Financial services bullish on internet advertisingFirst-half shocker: Financial services cracked open the piggybank to advertise online during earlier this year despite troubles in the sector. A report from TNS Media Intelligence released Wednesday reveals that financial services spent 23 percent more on online display ads during the first six months of 2008 than the same period in 2007. In contrast, Internet ad spending across all sectors increased 8 percent, year-over-year, in early 2008. Why were financial services so bullish on Internet advertising despite bearish times? Credit cards companies, banks, mortgage companies, investment brokers, and mutual funds find Web advertising is an effective medium, said Jon Swallen, the company's SVP of research. "Whether it's a credit card offer or a mortgage offer or CD offer, a lot of those are transactions that can be completed on the Web," Swallen said. "And let's face it: The Web is a place where consumers do research and carry out a lot of financial-oriented transactions and purchase decisions, whether it's doing online banking or checking out interest rates. The Web is a magnet for financial services products." Meanwhile, financial services ad spending was flat across other forms of media, he said. Likewise, advertising in other media was flat or declined during the first half of the year compared to 2007, according to TNS. Here's what the firm reports for the six-month period ended June 30:
- Total advertising expenditures decreased 1.6 percent compared to same period in the prior year.
- TV ad spending dropped by 0.4 percent.
- Magazine media advertising outlays declined by 1.8 percent.
- Newspapers recorded a 7.4 percent decrease.
- Radio advertising expenditures dropped 6.5 percent.
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