December is the time of year when market researchers like myself look to synthesize our observations about consumer sentiment to think about the year ahead. From a sports marketing standpoint, I like what I am seeing.
A Break in the Malaise?
Sports has always been seen as an oasis from the stresses of daily life. While those stress levels continued to build through the summer and early fall, they showed some easing in late November.
It’s also evident that people need a break as we conclude a most contentious election cycle.
And while far from a majority of American sports fans, regardless of their political leanings, agree that our country is on the right track, the incidence of those who do feel that way has been on a three month upward climb, particularly among the highly valued age 25-44 demographic. In late October, 71% of the sports fans we surveyed agreed that “We are living in the most tumultuous time in my lifetime.” That sentiment still sits at 68%, post-election, while just under eight in 10 agree that they need a vacation. Sports has historically addressed this need for release.
Positive Macroeconomic Vibes
Macroeconomic and personal finance concerns have abated since peaking in late summer of this year. 54% of sports fans now believe that the cost of every day oods will improve in the coming months. That’s the highest we’ve seen since we began tracking this measure a year ago. Even more encouraging is that only 31% strongly perceive that we are in recession. This sentiment is the best we’ve observed among sports fans since before the pandemic.
We’re Spending and Living for Today
Our latest sports fan pulsing indicates that less than half feel that they have to make more difficult decisions about discretionary purchases than they did five years ago. That’s the best we’ve seen in 13 months. Couple this with U.S. Federal Reserve Bank data that shows credit card balances rising again in the third quarter to $1.17 billion — a record high and up 8.4% vs last year, and it’s clear that we are splurging on things we covet.
Equally telling is data that points to heightened desires for instant gratification. The percentage of sports fans who agree that they are living for today is at a twelve-month high, and this sentiment is particularly acute for the youngest adults. Fifty-seven percent of sports fans strongly agree that people today are more selfish than in their parent’s generation, and 72% concur that “It’s important for my life to include a number of unique experiences.” Two Thirds agree that “Making time to enjoy leisure activities is more important to me now than it was six months ago.” Pile onto this, Merrill Lynch analysis that shows that we are at the start of a 20-year cycle that will see the largest inter-generational wealth transfer in our nation’s history — some $84 trillion — and that’s another positive short-term indicator for the leisure industry.