Christmas ad spending poised to hit all-time high of £5.9bn

Advertisers in the UK are expected to spend a record-high £5.9bn ($7.8bn) on holiday adverts this year, new research has suggested.

The Advertising Association said the amount was a 37% increase in Christmas advertising spending in 2010, as businesses step up their marketing campaigns to capture customers' attention during the busy holiday season.

The report came on the day John Lewis unveiled its big-budget Christmas advert, following the likes of Asda, Marks and Spencer, Argos and Debenhams.

Sainsbury's advert is scheduled to premiere on ITV on 12 November.

"In recent years, marketers of businesses using emotive Christmas advertising have won some of the industry's biggest awards," said Karen Fraser, director of think tank Credos.

"Businesses delivering advertising with emotional resonance can be rewarded with powerful, long-term effects into the new year and beyond."

John Lewis's two-minute advert tells the story of a boy's relationship with an imaginary monster hiding under his bed. It reportedly cost around £1m to shoot and a further £6m to cover marketing, in-store advertising and taking TV slots.

A survey of over 1,100 UK adults by the Advertising Association revealed that nearly half had been moved to tears by Christmas adverts they have seen or heard.

A third said they looked forward to Christmas ads more than any film release, while one in six Brits said they changed plans to watch the premiere of their favourite seasonal advert.

"The Christmas season is a time when we see many of the very best, big-budget advertisements appearing in our media," Fraser said.

"As we forecast a record spend from advertisers, many people now see the official start of Christmas as when we hear or see a particular advertisement."

High inflation and falling disposable income among consumers have hurt British retailers heading into the traditionally important holiday season.

The uncertainty created by Brexit is another negative factor, with Britons especially reluctant to invest in big-ticket items such as cars and furniture.