Hearst Helps Financial Firms Make Cents of Consumer Behavior

And that’s just the tip of the iceberg. Hearst revealed the findings in an Oct. 7 presentation to advertisers, led by Hearst Chief Marketing Officer Todd Haskell. It also included a panel of Hearst editors discussing their audiences’ seemingly insatiable thirst for personal finance content.

"People have had a lot of time to think about what they want, how they want to live, and their own personal role in making that happen,” said Hearst Chief Business Officer Kristen O’Hara.

The financial optimism of Americans is a good first takeaway from the research, a survey of 2,300 respondents; one-on-one interviews, and social listening administered by research firm MarketCast. “Their lattes are definitely half-full, but with a solid layer of caution foam on top,” Haskell said.

Other insights drill much deeper into the hopes and fears of financial consumers.

Laurie Jennings, Deputy Editor and Institute Director for Good Housekeeping, noted that the pandemic made many consumers hungry for content that relates to home financing. That observation was backed by the MarketCast survey; 43 percent of respondents said that investing in their homes -- buying, renovating or otherwise improving a home -- is a “top priority” in the next 12-18 months.

Mortgages, home equity loans and even home insurance are top of mind for these consumers. “Pre-pandemic, you’re paying rent and not thinking actively about your credit score and what influences it,” Jennings said. When starting to think about buying a home or renovating one, though, a certain question becomes paramount: What is a credit score, and how do I get a good one?

The Great Resignation, or even The Great Migration, with millions of workers either leaving jobs or relocating, raises lots of questions about retirement savings. What is a 401(k)? What do you do with those contributions after you leave the company? Can you contribute to one even if you’re self-employed?

One of Cosmopolitan’s most successful personal finance articles was “7 Sneaky Things to Do to Your 401(k) If You Want to Be Rich as Hell,” said Ashley Oerman, Lifestyle Director at Cosmopolitan. “With every financial story we start with the basics,” she added. “401(k)s are complicated!” But Cosmo’s approach, starting with the basics and offering clear, concise advice that seems counterintuitive to “set it and forget it” younger types, quickly turned into an audience favorite.

Younger generations are increasingly handling their finances themselves, rather than using a financial planner. Many members of Gen Z are diving into investments nearly two decades earlier than Boomers did -- taking investment cues from social media like Reddit and TikTok. Even the Baby Boomer generation lists Reddit as one of its trusted sources of financial information. “We’re not above using TikTok financial planners [as sources],” Oerman said.

Yet Americans from all generational cohorts had to admit in the survey that they are only “somewhat” or “not at all” knowledgeable about building an investment portfolio -- 77 percent of them, in fact. And as social media finance influencers proliferate, the risk of misinformation or flat-out scamming increases.

“We’re all very vulnerable,” said Alison Overholt, General Manager of Oprah Daily.

Outright scammers are ever more sophisticated. Cryptocurrencies can be confusing even for people who make a living online. That leaves ample room for trusted brands to fill that gap. “Our brands can come in and provide trusted, vetted, fact-checked, researched information that you’re not getting on a social media platform,” Jennings noted.

The gaps in Americans’ financial knowledge are quite large, and not necessarily stratified by generation. That said, Hearst’s Jeannie Noonan has four tips for financial services marketers:

1. Gen-Z is looking for ways to boost their credit score and advice on the best investing apps.
2. Millennials want budgeting tips and market trends.
3. Gen-X and Boomers, especially those approaching retirement age, are looking for information on financial markets and tax strategies.
4. Everyone wants to know the best investment strategy for someone their age.

Years ago, money was a taboo topic of conversation. Not so now, Jennings revealed. “More and more people are going to talk about it -- savings, salary, investing," she said. "It’s a topic that is just going to be very top of mind for people. That’s not changing.”

Savvy marketers will dive right in with them.

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