Post on 10-Oct-2020
Financial Services and Digital Influence
July 2017
Methodology
2
IAB conducted a custom analysis of syndicated Prosper Insight data to look at consumer and media behaviors of investors, defined as US
adults 18 or over who answered the question ‘Which of the following investments do you currently have?’ with ‘Annuities’, ‘Bonds’, ‘Company
sponsored 401k’, ‘Mutual fund investments’, ‘Stocks in companies’ or ‘Treasury Bills.’ Investors were compared to the general Adult 18 and over
population in the US. The report was supplemented with the media influence of investors.
The report is derived from the Prosper Insights & Analytics Monthly Consumer Study (May 2017) of 7,335 respondents surveyed online which
focused on the 4,839 respondents who invest and the annual 2017 Media Behaviors & Influence™ (MBI) Study of 16,644 respondents
surveyed online, focusing on the 6878 respondents who regularly make purchases online. The studies have a margin of error of 1%, at a 99%
confidence level.
Sample Sizes
• Prosper Insights & Analytics Annual Media Behaviors & Influence™ (MBI) Study
• 16,644 Adults 18+ representative of the general US population
• Prosper Insights & Analytics Monthly Consumer Survey conducted online in May 2017
• 7,335 Adults 18+ representative of the general US 18+ population
About Prosper Insight™Prosper Insight delivers customized timely market intelligence from various sources through its cloud-based technology-driven Integrated Solutions Platform. Solutions
are delivered on multiple devices (PC/Tablet/Smartphone) though the InsightCenter™ tool using diverse information sources relevant to clients’ business needs. www.GoProsper.com.
Financial Services and Digital Influence, IAB, July 2017
Summary
3
Who Are Investors and What Are They Invested In?
Over half (52%) of US adults are invested in the stock market via stocks, 401ks, IRAs or other investments. They tend to be 35 and older and earn over $75k.
Roughly half of investors have a 401k (55%) or IRA (46%). 40% own stocks directly and 35% invest in mutual funds.
Investors are financially secure: They report that they are saving enough, financially better off and financially stable.
Investors are saving more, providing investment opportunities.
Consumer confidence is up, particularly among investors, with July showing the highest rating this decade.
Over two-thirds of investors (69%) would invest in the stock market.
What Are Their Financial Plans?
Investors have immediate financial plans: In the next 3 months, one-third plan to increase savings or pay down debt, 12% plan to buy stocks and 5% plan to refinance.
Financial plans vary by age group: 18-34 and 35-54 year olds are more likely to refinance than to sell stocks while those 35 and older are more likely to pay down debt than increase savings.
Investors, especially 18-34 year olds, are more likely than the general population both to own credit cards and to open new accounts whether credit cards, savings, brokerage accounts or trading. 42% of 18-34 year old investors will open a new credit card within the year.
Financial Services and Digital Influence, IAB, July 2017
Summary
4
What Financial Services Do Investors Use? Are They Planning to Buy or Switch Insurance?
Use of financial services varies by age group with investors 55 and older more likely to use a bank or brokerage firm while investors 18-34 are more likely to use Insurance, S&Ls or check cashing firms.
Investors are more likely to buy or switch insurance (41%), especially auto (28%). This is especially true of 18-34 year olds, among whom nearly half (47%) are planning to buy or switch insurance, as are two-thirds (66%) of 18-34 year old investors.
What Media Has Influence on Consumers’ Financial Services Purchases?
Word of mouth, internet, TV and articles have the most influence on consumers’ financial services and insurance purchases: The internet has more influence than TV for financial services and insurance and is the #1 influence on 18-34 year olds.
Digital media, especially the internet, influence financial/insurance purchases.
Search is also important in consumers’ financial services and insurance Decisions: Roughly two-thirds of investors (64%) and half (53%) of all consumers search online for financial info or services.
Both traditional and digital media inspire online search, illustrating the importance of cross media advertising.
