Financial businesses are a huge segment of local targeted ad spend and include businesses like auto insurance, financial planners, credit unions and mortgage brokers. Businesses in financial are heavily invested in advertising that targets their potential customers. It’s no surprise that of the $18.2 billion they will spend on advertising locally in 2020, all 2019-2020 ad spending growth occurs in digital media. According to our new Insights into Local Advertising: Financial Businesses, there will not be growth in traditional media spending. The spending will shift to mobile and online as more financial consumers can be targeted in these channels, and the interactivity supports immediate responses.
Don’t discount traditional media’s share of the local ad spend. Over-the-air TV still has a large share of local advertising and radio is a solid performer in driving leads. The top-spending sub-verticals for 2020 local advertising are Auto & Direct Property Insurance, Investment and Retirement Advice, and Commercial Banking. These three sub-verticals account for almost two-thirds of total Financial category ad spending in 2020.
According to Rick Ducey, managing director of BIA Advisory Services, “By 2024 Auto and Direct Property Insurance’s share will decline to 20 percent with this spending shifting to small upticks in the Consumer Lending and Consumer Credit sub-verticals.”
The report also discusses strategies local media sellers might adopt to become better marketing partners with their current and prospective financial clients.
Accessing the Report