Advertising Builds Confidence for Financial Brands in Crisis, Nielsen
IAG Study Finds
“Out of Sight” Businesses Risk Perception of “Out of Business”
NEW YORK--(BUSINESS WIRE)--At a time when financial institutions are pulling back on their
advertising, a new study from Nielsen
IAG shows that consumer confidence in the long-term health of these
companies is dramatically influenced by advertising and marketing
efforts.
Details from the study, including charts and a video of Richard Khaleel,
EVP of Nielsen IAG’s Financial practice, are available at Nielsen Wire: http://blog.nielsen.com/nielsenwire/nielsen-news/financial-company-ads-out-of-sight-out-of-business.
When asked about their own banks, insurance companies and investment
firms, 55% of respondents who said they had seen more advertising for
their financial institution reported having “complete confidence” in the
financial health and soundness of their financial company and only 18%
said they had “little or no confidence” in their company. However, among
those who said they had seen less advertising, only 18% had “complete
confidence” in their financial company and 45% said they had “little or
no confidence” in their company.
“This research shows that ‘out of sight’ can mean ‘out of business,’”
said Richard Khaleel, EVP of Nielsen IAG’s Financial practice. “The
current economic climate makes it more important than ever for financial
institutions to bolster confidence among their clients and this study
clearly demonstrates the link between advertising and confidence levels.
With constant scrutiny on the industry it’s clear that taking control of
the message in advertising and press can make all the difference for a
brand.”
“This recession is now driven by consumer spending,” said James Russo,
VP Marketing, The Nielsen Company. “In 2008, Nielsen data shows that
consumer’s concerns were around food and fuel. Today consumers are
driven by fear aligned to the weakening job and equity markets.
Companies that will thrive in this climate of fear are those that manage
consumer confidence through the turbulent times. Companies that deliver
a message of value will be key to turning around the economy and
determining who survives in the months ahead.”
The study comes as data show year to year reductions in advertising
expenditures in the financial services and insurance categories. Year
over year ad spending on financial services and insurance was down 13.4%
in 2008 compared to 2007. The drop off was even sharper (-23.3%) for the
4th Quarter of 2008 vs. the same period in 2007.
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Total Ad Spending 2008 vs 2007
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2007 Ad
Spend
(millions)
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2008 Ad
Spend
(millions)
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% Change
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Financial Svcs
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$6,107.9
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$5,070.5
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-17.0%
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Insurance
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$3,568.0
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$3,307.2
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-7.3%
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TOTAL
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$9,676.0
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$8,377.7
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-13.4%
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Total Ad Spending Q4 2008 vs Q4 2007
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4Q 2007 Ad
Spend
(millions)
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4Q 2008 Ad
Spend
(millions)
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% Change
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Financial Svcs
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$1,735.6
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$1,229.6
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-29.2%
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Insurance
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$1,029.0
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$889.9
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-13.5%
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TOTAL
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$2,764.6
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$2,119.5
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-23.3%
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More Study Findings
The study also found that confidence was linked to age and affluence as
well as the amount of risk associated with the financial institution.
Older adults aged 55+ and those with assets over $100,000 were more
confident than average. Banks fared much better than life insurance
companies and investment firms.
Overall, a minority of respondents said they had “Complete Confidence”
in their financial institutions:
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less than 38% had confidence in their checking and savings bank
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only 28% were confident of the company that manages their investment
or retirement accounts
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only 28% had confidence in their life insurance company
When asked what factors would increase confidence in the safety and
soundness of their financial institution, respondents cited:
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Seeing regular advertising for that institution (25%)
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Receiving regular mail or email offers from that institution (25%)
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Regularly seeing internet offers/advertising from that institution
(21%)
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Reading positive stories in the press about that institution (44%)
About The Nielsen IAG Financial Brand Confidence Study
The Nielsen IAG Financial Brand Confidence Study was a national online
survey of 5500 U.S. respondents. Respondents were asked questions about
their confidence in
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the bank where they have their personal checking and savings accounts
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the company that handles their investments and retirement accounts
-
their life insurance company
Respondents were also asked about the amount of advertising they had
seen in the last 6 months for their financial companies. Finally,
respondents were asked about factors that might positively or negatively
affect their confidence in these financial companies.
About The Nielsen Company
The Nielsen Company is a global information and media company with
leading market positions in marketing and consumer information,
television and other media measurement, online intelligence, mobile
measurement, trade shows and business publications (Billboard, The
Hollywood Reporter, Adweek). The privately held company is active in
approximately 100 countries, with headquarters in New York, USA. For
more information, please visit, www.nielsen.com.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5920926&lang=en
The Nielsen Company
Gary Holmes, 646-654-8975
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