Study Highlights Impact of Online Media on Financial Services Sector
Internet Ads have profoundly affected the way consumers
choose and interact with financial services
from Doubleclick, Inc.
are more perfectly suited to online transactions than financial
services. With no shipping costs or lost packages, products like
investment services, online banking and credit cards have lent themselves
well to the global, always-on benefits of the online space. According
to estimates from the Electronic Payments Association, U.S. Internet
users made close to 700 million online bank payments in 2003 for
a total of more than $200 billion.
NOTE: Doubleclick is a vendor of AICPA’s Insider e-newsletters
undertook an analysis of The Impact of Online Media On the Financial
Services Sector, based on data from DoubleClick (Ad Serving and
Email Trend Reports, Consumer Email Study IV, and Touchpoints II)
and Nielsen//Netratings (NetView and AdRelevance.) The results provide
a snapshot of the latest consumer expectations and competitive marketing
practices in the realm of financial services including consumer
banking, credit cards, mortgages, insurance and investments.
Some of the
key findings of the study were:
Internet Ads have profoundly affected the way consumers choose
and interact with financial services. DoubleClick's 2004
Touchpoints II-a survey of 2,000 consumers about recent purchases-asked
those who opened credit card or banking accounts in the last six
months how they first learned about the service they ultimately
selected. 11% selected "Internet ad", the
third-most popular choice after only "postal
mail" and "word-of-mouth" out of 12 possible options.
In the case of those who had purchased mortgages and
investment products, 18% chose "Internet ad," the number-one
Consumers use online financial services at twice the rate new
users go online. By June of 2004, 80 million users were
using the Internet for some type of financial service, including
banking, managing and paying credit cards, investments, and securing
loans. That is more than half of the total of Americans who are
online (149 million).
growth in online financial services mirrors the growth in high-speed
bandwidth. High-speed Internet connections have spurred
an increase in visits to financial service sites. By June of 2004,
users were averaging 11 visits a month to some type of financial
site, an increase of 21% in 18 months.
users under 40 conduct financial research and transactions online
more often than older counterparts. Research from Forrester
Research and the Online Publishers Association (OPA) both reached
the conclusion that younger Internet users consume more financial
services online than older demographics. Forrester determined
that of consumers who applied for credit products in 2003, 48%
of "Generation Y'ers" (age 18-28) and 42% of "Generation
X'ers" (age 29-39), had conducted research online first,
compared to only 30% of "Baby Boomers" (40-57) and 16%
of Seniors (58+).