Financial Services and Digital Influence · Sell Stocks Refinance home Buy Stocks Pay with cash...

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.


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.


5

Who Are Investors and What Are They Invested In?


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*


http://www.gallup.com/poll/190883/half-americans-own-stocks-matching-record-low.aspx

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


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").


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%


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+


June 2017

Year Over Year, Consumer Confidence in July was the Highest this Decade

11

Consumer ConfidenceJuly 2007 – 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


Consumer Confidence in Economy

65%

58%

39%

78%

70%

51%

18-34 35-54 55+

Adults Investors

Consumer Confidence in Economy


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


14

What Are Their Financial Plans?


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 Plans Vary by Age Group

16


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 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


Do you have any of the following credit cards?

(Check all that apply)


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?


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


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


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)


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 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


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%


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


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


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


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)


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?


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


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


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


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






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


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


Which of the following triggers you to start an online search? (Check all that apply)


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.



July 2017

Questions?

Kristina Sruoginis

IAB Research Director

[email protected]

mailto:[email protected]

Financial Services and Digital Influence · Sell Stocks Refinance home Buy Stocks Pay with cash...

Documents

Transcript of Financial Services and Digital Influence · Sell Stocks Refinance home Buy Stocks Pay with cash...