How Media Works: Advertising and the Purchase Funnel For the Financial Services Category

How Media Works:How Media Works:Advertising and the Purchase FunnelAdvertising and the Purchase FunnelFor the Financial Services CategoryFor the Financial Services Category

How Media Works:How Media Works:Advertising and the Purchase FunnelAdvertising and the Purchase FunnelFor the Financial Services CategoryFor the Financial Services Category

1

A Yankelovich Study for the Television Bureau of Advertising

Study ObjectivesStudy ObjectivesStudy ObjectivesStudy Objectives

Determine the role that TV plays as part of a multi-platform environment for advertising. More specifically, the goals of the research were to understand:

The role of television advertising in driving consumer actions throughout the purchase decision process

How television interacts with other media platforms, including new media such as the Internet

How purchase decisions are made as a result of this interaction, including the role of different media platforms in the purchase cycle 2

Source: TVB/Yankelovich “How Media Works,” April 2009

MethodologyMethodologyMethodologyMethodology

Survey results were obtained via online interviews among 3,002 consumers who had seen a television ad in the past 2 months that made an impression on them.

Interviews took place January 29 to February 10, 2009; Super Bowl Sunday was excluded.

Respondents were first asked in which categories they have seen a television ad in the past two months that made an impression on them.

Each respondent then completed an ad survey for up to three of these categories.

The survey measured the overall impression of each ad, actions taken after seeing the ad, and whether ads for the same product or service were encountered in other media, etc.

The respondents were asked questions on which media most increased awareness and interest, or prompted action across the range of categories studied.

3Source: TVB/Yankelovich “How Media Works,” April 2009

Over One Third of Respondents are In the Over One Third of Respondents are In the MarketMarket

Over One Third of Respondents are In the Over One Third of Respondents are In the MarketMarket

4

“Are you currently considering a purchase in the Financial Services Category?”

(Asked of those who recalled seeing a TV ad for Financial Services* in the last 2 months)


Yes37.0%

No63.0%

*Note: this category includes ads for tax preparation services (55%), banks/credit unions (16%), credit cards (16%), and investment companies (14%).

Customer Profile: Customer Profile: Financial Services AdvertisingFinancial Services Advertising

Customer Profile: Customer Profile: Financial Services AdvertisingFinancial Services Advertising


Saw a Financial TV Ad that Made an

Impression

Currently Considering a

Purchase in the Financial Category

Made a Purchase

in this category in the

past year

Made a Purchase

in this category

in the past 4 weeks

Male 56.1% 59.5% 58.4% 56.2%

Female 43.9% 40.5% 41.6% 43.8%

A18-34 28.7% 35.4% 32.7% 29.2%

A18-49 56.3% 64.6% 59.0% 55.5%

A25-54 53.9% 61.9% 57.8% 57.7%

A55+ 37.0% 30.4% 34.8% 36.5%

Urban 34.3% 33.9% 35.7% 34.3%

Suburban 43.5% 47.9% 47.2% 41.6%

Rural 22.2% 18.3% 17.1% 24.1%

HHI <$30K 18.0% 11.7% 9.4% 11.7%

HHI $30-$70K 43.2% 38.1% 43.7% 40.1%

HHI $70K+ 32.3% 42.8% 42.8% 44.5%

HHI $100K+ 14.6% 19.1% 18.9% 18.2%

One Third of All Consumers Have Seen a One Third of All Consumers Have Seen a Financial Services Ad That Got Their Attention Financial Services Ad That Got Their Attention

One Third of All Consumers Have Seen a One Third of All Consumers Have Seen a Financial Services Ad That Got Their Attention Financial Services Ad That Got Their Attention


Saw an ad that got your attention:

55%

46%

46%

46%

41%

40%

40%36%

36%

34%

34%

33%

28%

27%

25%

80%Any (NET)

Restaurants

Vehicles or auto dealers

Telecommunications or electronic products

Entertainment activities

Automobile or life insurance

Department stores or discount stores

Food, convenience, or grocery stores / supermarkets

Furniture, mattress, or carpeting / flooring stores

Travel or travel websites

Financial services

Healthcare products or services

Home improvement stores or services

Services

Schools / colleges / learning centers / vocational schools

Commercial websites

While Half of Consumers Who Saw TV Ads for While Half of Consumers Who Saw TV Ads for Financial Services Made a Transaction in the Past Financial Services Made a Transaction in the Past

Year, a Small Percent are Active at Any Given Time Year, a Small Percent are Active at Any Given Time

While Half of Consumers Who Saw TV Ads for While Half of Consumers Who Saw TV Ads for Financial Services Made a Transaction in the Past Financial Services Made a Transaction in the Past

