Free time is one of the most precious things we have, and what we choose to do with it can seriously impact our health, well-being, and overall happiness. However, “free” time is often anything but, and the way UK residents spend this time creates a ripple effect that has a visible impact on consumer buying behaviour.
Understanding what drives consumers’ spending decisions can help you create impactful, rewarding marketing strategies. So let’s look at what the UK population does with its disposable income and one of its most valuable resources - free time.
How the UK spends its free time
In the most recent study by Bauer Media Outdoor, 2,000 respondents were polled on what they choose to do with their free time and spare money on. The most popular response was grocery shopping, with 69% of respondents citing it as the main thing they’re likely to spend time and income on. Travel (31%), eating out (29%), spending quality time with family (26%), and clothes shopping (18%) fleshed out the rest of the top five - but the jump in percentage between those options and grocery shopping is significantly high.
This isn’t necessarily surprising, grocery shopping is an essential activity, but also one that consumers can often have fun with. At times when shoppers are able to plump for a little treat or opt for a luxury brand instead of their regular choice, grocery shopping can easily shift from a chore into an opportunity for retail therapy.
Differences by age and gender
Looking at the responses by gender shows that men and women tend to spend their money similarly. The most noticeable difference when it comes to free time and spending was with clothes shopping. Women are more inclined to spend money on clothes (22%) than men (15%), whereas women also spend nearly 10% more on grocery shopping (73%) than men (64%).
Age also makes a difference in how UK residents spend their time and money. The younger generations, often less burdened by responsibilities, are more likely to spend money on socialising than their older counterparts, with 18-24-year-olds (21%) and 24-44-year-olds (18%) investing more in their social lives than 45-64-year-olds (16%) and those aged 65-and-over (15%). Gen Z and Millennials are also far more likely to spend most of their money on going out than Gen X and older, with the percentage steadily dropping as age increases.
Considering Gen Z’s priorities helps to understand why they spend their time how they do. A broad generation, Gen Z appear to focus on activities that help them to figure out their place in the world and with those around them. Nearly 1 in 5 (19%) Gen Z spend most of their money on watching films, and 1 in 10 (9%) of the younger members of Gen Z cite dating as the focus of most of their spare funds - these two activities could easily coincide.
These activities prioritise socialising, and discovering likes and dislikes - things that older generations are more well-versed in, and less likely to feel the need to invest so much time and money in. By contrast, more than 1 in 3 (36%) 25-34-year-olds spend most of their money on clothes shopping, something that is often a solo activity and a little more introspective.
How often do Brits go out??
With the cost of living crisis ongoing, and a loss of socialising spaces impacting the UK, it would be easy to assume that Brits are struggling to find the funds or inclination to go out (whatever that means to them). But, according to our survey, an impressive 1 in 4 Brits (25%) are making the effort to go out at least once a week. Taking things a step further, 1 in 10 people (10%) are going out every few days - showing that for many people, multiple outings a week is an important aspect of life in the UK.
Nearly a third (32%) of 25-34-year-olds make sure they go out weekly - the highest percentage across any age group and outing frequency. Maybe with a little more pep in their steps, 1 in 3 (28%) of 18-24-year-olds go out a few times a week, and 5% of particularly active 25-34-year-olds are stepping out daily.
While “going out” doesn’t have to be synonymous with spending, it’s often the case nowadays. However, it’s still important enough to warrant a significant percentage of people’s time and money.
Disposable income trends in UK households
The phrase “disposable income” will mean something different to everyone. Depending on each individual’s definition of what is essential, the amount of money left once the necessities are paid for will vary hugely. Regarding how people feel about what they choose to do with their disposable income, 38% of Brits say that they are currently spending more of it compared to what they spent last year. This suggests that the UK still has a decent amount of spending power despite the cost of living crisis, and that Brits are more than willing to spend a little money to benefit their wellbeing and that of their families.
When it comes to the recipients of this kind of spending, Brits will splash roughly the same amount of cash on themselves (29%) as they do on their kids (28%). The higher an individual’s income, the higher the amount they can spend on their kids, with this figure surpassing the amount they spend on themselves. And with nearly 1 in 5 (19%) people spending the bulk of their disposable income on their partner, who said romance is dead?
Most survey respondents have up to £500 of disposable income a month. After that, as the figures get higher, the percentages get smaller. Despite small decreases in the average household’s disposable income over recent years, the median household's disposable income has increased by 7% compared to the changes across the last decade.
What is disposable income being spent on?
