Table of Contents
Executive Summary
-
- Impact of COVID-19 on financial services advertising
-
- Figure 1: Short-, medium- and long-term impact of COVID-19 on financial services advertising, February 2021
- The market
- Advertising expenditure falls two years running
-
- Figure 2: Total above-the-line, online display and direct mail advertising expenditure on financial services, 2016-20
- Financial brand building grows
- TV advertising increases dominance in 2020
- Media consumption habits are being transformed by lockdown
- ASA introduces new guidance for BNPL advertising
- Companies and brands
- Compare the Market leads spending despite cutting back
-
- Figure 3: Above-the-line, online display and direct mail advertising expenditure on financial services, by advertiser, 2020
- Brands adopt a diverse approach to advertising channels
- Localism and reassurance deliver empathy in 2020
- Rise of the fin-fluencer
- The consumer
- Insurance advertising has highest recall
-
- Figure 4: Exposure to financial services advertising, November 2020
- Recall is strongest for main banking products
-
- Figure 5: Confidence in recalling brands, November 2020
- TV advertising is dominant channel during lockdowns
-
- Figure 6: Where consumers have seen advertising, November 2020
- Two thirds take no action after seeing an advert
-
- Figure 7: Actions taken after seeing an advert, November 2020
- A lack of financial literacy risks undermining advert messaging
-
- Figure 8: Understanding of financial terms, November 2020
- Transparent targeting can improve engagement
-
- Figure 9: Attitudes towards financial advertising, November 2020
- A more diverse media landscape makes a novelty of traditional channels
-
- Figure 10: Correspondence analysis, November 2020
Issues and Insights
-
- COVID-19 causes a shift in strategy from acquisition to retention
- Avoiding stereotypes through improved targeting
- Lack of financial literacy among young people presents advertising risks
The Market – Key Takeaways
-
- Advertising expenditure falls two years running
- Financial brand building grows
- TV advertising increases dominance in 2020
- Media consumption habits are being transformed by lockdown
Market Size
-
- The impact of COVID-19 on financial services advertising
-
- Figure 11: Short-, medium- and long-term impact of COVID-19 on financial services advertising, February 2021
- Advertising expenditure falls for two years running
- Expanding the role of sponsorship to remain rooted in local communities
-
- Figure 12: Total above-the-line, online display and direct mail advertising expenditure on financial services, 2016-20
- Financial advertising bounced back rapidly after the first lockdown
-
- Figure 13: Above-the-line, online display and direct mail advertising expenditure on financial services, as a share of total advertising spend across all categories, January 2016-December 2020
- Nielsen Ad Intel coverage
Market Segmentation
-
- General insurance increases share of voice in 2020
- Financial brand building
-
- Figure 14: Total above-the-line, online display and direct mail advertising expenditure on financial services, by category, 2020
Channels to Market
-
- TV advertising increases dominance in 2020
-
- Figure 15: Total above-the-line, online display and direct mail advertising expenditure on financial services, by media type, 2020
Market Drivers
-
- Lockdown hits advertising spend
-
- Figure 16: Total above-the-line, online display and direct mail advertising expenditure*, January 2016-December 2020
- Streaming services continue to grow
-
- Figure 17: Free media activities done in the last three months, September 2020
- More than half exposed to search engine advertising
-
- Figure 18: Types of online advert noticed in the last three months, June 2020
- Consumers seek control over their data
-
- Figure 19: Digital advertising behaviours, May-June 2020
- Finances take a hit but government intervention limits the damage
-
- Figure 20: Financial tracker, January 2019-January 2021
Regulatory and Legislative Changes
-
- FCA rules govern financial promotions
- New guidelines for buy now, pay later adverts
- ASA launches Scottish campaign to rebuild trust
-
- Figure 21: Promoting the ASA, September 2020
- Klarna influencers deemed ‘irresponsible’ by the ASA
- The challenge of trivialising serious issues
Companies and Brands – Key Takeaways
-
- Compare the Market leads spending despite cutting back
- Brands adopt a diverse approach to advertising channels
- Localism and reassurance deliver empathy in 2020
- Rise of the fin-fluencer
Leading Advertisers
-
- Compare the Market leads spending despite cutting back
