Gifting season may be a distant memory for the advertising industry, but for many of the UK’s workers, the end of March brings a much longed for present of its own – the bonus pay packet.
In fact, the bonus cycle is an annual peak in the nation’s shopping rhythm, as consumers prepare to use their March pay packet to splash out on an indulgent reward for themselves.
And high-end brands – particularly those in the automotive and luxury fashion sector – are perfectly placed to inspire would-be purchasers actively looking to spend big.
By using insights from eBay’s 19 million monthly UK users, the online retailer explored how shoppers spend their impending bonuses, and how brands can benefit from the resounding “bounce”.
The approaching bonus season
As the financial year comes to a close, shoppers across the UK are starting to hold their breath (and their credit cards) in expectation of the upcoming bonus season.
Last year, a staggering £42.4 billion was paid in bonuses to UK employees meaning a huge, and in some cases unexpected, peak in disposable income.
This cash rise opens up a short window of spending irregularity, giving switched on brands an opportunity to quickly tap into heightened consumer interest over the next month.
For many consumers, pocketing a bonus allows them to splash out on those big-ticket purchases pushed aside after an over indulgent festive season.
The automotive peak
For the automotive sector, bonus season and the plate registration change create something of a perfect storm of consumer interest in March.
And a larger pay packet may tempt some to opt for high end brands. In March last year BMW and Mercedes were the most searched for motors brands on eBay.co.uk as shoppers looked towards the high-end market.
Luxury car manufacturer Porsche recorded more than 150,000 searches during the third week of March alone, amounting to more than 22,000 searches each day.
The little luxuries
It’s not just the automotive sector that reaps the benefit of bonus season. Other retailers, and especially high-end brands, should be equally ready to tap into spikes in consumer demand.
During the same week of March last year, there were more than 50,000 searches for “Rolex” made on eBay.co.uk by shoppers looking to splash out.
It’s not all about the self-gifting though. The 100,000+ searches for “diamond” in the same week suggests some of the UK’s more romantic shoppers cash in their bonus for a proposal.
The brand response
So, as we look to the month ahead, here are my three top tips on how to make the most of the impending bonus bounce:
1. Be prepared for spending sprees
To capitalise on the excitement of the impending paycheques, brands need to get started several weeks in advance to engage shoppers as they long list before making a final decision
2. Take a cross-device approach
Brands need to move away from viewing channels in isolation and focus instead on reaching consumers as they move across devices throughout the day. For example, engaging with shoppers browsing on their morning commute is an effective way to build brand awareness
3. Be hyper-targeted
While macro trends such as the bonus bounce are important shopper milestones, brands should recognise that this is just one part of the shopper landscape.
Marketers need to overlay behavioural insight for hyper relevance
By Phuong Nguyen, director, eBay Advertising