Financial Services and Digital Influence, IAB, July 2017
5
Who Are Investors and What Are They Invested In?
Financial Services and Digital Influence
Over Half of US Adults Own Stocks
6
52% of the US population is invested in the stock market
US adults 35 and older and those who earn over $75k are more likely to invest
*Source: Gallup, March 2017
79%
50%
23%
56%
62%
38%
52%
21%
50%
77%
44%
38%
62%
48%
>$75k
$30k-$74,999
<$30k
Salary:
55+
35-54
18-34
US Adults
Investors Non-Investors
US Adults Invested in the Stock Market
by Age and Income*
Financial Services and Digital Influence, IAB, July 2017
Roughly Half of Investors Have a 401k or IRA
7
5%
25%
26%
35%
40%
46%
55%
Treasury Bills
Bonds
Annuities
Mutual fund investments
Stocks in companies
Individual Retirement Account (IRA)
Company sponsored 401K
Consumer Investments
Investors
Which of the following investments do you currently have? (Check all that apply)
(among US adults invested in the following)
40% own stocks directly and 35% invest in mutual funds
Financial Services and Digital Influence, IAB, July 2017
Consumer Investors Are Financially Secure
8
45%
83%
42%
54%
87%
49%
Agree/Completely Agree Same/Better Off Somewhat/VerySecure/Financially Stable
Adults Investors
How do you feel about the following statement?
"I am saving enough to meet my future needs."Regarding your personal financial situation, compared
to this time last year, are you...
How do you feel about your overall
financial security? Please tell us using a scale of
1 ("Very insecure/financially vulnerable")
to 5 ("Very secure/financially stable").
Financial Services and Digital Influence, IAB, July 2017
Investors are…
Saving Enough Financially Better Off Financially Stable
83%
87%
Adults Investors
Investors are Saving More, Providing Investment Opportunities
9
Overall, do you plan to save more, the same or less than you did last year?
(Same/More)
Amount SavedSaving Same/More
16%
10%
44%
42%
28%
32%
10%
12%
3%
3%
Adults
Investors
0% 1 to 10% 11 to 20% 21 to 50%
How much of your annual income do you estimate you will save this year
(including any money saved towards retirement, education, liquid savings, etc.)?
Over 50%
47% Save Over 10%
41% Save Over 10%
Financial Services and Digital Influence, IAB, July 2017
Consumer Confidence is Up From a Year Ago
10
Consumer Confidence
Which one of the following best describes your feelings about chances for a strong economy during the next 6 months? (Confident/Very Confident)
Adults 18+
Financial Services and Digital Influence, IAB, July 2017
June 2017
Year Over Year, Consumer Confidence in July was the Highest this Decade
11
Consumer ConfidenceJuly 2007 – July 2017
Which one of the following best describes your feelings about chances for a strong economy during the next 6 months? (Confident/Very Confident)
Financial Services and Digital Influence, IAB, July 2017
52%
58%
US Adults 18+ US Investors
Investors are Even More Confident in a Strong Economy Over the Next 6 Months
12
Over three-quarters of 18-34 year old investors are confident in the economy
70% of 35-54 year old investors also expect a strong economy
Which one of the following best describes your feelings about chances for a strong economy during the next 6 months? (Confident/Very Confident)
Consumer Confidence in Economy
65%
58%
39%
78%
70%
51%
18-34 35-54 55+
Adults Investors
Consumer Confidence in Economy
Financial Services and Digital Influence, IAB, July 2017
May 2017
26% 43% 25% 6%
Investor Confidence in the Stock Market
Would definitely invest (You are Very Confident)Would probably invest (You are Confident)Would probably not invest (You have little confidence)
Over Two-Thirds of Investors Would Invest in the Stock Market
13
Please tell us your feelings towards investing in the stock market? (Confident/Very Confident, Would Probably/Definitely Invest)
Would Definitely Invest Would Probably Invest Would Probably Not Invest
WouldDefinitely
Not Invest
69% Would Invest in the Stock Market
Financial Services and Digital Influence, IAB, July 2017
14
What Are Their Financial Plans?
