Kantar Media - Financial Services IAB Canada Report

Financial Services
Canada IAB Report

January 2013

www.KantarMediaNA.com

© 2013 Kantar Media

Outline

•

Kantar Media Overview

– Who We Are
– Methodology

•
•

State of the Industry
Overall Industry Digital Ad Expenditure

– By Segment
– By Advertiser

•

Ad Trends by Financial Services Category

– Consumer Banking
– Credit Cards
– Investment & Retirement Products

•

Website Categories Where Digital Budgets Are Invested



2

Kantar Media Overview



3

Kantar Media
A World Leader in Marketing, Media and Advertising Information

•
•
•
•

#1 worldwide in advertising monitoring
(adex and creatives)
#1 worldwide in single source market
research with TGI
#1 in TV audience measurement systems
(TAM) outside US
#1 worldwide in news monitoring and media
evaluation



4

Kantar Media’s
Provider of Marketing Intelligence Since 1926

Globally, we measure:

•
•
•
•

96% of all ad expenditures
50+ countries
2M consumers’ online behavior

1 million digital TV HH’s



5

Methodology
Online Display Advertising

•
•

Continuous monitoring of 600 Canadian web sites
Robust spidering technology

– Navigates through sites and collects all display advertising on a page
– Automatically matches images against database of previously identified ads
– New ads are classified, entered into the database and available for future matching

•
•

Site page views are used to estimate ad impressions
Rate card CPMs applied to ad impressions to estimate ad expenditures



6

Overall Industry Digital Ad Expenditure



7

Canadian Confidence Holds Steady

•

Though pressure from the issues impacting the U.S. and the Eurozone are clouding
the outlook, Canada enjoys highly efficient markets, well-functioning and transparent
institutions, and excellent infrastructure.

•

Canada’s financial system has benefited from comparatively low exposure to
investment banking risks, making it the world’s most sound banking system*

•

“Despite the uncertainty, Canadians continue to feel confident that the economic
situation is basically under control. The Present Situation Index, which measures how
people feel about the economy right now, also remained virtually unchanged.”

-

Norman Baillie-David, SVP of TNS in Canada and director of the research firm’s monthly
tracking study

*World Economic Forum. 2012. <http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2012-13.pdf>
TNS. December 20, 2012. <http://www.tnscanada.ca/news/2012.12.20-CCI-Tracking-2012-12.pdf>.



8

Digital Spending By Financial Segment
Digital Ad Spend
Segment

Full Year
2012 (000)

Full Year
2011 (000)

% Change

% Share
2012

Consumer Banking

$32,121.3

$30,391.6

5.7%

21.2%

Credit Cards

$41,506.9

$28,605.2

45.1%

27.4%

Investing/Retirement

$31,401.1

$24,684.8

27.2%

20.8%

Insurance

$12,946.6

$7,129.4

81.6%

8.6%

Lending

$11,396.6

$5,138.8

121.8%

7.5%

Other

$21,872.7

$31,561,6

-30.7%

14.5%

$151,245.2

$127,511.4

18.6%

100.0%

Grand Total

Competition for new customers and enhanced interest in digital has led to growth
across all major segments.
Source: Kantar Media, Jan-Dec 2011, Jan-Dec 2012



9

Top 10 Canadian Financial Service Advertisers
Digital Ad Spend

Rank

Advertiser

Full Year
2012 (000)

Full Year
2011 (000)

% Change

1

Toronto-Dominion Bank

$19,168.1

$12,573.9

34.4%

2

Capital One Financial Corp.

$18,909.0

$14,291.0

24.4%

3

American Express Co.

$13,475.7

$16,341.5

-21.3%

4

Bank of Montreal

$11,674.3

$2,255.2

80.7%

5

RBC Financial Group

$11,612.8

$7,364.9

36.6%

6

Canadian Imperial Bank Of
Commerce

$6,776.9

$5,063.1

25.3%

7

HSBC Holdings Plc

$5,636.5

$7,046.5

-25.0%

8

Bank Of Nova Scotia

$5,547.0

$4,014.9

27.6%

9

Manulife Financial Corp.

$3,487.3

$1,819.3

47.8%

Experian Group LTD

$2,262.7

$29.1

98.7%

10




10

Consumer Banking Advertisers



11
11

Consumer Banking Advertising Takes a Back Seat

Consumer banking advertising…

•
•
•

is responsible for 21.2% of financial services
digital ad spend
totals $32.1 million (Full Year 2012)
is up 5.7% in 2012 as compared to 2011

With the six largest banks controlling 85% of the
market, the Canadian market is highly consolidated,
leading to tough competition for customers.
Stagnant revenues combined with higher costs
driven by Bank Act regulations have encouraged cost
cutting and reductions to marketing budgets.

