When we breakdown the allocation of budget by sector, there are some interesting trends emerging. Here we discuss each sector and the observations within each.
There will be increased spend across digital channels and web development, largely at the expense of traditional advertising and brand development. New technologies are yet to make an impact.
There is more of an appetite to embrace new technologies than other sectors, and there will be a big focus on content creation, digital marketing and web development this year. Again, this will be at the expense of traditional advertising and brand development.
Like retail banking, fintechs are early adopters of new technologies. Over 80% of respondents are also planning to spend more on digital marketing, and over 60% more on social media and content. Interestingly a third of fintechs are bucking the trend and planning to spend more on traditional advertising.
There will be a large downturn in spend on traditional advertising, while digital spend is on the increase. There appears to be a bigger appetite for new technologies than other sectors, but they are not planning to spend more than last year, and in fact some will spend less on AR/ VR, perhaps implying that these channels have been tested by some businesses with limited success.
There is less of an appetite to spend more on digital advertising and content distribution than other sectors. There is a focus on web development and user experience, and they are waking up to using new, customer experience technologies. Spending on PR is largely unchanged.
Most channels will benefit from more spend this year – including traditional advertising. Customer experience technologies are also starting to appear on the radar of mortgage companies.
Several channels will receive less spend this year – particularly traditional advertising and brand development. There is currently little appetite for new, customer experience technologies like AR and VR, while content and digital marketing will be the biggest benefactors.
Over 50% of respondents said they will spend more or the same on voice activated technologies this year, and there is also more adoption of AR and VR than other sectors, meaning retail banking appears to be leading the charge in customer experience. These highly measurable, experience-led technologies come at the expense of traditional advertising and brand development.
With 48% of our respondents saying they will spend more on content this year, yet 55% saying they can’t demonstrate ROI on this channel, we asked our industry experts what they thought about the future of content, and whether it was just a marketing bandwagon.
Our panel of senior marketers were categorical in their support for content as part of delivering marketing’s objectives. Content gives you the opportunity to tell your story on your terms and can be particularly useful for smaller companies with a lesser-known brand name. It can be used in a multitude of ways – from driving customers and prospects to the website, to creating brand awareness, or offering service tips and help for customers. Some forms of content will inevitably be easier to measure than others, but every piece should have a clear purpose.
Most sectors are planning to spend more money on both digital marketing and content distribution this year, but which digital channels are they planning to use, and does this differ by sector?
The core social media channels (Facebook, YouTube, Twitter and LinkedIn), are still favoured across financial services. Instagram is rising in popularity, but WeChat and WhatsApp are largely unused. Two thirds of marketers are using the online channels offered through the financial trade media, and over half are using those offered by consumer facing financial titles. Meanwhile, less targeted channels such as generalist newspapers and broadcast channels are proving less popular.
Chart 12 shows the breakdown of online channel use by sector. Some of the key findings include:
