Consumer Touchpoints: The Impact of Interactive Media on the Financial Services Sector Presented by: Rick Bruner Research Director

Consumer Touchpoints:

The Impact of Interactive Media on the Financial Services Sector

Presented by:

Rick Bruner

Research Director

2004: A Banner Year

Source: AT&T’s “You Will” campaign, ran on HotWired in October 1994, among the first web ads

Source: Interactive Advertising Bureau / Pricewaterhouse Coopers; Harris Interactive;Archer Advisors; U.S. Census; DoubleClick

Ad Spend Rebounds to Align With Consumers

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Q0Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4

Qu

art

erl

y O

nlin

e A

d R

ev

en

ue

($

mm

)

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

$267m $907m $1.9bn $4.6bn $8.0bn $7.1bn $6.0bn $7.3bn $9.6bn

Online Ad Spending

0

20

40

60

80

100

120

140

160

180

Millio

ns

U.S

. Inte

rne

t Us

ers

Ag

e 1

8+

U.S. Internet Users 18+

23%25% 26%

30%

0%

10%

20%

30%

40%

Q1 '04 Q2 '04 Q3 '04 Q4 '04

Sha

re o

f T

otal

Im

pres

sion

s

Fortune 500 Returning to Dominance in Online Ads

Fortune 500 Share of Impressions Trend

Source: Nielsen//NetRatings, AdRelevance

56% of U.S. Surfers Use Broadband – Rich Media Grows at Similar Rate

Source: Nielsen//NetRatings AdRelevance

0%

10%

20%

30%

40%

50%

60%

70%

Se

p-0

0

De

c-0

0

Ma

r-0

1

Jun

-01

Se

p-0

1

De

c-0

1

Ma

r-0

2

Jun

-02

Se

p-0

2

De

c-0

2

Ma

r-0

3

Jun

-03

Se

p-0

3

De

c-0

3

Ma

r-0

4

Jun

-04

Se

p-0

4

De

c-0

4

Ma

r-0

5

Jun

-05

Broadband Share of Internet Users

Rich Media Share of MarketImpressions

1996: Web Advertising Gets Interactive

Source: “First” interactive banner: Hewlett Packard, Red Sky Interactive, San Francisco, 1996

http://www.whitesands.org/portfolio/bnrs/demos/pong.html

Clutter Is Going Away

0

10

20

30

40

50

60

70

Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04 Q4 '04

Ad

Imp

res

sio

ns

in b

illio

ns

Leader Board

Full banner

Non-standard

Medium rectangle

Button #2

Wide skyscraper

Skyscraper

Rectangle

Half banner

Micro bar

Button #1

Square button

Vertical banner

Large rectangle

Square (pop-up/under)

Vertical rectangle

Source: Nielsen//NetRatings, AdRelevance; custom analysis for DoubleClick

Two-year Trend of Ad Units by Size

0

10

20

30

40

50

60

70

Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04 Q4 '04

Ad

Imp

res

sio

ns

in b

illio

ns

Leader Board

Full banner

Non-standard

Medium rectangle

Button #2

Wide skyscraper

Skyscraper

Rectangle

Half banner

Micro bar

Button #1

Square button

Vertical banner

Large rectangle


Vertical rectangle

-50%

+17%

-49%

-51%

-78%

+5%

+19%

-50%

-4%

Clutter Is Going AwayTwo-year Trend of Ad Units by Size: Smaller, Early Sizes on the Decline


0

10

20

30

40

50

60

70

Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04 Q4 '04

Ad

Imp

res

sio

ns

in b

illio

ns

Leader Board

Full banner

Non-standard

Medium rectangle

Button #2

Wide skyscraper

Skyscraper

Rectangle

Half banner

Micro bar

Button #1

Square button

Vertical banner

Large rectangle


Vertical rectangle

+552%

+281%

+210%

+26%

+15%

-75%

-44%

Clutter Is Going AwayTwo-year Trend of Ad Units by Size: Larger, Newer IAB Sizes on the Rise


Shift From Ad Buyer’s to Seller’s Market

Unique Visitor Growth

90

95

100

105

110

115

120

Q4 '03 Q1 '04 Q2 '04 Q3 '04 Q4 '04

Inde

xed

UV

Gro

wth

(Q

4 '0

3 B

ase)

Ad Impression Growth

75

80

85

90

95

100

105

Q4 '03 Q1 '04 Q2 '04 Q3 '04 Q4 '04

Inde

xed

Ad

Imp.