Ernst & Young. 2012. <http://www.ey.com/Publication/vwLUAssets/Making_the_right_moves_-_Global_banking_outlook_2012-2013/$FILE/Making-the-rightmoves_Global-banking-outlook-2012-13.pdf>.
Canadian Bankers Association. 2012. <http://www.cba.ca/en/media-room/50-backgrounders-on-banking-issues/123-credit-cards>.



12

Top 5 Consumer Banking Advertisers
Digital Ad Spend

Advertiser

Full Year
2012 (000)

Full Year
2011 (000)

% Change

Capital One Financial

$9,472.9

$9,369.6

-1.1%


$5,421.8

$3,392.7

-37.4%

RBC Financial Group

$4,117.4

$3,566.2

-13.4%

HSBC Holdings

$2,666.1

$3,433.5

28.8%

Canadian Imperial Bank Of Commerce

$2,356.9

$2,599.9

10.3%




13

Consumer Banking Messaging Strategies
New Answers to a Market Challenge
Challenges

•

A saturated market has made it difficult for banks to grow their consumer base,
creating a very competitive environment in which leading banks are fighting an
aggressive battle to win and keep customers

Creative Solutions

•

To prevail in this competitive industry, banks are trying a variety of approaches to
stand out, including:

– Providing direct incentives for customers to switch, like cash and gift certificates
– Emphasizing product differences
– Focusing on service quality

•

However, as banks quickly copy strategies used by rivals, the ultimate result has
been a significant amount of competitive imitation



14

“Reason To Switch” Campaign
TD Canada Trust

•
•

Cash incentives are used to capture new customers
Service is used as a differentiator, including the convenience of extended branch hours
and testimonials about quality customer service

English

French

Source: Kantar Media, 2012



15

Demonstrating Depth and Breadth
Royal Bank of Canada

•

Student Loans
VIP Banking
Canada’s largest bank showcases its diverse offerings with consistent message branding

1.Student Loans 2.Interest Rates 3. VIP Banking




16

Emphasizing Community Involvement and Outreach
Scotiabank Takes A Different Approach

English

•

French

Scotiabank puts itself outside the competitive fray by promoting its charitable outreach in the
“Richness Project” campaign




17

Online and Mobile Banking
De-emphasized in 2012 Digital Efforts

•
•
•

As online banking has become mature (according to a 2012 study by the CBA, 67% of
adults reported using it), digital spending for online/mobile banking has fallen
Online and mobile banking accounted for 3% share of all digital spend on Banking
Services in 2012 vs. 5% share in prior year – a 37% decline in ad spend volume
Most of the spending was by TD Bank; National Bank of Canada; Bank of Montreal


Canadian Bankers Association. November 9, 2012. <http://www.cba.ca/en/media-room/50-backgrounders-on-banking-issues/125-technology-and-banking>.



18

Credit Card Advertisers



19

Credit Card Advertising Bounces Back

Credit Card advertising…

•
•

is responsible for 27.4% of financial services digital
ad spend
totals $41.5 million (Full Year 2012) up 45.1% as
compared to 2011

The category is characterized by:

•
•
•

Slow growth rates for cards in circulation and sales
volume
Competition among card issuers for high-value
customers
A wide variety of card products that creates a need to
differentiate through marketing

Canadian Bankers Association. 2012. <http://www.cba.ca/en/media-room/50-backgrounders-on-banking-issues/123-credit-cards>.



20

Top 10 Credit Card Advertisers
Digital Ad Spend
Advertiser
American Express
Capital One Financial
TD Bank
RBC Financial Group
Bank Of Montreal
Visa Inc.
Bank Of Nova Scotia

Full Year
2012 (000)

Full Year
2011 (000)

% Change

$13,057.5
$9,295.8
$6,838.1
$2,107.9
$2,078.1
$1,880.9
$1,732.7

$16,249.7
$3,240.6
$813.0
$943.4
$121.2
$2,176.3
$356.8

-19.6%
186.9%
741.1%
123.4%
1615.2%
-13.6%
385.6%

Canadian Imperial Bank Of Commerce

$1,383.6

$1,393.1

-0.7%

Bank Of America Corp
Exxon Mobil Corp

$1,210.2
$766.6

$336.7
$0.0

259.4%
---


•

Bank of Montreal increased its digital spend by 1,615% from 2011 to 2012.

•

While AmEx and Visa decreased their spend during the same time period.



