Financial Services Companies Continue To Spend More on Advertising USA Today Financial services companies could soon become the nation's top advertisers, reports
USA Today. In 2002, the
category spent $5.9 billion on advertising, entering the top five for the first time. Last year, spending jumped to $7.8 billion, and in the first six months of this year, financial services firms had
already spent 3.8 billion, 7.2 percent more than in 2004. Financially services are currently third in ad spending, behind domestic and international auto companies, who have reduced their ad budgets
this year, while financial spending should continue to increase. Analysts say the crucial factor in the category's growth is the fierce competition for business from aging baby boomers, who are now
retirement planning. Another factor is that it costs more to capture attention than it used to, particularly because consumers see four times more advertising than they did 10 years ago. Consolidation
has also brought about bigger brands with substantial national ad budgets. But financial services firms have a harder time differentiating themselves from their competitors because the services they
offer are almost identical. In the end, analysts say these companies need to develop strong brands to stand out from the pack.
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