Financial Services and Digital Influence
Investors Have Immediate Financial Plans
15
4%
4%
8%
15%
31%
29%
5%
6%
12%
16%
32%
33%
Refinance home
Sell Stocks
Buy Stocks
Pay with cash more often
Pay down debt
Increase savings
US Investors US Adults
Which of the following financial steps are you planning to take in the next 3 months?
(Check all that apply)
One-third plan to increase savings or pay down debt
12% plan to buy stocks and 5% plan to refinanceConsumer Financial Plans
Financial Services and Digital Influence, IAB, July 2017
Financial Plans Vary by Age Group
16
US Investors US Adults
Adults 18+ 18-34 35-54 55+
18-34 and 35-54 year olds are more likely to refinance than to sell stocks
35 year olds and older are more likely to pay down debt than increase savings
4%
4%
8%
15%
31%
29%
5%
6%
12%
16%
32%
33%
Refinancehome
Sell Stocks
Buy Stocks
Pay withcash more
Pay downdebt
Increasesavings
Which of the following financial steps are you planning to take in the next 3 months? (Check all that apply)
4%
5%
8%
15%
28%
34%
5%
7%
12%
16%
32%
35%
Sell Stocks
Refinancehome
Buy Stocks
Pay withcash more
Increasesavings
Pay downdebt
5%
6%
11%
18%
33%
42%
7%
8%
15%
21%
36%
46%
Sell Stocks
Refinancehome
Buy Stocks
Pay withcash more
Pay downdebt
Increasesavings
1%
4%
5%
12%
19%
27%
2%
6%
8%
11%
21%
26%
Refinancehome
Sell Stocks
Buy Stocks
Pay withcash more
Increasesavings
Pay downdebt
Financial Services and Digital Influence, IAB, July 2017
Financial Plans by Age Group
Investors are More Likely to Own Credit Cards
17
1%
4%
22%
13%
18%
21%
36%
53%
2%
7%
8%
21%
27%
29%
47%
69%
Diner's Club
American Express - Blue
I do not have a credit card
American Express
Discover Card
Store Credit Card
Master Card
Visa
US Investors US Adults
Do you have any of the following credit cards?
(Check all that apply)
Financial Services and Digital Influence, IAB, July 2017
20% of investors and
16% of US adults
plan to open a credit card
18
What Financial Services Do Investors Use? Do They Plan to Switch
Insurance?
Financial Services and Digital Influence
Investors are Planning to Open New Accounts
19
5%
7%
15%
16%
9%
11%
16%
20%
Open a broker/trading account
Start trading in the stock market
Open a bank account
Open a credit card account
US Investors US Adults
Are you planning on doing any of the following financial activities in the next 12 months? (Check all that apply)
1 in 5 is planning to open a new credit card account
Roughly 1 in 10 is planning to start trading or open a trading account
Financial Services and Digital Influence, IAB, July 2017
Adults 18+ 18-34 35-54 55+
5%
7%
15%
16%
9%
11%
16%
20%
Open abroker/trading
account
Start trading inthe stock market
Open a bankaccount
Open a creditcard account
8%
12%
28%
29%
18%
23%
36%
42%
18-34 Year Old Investors are Much More Likely to Open New Accounts
20
Financial Plans by Age GroupUS Investors US Adults
18-34 year old investors are more than twice as likely than older investors to open new accounts
Nearly half of 18-34 year old investors plan to open a new credit card
6%
7%
14%
16%
11%
11%
16%
22%
1%
4%
5%
12%
2%
6%
8%
11%
Are you planning on doing any of the following financial activities in the next 12 months? (Check all that apply)
Financial Services and Digital Influence, IAB, July 2017
Investors Use a Variety of Banking and Financial Services
21
4%
9%
11%
15%
27%
74%
5%
13%
19%
33%
35%
83%
Check Cashing Companies
Savings & Loans
