association dinner and dance as a rival gets poached.
Bumble Reveals New Brand Identity To Usher In New Era Of Dating
It's ironic that all the dating apps market themselves as having no weirdos, freaks or mummy's boys like their rivals.
Stay In The House From Up! Airbnb Introduces Icons
Airbnb is now letting people stay in "iconic" places that sadly doesn't include the house from Silence Of The Lambs.
Changing The Conversation: The Role Of Media In Ending Violence Against Women
Governments are finally waking up to the DV crisis. Here, B&T chats with Jasmin Bedir on the role media can play.
“If You Want To Listen To Something Else, Go For It”: Fifi Box On Blocking Out The Noise & Focussing On What Works
No one is at the coal face of Melbourne radio like Fifi Box. Here, she chats with B&T without coughing up a lung.
Spotlight On Sponsors: Ferrari Signs Landmark New Title Sponsor
B&T continuing our series on sports sponsorships. And, yet again, there's little good news for the ten pin bowlers.
Choose A Path Less Trodden This Cannes In Cairns
Not since Wonka opened the factory has there been such a hot ticket in town. Here's how to make the most of Cairns.
Cannes In Cairns MC Keeva Stratton Shares Her Top Session Picks
Quip boss calls out her highlights of the Cannes agenda. We're assuming B&T staff b-boy demonstration was an oversight.
Here Are The Agencies That Made AFR’s Best Places To Work List And What The Industry Can Learn From Them
Did your office not make the list? Make sure your boss shouts at least two schooners at office drinks come Friday.
Get Ready, B&T’s Best Of The Best Is Back With The Top Holding Company Executive Leaders – Creative!
Want to know who the Grandest of the Grand Poobahs in the industry are? Look no further than this exhaustive list.
How A Glittering Campaign Helped The Australian Museum Sell 400,000 Tickets
B&T thoroughly enjoyed the Ramses exhibition at The Australian Museum, despite thinking we were going to the Archibald.
TV Ratings (30/04/2024): A “Shoey” Straight From A Fish’s Mouth Launches The Cheap Seats Into 2024
Last night's TV saw horny farmers beat Lego nerds, who beat fame-obsessed home cooks, who beat a chap with a large fish.
Spotlight Extends Partnership With Starlight Children’s Foundation
B&T always happy to promote the excellent work of the Starlight Foundation. Less so the Starfish Fanciers Foundation.
Amazon’s Advertising Quarterly Revenue Soars To $11.8bn
There are so many Amazon couriers visiting B&T headquarters at the moment our office dog doesn't know who to maul first.
VML Wellington Welcomes Jacob McGregor As Pou Ārahi Māori
McGregor set to lead cultural competency and safety at VML Wellington in important new gig.
“They Grow Up So Fast”: Simon Fowler On Five Years Of ABEL
Abel's CEO talks lessons learned from the agency's first five years. Including staff nicking all the Nespresso capsules.
Kyle & Jackie O Urge Melbourne To Pick A Side
Who can stop Kyle & Jackie O's indelible march into Melbourne radio? Is Peter 'Moony' Moon waiting by the phone?
Future & Taika Waititi Feature In Striking New Global Belvedere Campaign
Not only does drinking vodka make you cool like these dudes, it also has great weight loss properties for the bone idle.
The Fall Of Bonza: A Case Study In How To, And Not To, React In A Crisis
Does the collapse of yet another budget airline hark back to a gentler time of 17 hours spent on a Greyhound bus?
Opinion: Agencies, Be Unique – Stop Using The Word “Unique!”
Trinity P3's Ellie Angell says agencies are overusing the word unique. You could add omnichannel & holisitic to that.
Ex Marketing & Advertising Exec Releases Melanoma Memoir
Ex-adlander Anne Gately has penned a tome to skin cancer. Which is a handy reminder to check your moles, people.
Mamamia Appoint Danni Wright As New Head Of Strategy
Danni Wright takes up Mamamia's strategy reins with a feng shui expert called over positioning of office chaise lounge.
From The Bureau: Championing Competency & Cross-Industry Collaboration
The IAB's Jonas Jaanimagi calls for more specialisation in adtech. Meaning you'll understand it less than you already do.
Rumble Nabs Renee Park From Cutting Edge
Rumble has recruited Renee Park as one of its new sound designers. And it's only right to make some noise about it.