The consumer landscape of 2023 presents a mixed picture. There is undeniably a lot of pressure on household budgets, and in the lean post-Christmas period, this can mean a fall in consumer spend. 

The Drum reports on a recent YouGov survey, which found that 66% of UK households have cut back on non-essential spending, while over a quarter of consumers have cut back on essential household goods, including food. This data undoubtedly presents a challenge for marketing departments, who may also face trimmed budgets this year. 

Some interesting research by Yahoo suggests that brands will work hard in 2023 to tailor their marketing messages for more specific audiences, so that they are receiving the most relevant content. One way of doing this is to invest in programmable digital LED screens, which can be adapted to suit different locations and foot traffic.

Carina Moran, head of strategy, UK at Yahoo, told the publication: “Budgets and priorities will vary significantly by household, and brands must tailor their communications to offer relevant and meaningful value to each audience.”

She adds: “As we move into 2023, brands should aim to facilitate both product discovery and purchase by showing up in unexpected places, capitalizing on intent by integrating frictionless point of sale mechanics into each consumer touchpoint.”

Other interesting points from the article suggest that younger consumers such as millennials and Gen Z will seek out more escapist leisure pursuits that won’t require a big investment, such as gaming, listening to music or podcasts, and other home entertainment.

However the coming year pans out, brands that want to remain relevant to their core customers will have to show that they are in touch with the problems and challenges that lie ahead. This may mean focusing on value for money and being in tune with the opportunities afforded by digital technology.