Insurance Companies
Brokerage Firms
Credit Union
Bank
Investors Adults 18+
Which of the following do you use for banking & financial services? (Check all that apply)
Financial Services and Digital Influence, IAB, July 2017
Financial Services Used
7%
14%
11%
7%
23%
71%
12%
23%
23%
21%
35%
81%
4%
9%
11%
15%
27%
74%
5%
13%
19%
33%
35%
83%
Check CashingCompanies
Savings &Loans
InsuranceCompanies
Brokerage Firms
Credit Union
Bank
Adults 18+ 18-34 35-54 55+
Use of Financial Services Varies by Age Group
22
US Investors US Adults
Older (55+) investors more likely to use brokerage firms
Younger (18-34) investors more likely to use insurance companies, S&Ls, check cashing companies
4%
8%
11%
14%
27%
73%
5%
12%
19%
30%
35%
82%
1%
5%
10%
22%
30%
78%
1%
7%
16%
43%
34%
84%
Financial Services and Digital Influence, IAB, July 2017
Which of the following do you use for banking & financial services? (Check all that apply)
Financial Services Used
Investors are More Likely to Buy or Switch Insurance, Especially Auto
23
5%
10%
12%
16%
23%
35%
6%
14%
19%
20%
28%
41%
Renter's insurance
Life Insurance
Homeowner's insurance
Health insurance
Auto Insurance
Any Insurance
US Investors US Adults
Are you planning on buying or switching any of the following types of insurance in the next 12 months? (Check all that apply)
4 in 10 investors will shop for insurance this year
Over one-third of US adults also plan to buy or switch insurance
Financial Services and Digital Influence, IAB, July 2017
Insurance Plans
3%
5%
11%
9%
15%
21%
2%
6%
15%
11%
18%
24%
5%
10%
12%
16%
23%
35%
6%
14%
19%
20%
28%
41%
Renter's
Life
Homeowners
Health
Auto
AnyInsurance
6%
12%
13%
16%
25%
37%
6%
16%
21%
21%
30%
43%
Adults 18+ 18-34 35-54 55+
18-34 Year Olds are Most Likely to Buy or Switch Insurance
24
US Investors US Adults
Two-thirds of 18-34 year old investors and about half of all 18-34 year olds are planning to buy or switch insurance
Auto insurance is the most common insurance type that consumers will buy this year
Are you planning on buying or switching any of the following types of insurance in the next 12 months? (Check all that apply)
Financial Services and Digital Influence, IAB, July 2017
Insurance Purchases Planned by Age Group
8%
14%
12%
24%
30%
47%
14%
25%
26%
35%
44%
66%
25
Which Media Influence Consumers’ Financial Services Purchases?
Financial Services and Digital Influence
Adults 18+ 18-34 35-54 55+
Word of Mouth, Internet, TV and Articles Have the Most Influence on Financial Services/Insurance Purchases
26
Please tell us which of the following media influences your Financial Services/Insurance purchases:
14%
20%
21%
16%
24%
25%
TV/Broadcast
Internet
Word of Mouth
12%
20%
23%
14%
23%
27%
TV/Broadcast
Word of Mouth
Internet
8%
10%
16%
10%
12%
18%
Read Article onProduct
Internet
Word of Mouth
US Investors US Adults
The internet is the #1 influence on 18-34 year olds for Financial Services and Insurance
The internet has more influence than TV for Financial Services and Insurance purchases
11%
18%
19%
13%
20%
22%
TV/Broadcast
Internet
Word of Mouth
Financial Services and Digital Influence, IAB, July 2017
Top Media Influences on Financial Services/Insurance Purchases by Age Group
Digital Media, Especially the Internet, Influence Financial/Insurance Purchases
27
20%
8%
6%5%
4% 4%
3% 3%2%
18%
7%6%
5%4%
3%3% 3%
2%
Internet Email Advertising Social Media(Facebook,
Twitter,Instagram,
Pinterest, etc.)
