The financial services industry is expected to spend $8.37 billion on digital advertising in 2016, according to eMarketer, accounting for 12.2 percent of total U.S. digital ad spend.
So it’s no surprise that the highest spending sector in digital advertising for Q2 2016 was financial services. Financial services companies spent nearly $329 million on desktop advertising, with the top 10 advertisers spending more than 50 percent of that budget. These top 10 advertisers only spent about $10 million on mobile and tablet ads.
With so much spending on desktop in this sector and more than 50 billion desktop impressions in Q2, we wanted to know: Where do financial services advertising dollars go? Who is benefiting from these massive spend budgets?
Here’s what we uncovered about the advertising strategies and CPMs of the top four in the category: Capital One, TurboTax, State Farm and Progressive.
Capital One and TurboTax: Reliant on Direct Advertising
Seventy-seven percent of financial services’ desktop spend, or more than $247 million, went to direct in Q2 and yielded more than 23 billion impressions at a CPM of $10.73 for the industry. However, Capital One, the top spender of Q2, spent 99 percent of its budget on direct and yielded a $7.22 CPM. The other 1 percent of Capital One’s spend went to Amazon, yielding a $3.83 CPM.
The second highest spender, TurboTax, also spent 99 percent of ad budget on direct, but the other 1 percent on Advertising.com, an ad network.
State Farm: Strategy Focused on Trading Desk Spending
The third highest spender, State Farm, spent 65 percent of its money on direct, followed by 24 percent with trading desks and 10 percent with ad exchanges. This strategy saw an overall CPM of $6.01.
However, State Farm’s only impressions from trading desk sources came from Accuen, which resulted in a CPM of $2.96.
Progressive: An Advertising Trifecta
Progressive was the fourth highest spending advertiser across desktop. Following the industry’s love of direct ads, Progressive spent 86 percent of its budget advertising directly. This spend yielded a $9.43 CPM.
Progressive spent 9 percent of its money with ad networks, which yielded a much lower CPM of $3.07. The company also used DSPs for 5 percent of its spend at a $3.18 CPM.
Additional Competitor Spend Information
Analyzing the strategies of top spenders and other competitors can help shape your brand’s digital advertising strategies. Where other brands are putting their ad spend dollars, and what CPM different advertising strategies tend to yield, allows more advertisers to compete on a level playing field. It’s an advantage only competitive ad intelligence can provide.
Looking for deeper insights into the financial services sector’s spend habits? Great. You can download your free copy of the Q2 Financial Services Digital Advertising Report, which is filled with Pathmatics data to help you spy on the competition.