Why Christmas commercials are a good investment for any business
The most wonderful time of the year is yet again upon us, and while most enjoy the warm feeling and festive spirit of the winter holidays, businesses big and small are all considering Christmas commercials as a way to boost their sales. And for the right reasons, because Christmas adverts are critical for virtually any company, delivering an excellent return on investment.
Historical Impact on Business
Historically, Christmas-themed commercials have not only evoked strong emotions but also led to substantial business growth. Commercials with a true story, like the Royal British Legion’s portrayal during World War, have shown that narratives rooted in authenticity can lead to strong customer loyalty and increased sales during the holiday season.
Most Christmas commercials return between 6 to over 20 times their original budget. So let us explain precisely why they are a good investment for any business:
Brands That Saw Growth
Brands like Coca Cola and Hershey’s Kisses are classic examples of how consistent and heartwarming Christmas commercials can drive brand loyalty and boost sales year after year. Their Christmas ads have become eagerly anticipated events, directly contributing to their brand equity and bottom line.
Christmas commercials reach a broader audience than your normal customers
The power of the web means good commercials can go viral, helping them reach millions more consumers than otherwise possible via a traditional TV spot. That certainly is not the case with every Christmas commercial, but a professional ad with a great story behind it, is almost guaranteed to attract a new stream of customers and positive feedback.
This new outreach will generate positive public perception and help strengthen the brand, while generating new sales and income.
Nostalgia Drives Sales
The recurring theme of ‘home for the holidays’ in many ads has a nostalgic pull, which brands have leveraged to drive sales. By tapping into shared emotions and memories of the festive season, businesses have successfully boosted their sales figures during the holiday season.
Christmas commercials build brand awareness
Customers love Christmas commercials! That’s because unlike regular adverts, Christmas commercials are touching and employ creative scripts. Creativity drives long-term gains. Though short-term approach in marketing is shifting the emphasis away from creativity, todays demanding markets have a soft spot for creativity, as creative thinking drives commercial success by delivering brand awareness and an emotional connection with consumers.
That’s why Christmas commercials represent the perfect occasion to employ an empathetic commercial to build your brand awareness and tell your great story.
The Tangible Impact of Emotional Ads
Ads like Hershey’s Kisses or the story-driven ones by John Lewis do more than just tell a story; they drive consumer behavior. The powerful emotions they evoke have led to an increase in product sales, showcasing the direct ROI from such heartwarming commercials.
A Global Business Perspective on Christmas Commercials
From a business standpoint, embracing the universal theme of ‘Merry Christmas’ in commercials has given brands a global appeal. By capturing shared sentiments across different cultures, brands have been able to tap into new markets and expand their customer base, reiterating the fact that investing in Christmas commercials is a smart business decision.
Christmas commercials generate one of the most profitable ROI
Simply put, Christmas commercials generate perhaps the most profitable return on investment in marketing, validating the investment in creativity required to produce it.
Research shows that every $1 spent on advertising returns anywhere between $6 to $26 in new sales in the developed economies, and that’s an unprecedented financial benefit. The sheer impact on direct sales is always guaranteed to cover the costs of investing in the Christmas video commercial, while the benefits certainly outweigh the costs.
To sum it up, a good Christmas commercial with a great story behind it, is almost guaranteed to attract a new stream of customers and positive feedback. And creative thinking in Christmas commercials drives commercial success by delivering brand awareness and an emotional connection with consumers.
The Advertising Association reports that over one third of consumers are just as excited about the premiere of a Christmas advert as they are about a film release, nearly half have been moved to tears by a Christmas advert they’ve seen or heard, and one in six people have changed their plans to watch the premiere of their favorite Christmas commercial. These facts coupled with the most profitable return on investment generated by Christmas commercials, returning between 6 to over 20 times their original budget, validates the investment in creativity required to produce it.
Christmas commercials are a great investment for any business and we are ready to produce yours!
