As John Lewis, Waitrose, and Marks & Spencer unveil their 2024 Christmas campaigns amid a record £10.5bn spend on festive ads, new research has revealed how holiday films and advertisements drive the biggest revenue surges in Q4.
According to official records, UK shoppers spent an average of £980¹ per person last Christmas, highlighting the season’s economic impact and brands’ increasing use of advertising and film to grab consumer attention.
In response, the team at money.co.uk business bank accounts analysed ONS data to reveal the industries that saw the largest revenue increase during Q4 and offered tips to help businesses make the most of the extra sales during the season.
The top ten UK industries that experience a boost in turnover during Q4.
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UK industries with the biggest increase in turnover in Q4* |
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Rank |
Industry |
Average monthly turnover difference (%) |
Average monthly turnover difference (£ million) |
|
1 |
Motion picture, video and television programme production services, sound recording and music publishing |
22.18% |
£481.68 |
|
2 |
Advertising and market research services |
21.77% |
£662.02 |
|
3 |
Other professional, scientific and technical services |
20.68% |
£367.89 |
|
4 |
Creative, arts and entertainment services |
18.90% |
£121.86 |
|
5 |
Office administrative, office support and other business support services |
15.98% |
£864.58 |
|
6 |
Education services |
14.03% |
£672.27 |
|
7 |
Computer programming, consultancy and related services |
13.77% |
£1,272.71 |
|
8 |
Publishing services |
13.59% |
£220.92 |
|
9 |
Repair services of computers and personal and household goods |
12.09% |
£54.91 |
|
10 |
Programming and broadcasting services |
10.35% |
£138.68 |
|
Total |
£4.86 billion |
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*Average of Q1-3 vs Q4 (2014-2023) [2020 and 2021 figures may have been impacted by the COVID-19 pandemic] |
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The average monthly turnover in Q4 rises by over a fifth (22.18%) for motion picture, video, and TV production, and advertising follows closely with a 21.77% increase. This equates to around £482 million and £662 million respectively. A significant portion of this growth can likely be attributed to seasonal campaigns, with festive films and widely watched Christmas adverts driving consumer interest and spending.
Education services experience a notable surge in Q4, with average monthly turnover increasing by almost one-sixth (14.03%), or £672 million. This increase could result from the new cohort of university students enrolling around Q4.
The ICT sector, including computer programming and consultancy services, sees an average difference in monthly turnover in Q4 nearing £1.3 billion. As digital transformation continues to drive businesses, this consistent increase in Q4 may be due to firms using their remaining budgets on technology investments at the end of the year. This could include software upgrades, cybersecurity spending, and planning for the coming year’s digital strategies.
Further Insights
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The vehicle trade and repair industries see a significant festive season revenue drop, with Q4 monthly turnover falling by £1.02 billion (6.11%) on average.
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The ICT sector sees a 1.96% rise in Q4 employment, adding around 26,100 jobs annually.
Joe Phelan, money.co.uk business bank accounts expert, comments:
“Q4 often brings significant fluctuations in revenue and workforce demands as businesses adjust to seasonal shifts in consumer behaviour. Industries like advertising, retail, and entertainment experience a revenue boom during Q4, but this increase in demand also brings challenges that need to be carefully managed, such as staffing, cash flow, and long-term sustainability. Managing these changes effectively requires careful planning, including selecting the right business bank account(s). A well-chosen account can help businesses navigate these fluctuations, ensuring better control of spending and savings throughout the peak period.
“For smaller businesses, the impact of these shifts can be more pronounced due to limited resources and a heavier reliance on seasonal staff. It’s crucial for these businesses to plan for temporary staffing needs, ensuring that seasonal hires are well-trained and effectively managed. Preparation, as always, is key. Additionally, it’s important to manage profits during the festive season to cover the January slump. By making strategic financial decisions and leveraging the right business bank account, small business owners can better buffer against revenue fluctuations and ensure smoother transitions between busy and quiet periods.”
Are you interested in featuring this research? You can view the full report here.