Mobile Websitesand Apps
(Smartphone,Tablet)
Video on MobileDevice orComputer
Blogs Web Radio Text Messagingon Mobile Device
Online VideoGame Advertising
Digital Media Influence on Financial Services/Insurance Purchases
US Investors US Adults
Please tell us which of the following media influences your Financial Services/Insurance purchases:
Younger investors are more likely to be influenced by digital media27% of 18-34investors
24% of 35-54investors
11% of 18-34investors
10% of 35-54investors
10% of 18-34investors
9% of 35-54investors
Financial Services and Digital Influence, IAB, July 2017
53%
64%
US Adults 18+ US Investors
Nearly Two-Thirds of Investors Search Online for Financial Info or Services
28
18-34 year olds especially search online for financial info
35-54 year olds are also more likely than average to search online for financial info and services
Please tell us how often you search online for the following (Regularly/Occasionally).
Regularly means routinely, as a set pattern; Occasionally means no set pattern, as mood suits):
Financial Information/ServicesSearch for Financial Info/Services
65%
58%
39%
78%
70%
51%
18-34 35-54 55+
Adults Investors
Financial Services and Digital Influence, IAB, July 2017
Both Traditional and Digital Media Inspire Online Search, Illustrating the Importance of Cross Media Advertising
29
41%
31%
28%26%
24% 23% 23%21% 21%
17%17%
13%
9% 9% 8%
39%
29%
23%26%
24%21%
18%19%
16%
18%
15%14%
9%10%
8%
Online Search Triggers
US Investors US Adults
Which of the following triggers you to start an online search? (Check all that apply)
Financial Services and Digital Influence, IAB, July 2017
Online Search Triggers Vary by Age Group
30
23%
27%
27%
31%
34%
43%
27%
28%
28%
34%
37%
45%
Email Advertising
TV / Broadcast
Social Media
Internet advertising
Cable TV
Face-to-Face
18-34 Search Triggers
I18-34 A18-34
23%
26%
22%
28%
32%
40%
26%
27%
27%
30%
35%
44%
Email Advertising
Internet advertising
Read an Article
Cable TV
TV / Broadcast
Face-to-Face
35-54 Search Triggers
I35-54 A35-54
18%
18%
22%
25%
29%
34%
19%
23%
27%
28%
29%
35%
Direct Mail
Magazine
Newspaper
Read an Article
TV / Broadcast
Face-to-Face
55+ Search Triggers
I55+ A55+Financial Services and Digital Influence, IAB, July 2017
Implications
31
Implications
Consumer confidence is up and more and more consumers are investing in the market in some way: Stocks, 401ks, IRAs, bonds or mutual funds. These investors are likely to use a variety of financial services. Moreover, they are planning to open new accounts and to buy or switch insurance. In short, they provide a lucrative opportunity for financial service and insurance advertisers seeking to reach their target audience.
US consumers, especially those invested in the stock market, say that the internet is their top influence after word of mouth in financial service or insurance purchases. In fact, the internet holds more sway than TV over their financial service purchase decisions. Younger investors are even more influenced by digital media, saying the internet outweighs word of mouth as their #1 influence in insurance and financial service purchases.
Most investors (and about half of consumers) say that they’re likely to do online searches about financial and insurance companies. They also report that a variety of media types, both online and traditional, influence their online searches. This emphasizes the importance of including digital media in cross media ad campaigns. While both traditional and digital media inspire online searches, the internet is most likely to influence their financial services purchases, as reported by consumers.
Financial Services and Digital Influence, IAB, July 2017
Financial Services and Digital Influence
July 2017
Questions?
Kristina Sruoginis
IAB Research Director
Kristina@iab.com