Table of Contents
Issues in the Market
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- Key issues
- Report definitions
- Note on consumer research
- Abbreviations
Future Opportunities
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- Standing out in a crowded marketplace
- Maintaining a role as choice editors
- Moving beyond general insurance
- Converting browsing behaviour to sales
- Catering for different priorities
Market in Brief
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- More than 24 million have used financial aggregators
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- Figure 1: Number of adults who have purchased financial products online or used a price-comparison site, September 2009
- Online trends drive aggregator growth
- Moneysupermarket.com tops list of most visited aggregator brands
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- Figure 2: Share of unique visitors to major price-comparison sites, three-month average, August 2009
- The last 12 months
- Aggregator usage is dominated by general insurance products
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- Figure 3: Products purchased or quoted for through a price-comparison site, September 2009
- Key consumer findings
Online Trends
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- Key points
- More than seven in ten adults have internet access
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- Figure 4: British internet penetration at home/work/place of study or elsewhere, Jan 2003-July 2009
- Price-comparison site usage remains flat through 2009…
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- Figure 5: Types of activity undertaken on the internet in the last three months, October 2008-July 2009
- …but financial aggregators report growth in visitor numbers
- More than two fifths look online before making a purchase
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- Figure 6: Agreement with statements about researching and buying on the internet, 2005-09
- Price-comparison sites have become a major channel of advice
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- Figure 7: Most popular sources of advice for a range of financial products, June 2009
- Price-comparison sites are dominant source of advice within the general insurance sector
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- Figure 8: Preferred sources of advice when arranging financial products, by type of product, June 2009
Recent Market Developments
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- Key points
- Sector consolidation begins…
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- Figure 9: Aggregator event timeline, 1997-2009
- …but white labelling may still offer some scope to expand comparison services
- Aggregators under scrutiny…
- …and there’s more to come
- Attempts to establish an aggregator trade body…
- …but fledgling trade body appears doomed to failure
- A lack of transparency may undermine consumer confidence
Trading Environment
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- Key points
- The impact of the recession
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- Figure 10: Recession implications for finance aggregators, 2009
- Aggregator revenue streams
- Main insurance markets – premium growth continued in 2008
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- Figure 11: Value of the domestic motor, home and travel insurance markets, by GWP, 2003-08
- Demand for consumer credit remains low
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- Figure 12: Gross consumer credit lending, 2003-09
- Mortgage lending continues to struggle…
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- Figure 13: Gross secured lending, by type of loan, 2003-09
- …but the savings market looks set to prosper
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- Figure 14: The savings ratio, 2000-14
Competitive Context
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- Key points
- Aggregators dominate general insurance distribution
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- Figure 15: Preferred methods of arranging insurance for the listed general insurance products, September 2009
- Aviva takes control over its direct business
- Direct Line remains offline with aggregators
- Some consumers remain convinced that direct is best
- Cashback sites may pose a threat to price-comparison sites
- Combining price-comparison and cashback sites
SWOT Analysis
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- Figure 16: Web aggregators, summary of strengths, weaknesses, opportunities and threats, October 2009
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Trade Perspective
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- Participating companies
- The impact of the recession
- Aggregators under scrutiny
- Improving loyalty in the price-comparison sector
- Consolidation in the market
- Future challenges and developments
The Size of the Target Market
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- Key points
- More than 24 million adults have used a financial price-comparison site
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- Figure 17: Number of adults who have purchased financial products online or used a price-comparison site, September 2009
- ABC1s aged 35-44 are main aggregator target group
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- Figure 18: Target groups identified for people who have purchased financial products online or used a price-comparison site, September 2009
Aggregator Site Usage
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- Key points
- Moneysupermarket.com tops the rankings for visitor numbers
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- Figure 19: Share of unique visitors to major price-comparison sites, three-month average, August 2009
- Comparethemarket.com records a steady increase in users
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- Figure 20: Unique visitors to top four price-comparison sites, June 2008-August 2009
- Consumer research findings provide a different perspective
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- Figure 21: Usage of price-comparison sites among aggregator adopters, September 2009
- Loyalty is lacking in the aggregator market
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- Figure 22: Usage of price-comparison websites, by number of price-comparison websites used to obtain quotes/compare prices or to buy financial products, September 2009
The Key Players
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- Moneysupermarket.com
- Confused.com
- Gocompare.com
- Comparethemarket.com
- Tescocompare.com
Brand Advertising and Promotion
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- Key points
- Aggregator adspend soars despite difficult economic conditions
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- Figure 23: Overview of advertising expenditure in aggregators market, 2006/07-2008/09
- Search engine optimisation is a major marketing focus
- Top four brands account for 90% of market adspend
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- Figure 24: Advertising expenditure by selected aggregators, 2006/07-2008/09
- The Meerkat effect
- TV advertising dominates aggregator adspend
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- Figure 25: Advertising expenditure, by media type, 2006/07-2008/09
- Car insurance is the focus for leading aggregator advertisers
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- Figure 26: Breakdown of adspend, by NMR categories – top five aggregators only, 2008/09
The Consumer – Product Ownership and Online Purchasing Behaviour
