The lipstick effect refers to the stereotype that women buy more lipstick in a recession in order to cheer themselves up.

The gender stereotype is shorthand for a long-held belief that when facing an economic crisis consumers will be more willing to buy less costly luxury goods to cheer themselves up.

The idea that sales of affordable luxuries rise in economic downturns has held true, but this is a trend which is about far more than lipstick and the deeply misogynistic stereotype that women disproportionately spend on fripperies in challenging economic times.

In fact, the rise of ‘doom spending’ is a trend which has nothing to do with gender. Rather than the escapism of a relatively affordable yet unnecessary treat, doom spending is a trend which identifies the increase in spending of excessive amounts of money on luxury things or experiences, such as holidays, without looking at the long-term impact on your finances. In essence, doom spending is a response to a poor outlook on the future of the planet and your bank balance.

A recent study by Credit Karma revealed that 43% of Millennials and 35% of Gen Z’s doom spend to make themselves feel better about the state of the world or about how out of reach their dream lives seem.

But what if that impulse isn’t in consumers' best interest? With this in mind, we asked industry experts if marketing is fuelling doom spending and if brands should be more mindful of their marketing messages?

Doom spending is all about the quick fix, but brands can’t and shouldn’t rely on this behaviour. Sure, consumers want to indulge in some retail therapy and a pick-me-up every now and again, but if your product doesn’t hit the mark, they’ll soon move on to the next shiny thing for their impulse buy.

Smart marketers don’t chase doom spenders endlessly. They focus on building genuine, lasting connections with their audience. Marketing that preys on scarcity tactics, urgent offers, and the '#TikTokMadeMeBuyIt’ mentality - fuels doom spending. It feeds unhealthy buying habits and consumer anxiety, and importantly, doesn’t create brand trust or loyalty. That’s bad marketing.

Good marketing, on the other hand, is about resonating with people on a deeper level, fostering relationships that last beyond a crisis. It taps into positive emotions. Brands need to connect with consumers in meaningful ways that don’t rely on instant gratification purchases.

So no, marketing isn’t inherently fuelling doom spending - but bad marketing definitely is.

Marketing, when done right, drives demand and desirability for brands. Whether or not it fuels doom spending, I’m not so sure. Much of what we do is to drive preference, not necessitate a need. If anything, I feel it’s an overclaim for how much power marketing yields over real people.

Yes, we can argue that (some) brands are tuning into the fact that people are consuming advertising in different ways- peer to peer recommendations, organic content etc- and attuning their marketing to be more relevant resonate better. But again, I don’t think this fuels doom spending, it just plays into a behaviour we’re seeing more generally. We might be able to regulate, and block paid advertising, but we as marketeers have no control over independent content creators who are implicitly trusted by their communities, or the friends and family recommendation which we are seeing fuelling brand choice in recent years. Marketing didn’t create “little treats” or the multitude of other community-led trends; people and culture have in response to forces much bigger than marketing - the economy, politics, geopolitics, social issues. While I’m not shirking the responsibilities we shoulder as marketeers to promote healthy behaviours, I also do believe that we’ve lost a lot of credibility, and power, to influence culture and habits in a way that we might have done back in marketing’s heyday.

In this landscape, the opportunity for brands isn’t about fuelling consumption for consumption's sake, but about participating in the conversations and communities that matter. By fostering genuine connections and contributing positively to cultural moments, brands can remain relevant and responsive, driving desirability while supporting consumers in meaningful and responsible ways.

For Gen Z, doom spending has deeper implications than just achieving a short term, escapist lift. It’s likely to come from young people’s belief that they simply don’t (and won’t ever) have enough money to attain a good quality of life. According to McKinsey, only 41% think they will ever own a home, and 23% think they will never be able to retire. Without the purposefulness that these traditional drivers of saving bring, what’s the point in having money in the bank? As one Redditter puts it, “not that I have a lot to spend really but, when I have something it disappears. No reason to keep it”. The desire to only focus on the present is compounded by the pervading uncertainty that people feel about the safety of the world and the ticking clock of the climate crisis, meaning that doom spenders are literally shopping like there’s no tomorrow.

As with all big and complex problems, marketers can choose to be part of the problem or part of the solution. Continuing to take a small-minded view that capitalises on short term gains might drive revenue for trending items now, but as disposable income erodes further, #Tiktokmademebuyit will lose its allure and audience sizes will diminish.  Alternatively, marketing can become part of the solution by broadening horizons to encourage a longer term view of success, selling the idea of responsible consumption and making better choices more desirable today, so young people have more chance to prosper tomorrow.

When the world feels a bit bleak, it’s natural for humans to seek quick dopamine boosts for some short-term relief. One common and speedy way to get that rush is through impulse purchases that promise immediate satisfaction - whether it’s plumping your lips like Kylie Jenner or picking up a cat-shaped toaster that burns a smile into your bread. These "quick-fix" buys are marketed as instant sources of satisfaction.

While there is a place for marketing in tapping into ‘little treat’ culture - offering small indulgences and helping people discover products that provide a little joy, there’s a distinction between offering genuine value and exploiting the need for instant gratification. Unfortunately, 56% of online impulse buyers soon regret those purchases (I’m reminded of this every time I see my four reversible octopus plushies).

There is, however, another way to lift spirits by triggering dopamine: To entertain. Joyful, humorous, or nostalgic ads spark positive emotions and lasting brand associations by tapping into the brain’s reward system. Take Mr. President’s campaign for The Woodsman whisky. The playful beaver-themed ad stood out in a market traditionally focused on serious craftsmanship and precision, earning the title of "world’s most effective whisky ad" (from Andrew Tindall of System1 Research), with a 4.8/5-star rating. By prioritising joy and entertainment, brands can avoid feeding into "doom spending" and instead create meaningful long-term relationships with consumers.

The Ipsos Global trends 2024 data shows an emerging trend of Nouveau Nihilism. Doom spending is an expression of this with marketing riding the wave. With the here and now remaining challenging and the future highly uncertain, we are seeing a what the hell attitude amongst some. A rise in attitudes like ‘the important thing is to enjoy life today, tomorrow will take care of itself’ and ‘I live for today because the future is uncertain’.

As a financial comorbidity, Money Dysmorphia is also higher amongst younger generations. This is a distorted view of their personal finances, fuelled by the influence of social media and the economic conditions they have grown up in. On the one hand there is evidence of overspending to project an image of wealth it can also manifest as extreme frugality due to an exaggerated fear of poverty.

Marketing in effect helps people bridge the gap between their lived reality and aspirations. Being responsible to the benefit of your audiences financial and mental health is an opportunity for brands and as well as government. A mindful approach involving empathy for people’s financial situations, not exploiting vulnerabilities and being delicate when promoting luxury, and instant gratification is important.