Iceland boss deserves praise for scrapping Christmas advert

News that Iceland Foods is not producing a Christmas television advert this year prompted the inevitable outcry of “bah humbug!”

The budget chain’s executive chair, Richard Walker, is Scrooge. More so when Walker and his family, who own the group in its entirety, are worth hundreds of millions of pounds. Surely, they could themselves pay for a spot of seasonal cheer, inducing a warm glow in viewers. Seemingly not.

Except it’s not that simple. Here’s Walker: “As a business we were faced with a decision. Do we spend millions creating and sharing a TV advert or do we invest the money supporting our customers during the cost of living crisis?

“This was a no-brainer for us. I am grateful that, as a family-run company, we can make the decisions we believe are right for our business and our customers.

“We have chosen to invest in keeping prices low for our customers – including our Christmas Bonus Card savings scheme – giving shoppers £15 back when they top up £100, offering a turkey roast dinner bundle for 8-10 people for just £30, slashing prices on over 1,000 household staples and expanding our £1 value range – offering hundreds of freezer fillers for just £1 or less.”

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So Walker is not a tightwad after all. Far from sitting on the cash he’s saved, he’s handing it out. Instead of being criticised, his approach brings into sharp relief Iceland’s peers and their decision to continue ploughing fortunes into the creating and showing of glossy TV Christmas commercials. Iceland’s own consumer research apparently shows that shoppers would prefer retailers use the money to support struggling customers rather than on glitzy adverts and social media. The study found that two in three – 65 per cent – agree with the premise that supermarkets should do more to support customers this Christmas.

It also found that 64 per cent want supermarkets to offer discounts and offers, and 40 per cent believe bonus card/saving point schemes will help relieve the season’s financial pressures.

This is why Walker is breaking with Iceland’s past. The store is no stranger to splashing out on festive advertising. Last year’s television advert featured Slade frontman Noddy Holder and actor Brian Blessed, while the year before they made a spoof of a John Lewis commercial featuring an alien, crash landing to Earth at Christmas.

Iceland’s creative contribution may be missing this year but not their spending. This year’s festive marketing campaigns, many of them involving celebrity endorsements, are on course to consume a whopping £9.5bn, say the Advertising Association and industry analysts WARC.

That’s a huge amount – one that is a godsend to the advertising agencies, the myriad creative subcontractors and the broadcasters. But is it justified?

Not all seasonal advertising follows the same path. There are marked differences between the adverts, reflected in what the brand is setting out to achieve. Aldi, for instance, specialises in pushing in-store footfall, basing its promotion around toys and items that can be purchased in its branches. Boots, too, likes to showcase products that are available on its shelves. For some, the ambition is to get the brand discussed, to get the nation talking about them and to produce social media engagement. John Lewis leads this category. The unveiling of its offering has become an event in itself, prompting much dissection and comment. They deliberately set out to surprise. No two years are similar – hence this year’s production centred on, would you believe of all things, a mischievous Venus flytrap.

Asked whether the expenditure makes sense, Matt Bourn, communications director of the Advertising Association, replies: “Whether you’re a big high street store or a small local business, Christmas advertising is essential to attracting customers, helping to inspire ways people can enjoy the festive season and supporting jobs across the UK.

“The ads we will see this year will be among top contenders for some of the best ads worldwide, going on to win awards and reinforcing the UK’s position as a global hub for advertising, creativity, and storytelling.”

Bourn is echoed by the Chartered Institute of Marketing’s chief executive, Chris Daly: “After a challenging year, this year’s Christmas adverts aren’t just a nostalgic reflection of days gone by – they’re bold statements of intent that aim to reflect consumer sentiment.

“In times of seemingly endless bleak news, Christmas is the time that brings the UK together like no other. Investing in Christmas is imperative for the big brands.

“However, with the stakes higher than ever, the pressure on brands to succeed is immense, and one misstep can invite huge scrutiny.”

Both of them sound vague. Try as they might, they cannot mask a herd element at work, that businesses produce Christmas adverts because the others do it. A seasonal special is expected, they feel obliged to make one. To not do one invites speculation: is the firm on hard times, is something afoot, what’s going on?

Which is why Walker and Iceland merit praise for not taking part. It takes courage to go against the pack and say “no”. The vested interests of the advertising and TV industries may not approve of Walker’s stance, but who knows, the refusenik may have started something. Certainly, rivals will be assessing whether Iceland’s dramatic move has paid off. Investors too may press as to the level of return from the Christmas advert and whether the money could not have been better spent.

It would be a pity, though, if the ads were to all disappear. They do induce seasonal bonhomie; they’re so ingrained that Christmas really would not be the same without them. Iceland can scrap theirs, but not the rest. We need something to talk about and scratch our heads over. Please, don’t deny us a crazy Venus flytrap.