The AdNews end of year Perspectives, looking back at 2024 and forward to next year.
Jed Simpfendorfer – Director of Strategy & Partner, T garage
In 1854, when the Victorian government tried to license the goldfields, miners stood their ground, raised the Southern Cross, and worked together to protect their community.
Way back in the '90s (don’t do the math), for my High School history project, I brought that historical moment to life with a cake and Star Wars© figurines—and walked away with a solid B in history.
I’m not sure what they wanted me to learn, but I did take away one lesson from the Eureka Stockade story - when things get rough, Australians instinctively raise a fence, stand firm, and refuse to back down.
Fast-forward to 2024, and it’s a similar scene. Aussie households have endured cost-of-living price hikes, driving a decrease in consumer confidence. In June 24, we were feeling the pinch more than ever before, especially younger generations and non-homeowners, who were particularly worried about rent, income, and financial stability.
But as a ray of light in all this gloom, it looks like consumers have begun to adjust. Overall confidence levels from our November @SaySo survey have increased significantly from June (95% CI), showing that things are starting to turn.
T garage, SaySo, Cost-Of-Living Tracker, 2024.
So, how have we been coping in 2024? We’ve been staying in a lot more and have drastically cut back on discretionary spending. We’ve spent our dollars differently, and rather than splurging on nights out, many of us have opted for premium supermarket products. If a $12 store-bought pizza gives me a mini-luxury moment at home, that’s where my money goes. Can’t go out with friends? Fine—I’ll grab a bottle of Grey Goose Vodka or a nice bottle of wine and have them over instead.
And what’s resonated? Ads that spark a laugh, a smile, or an emotional connection. People want to feel something, and that emotional story is what will stick and return over time.
What's Ahead in 2025?
2025 will be a tale of two halves. Early on, expect a continued bunkering-down period for a lot of people. But, as our research shows, many of us are coming to terms with these new economic conditions. Sentiment and overall confidence is on its way up, and if interest rates ease, then I’d be ready for consumers who are ready to splurge a little.
Brands that kept a steady hand and resisted slashing ad budgets or going hyper-rational with messaging will be well-placed, as will those that invested in brand equity. When the financial tide turns, they can pivot and start transacting on that emotional investment.
Consumers, meanwhile, are just starting to step outside their comfort zones and try new products, services, and experiences, preferring the tried-and-true. But with a brighter economic outlook, expect some pent-up curiosity and a readiness to try fresh offerings. If you’ve got something new simmering, 2025 may be the perfect time to bring it out.
As wallets open up, the occasions and motivations driving purchases will evolve again. Brands that adapt to these shifts and stay agile in retaining new buyers or innovating to attract them will have a strong hand.
Trends on the Horizon
- The Creativity Surge
COVID saw a rise in hobbies, and this trend isn’t going anywhere, with 48% of Australians planning to take up a new hobby this year (T garage, SaySo, 2024). AI’s relentless march is continuing to push us to search for what makes us human. Painting, writing, gardening, fashion, beauty—anything that feeds creativity—has become a place of optimism and self-expression. There’s an opportunity here for businesses that help people feel creative, engaged, and authentically human.
- Seeking Connection
Loneliness remains a growing issue, with 56% of workers feeling isolated in 2024, up from 48% in 2018 (Cigna, 2024). While our screen time isn’t likely to change anytime soon, people are craving face-to-face interaction. This means business concepts and campaigns that foster real-world community—supporting local sports, bringing "learn-to-paint" classes into pubs, or fitness programs that encourage socialising—will resonate. Peters’ Drumsticks did a great job of this with their support for Clean Up Australia Day. It’s not just about backing causes; it’s about bringing people together.
- The Pursuit of Joy
In tight times, we’re drawn to small, joyful moments. As consumer confidence rises, this hunt for happiness will likely shift to bigger, pricier experiences. Think upgraded clothing, tech, and luxury escapes.
Are these big purchases the answer to lasting happiness? Probably not. If you ask me, the community and creativity trends more so, but I don’t think the nation’s ready to give up on our big spending habits just yet.
As we look ahead, this balance of practicality and optimism will be crucial. So, if you’re a brand, don’t just batten down the hatches—get ready to capitalise on the shift when Australians finally throw open the doors.
Check out our previous articles here: In The Trends: Consumers retreating to the comfort of nostalgia - AdNews
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