Financial Services Canada IAB Report · 24-01-2013 · HSBC Holdings $2,666.1 $3,433.5 28.8%...

www.KantarMediaNA.com © 2013 Kantar Media

Financial Services

Canada IAB Report

January 2013


• 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

Outline

2


Kantar Media Overview

www.KantarMediaNA.com 3 © 2013 Kantar Media


• #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

Kantar Media

A World Leader in Marketing, Media and Advertising Information

4


Kantar Media’s

Provider of Marketing Intelligence Since 1926

5

Globally, we measure:

• 96% of all ad expenditures

• 50+ countries

• 2M consumers’ online behavior

• 1 million digital TV HH’s


• 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

Methodology

Online Display Advertising

6


Overall Industry Digital Ad Expenditure



• 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

Canadian Confidence Holds Steady

8

*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>.


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%

Grand Total $151,245.2 $127,511.4 18.6% 100.0%

9

Digital Spending By Financial Segment

Digital Ad Spend

Source: Kantar Media, Jan-Dec 2011, Jan-Dec 2012

Competition for new customers and enhanced interest in digital has led to growth

across all major segments.


Top 10 Canadian Financial Service Advertisers

Digital Ad Spend

10

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%

10 Experian Group LTD $2,262.7 $29.1 98.7%



Consumer Banking Advertisers

11 www.KantarMediaNA.com © 2013 Kantar Media

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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.

12

Ernst & Young. 2012. <http://www.ey.com/Publication/vwLUAssets/Making_the_right_moves_-_Global_banking_outlook_2012-2013/$FILE/Making-the-right-

moves_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>.


Advertiser Full Year

2012 (000)

Full Year

2011 (000) % Change

Capital One Financial $9,472.9 $9,369.6 -1.1%

Toronto-Dominion Bank $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%

Top 5 Consumer Banking Advertisers

Digital Ad Spend

13



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

Consumer Banking Messaging Strategies

New Answers to a Market Challenge

14


• 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

French

“Reason To Switch” Campaign TD Canada Trust

15

English

Source: Kantar Media, 2012

www.KantarMediaNA.com

1. 2. 3.

© 2013 Kantar Media

Student Loans

Interest Rates

VIP Banking

Demonstrating Depth and Breadth

Royal Bank of Canada

16

Student Loans VIP Banking


• Canada’s largest bank showcases its diverse offerings with consistent message branding


French

Emphasizing Community Involvement and Outreach

Scotiabank Takes A Different Approach

17

English


• Scotiabank puts itself outside the competitive fray by promoting its charitable outreach in the

“Richness Project” campaign


• 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

Online and Mobile Banking

De-emphasized in 2012 Digital Efforts

18

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



Credit Card Advertisers



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

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


Advertiser Full Year

2012 (000)

Full Year

2011 (000) % Change

American Express $13,057.5 $16,249.7 -19.6%

Capital One Financial $9,295.8 $3,240.6 186.9%

TD Bank $6,838.1 $813.0 741.1%

RBC Financial Group $2,107.9 $943.4 123.4%

Bank Of Montreal $2,078.1 $121.2 1615.2%

Visa Inc. $1,880.9 $2,176.3 -13.6%

Bank Of Nova Scotia $1,732.7 $356.8 385.6%

Canadian Imperial Bank Of Commerce $1,383.6 $1,393.1 -0.7%

Bank Of America Corp $1,210.2 $336.7 259.4%

Exxon Mobil Corp $766.6 $0.0 ---

Top 10 Credit Card Advertisers

Digital Ad Spend

21

• 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.



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

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• American Express offers incentives to

new customers:

– Bonus points in its rewards program

– No card fee for first year

RBC Avion

RBC Avion Infinite

Card – Travel Rewards

ch

Reward Cards

• RBC focused on a longer-term reward

incentive

• RBC encouraged its card usage to earn

travel rewards

23

American Express



RBC Cash Back Card

Cash Back Offers

24

MBNA Smart Cash

• RBC offered a less generous reward but

supplemented this with no annual fee

• MBNA’s cash back reward emphasized

two common household expenses (gas

and groceries)

• MBNA also promoted a higher cash back

reward than RBC



Capital One

Building Credit

25

RBC Royal Bank

• Capital One encouraged people who

have bad credit to rebuild it with their

guaranteed approval incentive

• RBC targeted people who have not built

their credit history

• RBC emphasized its low requirements to

obtain credit



Investment and Retirement Product Advertising

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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.


31%

17% 22%

29%

Full Year 2012

Online Brokerages

Planning & Advisory Services

Investment Products

General Promotion

Digital Spend By Sub-Segments

28

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.



Advertiser Full Year 2012

(000)

Full Year 2011

(000) % Change

Bank Of Montreal $5,629.0 $984.2 471.9%

Toronto-Dominion Bank $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%

Jones Financial Cos Llp $35.3 $1,216.3 -97.1%

Top10 Investment & Retirement Advertisers

Digital Ad Spend

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• 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.



Investment and Retirement Product Advertising Messages

Taking Care of Today and the Future, Not Striking It Rich

30

• 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 non-

retirement)

– Financial expertise and knowledgeable staff

– Growing emphasis on putting customer’s needs first


• Bank of Montreal adds value by offering

money incentives

• It emphasizes its trusted status with

other Canadian investors

Royal Bank of Canada

Online Brokerages

• 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

Bank of Montreal



Bank of Nova Scotia

messaging focused on

showing reliability and

knowledge of a long-term

support staff

RBC

Planning and Advisory Services

RBC depicted the

importance of the

prospect’s plan and how it

might shift throughout the

years

TD Canada Trust

used the fear factor

in their messaging,

encouraging

prospects to choose

TD for advice on

retirement

32

Scotiabank TD



Where Digital Budgets Are Invested

33


Site Category Credit Cards Consumer

Banking

Investing/

Retirement Insurance

Total (000) $41,506.9 $32,121.3 $31,401.1 $12,946.6

Total - % Share 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%

Segment Spend Allocation By Site Type

Full Year 2012

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• 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

Source: Kantar Media, Jan-Dec 2012


Thank You!

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Financial Services Canada IAB Report · 24-01-2013 · HSBC Holdings $2,666.1 $3,433.5 28.8%...

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