Year, a Small Percent are Active at Any Given Time Year, a Small Percent are Active at Any Given Time


Last time made a financial services transaction:

13%

6%

9%

6%

5%

9%

16%

6%

8%

21%

Within the last 2 weeks

3-4 weeks ago

1-2 months ago

3-4 months ago

5-6 months ago

7-11 months ago

1-2 years ago

3-5 years ago

6 or more years ago

I have never purchased in this category Financial Services

49% of those who recently saw a

financial services ad made a category transaction in the

past year

Most Say Financial Services TV Ads Most Say Financial Services TV Ads Made Positive ImpressionsMade Positive Impressions

Most Say Financial Services TV Ads Most Say Financial Services TV Ads Made Positive ImpressionsMade Positive Impressions


Type of impression made by TV ad for financial services:

32%

38%

26%

3%

1%

24%

39%

32%

2%

2%

Very positive

Somewhat positive

Neither positive nor negative

Somewhat negative

Very negative TotalFinancial Services

63% of those who saw these advertisements rated them positively

Half of Respondents Find Financial Services Half of Respondents Find Financial Services Ads Both Informative and Attention-GettingAds Both Informative and Attention-GettingHalf of Respondents Find Financial Services Half of Respondents Find Financial Services Ads Both Informative and Attention-GettingAds Both Informative and Attention-Getting


Ratings of Financial Services Television Ads:

Total Financial Services

How much did it get your attention?

19.6%

15.4%

18.9%

15.6%

12.2%

9.0%

3.6%

2.8%

1.3%

1.5%

17.0%

15.0%

19.0%

16.0%

13.0%

9.0%

5.0%

3.0%

2.0%

2.0%

10 -Completely

9

8

7

6

5

4

3

2

1 - Not at all

54% total

50% financialservices

42% total


How relevant was it?

53% total


How informative was it?

Those Who View Ads are Likely to Consider and/or Those Who View Ads are Likely to Consider and/or Research a Purchase, or Talk to Others About the AdResearch a Purchase, or Talk to Others About the AdThose Who View Ads are Likely to Consider and/or Those Who View Ads are Likely to Consider and/or

Research a Purchase, or Talk to Others About the AdResearch a Purchase, or Talk to Others About the Ad


Actions Taken After Seeing TV Commercial for Financial Services

FinancialServices

Any (Net) 40%

Talked with others about the advertisement 14%

Considered purchasing the product or service 13%

Remembered you had seen the product or service advertised before 12%

Went online to learn more about the product or service advertised 11%

Purchased the product or service online 7%

Contacted the company in the advertisement 4%

Visited a store or location to learn more about the product or service 4%

Tried to find the advertisement on the Web 4%

Looked in a newspaper or magazine to learn more about the product or service

3%

Purchased the product or service in a store 3%

Sent someone an Email about the product or service 2%

Sent someone a Web-site link about the product or service 2%

Other action 3%

Did nothing 60%

Younger Adults are Even More Likely to Take Younger Adults are Even More Likely to Take ActionAction

Younger Adults are Even More Likely to Take Younger Adults are Even More Likely to Take ActionAction


Actions Taken After Seeing TV Commercial for Financial Services:

Age

FinancialServices 18-34 35-49 50+

Any (Net) 40% 54% 42% 29%

Talked with others about the advertisement 14% 19% 16% 9%

Considered purchasing the product or service 13% 21% 12% 10%

Remembered you had seen the product or service advertised before (i.e., the newspaper, radio, or the

Internet)12% 18% 12% 10%

Went online to learn more about the product or service

11% 22% 7% 6%

Purchased the product or service online 7% 12% 6% 3%

Visited a store or location to learn more 4% 10% 3% 2%

Contacted the company in the advertisement 4% 9% 4% 2%

Tried to find the advertisement on the Web 4% 7% 4% 2%

Purchased the product or service in a store 3% 5% 5% 1%

Looked in a newspaper or magazine to learn 3% 6% 3% 1%

Sent someone an Email about the product or service 2% 5% 3% 1%

Sent someone a Web-site link about the product or service 2% 5%

1% 0%

Other action 3% 3% 2% 4%

Did nothing 60% 46% 58% 71%

Nearly Two-Thirds Say Financial Services Nearly Two-Thirds Say Financial Services Television Ads are Seen 4+ TimesTelevision Ads are Seen 4+ Times

Nearly Two-Thirds Say Financial Services Nearly Two-Thirds Say Financial Services Television Ads are Seen 4+ TimesTelevision Ads are Seen 4+ Times


Number of times saw financial services TV commercial in past 2 months:

14%

33%

26%

14%

13%

11%

26%

32%

15%

17%

Just this one time

2-3 times

4-5 times

6-9 times

10 times or more

TotalFinancial Services

64% of those who saw a financial services ad on

TV have seen it 4+ times (compared to

53% for total)

