It's not a surprise that many brands are shifting their marketing budgets away from traditional media and toward digital media but the financial segment is set to experience big shifts over
the next four years according to recent eMarketer research.
The researcher forecasts an 11.7% compound annual growth rate between 2014 and 2019 for the financial sector, resulting
in a $10 billion annual digital ad spend. According to Kantar Media, between 2013 and 2014 alone, television spending (across all sectors) dropped 4.7% from $3.4 billion to $3.2 billion, while online
spend increased 20.4% from $2.4 billion to $2.9 billion.
Dramatic spending drops were seen in magazine (down 7.3%), radio (down 10.9%) and outdoor (down 11.4%).
In terms of
spending objectives, eMarketer forecasts that the financial sector will allocate 62% of budget (or $4.46 billion) to direct response and 38% of budget (or $2.73 billion) to branding by the end of
2015.
Search will dominate paid media spending for the financial sector in 2015, representing $3.40 billion or 47.3% of U.S. financial services total digital ad spending. eMarketer
estimates that paid digital display will closely follow, with $3.02 billion of the financial sector’s budgets projected to flow to the category by the end of the year.
Mobile is
also an active area for financial brands. According to eMarketer, mobile advertising for the sector is expected to hit $3.49 billion by the end of 2015 in comparison to $3.7 billion spent on
desktop.
Social media has also seen significant spending increases, with financial brands increasing the share of budget to 8.8% in 2015, up from 5.9% in 2014 according to Duke
University's Fuqua School of Business.
Why would you mix eMarketer's forecast with Duke's survey?