All I want for Christmas… is for retailers to get real and rethink their festive ads

TV has long been a staple of Christmas advertising, highlighted by the millions of people who look forward to the annual John Lewis spot.

This year, the retailer reportedly spent millions of pounds on a cameo from Elton John, though it is being tight-lipped about exactly how much.

However, while the department store’s festive offering seems to have as much cultural influence as it ever has, the truth is that this is not reflective of TV advertising overall.

In the past decade, retailers have had to fundamentally rethink many aspects of their business to adjust to the new digital world we live in, and advertising is far from immune to this massive change.

A new report from OpenX and The Harris Poll shows that content consumption and Christmas shopping habits of UK consumers are changing rapidly. Retailers might be wise to direct some of that spend away from big budget TV campaigns into new digital channels where consumers are actually spending their time.

While TV still has a place in holiday marketing, with 30 per cent of consumers saying that they find inspiration for gift shopping in TV commercials, its role as the primary source of content is declining.

The average millennial watches less than five hours of live TV a week, and almost a fifth of the UK population (and over a third of millennials) no longer watch any live TV at all.

Additionally, when consumers do sit down to view television, they don’t necessarily watch the commercials. Close to 90 per cent attempt to skip some or all ads on TV, and almost a third report never watching a full 30-second TV ad without skipping it. Consumers may enjoy watching the big-name ads, but that doesn’t hold true for smaller brands.

As live TV viewing declines, the eyeballs are shifting to mobile, with the majority of UK consumers spending at least three hours a day on mobile devices, and almost a quarter of millennials spending over six hours.

In addition, 42 per cent of millennials are watching videos on their smartphone multiple times per day, highlighting the opportunity – and the necessity – for advertisers to accelerate their media mix away from TV-dominated campaigns.

While the pure time spent on mobile is indicative of today’s new media landscape, retailers should note in particular the role that mobile plays in shopping for gifts.

Consumers plan to spend over 50 per cent of their holiday budgets via digital channels this year, rising to 60 per cent among millennials in particular. Mobile devices allow Christmas purchases to be made at any time, from any location, and a third of consumers even report shopping from their beds at night on a weekly basis.

With more pounds being spent online versus in store, and more eyeballs than ever moving from traditional mediums to more personal platforms like mobile, retailers must think carefully about whether a big budget Christmas commercial is the best use of ad spend. Business is evolving, and it’s critical that advertising evolves too.

So maybe leave the multi-million-pound festive theatrics to John Lewis and Elton John this year.