Every year, in early November, retailers have traditionally thrown down the gauntlet to each other by revealing their biggest and most impactful advertising project of the year: their Christmas advert. The impact made by this key piece of content is so significant that there’s a noticeable media buzz in anticipation of what John Lewis, Aldi, M&S, Amazon, Waitrose and other big brands will reveal as their festive TV campaign each year. But what can these increasingly cinematic and emotive brand activations tell us about reaching consumers and driving both footfall and spend? And what are the trends being facilitated by innovative technologies?
James Murphy, Chief Executive of Ogilvy UK, was recently quoted in the FT, explaining just how significant an opportunity the festive season is for British retailers: “Christmas is the UK Super Bowl of marketing. Christmas ads have evolved from just showcasing products to focusing on storytelling.” And he should certainly know – his experience of working on campaigns for M&S and John Lewis puts him in a position of authority on the matter.
But you don’t have to be an advertising guru to understand the power of the Christmas TV ad; consumers across the UK and beyond are not only engaging with these ads, they’re actively anticipating them each year and have some idea of what to expect from the storytelling. “Consistency pays in advertising,” explained Lynne Deason, Head of Creative Excellence at Kantar, in a recent article on the BBC website. “Sticking with the same creative approach often makes it easier for people to know which brand is being advertised. It can build a sense of nostalgia too, adding to the entertainment factor.”
Engaging consumers with emotion, nostalgia and relatability
Review the raft of big-budget adverts from retailers this festive season, and you’ll find a variety of commonalities in how brands grab the attention of, and drive action from, potential customers during the Golden Quarter. Although the creative tactics may differ, for the most part retailers are creating engaging content that features a strategic blend of emotional storytelling, nostalgia, inclusivity and technological innovation, mirroring evolving consumer attitudes and the current economic landscape, and forging deeper connections with their audiences.
For example, John Lewis’s advert portrays a woman’s heartfelt journey to find the perfect gift for her sister, highlighting themes of family and togetherness, which are also present in almost every ad gracing our screens this festive season – plus a realistic tinge of stress that is entirely relatable for the average Christmas shopper (a tactic that’s also employed by Matalan’s ‘We’ve Got You’ campaign, which celebrates the reality of family moments, and M&S’s Christmas Fairy, who saves Dawn French from the pressure of overwhelm and last-minute preparations).
Diversity of cultural background and/or family dynamics is a theme within ads by Boots, Sainsbury’s, Sports Direct and Waitrose, while nostalgia is another key feature seen in Christmas content by brands including Aldi (it’s Kevin the Carrot’s ninth appearance), Morrisons (with Bugsy Malone references that will chime with Gen X and younger Boomers), Asda (targeting a similar demographic with the A-Team soundtrack), and Barbour (featuring Aardman’s Shaun the Sheep).
And then we come to Coca-Cola.
AI: the new frontier of content generation
Embracing the possibilities presented by the latest tech innovations, Coca-Cola’s advert is hitting the headlines because it replaces the traditional Santa Claus with AI-generated imagery. Both mainstream media and marketing publications were similarly aghast, but an interesting perspective was published in The Drum, by System1’s Andrew Tindall, who shared his own visceral reaction at the AI-generated ad, before admitting “I was wrong” (well, that was the most repeatable version of his phrasing), and publishing a follow-up piece after running some research on consumer reactions to the brand activation.
He found that this year’s Coca-Cola ad scored a whopping 5.9 stars out of 6, when played for audiences who were not informed that the content was AI generated, or asked to compare it with previous years’ adverts from Coca-Cola, and there were zero negative reactions. With brand recognition taking just 15 seconds, Tindall declared the ad an effective success, and concluded that given the brand’s 30 years of familiarity, leading to massive customer loyalty, it did not matter so much that there was a little bit of ‘uncanny valley’ about the content, for example that the truck’s wheels don’t spin realistically and Santa’s hands appear to be lacking definition around the fingernails. He ended on the constructive note that huge production budgets no longer offer the competitive advantage they used to be, and that marketers need to be strategic powerhouses rather than relying on well-funded tactics.
Cross-channel digital content strategies are increasing
The use of generative AI isn’t even the only new trend we’re seeing related to technology innovation. What’s just as interesting about this year’s collection of Christmas content is that TV no longer holds its traditional position as the sole channel of choice for brands.
A recent article in the Financial Times reported that “advertisers are set to spend a record £10.5bn in the UK over the Christmas season, according to industry trade body the Advertising Association and data provider WARC,” which is a 7.8% increase from the £9.7bn spent last year, but it goes on to explain that “advertising through search engines is expected to rise almost 9% to more than £4bn, with online display ads, including social media, rising the most by 15.8% to just under £4bn. Meanwhile, the amount of money expected to be spent on TV advertising has fallen almost 5% to £1.4bn.” “Christmas isn’t just starting earlier every year, it’s getting bigger,” confirmed Gabby Ludzker, Chief Executive, Rapp UK. “The real pivot, however, is the skyrocketing increase in online media spend at 16% – the highest uplift since last year of any medium. This reflects the massively accelerated advances in precision targeting, predictive models and the payback of personalisation.”
With connected commerce a key consideration in marketers’ minds, the move away from the supremacy of television as a channel for content is perhaps no surprise – and of course the next step after brand activation video appearing online and in social media is the roll-out of these recognisable seasonal campaigns on in-store screens, to foster that same sort of festive feel right at the point of purchase.
In-store digital content for festive ambiance and ideas
It’s worth considering that it’s not just the headline campaign content that will nudge browsers to become purchasers, or influence a buyer to opt for one brand or product over another. A recent report from consumer behaviour specialist Circana found that 76% of holiday shoppers said product review videos were likely to sway their buying decisions, while a YouGov survey indicated that half of 18- to 24-year-olds said they plan on making most of their festive purchases in a store this year – meaning that in-store video is going to be a powerful force in driving revenue and in particular capitalising on those who are enjoying the in-person experience of Christmas shopping, and looking for inspiration while in store.
Of course, with 2024’s peak festive trading periods a matter of weeks off, there’s no quick fix for retailers who haven’t yet equipped their stores with digital signage – but as the trend for connected commerce content is only just beginning to hit the high street, there’s sufficient time to prepare for Christmas 2025, and gain a competitive edge with phygital installations to create engaging immersive experiences in-store.
Online stores play a key part for gifting ideas
Why not make next year the year that your brand streams Christmas campaigns in-store and create an unparalleled festive ambience that maximises footfall and expenditure?
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