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- Key points
- Almost three quarters have bought financial products online…
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- Figure 27: Products purchased online or through price-comparison sites, September 2009
- …and almost two thirds have used a financial aggregator
- Scope for expansion beyond general insurance
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- Figure 28: Products purchased or quoted for through a price-comparison sites, September 2009
- Aggregator usage peaks among 35-44-year-olds
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- Figure 29: Price-comparison usage, by age and gross annual household income, September 2009
- Product ownership trends influence aggregator usage
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- Figure 30: Financial products arranged, quoted or purchased using a price-comparison site, by gender, age, current marital status and region, September 2009
- Aggregators appeal to ABs and higher earners
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- Figure 31: Financial products arranged, quoted or purchased using a price-comparison site, by socio-economic group, gross annual household income, daily newspaper readership and daily personal internet usage, September 2009
- Aggregator adopters represent good cross-selling opportunities
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- Figure 32: Financial product ownership, by online buyers and aggregator users, September 2009
The Consumer – Usage of Financial Aggregators Websites
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- Key points
- Confused.com and comparethemarket.com top aggregator usage list
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- Figure 33: Usage of price-comparison sites, by aggregator adopters, September 2009
- 58% of aggregator adopters have used three or more websites
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- Figure 34: Number of price-comparison websites used to obtain quotes/compare prices or to buy financial products, September 2009
- Confused.com has most loyal users
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- Figure 35: Usage of price-comparison websites, by number of price-comparison websites used to obtain quotes/compare prices or to buy financial products, September 2009
- There is significant overlap in users between the top four providers
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- Figure 36: Cross-analysis of aggregator site usage, September 2009
- Different brands appeal to different audience
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- Figure 37: Most popular usage of price-comparison websites to obtain quotes/compare prices or to buy a financial product, by demographics, September 2009
- Moneysupermarket.com and uSwitch users have strong cross-selling potential
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- Figure 38: Financial product ownership, by price-comparison site usage, September 2009
- Moneysupermarket.com has a strong reach beyond the general insurance market
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- Figure 39: Usage of price-comparison sites, by product purchased or quoted through a price-comparison site, September 2009’
The Consumer – Buying Behaviour
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- Key points
- Search engine optimisation plays a key role in aggregator market…
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- Figure 40: Approach to using the internet to research or buy a financial product, September 2009
- …but aggregator brands are gaining ground
- 35-44-year-olds are the most likely to go straight to an aggregator website
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- Figure 41: Most popular approach when using the internet to research or buy a financial product, by gender, age, socio-economic group and household income, September 2009
- The influence of moneysavingexpert.com
- Consumers take a different approach for different products
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- Figure 42: Financial products purchased online, by approach to using the internet to research or buy a financial product, September 2009
- Price and cover top list of considerations for aggregator users
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- Figure 43: Most important considerations when using price-comparison sites, September 2009
- Gender and age influence aggregator priorities
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- Figure 44: Most popular factors when using price-comparison sites to compare prices/obtain quotes or purchase financial products, by gender, age, socio-economic group and household income, September 2009
- How important are brands to aggregator users?
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- Figure 45: Next most popular factors when using price-comparison sites to compare prices/obtain quotes or purchase financial products, by gender, age, socio-economic group and household income, September 2009
- Targeting the unconverted
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- Figure 46: Most important factors when using price-comparison sites to compare prices/obtain quotes or purchase financial products, by approach when using the internet to research or buy financial products, September 2009
The Consumer – Attitudes towards Aggregator Sites
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- Key points
- Aggregator users are attracted by time-saving benefits
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- Figure 47: Attitudes towards price-comparison sites, by online buyers and aggregator adopters, September 2009
- Slight differences in attitudes between users of different brands
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- Figure 48: Attitudes towards price-comparison sites, by usage of price-comparison websites to obtain quotes/compare prices or to buy financial products, September 2009
- Converting browsing behaviour to sales
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- Figure 49: Most popular statements on price-comparison websites, by approach when using the internet to research or buy financial products, September 2009
- Target group analysis
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- Figure 50: Target group analysis, attitudes towards aggregators, September 2009
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- Figure 51: Online purchasers and aggregator adopters, by target groups, September 2009
- Aggregator enthusiasts
- Price-driven aggregator supporters
- The disengaged
- Anxious about aggregators
The Appendix – The Consumer – Attitudes towards Aggregator Sites
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- Figure 52: Target groups, by demographics, September 2009
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- Figure 53: Ownership of finance products, by target groups, September 2009
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- Figure 54: Statements on price-comparison websites, by target groups, September 2009
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- Figure 55: Most important factors when using price-comparison sites to compare prices/obtain quotes or purchase financial products, by target groups, September 2009
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- Figure 56: Usage of price-comparison websites to obtain quotes/compare prices or to buy financial products, by target groups, September 2009
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- Figure 57: Approach when using the internet to research or buy financial products, by target groups, September 2009
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