- Nationwide increases adspend by a third
- PayPal ramps up spend to promote new products
-
- Figure 22: Above-the-line, online display and direct mail advertising expenditure on financial services, by advertiser, 2020
- Diverse approach to advertising channels
-
- Figure 23: Ten leading spenders on above-the-line, online display and direct mail advertising expenditure for financial services, by media type, 2020
Advertising Strategies
-
- Generating empathy in lockdown
-
- Figure 24: Santander - Supporting our communities – Rashford’s story, June 2020
- Localism becomes a key theme in 2020
- Reassurance in uncertain times
-
- Figure 25: Still from HSBC’s ‘The New Different’ TV spot, October 2020
- Supporting customers with financial literacy
-
- Figure 26: Barclaycard sidekicks campaign, October 2020
- Addressing the impact of finance on mental health
-
- Figure 27: Lloyds Bank and Mental Health UK TV spot, May 2020
- Accentuating the negative
-
- Figure 28: Klarna OOH campaign, January 2021
- Focus on the outcome rather than the product
-
- Figure 29: TSB ‘Life Made More’, December 2020
- Rise of the Fin-influencer
-
- Figure 30: Starling paid Instagram promotion, September 2020
The Consumer – Key Takeaways
-
- COVID-19 is changing how we consume media
- A lack of financial literacy risks undermining advert messaging
- Transparent targeting can improve engagement
- Start-up brands could have success targeting the mass affluent
- A more diverse media landscape makes a novelty of traditional channels
Impact of COVID-19 on Consumer Behaviour
-
- Consumers seek financial stability in uncertain times
-
- Figure 31: Impact of COVID-19 on household finances, 4 - 12 February 2021
- Changes to the way we live, work and shop
- A shifting media landscape
-
- Figure 32: Impact of COVID-19 on time spent on media activities, July 2020
- COVID-19 has driven a switch from acquisition to retention
Exposure to Financial Services Advertising
-
- General insurance is most memorable
-
- Figure 33: Exposure to financial services advertising, November 2020
- People recall what’s relevant to them
-
- Figure 34: Exposure to financial services advertising, by age and socio-economic group, November 2020
Confidence in Recalling Brands
-
- Consumers remember the most used brands
-
- Figure 35: Confidence in recalling brands, November 2020
- Most recall brands they already use
-
- Figure 36: Relationship with brands recalled in advertising, November 2020
Advertising Channel Exposure
-
- TV continues to dominate exposure
-
- Figure 37: Advertising channel exposure, November 2020
- Exposure varies significantly by consumer profile
-
- Figure 38: Where consumers have seen advertising, November 2020
- A clear generational divide in media consumption
-
- Figure 39: Where consumers have seen advertising, by age, November 2020
Actions Taken After Seeing an Advert
-
- Two thirds take no action after seeing an advert
-
- Figure 40: Actions taken after seeing an advert, November 2020
- 25-34s are most likely to have taken action
-
- Figure 41: Actions taken after seeing an advert, by age, November 2020
- Nearly a fifth of 25-34 year olds have shared/discussed an advert online
-
- Figure 42: Actions taken after seeing an advert, by age, November 2020
Understanding of Financial Terms
-
- Credit card companies need to do more to explain Section 75
-
- Figure 43: Understanding of financial terms, November 2020
- A lack of financial literacy among young people
-
- Figure 44: Understanding of financial terms, difference between 16-24s and the average, November 2020
Attitudes towards Financial Advertising
-
- Consumers are open to targeted advertising
- Most people don’t feel financial adverts are for them
-
- Figure 45: Attitudes towards financial advertising, November 2020
- Start-up brands could have success targeting the mass affluent
-
- Figure 46: Attitudes towards financial advertising, by household income, November 2020
Perceptions of Advertising Channels
-
- Digital advertising can be intrusive
-
- Figure 47: Correspondence analysis, November 2020
-
- Figure 48: Attitudes towards financial services advertising, November 2020
- As TV exposure declines, its cut-through increases
-
- Figure 49: Attitudes towards financial services advertising on TV, by age, November 2020
- Novelty of direct mail could appeal to young people
-
- Figure 50: Attitudes towards direct mail advertising, by generation, November 2020
- Online adverts still struggle to generate trust
-
- Figure 51: Advertising channels described as ‘trustworthy’, November 2020
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
- Correspondence analysis – methodology
Back to top