Yes, we are in H2 already! But that means there is still half of the year to win lots of new business, build relationships and hit those targets! Here we break down some of the key trends and predictions for the second half of 2024, as well as which categories to look out for.

How much was spent on advertising in H2 last year?

Advertisers listed on ALF spent a total of £3.2bn on above the line advertising in Q3 2023, followed by £3.5bn in Q4 2023. This meant that £6.7bn was invested across digital, TV, outdoor, radio, press, direct mail, door drop, cinema, and TV sponsorship in the second half of last year.

• With the Labour Party having won the general election, there should be an upturn in consumer sentiment.
• A moderation of the cost of living crisis in 2024 should continue in the second half of the year. 
• According to PwC research, groceries was the top spending intention category across all age groups. Loyalty schemes will continue to be important for food and drink shopping across H2.
• It was found that 18-24 year olds were the only age group with clothing, shoes and accessories in their top five spending intentions, while health and wellbeing was the second most important category for this generation.
• Whilst big ticket purchases have largely been on hold during the cost of living crisis, behaviour could start to change heading into 2025. Home improvement was in the top four or five positions for spending intentions among 18-54 year olds so now could be the time to approach brands in this area, plus household furnishings and home appliances.
• With consumers still mindful with regard to discretionary spend, and continuing habits honed during the worst of the cost of living crisis, at-home entertaining, as opposed to dining out, is expected to continue to prevail. Supermarkets have witnessed increased sales of premium labels and people opting for at-home upgrades at the dinner table.
• During the cost of living crisis consumers have continued to pay out for little luxuries, such as branded cosmetics, takeaway coffee and confectionery, which is likely to continue into the festive period and could feed into other categories such as branded household supplies.
• Brand loyalty has significantly fallen since the pandemic and consumers have continued to make switches during the cost of living crisis, including across frozen food, fresh produce, and clothing, as well as insurance, mobile, broadband, streaming, satellite/cable and energy providers. 
• At Christmas, consumers are likely to continue to shift away from throwaway gifting, choosing to invest in quality, lasting or unique gifts. 
• Following a summer of sport, there is likely to be an increased appetite for sport items.
• Reading has been a huge social media trend so far in 2024 so books are likely to be a hot gifting category.
• Since the pandemic ended, consumers have prioritised experiences over products, a trend that continued into the cost of living crisis with significant activity in the realms of travel and entertainment. 
• Companies will likely see a stronger change in consumer behaviour in 2025, provided there are no surprises that disrupt the outlook. Plenty of categories should benefit from the combination or more positive consumer confidence and the optimistic feeling of a new year including housing, property, and mortgages, home improvements and appliances, vocations, investments, and health and leisure activities. More broadly, Brits may be more likely to make big decisions such as starting families or welcoming new pets, which could mean further opportunities for children and petcare brands.
• Charities should be looking to launch campaigns to capitalise on the return to more discretionary spending.
• Subscription services that were cut at the height of the cost of living crisis may try and regain lapsed customers.

With lots of brands looking to take advantage of an improved outlook, there may be greater demand for agency partners, media partnerships and marketing services providers in H2 2024, to help them best grasp the opportunity to get in front of customers in 2025.

ALF can help you identify brands to target across any of the categories mentioned above and access to the decision-makers you need to speak to! Find out more here. 

ALF subscribers can see the full version of this report here.