Life in Lockdown 3.0 - Finances and Spending Plans - What is the state of readers' finances and what are they buying? Matters Community January 2021
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Life in Lockdown 3.0 – Finances and Spending Plans What is the state of readers’ finances and what are they buying? Matters Community January 2021
As much of the UK moved into its third lockdown*, we wanted to
hear how the pandemic has impacted our readers’ finances
and spending habits. We asked members about two key themes
before assessing what this means for advertisers
PERSONAL FINANCES SPENDING PLANS
Objective: Objective:
To understand readers’ To understand readers’
current financial positions spending and what will be
and how these may have top of their shopping lists
changed due to COVID-19 when things re-open
IMPLICATIONS
FOR ADVERTISERS
*Throughout this presentation, when the term ‘lockdown’ is mentioned it refers to the
views of those living in national lockdown or equivalents in other home nationsWe wanted to understand readers’ current financial
positions and how these may have changed due to
COVID-19, with a key focus on the following:
Personal
Finances 1. How have readers’ incomings and outgoings changed?
2. What are readers doing with any extra income?
3. Do readers have any concerns about their 2021 finances?COVID-19 HAS HIT SOME INCOMES MORE THAN OTHERS
Under 35s and women have seen their disposable incomes decrease,
whilst those 55+ have been the least impacted
Current Income
vs before pandemic
NET:
increase
Disposable income has Disposable income has Disposable income has / decrease
decreased remained the same increased
Total 19% 50% 19% ZERO
18-34 24% 43% 19% -5%
35-54 21% 46% 18% -3%
55+ 15% 58% 20% +5%
Women 20% 51% 16% -4%
Men 18% 50% 22% +4%
Arrow denote significance at 95%
Q: How, if at all, has your disposable income changed since the start of the pandemic? confidence rate
Source: Life in Lockdown 3.0 - January 2021
Base: All MMM readers; Jan ‘21 (482)SPENDING HAS DECREASED DRAMATICALLY
1 in 2 are spending less than they were before the pandemic
with readers 55+ being most stringent
Current Income
vs before pandemic
NET:
Expenditure has Expenditure has Expenditure has increase
decreased remained the same increased / decrease
Total 49% 34% 13% -36%
18-34 49% 34% 15% -34%
35-54 44% 35% 15% -39%
55+ 55% 33% 9% -46%
Women 48% 37% 10% -38%
Men 51% 31% 15% 36%
Q: How, if at all, has your disposable income changed since the start of the pandemic?
Source: Life in Lockdown 3.0 - January 2021
Base: All MMM readers; Jan ‘21 (482)MAJORITY ARE SAVING NOT INVESTING
Individuals who do have extra income at this time are predominately
saving it (9 in 10), but those who are investing are mostly 18-34s
Extra Income Use
76% 13% 13%
Saving in general Saving for a Investing
particular
product/service
89%
NET: Saving
18 - 34 - 81% 18 - 34 - 13% 18 - 34 - 26% Please note: low bases
35 - 54 - 75% 35 - 54 - 13% 35 - 54 - 12% when split by age
55+ - 76% 55+ - 13% 55+ - 11%
Arrow denote significance at 95%
Q: What are you doing with your extra money? confidence rate
Source: Life in Lockdown 3.0 - January 2021
Base: All MMM readers who have extra disposable income; Jan ‘21 (178)
Base: All MMM readers who have extra disposable income by age Jan ’21; 18-34 (31), 35-54 (53),
55+ (95)COVID-19 UNCERTAINTY LEADING TO FINANCIAL CONCERNS
3 in 5 are worried about their finances and this increases to 3 in 4 in under 55s.
Lack of rainy day funds is the main concern amongst our readers
2021 Financial Concerns
Top 5
of whom
3 in 5
are concerned, in one way or another, about 31%
their finances for 2021 24% 24% 24%
20%
This rises to 3 in 4 for both 18-34s and 35-54s.
2 in 4 adults aged 55+ have concerns for 2021
Not having ‘rainy-day’ Being the victim of Not having my current Not having money to Not having money for
savings financial fraud standard of living pay monthly bills a holiday
Arrow denote significance at 95%
Q: Which, if any, of the below are financial concerns of yours for 2021? confidence rate
Source: Life in Lockdown 3.0 - January 2021
Base: All MMM readers; Jan ‘21 (482)NOTABLE DIFFERENCES IN FINANCIAL CONCERNS BY AGE
55+ adults mostly worry about financial fraud, 35-54s are concerned about not
having rainy day funds and under 35s worry about maintaining their lifestyles
2021 Financial Concerns
18-34 35-54 55+
35-54s 55+s
Top Concern Top Concern
18-34s
Top Concern
42% 44%
27% 26% 24% 26%27% 27%
21% 20% 21% 21% 20%
18% 17% 17% 17% 16%
14% 15% 13%
10% 8%
11% 12% 10% 12%
7% 5% 4% 6% 8%
1%
Not having ‘rainy-day’ Being the victim of Not having my current Not having money to pay Not having money for a Not having money for rent, Not having money to pay Not having money to buy Not having money to treat Not being able to manage Not having money to pay
savings financial fraud standard of living monthly bills holiday mortgage etc. existing debts food children / grandchildren my credit score for child’s /
grandchild's education
Arrow denote significance at 95%
Q: Which, if any, of the below are financial concerns of yours for 2021? confidence rate
Source: Life in Lockdown 3.0 - January 2021
Base: All MMM readers with financial concerns by age Jan ’21; 18-34 (77), 35-54 (126), 55+ (98)We wanted to understand our readers’ spending plans
and what will be top of their shopping lists when things
re-open, with a key focus on the following:
Spending
Plans
1. What are readers currently buying?
2. What are readers looking to buy as soon as lockdown ends?READERS ARE PURCHASING IN THREE KEY CATEGORIES
Entertainment, health and beauty, and home
products are most prominent on lockdown shopping lists
Lockdown Purchases
Top 10
1 2 2 4 4
25% 23% 23% 21% 21%
Books/E-Books Health/Wellbeing Clothing/Accessories DIY Personal Care (incl cosmetic)
6 7 8 8 8
18% 11% 10% 10% 10%
Gardening Household Appliances Furniture Board Games/Jigsaws Video Consoles/Games
Q: Which, if any, of the following products/services have, or will you purchase, during this lockdown?
