Nearly a quarter of Australians intend to spend less than $200 on Christmas gifts and celebrations, while a third plan to spend between $200-$500, and a quarter will allocate $500-$1,000 toward gifts and celebrations according to new research.
All told, 63 per cent of Australians plan to reduce their holiday spending. Despite these cutbacks, Aussies are still remaining in a festive frame of mind. Generally, they are choosing to focus on what matters most with 43 per cent ranking gifts as their top spending priority, followed closely by travel (25 per cent), and food and drink (23 per cent).
Shopping habits are also evolving with 72 per cent of Australians planning to shop across both online and in-store channels, while just 8 per cent will shop exclusively online.
When it comes to what’s being cut, holiday decorations sit firmly at the top of the list, with 33% saying it would be the first expense to go if they needed to reduce spending.
“Aussie shoppers are financially prudent but still deeply value the moments that make the season special,” said Matt Coote, managing director, Australia, at GumGum, the company behind the research.
“With 63 per cent planning to spend less this year, brands will need to be more sophisticated in how they deliver the right message at the right time. Every impression needs to add value, not just create noise. This is where GumGum’s Mindset Graph can help brands understand the consumer mindset and show up when people are most receptive,” he added.
The research, which surveyed 3,000 consumers across Australia, the US, UK, Canada, Germany and Belgium also revealed that while most Australians describe themselves as neutral toward holiday ads, nearly one in five say they enjoy them. And when asked about what feelings they associate with the holidays, 42 per cent of Aussies express ‘joy’ as the primary emotion.
“It’s proof that timely, well-crafted ads still have the power to capture attention in a cluttered market. With nearly half of Aussies associating ‘joy’ with the holidays, brands that tap into that emotion and show up with messaging that matches the mindset will win. With contextual and attention-based advertising, brands can connect meaningfully, even when budgets are under pressure,” Coote added.
