Revenge Spending Will Drive Consumer Trends This Year

Editor’s note: This piece is part of our Columnist Network series, which explores the tactical thoughts and actions from Adweek’s community of high-level experts. Today, Esther Raphael, CMO of Intersection, explains the trends in consumer behavior coming out of the most recent wave of the pandemic. Below, in her own words, she pinpoints the unique advantage that out-of-home advertising has right now. 2020 was one of the most challenging years our generation has ever experienced. This period of isolation offered me at least one positive outcome—newfound appreciation for the things I missed most. Each person has a list all their own: the people, places and experiences that they’ll vow never to take for granted again. For me, it is being in Intersection’s stunning office in Hudson Yards and feeding off the energy of my colleagues, traveling (I’ll take anything from business to pleasure), listening to live music, having dinners at restaurants with friends, and venturing around a new city, exploring every hot spot along the way. When I experience each of these moments again, I’ll do them differently. In fact, I’ll do them better. Experts believe we all will as we exact our post-Covid revenge. Merriam-Webster's dictionary describes revenge as "an opportunity for getting satisfaction." Isn't that what we’re seeking after the pandemic? With many parts of the U.S. reopening, tens of millions are expected to make up for lost time by spending money on items and experiences—all in the name of satisfaction. Revenge spending will drive consumer behaviors throughout the rest of the year and maybe long after. According to recent Harris Poll surveys, consumers are indicating their top planned purchases are for shoes, smartphones, going-out clothes, concert tickets and sporting events. Another recent study by McKinsey linked vaccination with higher spend intent, particularly for out-of-home activities (such as restaurants, entertainment and travel). There’s a theme here. Consumers are ready to relish in the human experiences they’ve missed—and look their best while doing so. On the travel front, revenge travel is a phenomenon that could bring back tourism ... with a vengeance. Data shows the longer and more severe the local impact of Covid-19, the greater the demand to get back to travel activities. Residents of states with the highest level of confirmed cases per capita are the most likely to travel within the next four months; 75% of consumers are planning to take at least one week off for summer vacation. Spending growth in the beginning of the pandemic was largely driven by big brands—but late into 2020 and 2021, smaller brands began to realize an increased share. There’s no telling which brands will come out on top as consumers exact their revenge on 2020, but the opportunity to win is growing by the day. Consumers are ready to rebound, and they're going big. This provides a unique moment in time for marketers to lean in, listen and respond with products and services that deliver on these once-in-a-generation consumer desires.

Columnist Network

Revenge Spending Will Drive Consumer Trends This Year

From shopping to travel, people are ready for what they missed during Covid

Esther Raphael

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Esther Raphael