Financial Service Companies Would Make Wise Investment In Advertising: Nielsen3/19/2009 12:27 PM Eastern
One avenue financial services companies might consider for their government bailout money is advertising.
While companies like AIG have argued they need to pay big bonuses to executives to remain in business, a new study from Nielsen IAG suggests that a boost in advertising by financial service companies like banks, insurance companies and investment firms could help them keep the consumer confidence on which they rely for their business.
Acccording to the study, 55% of respondents indicated that when they saw more advertising from their financial institutions they had "complete confidence" in its financial health, with only 18% saying they had "little or no confidence."
By contrast, 45% of respondents who said they had seen fewer ads noted they had little or no confidence, with only 18% saying they had complete confidence.
"This research shows that ‘out of sight' can mean ‘out of business,' " said Richard Khaleel, executive vice president of Nielsen IAG's financial practice, in a statement.
Far less ad money has been spent by the troubled sector of late. According to Nielsen, financial services spending declined 29% in fourth 2008, verus the previous fourth quarter. Insurance company outlays dropped 13% in the final period of 2008.
Survey results were collated from 5,500 online respondents who were asked about the bank that holds their checking/savings account, investment and retirement accounts, and their insurance providers.