Nielson AIG studies flags that consumers are more confident about financial brands that advertise

Research by Nielson AIG found that consumer confidence in the long-term health of financial companies is dramatically influenced by advertising and marketing efforts. When consumers were asked about those financial companies they use day-to-day, 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. Overall, a minority of respondents said they had “Complete Confidence” in their financial institutions.

Nielson AIG suggest that those brands cutting back their advertising during the current down turn not only risk being ‘out of sight’ but also ‘out of business’.

When asked what factors would increase confidence in the safety and soundness of their financial institution, respondents cited:

  • Seeing regular advertising for that institution (25%)
  • Receiving regular mail or email offers from that institution (25%)
  • Regularly seeing internet offers/advertising from that institution (21%)
  • Reading positive stories in the press about that institution (44%)

The implication from this study is that financial brands should as far as possible attempt to stay ‘front of mind’ with their customers. Although many brands may feel this difficult in the current environment, this need not entail multi-million dollar spends. Lower cost alternatives can be considered:

  • Email marketing
  • PR – both on and offline
  • Social networking and Viral campaigns

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