NEWS: Young consumers set to lead Xmas ad boom

Advertisers are on course to celebrate their best Christmas since before the recession, as free-spending young people fill the gap left by older consumers, who are still too frightened to part with their money.

Advertisers are on course to celebrate their best Christmas since before

the recession, as free-spending young people fill the gap left by older

consumers, who are still too frightened to part with their money.



That’s the verdict of new research commissioned by Travis Sennett Sully

Ross, which blows a hole in the established theory that affluent ‘empty

nesters’ are a huge source of unexploited potential for marketers.



The agency’s survey - part of a pounds 100,000 five-year research

programme - shows how Christmas has become a symbol of the switch of

spending power from old to young.



It reveals that while middle-aged consumers are unlikely to splash out

over the festive season, 50 per cent of people aged between 16 and 24

say they will spend more, as do 42 per cent of young families with

children.



As a result, advertisers can expect their best Christmas for six years

the survey predicts, with toy and clothes manufacturers likely to do

particularly well.



But Peter Travis, the Travis Sennett managing director, said the

declining influence of ‘empty nesters’ had become a growing feature of

the research carried out by RSGB on the agency’s behalf among more than

2,000 people across the country.



‘It’s a radical change from the early stages of recession but it’s been

more marked over the past two years,’ he added. ‘Young people are

confident spenders because they feel they have their lives ahead of them

and that if they lose one job they’ll find another. But middle-aged

people have been scarred by recession. The value of their properties has

slumped and they’re haunted by fears of job security.’



The worries of the empty nesters are creating a knock-on effect on the

kitchen appliance and furniture markets, the survey reveals. Middle-aged

couples are no longer taking advantage of their children ‘flying the

nest’ to refurbish their homes.



‘The autumn used to be the peak sales time for furniture manufacturers

as people ordered in time for delivery at Christmas,’ Travis said. ‘Now

the market is a disaster area.’



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