Gro

wth

(Q

4 '0

3 B

ase)

Source: Nielsen//NetRatings (U.S. market); custom analysis for DoubleClick

Total Market Among Top 20 Publishers

Page View Growth

90

95

100

105

110

115

120

Q4 '03 Q1 '04 Q2 '04 Q3 '04 Q4 '04

Inde

xed

Pag

e G

row

th

(Q4

'03

Bas

e)

Advertiser Growth

80

85

90

95

100

105

110

Q4 '03 Q1 '04 Q2 '04 Q3 '04 Q4 '04

Inde

xed

Adv

er. G

row

th

(Q4

'03

Bas

e)

Fortune 500 firms use rich media for more than a third of all web advertising

39%

61%

Rich Media Non-Rich Media

Source: Nielsen//NetRatings AdRelevance; year total 2004

Financial Services Leads All Industries in Ad Impressions

70

5646

3530

17 15 13 11 10 9 7 4

0

15

30

45

60

75

Fin

an

cia

lS

vcs

We

b M

ed

ia

Re

tail

Pu

blic

Svc

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Au

tom

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alth

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Q3

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05

To

tal U

.S. I

nd

us

try

Ad

Imp

res

sio

ns

(B

illio

ns

)


13

Financial services and telecom lead in sheer volume of rich media impressions


4944

34

20 20 19 17 1613 13

6 6

Fin

.S

vcs.

Te

lco

We

bM

ed

ia

CP

G

Au

to

Re

tail

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v.

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s /

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c.

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alth

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ftwa

re

B2

B

Ric

h M

ed

ia M

ark

et

Imp

res

sio

ns

(in

Bill

ion

s)

14

Auto and telco firms use rich media for over half of all web ad impressions


58%53%

49%

39%

31%28% 28%

25% 25%

17% 17%12%

Au

to

Te

lco

En

t.

CP

G

PC

s /

Ele

c.

So

ftwa

re

He

alth

Fin

. Svc

s.

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v.

We

bM

ed

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B2

B

Re

tail

Ric

h M

ed

ia %

of

Se

cto

r's

T

ota

l Im

pre

ss

ion

s

15

Music/media, sports, family, ent. and game sites serve biggest ratio of rich media ads


31%

28%

24%

23%

23%

18%

13%

13%

44%

39%

37%

29%

26%

24%

23%

19%

14%

13%

41%

38%

Music/MediaSports/Rec.Kids/Family

EntertainmentGames

EmailWeather

Gen. NewsAuto

Home/Gard.Portals/Search

TravelFun/Humor

Port. Commun.Gen. Commun.

LocalShop./Auct.

FinanceYel./Whi. Pgs.

Empl.

Rich Media Share of Total Market Impressions

Portals dominated rich media ad impressions in 2004


Rank Publisher Type

Total Hosted Rich Media

Market Impressions(in billions)

1 Web Email Accounts 56.6 23.9%2 Portals & Search 45.6 19.2%3 General/National News 26.6 11.2%4 Sports/Recreation 24.7 10.4%5 Games 14.2 6.0%6 Entertainment 11.7 4.9%7 General Community 9.3 3.9%8 Finance 9.2 3.9%9 Local/Regional 7.8 3.3%

10 Weather 7.2 3.0%11 Home & Garden 5.9 2.5%12 Music & Streaming Media 4.7 2.0%13 Shopping & Auction 4.7 2.0%14 Travel 4.6 1.9%15 Kids & Family 4.4 1.9%

How do consumers reach buying decisions?

18

Compared to TV and print ads, online marketing strongly influence purchases

Which of the following most influenced your decision to purchase this product / service?

0%

10%

20%

30%

40%

50%

% o

f R

es

po

nd

en

ts

TV ad Print ad Website Online Marketing

Source: DoubleClick, “Touchpoints III,” 2005

19

Official company websites are most consistent source for ‘further learning’

32%

17%

16%

14%

Salesperson

Dealer site

Manuf site

Searchengine

55%

44%

14%

10%

Doctor

Pharmacist

Search engine

Drug co. site

42%

19%

15%

12%

Saw it instore

Salesperson

Retailer site

Manuf site

Auto

32%

17%

16%

14%

Salesperson

Dealer site

Manuf site

Searchengine

40%

18%

16%

16%

Salesperson

Retailer site

Telco site

Word ofmouth

26%

20%

18%

11%

Online travel site

Travel co. site

Called co. directly

Search engine

24%

18%

17%

13%

Salesperson

Saw it at bank

Bank site

Search engine

21%

20%

18%

10%

Bank site

In bank

Salesperson

Word ofmouth

Rx Drugs Electronics

How did you further learn about the product/service that you purchased?

Home Prod.

Teleco Travel Banking / Cards Invest. / Mortg.

