2021
9
UK Attitudes towards Advertising in Financial Services Market Report 2021
2021-02-26T03:02:42+00:00
OX1042503
2195
134983
[{"name":"Advertising and Marketing","url":"https:\/\/store.mintel.com\/industries\/media-marketing\/marketing"},{"name":"Consumer Attitudes","url":"https:\/\/store.mintel.com\/industries\/consumers-trends\/consumer-attitudes"},{"name":"Financial Services","url":"https:\/\/store.mintel.com\/industries\/finance\/financial-services"}]
Report
en_GB
“COVID-19 has rapidly changed when, where and how consumers are exposed to advertising. Financial services have been less impacted by COVID-19 than other sectors, allowing advertisers to take a larger…

UK Attitudes towards Advertising in Financial Services Market Report 2021

£ 2,195 (Excl.Tax)

Report Summary

“COVID-19 has rapidly changed when, where and how consumers are exposed to advertising. Financial services have been less impacted by COVID-19 than other sectors, allowing advertisers to take a larger share of voice and use their adverts to reassure and guide customers through challenging times. This has helped build trust and gone some way to dispel the ongoing legacy of the financial crisis.”

– Thomas Slide, Senior Financial Services Analyst

This report covers the following issues:

  • The impact of COVID-19 on consumer attitudes towards financial services advertising.
  • Analysis of advertising spend and the channels used for above-the-line advertising campaigns, as well as how this differs by financial product.
  • Consumers’ exposure to and recollection of financial services advertising.
  • Consumers’ understanding of financial terms often used in advertising and how this differs by demographics.
  • How consumers feel about different advertising channels in terms of trust and engagement.

Table of Contents

  1. Overview

      • Key issues covered in this report
        • COVID-19: Market context
          • Impact of the January lockdown and the vaccination rollout
            • Economic and other assumptions
              • Products covered in this Report
              • 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

                                                                                                          About the report

                                                                                                          This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

                                                                                                          Market

                                                                                                          Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

                                                                                                          Consumer

                                                                                                          Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

                                                                                                          Brand/Company

                                                                                                          Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

                                                                                                          Data

                                                                                                          Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

                                                                                                          *databooks not available with UK B2B Industry reports.

                                                                                                          Below is a sample report, understand what you are buying.

                                                                                                          Click to show report
                                                                                                          2024 Sample Consumer Cover

                                                                                                          Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

                                                                                                          Trusted by companies. Big and small.

                                                                                                          Want to speak to us directly?

                                                                                                          Contact us with your enquiry and our expert global team can help.

                                                                                                          Get in touch