So, after the essentials are taken care of, where are people choosing to spend their hard-earned cash? The main options revolve around instant and long-term gratification - for example, travel (33%), which can often be a long-term goal or dream, is the most popular option. It’s closely followed by clothes (26%), the kind of retail therapy that can be seen as a quick fix. Next comes home improvements, garnering 25% of people’s spare cash, and presenting a good example of spending money on something with a long-term benefit to the spender. In fourth place is entertainment (23%), similar to clothing, which can provide a hit of instant dopamine with the purchase of something as simple as a ticket. For 20% of people, hobbies take up their spare income, and are often lifelong devotions. The desire to invest in long-term joys and instant wins is equally strong.
For Gen Z, the immediate pleasure from snack foods is a big focus, with just under 1 in 3 (32%) of 18-24-year-olds claiming to spend most of their disposable income on edible treats. This focus decreases noticeably with age, with only 9% of those 65 and over spending their spare cash this way.
For the older generations, travel is a significant spending focus - it’s also the main focus for disposable income overall. For those aged 35 and over, it’s the main place their disposable income goes, suggesting that with age comes more of a focus on the long-term benefit of experiences.
For the Millennials, the lure of material goods like tech, beauty products and clothes is the strongest - a huge 1 in 5 25-34-year-olds (22%) spend most of their disposable income on beauty products and technology. Considering that those aged 35-44 have the most disposable income on average, it’s unsurprising that they would feel more comfortable splashing out on garments and gadgets. When it comes to bulking out their wardrobes, 25-34-year-olds (37%) and 35-44-year-olds (28%) are spending most of their disposable income on clothes.
What does spending give us?
It’s easy to wonder why people choose to spend disposable income over saving their hard-earned cash, considering the rising costs of many aspects of life in the UK. When surveyed about this very subject, the answer was overwhelmingly clear. Nearly 1 in 3 (32%) of respondents said that how they spend their disposable income gives them a noticeable mood boost - something that everyone needs from time to time.
While 18-24-year-olds (32%), 45-54-year-olds (41%), and 55-65-year-olds (34%) prioritise the mood-boosting abilities of spending, 25-34-year-olds spend their money in the name of self-improvement. For 35-44-year-olds (38%) and those 65 and over (21%), new experiences are most commonly the goal of supplementary spending.
As previously mentioned, 1 in 3 (32%) of Gen Z spend their disposable income on activities that centre on social connections, and that number goes down with age. This implies that investing time and money in social connections when you’re young reduces your need to do so as you age.
Local spending
Cities across the UK are more likely to spend their disposable income in different ways, though options such as travel and clothes remain popular choices no matter the location. Unsurprisingly, cities that are also transport hubs (London, Manchester, Birmingham) are especially likely to see high spending of disposable income on travel, with residents having more ways to move on their doorsteps.
While these major cities are often expected to be the ones with the most spending power, the data shows that this isn’t necessarily true. Looking at a breakdown of category spends by location, Aberystwyth tops the spending in snacks, technology, beauty products and wellness. This aligns with the fact that Aberystwyth is also the city that has increased its disposable spending the most over the past year. This shows advertisers may miss opportunities by focusing on the same few cities.
Across the UK, people seem to be spending more of their disposable income. As mentioned, Aberystwyth is leading the charge regarding splashing the cash, but the entire top 20 has an impressive geographic reach. Instead of being concentrated in specific, stereotypically affluent areas, people from all over the UK are looking to spend their spare change on the things that bring them joy.
How Out of Home (OOH) advertising fits into your marketing strategy and helps with consumer research
It’s important to understand how consumers spend their disposable income if brands want to meet their needs. Brands need to be able to meet consumers where they live and where they choose to spend their time, whether shopping, socialising or engaging in other leisure activities.
Out of Home (OOH) advertising is a great way to speak to consumers in their daily lives because it catches their attention in the real world, drawing on contextual cues and other situational factors. Nearly 1 in 3 (27%) of people will notice outdoor advertising while out and about, particularly the younger generations. Just over 1 in 5 (21%) people notice outdoor advertising when food shopping. This echoes back to the start of this blog, where we revealed how much of the population’s free time is channelled into grocery shopping.
Clever, engaging OOH advertising can have a significant impact on buying decisions, both in-person and online. Bauer Media Outdoor are able to reach 91% of UK adults per fortnight, with 33,000+ sites across the nation capturing daily attention.
These statistics show the incredible amount of influence OOH can have when wielded strategically and with creativity. The experts at Bauer Media Outdoor are on hand to harness this valuable insight from audiences across the nation, and help brands and advertisers to act on this potential. For more information, get in touch with us today.
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