New findings from WARC’s ‘Evolution of Marketing’ programme have found that over a third (34%) of consumers are reducing their spending on out-of-home entertainment.
The programme will analyse emerging trends, technologies, media, social influences and other drivers of change relevant to marketers across a series of upcoming reports.
WARC has identified that the current key drivers affecting global consumer purchasing habits are inflation, sustainable living, Gen Z’s ‘mental health crisis’, the rise of social commerce and a shift between ‘privacy and convenience’.
Crucially, the firm’s report finds that overall consumer spending is shrinking, with two in five (20%) spending less now than in 2022, with out-of-home entertainment and travel/holidays seeing the biggest drop in spending.
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“Evolution of Marketing will provide marketers with insights and data to help answer two main questions: What will be the most effective marketing strategies in the coming years? And what can marketers do today to best position themselves for this future?,” WARC insight director, Aditya Kishore said.
The current global cost-of-living crisis is even taking precedent over sustainability for many consumers, with 74% identifying price as a key purchasing influencer, as opposed to only 47% citing a brand’s sustainability commitments.
A growing backlash against intrusive advertising is also affecting purchasing patterns, with over half (53%) believing ad targeting to be a breach of privacy, although 62% of respondents found personalised recommendations helpful.
Magic Numbers founder and economist, Dr Grace Kite added: “Marketers that want to survive the coming shakedown need to look through their toolkits with a new lens and prioritise strategies that convince consumers their product is worth paying for.”
