Commuters contribute 22.8 billion pounds to the UK economy

A major report into the spending habits of commuters has revealed that they contribute 22.8 billon pounds to the UK economy per year, which amounts to 14 percent of annual online spending in the UK, with clothes shopping being the most popular purchase.

The research conducted by Exterion, in partnership with the Centre for Business and Economics Research and Kinetic reveals that the average spend of a UK commuter is 89 pounds a week, rising to 153 pounds in London, with nearly half (43 percent) of commuters nationally stating that they made a purchase whilst commuting at least four times a month.

Spend calculated in this latest research includes both products and services purchased via mobile whilst on the move when using public transport, ranging from clothing to insurance, with clothing being the most popular purchase, with 76 percent of those surveyed saying they’d purchased clothes in the past year.

This was followed closely by purchases in health and beauty (71 percent), activities (69 percent), and grocery shopping (65 percent).

The research also uncovered that 70 percent of commuters have made a purchase as a result of advertising seen on their journeys. Commuters responded (23 percent based in London, 18 percent rest of the UK) that outdoor advertising seen on their commute often reminded them to shop.

On-the-go purchases by commuters amounts to 14 percent of annual online spend

Stuart Taylor, chief executive of Kinetic, said in a statement: “Our research shows that in today’s age of time-poor consumers, the everyday commute is fast becoming a valuable opportunity to make purchases. At a time when footfall is declining on our high streets, these findings confirm that retailers can nevertheless reach a valuable urban audience in a physical environment.

“With Out-of-Home advertising acting as the link between online and offline retail and reaching 98 percent of consumers nationally, it’s an opportunity that retailers cannot afford to ignore. Moreover, advancements in OOH technology mean that brands can serve commuters with dynamic creative based on environmental factors such as weather, location and time of day – remaining hyper-relevant even when “offline” and out of store.”

Nigel Clarkson, chief revenue officer at Exterion Media, added: “Commuters are the lifeblood of the UK, and hugely important to the economy, businesses and advertisers; they keep our nation moving and growing, as they travel. Our research proves the commercial impact of the Commuter Economy, through the billions contributed to online retail annually.

“Driving this, OOH advertising clearly acts as an inspiration, direction and drive towards action; people like it, they engage with it, and buy because of it. The shift away from physical sales has made online purchasing and payment so prevalent, and we know that OOH ads can drive product search and purchase within seconds of adverts being seen.”

Image: Pexels by Clem Onojeghuo

 

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