- Following the election of Donald Trump in Nov., the Consumer Confidence Index reached 107.1 — its highest point since July 2007 — as reported by Bloomberg and CNBC.
- Early estimates predicted the November number would be considerably lower at 101.2, though still higher than October’s 98.6 rating. The Index report also saw an increase in people saying business conditions are “good” from 26.5% to 29.2%.
- According to Lynn Franco, director of economic indicators at The Conference Board, the index is “once again at pre-recession levels."
For marketers, the news of growing consumer confidence should be reassuring, as people might be spending more than they have in almost a decade. However, a degree of uncertainty reigns until Trump is sworn in and his policy decisions become more concrete and tangible in the marketplace. While there may be an impulse to strike while the iron is hot by ramping up ad spending now, the spike in optimism may also prove fleeting, meaning overeagerness could hurt marketers over the long term.
Some of the biggest figures in the advertising industry, including WPP's Martin Sorrell, have indeed suggested ad spending will slow heading into 2017, though Sorrell noted Trump's impact may be more positive than some expect. Trump has shown signs of loosening up policies from regulatory agencies like the FCC, which many digital advertisers and marketers have viewed as excessively prohibitive and out of touch under the Obama administration. Other industry players like Magna predict a more dramatic drop in ad spend given the uncertainties surrounding political developments like the election of Trump and the aftermath of U.K.'s Brexit.
Brands that are looking to capitalize on the potential benefits of Trump's proposed policies should err on the side of caution in mentioning that in their marketing. New Balance, who manufactures all of its products in the U.S., recently came out in support of Trump's stance against the major international trade deal TPP — a move which led to people burning the brand's sneakers on social media in a form of protest.