The 80/20 View: In 2021, advertising is bearish when consumers are bullish – this needs to change
In his regular column for Mumbrella, Thinkerbell’s general manager Ben Shepherd examines the apparent disconnect between advertisement volume and consumer behaviour.
Consumers are more confident than they have been for a long time, but you wouldn’t know it from the way advertisers in Australia are spending right now. It’s limp and bearish when the economy is increasingly robust and bullish.
Every single economic data point is telling a positive story. Especially the one that has proven over time to be a reliable measure of consumption growth, the Roy Morgan ANZ Consumer confidence index.
Confidence is the greatest influencer of positive movements in purchase volume. And in my experience increases and decreases in consumer confidence has a strong correlation with positive and negative movements in consumer demand. A three to five point movement in the consumer confidence index can create material shifts in category demand that can create tens of billions of dollars in revenue.
