SMI Analysis: Ad Spending for Insurance Was Strongest Among Finance Services Subcategories

For the final three months of 2020 the ad spend for finance was YOY 3 compared to the total ad market of 7 The YOY decline in ad spend was lower than the previous two quarters For all of 2020 the ad spend for finance was YOY 7 Despite this dropoff the category remains important to the advertising industry In 2020 we found finance ranked fourth in ad spend among the twelve product categories measured accounting for 10 of all ad dollars investedIn our analysis we looked at ad spend for the three finance subcategories insurance banking ampamp investment and credit cards Insurance a highly competitive subcategory grew ad spend in 2020 The ad spend for investment ampamp banking began to return to normal in August Conversely YOY ad spend for credit cards was down since the second quarter With the pandemic credit cards faced discretionary spending concerns with reduced pointearning and redemption opportunities as consumers curtailed such spending activities as eating out and travelingHere is a closer look at the ad spend by subcategoryInsurance increased YOY multimedia ad spend year by 3 in 2020 The growth was fueled by the return of premiere sporting events in the third quarter and the drawnout political election news cycle in the fourth quarter The overall ad spend growth was driven by digital media especially online video 40 the ad spend for television overall was flat With national TV entertainment accounted for 58 of ad spend highest among subcategories Insurance was the only subcategory to increase ad spend in both halves of 2020In 2020 the national ad spend for banking ampamp investments reported a YOY decline of 14 The two bright spots were digital audio which grew by 30 and held strong throughout the year and social was 22 With the pandemic and political the ad spend in news was particularly strong accounting for 26 of total national TV ad spend the highest percentage among subcategoriesAfter a strong first quarter ad spend for credit cards was down 26 for all of 2020 amp160The YOY double digit declines began in April In the fourth quarter credit card ad spending did report an uptick in social media and news programming Only traditional newspapers and social media had slight YOY increases in ad spend Sports accounted for 42 of national TV ad dollars the highest among subcategoriesWe looked at share of dollars for the year insurance was the largest subcategory accounting for 57 share of ad spend up from 52 in 2019 Banking ampamp investments had a 33 share of ad spend down from 36 in 2019 Credit cards had the lowest ad spend share with a 10 share in 2020 down from 12 in 2019For ad spend in the national TV ad marketplace only insurance increased their YOY ad dollar commitment in both upfront and scatter although DR was down Banking ampamp investments reported YOY double digit declines in upfront scatter and DR For credit cards ad dollars for scatter were flat while upfront had a sharp decline There was no DR spending either yearAs the economy continues to open up we are optimistic the ad spend for finance will rebound in 2021amp160Standard Media Index is the most trusted source of advertising expenditure and pricing data in the marketplace SMI accesses actual spend from the world39s largest media buying groups as well as leading independents and then organizes that data to create a clear granular and easytouse database for our clients and agency partnersClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillagecomMyersBizNetamp160

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SMI Analysis: Ad Spending for Insurance Was Strongest Among Finance Services Subcategories

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James Fennessy

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SMI Analysis: Ad Spending for Insurance Was Strongest Among Finance Services Subcategories

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