Source: Life in Lockdown 3.0 - January 2021
Base: All MMM readers; Jan ‘21 (482)CLEAR SPENDING DIFFERENCES BETWEEN AGES
18-34s are driving purchases in sport and entertainment
55+ are driving purchases in books and health
Lockdown Purchases
By age
18-34 35-54 55+
33%
29%
24% 25%27%
20%
17% 16% 16% 16%15% 16%
14% 12% 12%12%
8% 10% 8% 8% 8% 6% 10%
6% 5% 5% 3% 6% 4%
2%
Books/E-Books Health/Wellbeing Gardening Furniture Board Games/Jigsaws Video Office Equipment Sport Sport Equipment New paid for
Consoles/Games Clothing/Accessories subscription service
Arrow denote significance at 95%
Q: Which, if any, of the following products/services have, or will you purchase, during this lockdown? confidence rate
Source: Life in Lockdown 3.0 - January 2021
Base: All MMM readers by age Jan ’21; 18-34 (106), 35-54 (174), 55+ (202)CLEAR SPENDING DIFFERENCES BETWEEN GENDERS
Men are driving purchases in home, digital entertainment and sport
Women are driving purchases in health and beauty
Lockdown Purchases
By gender
Men Women
Men Men
32%
27%
20% 22% 20%
14% 15% 16% 16% 14%
11% 11% 10% 10% 9%
7% 8%
5% 4% 4%
Sport Personal Care (incl. Household Appliances Sports Equipment Video Gardening Health/Wellbeing Furniture DIY New paid for
Clothing/Accessories cosmetics) Consoles/Games subscription service
Arrow denote significance at 95%
Q: Which, if any, of the following products/services have, or will you purchase, during this lockdown? confidence rate
Source: Life in Lockdown 3.0 - January 2021
Base: All MMM readers by gender Jan ’21; Men (233), Women (249)TRAVEL AND EVENTS WILL BE IN DEMAND POST-LOCKDOWN
Post-lockdown purchasing will primarily be in categories placed on hold,
with travel and events set to take majority of initial spend
Post-Lockdown Purchases
Top 5
1 2 3 4 5
36% 22% 15% 13% 9%
Travel Events Clothing/Accessories Gardening Personal Care (incl cosmetic)
This will be the most popular This will be the second most
purchase for all! popular purchase for all!
18 - 34 - 29% 18 - 34 - 20%
35 - 54 - 36% 35 - 54 - 26%
55+ - 41% 55+ - 19%
Men - 40% Men - 22%
Women - 33% Women - 21%
Q: Which, if any, of the following products/services will you buy as soon as the world is back to “normal” and everything is as it was before
the coronavirus outbreak?
Source: Life in Lockdown 3.0 - January 2021
Base: All MMM readers; Jan ‘21 (482)Readers are being more careful with money, and are
saving more and spending less.
Brands and advertisers need to be aware of this
tougher financial climate and adapt their
Implications communications in recognition, but there is still a
for advertisers huge role for their products at this time.
In this last section we explore what messages might
resonate based on the findings from this study.SPENDING LESS SAVING NOT INVESTING CASH CONCERNS LOCKDOWN DEMAND PENT UP DEMAND
1 in 2 9 in 10 3 in 5 3 2
MMM readers are MMM readers with extra MMM readers are categories are being categories are clearly
spending less than they disposable income at this worried about being bought from which help missed – as soon as
did before the pandemic time are choosing to able to stay on top of improve self & home – lockdown ends 1 in 3 will
and only 13% are save it, few of whom are their finances in 2021 as entertainment, health be buying in travel and
spending more saving for a special item the future is so uncertain and beauty and home 1 in 5 events
IMPLICATIONS FOR ADVERTISERS: 2 IN 3 SAY THAT BRANDS HAVE A ROLE TO PLAY AT THIS TIME
MESSAGES THAT MATTER
TAILOR FINANCIAL HELP SHINE THE LIGHT CHANGE THE SCENE FOCUS ON THE FUTURE
There are variations in the People are saving more but Current purchases are being There’s pent up demand for
financial situations and due to financial worries are made to improve the home purchases that can’t be
concerns of different not parting with the cash. and self, so brands should made in lockdown so brands
demographic cohorts. Show how your products can aim to help in one of should help build on the
Don’t treat all the same. brighten up the gloom. these areas. hype for what’s to come!
Think personalised advice and Think improving lifestyles; easing Think calendars of new activities Think about sharing the buzz for
offers based on previous the boredom, lockdown ‘must to break up the daily routine and “normal” & the smaller moments
behaviours of individuals haves’ and ‘pick me up’ gifts inspiration for that home office we never knew were so importantFor more information
please contact:
insight@mailmetromedia.co.ukSurvey:
15 min online survey
Readers recruited through Matters Community
Fieldwork:
13th – 18th January
482 respondents
Sample:
Data weighted to be representative by age
and gender of MMM daily readership
Analysis:
Life in Lockdown 3.0:
We have analysed the data at a total level as
well as delving into key demographic groups
MethodologyYou can also read
