Only 37% of people expect financial improvements in 2024; people citing inflation worries are 30% more likely to spend less in discretionary categories

DISQO, the leading brand experience platform, released Consumer Trends 2024, a new report revealing that people will be apprehensive, budget-conscious, and intentional about purchases in the new year. A multitude of factors from global conflicts to inflation to politics are contributing to consumers’ pessimism. Nearly two-thirds (63%) reported a negative overall outlook, suggesting that brands must message with empathy and double down on delivering valuable customer experiences and quality.

Perceptions about personal finances are looking up for some consumers. Twenty-one percent (21%) said their finances were better in 2023 than last year, and thirty-seven percent (37%) said they expect 2024 to be better than 2023. Still, people citing inflation concerns were over 30% more likely to say they would spend less in non-discretionary categories next year.

“Social, economic, and political headwinds are challenging consumers’ sense of security,” said David Grabert, VP of Brand & Communications, DISQO. “2024 is not the year to ‘wing it’ when it comes to understanding your customers and their experiences. Brand stewards need to work harder than ever to understand every customer, every touchpoint, and every outcome, so they can continuously optimize advertising and all of their brand experiences.”

DISQO’s report also looks at consumers’ attitudes about advertising in traditional and new media. Beyond asking where ads are found to be informative, entertaining, or annoying, the mediums perceived as most effective in prompting purchases are revealed. Television and social media ads were ranked highest by consumers for their influence over purchases (43% and 44% respectively), but a quarter of all consumers said that they weren’t influenced by ads on any media channel. Sixty-one percent (61%) said that experiences with brands, products, and customer service were the most impactful on their perception of brands.

General sentiment & finances

• Inflation (64%) and global conflicts (61%) are consumers’ top concerns.
• Those concerned about inflation were over 30% more likely than those who didn’t to say they planned to spend less on travel, dining out, live entertainment, clothing, and cosmetics.

Brand experience

• Brand names are more important for higher-ticket and personal items. Consumers cited cars (52%), healthcare (49%), and electronics (48%) as the most important brand-name categories.
• Nearly two-thirds said their experiences with products and services influence their brand perceptions most, with quality, trust, and customer service also highly influential.

Advertising

• Nearly half of consumers find television ads entertaining (46%) and informative (44%). GenZers find social media ads informative (41%) and entertaining (41%), but were most likely to call ads irritating on nascent platforms like gaming (42%).
• TV (43%) and social media (41%) ranked highest as reported purchase drivers, but a quarter of consumers said that they weren’t influenced by ads on any platform.

Cable TV and streaming

• Thirty percent (30%) of “cable TV” subscribers plan to discontinue services in 2024.
• More than half of streaming subscribers (58%) plan to keep their subscriptions the same; 21% plan to increase them; and 21% plan to decrease.
• Over two-thirds of consumers (71%) said they spend $100 or less on cable and streaming services combined. Most paying consumers said they had one to three streaming subscriptions (67%). Nearly a fifth (18%) said they had five or more.

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