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Strategy, behavioural analytics and insight - served with a creative twist.

Christmas 2012 – how popular will Gift Cards be?

This festive season promises to be a strong one for Gift Cards if the rest of the world follows the trends predicted below for the USA:

• Over 82% of consumers will purchase a Gift Card

• 86% of consumers will redeem a promotional Gift Card

• 80% of consumers are more likely to shop at a store offering a promotional Gift Card

• 23% of consumers plan to use a mobile / digital Gift Card

• 84% of consumers are more likely to purchase a Gift Card from a merchant who gives them a promotional Gift Card for their purchase

In addition, the popularity of Gift Cards in the US was underlined by a recent National Retail Federation survey which found 60% of 8,899 respondents hoped to receive them this Christmas. Research firm Tower Group predicts the market will be worth $200bn by 2021.

The UK Gift Card and Voucher Association estimates people will fork out a total of £4.4bn on the products this year, up from £2.7bn in 2003. Businesses account for about half of this - many using them as rewards, such as for staff performance or long service.

The association's director general, Andrew Johnson, says the value of Gift Card sales has grown by about 10% annually over five years, thanks largely to the card format reinvigorating the market.

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