Lockdown could bring spending surge

[2nd April]

Brits have amassed over £245 billion in savings during lockdown, with a quarter expected to be spent immediately or soon after lockdown ends, according to analysis from media company Future, reported in WARC.

Average household savings have reached almost £5,000 so there is significant pent up spending power. The survey by future found that 45% of all respondents were already researching their planned purchases, with 57% of spend likely to happen between April and June.

What will the money go on?

• More than three-quarters (76%) of post-lockdown purchases will be in some way related to passions or hobbies, such as cycling holidays, attending a football match, and investing in new equipment for training.
• Spending on holidays and travelling (53%) and going to pubs and restaurants (42%) featured highest.
• Consumers will also continue to spend on items popular during lockdown, including home decoration (11%), garden products (10%), and personal and home technology (10% and 9% respectively).

With money burning a hole in many pockets, now is an opportune time for brands to place their offerings front and centre. Our React research has already shown that almost half of adults (46%) will go online to learn more about a product after seeing an Outdoor campaign. With the evidence showing audiences are already researching their big buys, brands should be amending their media plans to deliver the content consumers need now, rather than waiting for physical retailers to reopen.

Sourced from Future plc, DMA via WARC.