Multiple Exposure to TV Ads Leads to Multiple Exposure to TV Ads Leads to a Much Higher Likelihood of Actiona Much Higher Likelihood of Action

Multiple Exposure to TV Ads Leads to Multiple Exposure to TV Ads Leads to a Much Higher Likelihood of Actiona Much Higher Likelihood of Action


Among those who recently saw a TV ad for Financial Services

# TV Ad Exposures

FinancialServices

Recall 1-3 ad exposures

Recall 4+ ad exposures

Any (Net) 40% 32% 44%

Talked with others about the advertisement 14% 9% 17%

Considered purchasing the product or service 13% 9% 16%

Remembered you had seen the product or service advertised before (i.e., the newspaper, radio, or the Internet) 12% 10% 14%

Went online to learn more about the product or service 11% 7% 14%

Purchased the product or service online 7% 6% 7%

Visited a store or location to learn more 4% 2% 6%

Contacted the company in the advertisement 4% 2% 5%

Tried to find the advertisement on the Web 4% 3% 4%

Purchased the product or service in a store 3% 2% 3%

Looked in a newspaper or magazine to learn 3% 4% 2%

Sent someone an Email about the product or service 2% 2% 3%

Sent someone a Web-site link about the product or service 2% 0% 3%

Other action 3% 3% 4%

Did nothing 60% 68% 56%

Actions taken after seeing a Financial Services TV ad

Recall of Financial Services Ads in Other Media Recall of Financial Services Ads in Other Media is High, Compared to 15-Category Normsis High, Compared to 15-Category Norms

Recall of Financial Services Ads in Other Media Recall of Financial Services Ads in Other Media is High, Compared to 15-Category Normsis High, Compared to 15-Category Norms


Saw ad for same product or service in a media other than TV:

TotalFinancialServices

Index to Total

Any (Net) 46% 51% 111

On the Internet 20% 26% 130

In a newspaper 18% 19% 106

On the radio 12% 17% 142

In a magazine 11% 13% 118

In an Email offer 8% 9% 113

On a billboard or other outside sign 7% 9% 129

Other media 3% 3% 100

Did not see, hear, or read in any other media 35% 30% 86

Not sure 19% 20% 105

Financial ServicesFinancial ServicesAdvertising Impact at Various Stages ofAdvertising Impact at Various Stages of

the Consumer Purchase Funnelthe Consumer Purchase Funnel

Financial ServicesFinancial ServicesAdvertising Impact at Various Stages ofAdvertising Impact at Various Stages of

the Consumer Purchase Funnelthe Consumer Purchase Funnel

15

80%75%

67%61% 59%

53%

20%25%

33%39% 41%

47%

78%

64%57%

48% 48% 46%

22%

36%43%

52% 52% 54%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Media Influence (Any)-All Cat. No Media Influence-All Cat.Media Influence (Any)-Financial Services No Media Influence-Financial Services

Awareness Interest Consider Want to Visit Make Purchase Purchase Store/Website Purchase


Financial ServicesFinancial Services Media Impact at Various Stages of the Media Impact at Various Stages of the

Consumer Purchase FunnelConsumer Purchase Funnel

Financial ServicesFinancial Services Media Impact at Various Stages of the Media Impact at Various Stages of the

Consumer Purchase FunnelConsumer Purchase Funnel


Media cited by less than 3% of respondents were incorporated into the total for “other.”

45%34% 30% 24% 24% 22%

13%

9% 12%11% 11% 12%

5%

5% 5%

5%

5%

4%

4%

4%

4%

4%

3%

10%

9%12%

22%36%

43%52% 52% 54%

13%

3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Awareness Interest Consider Purchase Want to Purchase Visit Store/ Website Make Purchase

Television Internet Email Magazine Radio Newspaper Other No Media Influence

ConclusionsConclusionsConclusionsConclusions

Over one-third of consumers recall Financial Services television ads, and 37% of those consumers are in the market.

TV Ads for this category are considered informative and attention-getting. TV Ads lead to purchase consideration and

conversation, as well as research on advertised products.

Younger adults, who may be new consumers of financial products, are much more responsive to advertising and are more likely to take action after viewing ads.


ConclusionsConclusionsConclusionsConclusions

Repetition works: consumers who are exposed to a Financial Services ad 4+ times are much more likely to act upon the message.

Advertising has its greatest impact at the top of the purchase funnel, raising awareness of Financial products and services.

Television advertising is the dominant ad medium at the crucial Awareness stage, and at every subsequent stage in the purchase funnel.


How Media Works: Advertising and the Purchase Funnel For the Financial Services Category

Documents

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