21

Credit Card Advertising Strategies

•
•

Credit card marketers are sticking to
what works and have not changed their
basic marketing strategies
Primary messaging focus

–
–
–
–

Rewards programs
Cash back
Interest rates
Rebuilding credit



22

Reward Cards

American Express

RBC Avion
RBC Avion Infinite
Card – Travel Rewards
ch

•

American Express offers incentives to
new customers:

– Bonus points in its rewards program
– No card fee for first year

•

•

RBC focused on a longer-term reward
incentive

RBC encouraged its card usage to earn
travel rewards




23

Cash Back Offers

MBNA Smart Cash

RBC Cash Back Card

•

•

MBNA’s cash back reward emphasized
two common household expenses (gas
and groceries)

•

RBC offered a less generous reward but
supplemented this with no annual fee

MBNA also promoted a higher cash back
reward than RBC



24

Building Credit

Capital One

•

RBC Royal Bank

•

RBC targeted people who have not built
their credit history

•

Capital One encouraged people who
have bad credit to rebuild it with their
guaranteed approval incentive

RBC emphasized its low requirements to
obtain credit




25

Investment & Retirement Product Advertisers



26

Investment and Retirement Product Advertising

Investment & Retirement Product advertising is…

•
•
•

responsible for 20.8% of financial services
digital ad spend
totaling $31.4 million (Full Year 2012)
up 27.2% in 2012 as compared to 2011

While Canadian investment companies fared
comparatively well in the face of a global
recession, less optimistic consumer sentiment
has led to campaigns focused on securing the
future.



27

Digital Spend By Sub-Segments
Full Year 2012

29%

22%

31%

17%

Online Brokerages
Planning & Advisory Services

Advertisers in the investment and
retirement category spent most of their
digital ad dollars in online brokerage ads in
2012.
They also invested in online ads for
General Promotion, Investment Products,
and Planning and Advisory Services.
Planning and advisory services was the
least advertised sub-segment during the
same time period.

Investment Products
General Promotion



28

Top10 Investment & Retirement Advertisers
Digital Ad Spend
Advertiser

Full Year 2012
(000)

Full Year 2011
(000)

% Change

Bank Of Montreal

$5,629.0

$984.2

471.9%


$3,428.0

$6,376.5

-46.2%

Manulife Financial Corp

$3,186.5

$1,698.2

87.6%

RBC Financial Group

$2,976.9

$1,256.4

136.9%

Fidelity Canada

$1,146.4

$134.0

755.4%

Bank Of Nova Scotia

$1,066.0

$2,053.6

-48.1%

BlackRock Inc

$1,030.8

$449.8

129.2%

HSBC Holdings Plc

$875.7

$1,024.5

-14.5%

Dynamic Fund Of Canada Ltd

$205.8

$1,443.6

-85.7%

$35.3

$1,216.3

-97.1%

Jones Financial Cos Llp

•
•

Fidelity Canada increased its digital ad spend by 755% from 2011 to 2012.
Meanwhile, TD Bank and Bank of Nova Scotia decreased their spending during the same
time period.


29

Investment and Retirement Product Advertising Messages
Taking Care of Today and the Future, Not Striking It Rich

•

Online brokerages provide…

– Value through monetary incentives for opening new
accounts

– Powerful tools to help investors
– trust for investors

•

Investment Products/Services provide…

– Long-term financial planning (retirement or nonretirement)

– Financial expertise and knowledgeable staff
– Growing emphasis on putting customer’s needs first



30

Online Brokerages

Bank of Montreal

Royal Bank of Canada

•

•

•

Bank of Montreal adds value by offering
money incentives
It emphasizes its trusted status with
other Canadian investors

•

Royal Bank of Canada highlights its
client service award with the goal of
gaining trust and approval
Easy-to-use factor comes into play with
comparison to online shopping




31

Planning and Advisory Services

Scotiabank

RBC

TD
TD Canada Trust
used the fear factor
in their messaging,
encouraging
prospects to choose
TD for advice on
retirement

Bank of Nova Scotia
messaging focused on
showing reliability and
knowledge of a long-term
support staff

RBC depicted the
importance of the
prospect’s plan and how it
might shift throughout the
years




32

Where Digital Budgets Are Invested



33

Segment Spend Allocation By Site Type
Full Year 2012
Site Category
Total (000)

Credit Cards

Consumer
Banking

Investing/
Retirement

Insurance

$41,506.9

$32,121.3

$31,401.1

$12,946.6

100.0%

100.0%

100.0%

100.0%

Business, Finance,
Investing

12.4%

21.3%

53.3%

16.9%

General Interest/
Entertainment

24.0%

24.5%

13.0%

12.0%

Local News & Guides

19.7%

7.2%

6.5%

14.2%

News & Current Events

12.8%

11.2%

6.7%

8.8%

All Other

31.1%

35.8%

20.5%

48.1%

Total - % Share

Source: Kantar Media, Jan-Dec 2012

•

Investing/retirement segment was highly targeted to prospects on sites relating to business,
finance, and investing – a natural fit for this type of product

•

Credit cards, consumer banking, and insurance segments were marketed to a broader mass
audience on general interest/news sites


34

Master The Momentum of Multimedia

Thank You!
Kantar Media | Intelligence
ClientSupport@kantarmedia.com
(347)748-9551



35

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