Source: DoubleClick Touchpoints III consumer survey, 2005Source: DoubleClick, “Touchpoints III,” 2005

20

Word of mouth single greatest influencer

21%

15%

15%

11%

Salesperson

Dealer site

Word of mouth

Saw it on street

75%

12%

4%

3%

Doctor

Pharmacist

Search engine

Word of mouth

56%

7%

6%

5%

Saw it in store

Retailer site

Salesperson

Word of mouth

Auto

39%

10%

9%

7%

Saw it in store

Search engine

Word of mouth

Manuf w ebsite

26%

21%

18%

15%

TV ad

Word of mouth

Movie review(off line)

Preview s

36%

16%

10%

10%

Saw in store

Coupon inserts

Word of mouth

TV ad

19%

16%

12%

12%

Bank w ebsite

Direct mail

Word of mouth

In bank

22%

17%

14%

8%

Word of mouth

Salesperson

Telco site

Retailer site

Rx Drugs Electronics

Which of the following most influenced your decision to make this purchase?

Home Prod.

Movies CPG Telco Banking

19%

16%

14%

10%

Salesperson

Word of mouth

Bank site

Saw it at bank

Invest. / Mortg.

Source: DoubleClick, “Touchpoints III,” 2005

Direct mail leads for first learning about credit card/banking products

18%

14% 14%12%

8%6%

4% 3% 2% 2% 2% 2% 2% 1% 1%

0%

10%

20%

30%

Direct

mai

l

In b

ank

Bank

web

site

Wor

d of m

outh

Sales

perso

n

Inte

rnet

ad

Oth

er w

ebsi

te

TV ad

Mag

/new

s ad

News

med

ia

Radio

ad

Out

door a

d

Emai

l fro

m fr

iend

Emai

l opt-i

n

Searc

h engin

e

Pe

rce

nt

of

res

po

nd

en

ts

Thinking about the most recent banking product/service you acquired, how did you first hear about it?

SOURCE: DoubleClick, “Touchpoints III”; 2005; sample size = 200

Consumers further learn through bank websites, followed by in-person visits

21% 20%18%

10%

6% 6% 6%4% 4%

2% 2% 2% 2%1% 1% 1%

0%

5%

10%

15%

20%

25%

30%

Pe

rce

nt o

f re

spo

nd

en

ts

How did you further learn about the product/service that you purchased?


19%

16%

12% 12%10%

4%2% 2% 2% 2% 1% 1% 1% 1%

0%

10%

20%

30%

Bank

websi

te

Direct

mai

l

Word

of m

outh

In b

ank

Sales

perso

n

Inte

rnet

ad

TV ad

Searc

h engin

e

Other

web

site

News

med

ia

Emai

l fro

m fr

iend

Radio

ad

Outdoor a

d

Emai

l opt-i

n

Per

cen

t o

f re

spo

nd

ents

Bank website is the deciding factor in opening credit card and banking accounts

Which of the following most influenced your

decision to purchase this product/service?


Word of mouth drives demand in the investment services sector

22%

12%

7% 7% 7% 7%6% 6%

4% 4%2% 2% 2% 2%

1%

0%

10%

20%

30%

Word

of m

outh

Sales

person

Saw it

at b

ank

Inte

rnet

ad

Direct

mai

l

Emai

l opt-i

n

Searc

h engin

e

News m

edia

Oth

er web

site

Bank w

ebsi

te

Outd

oor ad

Emai

l fro

m fr

iend

Mag

/new

s ad

TV ad

Radio a

d

Pe

rce

nt

of

res

po

nd

en

ts

Thinking about the most recent investment product/service you acquired, how did you first hear about it?


24%

18% 17%

13%

8% 7% 6% 5% 4% 3% 2% 2% 2% 1% 1%

0%

10%

20%

30%

Sales

perso

n

Saw it

at b

ank

Bank

webs

ite

Searc

h engin

e

Wor

d of m

outh

Oth

er web

site

Direct

mai

l

News m

edia

Inte

rnet

ad

Emai

l fro

m fr

iend

Emai

l opt-i

n

Radio

ad

TV ad

Mag

/new

s ad

Telem

arket

er

Pe

rce

nt

of

resp

on

de

nts

Further information seeking happens in banks or with a salesperson

How did you further learn about the investment product/service that you acquired?


Although word-of-mouth drives awareness, salesperson has the most influence

19%

16%

14%

10%

7%

4%3% 3% 3% 3% 3%

1% 1% 1%

0%

5%

10%

15%

20%

25%

Sales

perso

n

Word

of m

outh

Bank

web

site

Saw it

at b

ank

Searc

h eng

ine

Other

web

site

Inte

rnet

ad

Direct

mai

l

Emai

l opt

-in

Emai

l fro

m fr

iend

News

med

ia

Mag

/new

s ad

TV ad

Outdoor a

d

Per

cen

t o

f re

spo

nd

ents

Which of the following most influenced your decision to purchase this product/service?


Questions?

Documents

Consumer Touchpoints: The Impact of Interactive Media on the Financial Services Sector Presented by: Rick Bruner Research Director