Why the finance industry should be turning to newspaper advertising
Traditional media brings with it trust, reliability and credibility
While print newspaper readership has seen a steady decline in recent years many publications are enjoying bigger audiences than ever before, across their website, apps and the print product.
Over 16 million Australians aged 14+ – nearly 80 per cent – now read or access newspapers in an average seven-day period via print or digital (website and/or apps) platforms, according to the latest readership report from Roy Morgan for the 12 months to June 2018.
Increased platform reach
This increase of 3.3 per cent in total cross-platform audience size, adds another 500,000 readers to newspaper content compared to a year ago.
As Glenda Wynyard, the managing director of The Media Precinct points out the act of reading a newspaper actually means people are deeply engaged with the content, especially finance, as opposed to digital platforms where people tend to graze on content on a more superficial level.
She explains that the way newspapers are organised into sections makes advertising contextually more relevant for readers.
“Newspaper readers are receptive to contextually relevant advertising. Finance advertising placed within the finance section is likely to drive a conversion because the medium is a trusted source of finance information.”
Similarly Wynyard says their research shows the value of investment customers acquired through print advertising is much higher than that coming from other mediums.
Perceived as trusted
Newspapers continue to be the most trusted medium in Australia, according the latest AdTrust survey released in June 2018.
The Galaxy Research study, commissioned by NewsMediaWorks, found consumers trusted content and advertising in newspapers – both print and online – above all other media. Trust in content of printed newspapers (national, regional, metro and community) rose 13 points between June 2017 and April 2018 to +48 and trust in ads rose 10 points to +38.
This trust in news content, particularly in the finance section, creates a halo effect in generating greater trust in ads. When an ad is experienced in a reliable, trustworthy context, the positive effects of the brand preference are much stronger. Trust in a media brand can relay to trust in an advertising brand.
Wynyard explains: “Leveraging the credibility and trust established by the newspaper brand is vital for the finance industry, particularly in securing a deposit or investment customer. Likewise, newspapers have had to evolve to establish trust and credibility across their masthead offerings.”
Wynyard points to a UK study by MediaTel that was able to quantify that those who saw advertising in a newspaper and it’s digital counterpart increased conversations around financial services brands (and the action of looking up the relevant brands online) by 13%.
Much needed opportunity
In the midst of the Royal Commission into the misconduct of the banking, superannuation and financial services industry, trust in financial institutions has hit an all-time low in Australia, according to a new report by Deloitte Digital commissioned by Salesforce.
The July survey of 1,000 Australian and New Zealand consumers found only 1 in 3 believe the financial services industry can be trusted. This presents an opportunity for financial firms to leverage the trust of newspapers and their corresponding news websites to rebuild consumer trust in their brands.
A recent example could be seen with National Australia Bank (NAB) issuing full-page apology ads in News Corp newspapers following a weekend server failure in May that left customers without access to their bank accounts for nearly six hours on a Saturday.
Despite the digitisation of media, newspapers remain a trusted, reliable medium with consumers, which is why brands turn to print time and time again to gain trust and build connections with customers. While social media may boast larger audiences, this isn’t translating into trust in content or advertising.
As the recent AdTrust study shows, the greater levels of trust consumers have in the content of media choices, the more they trust the ads, which is key to driving sales. Half of the survey respondents agreed that the more trustworthy an ad was, the more likely they would be to buy the product or service.
Trust also plays a crucial role in how Australians consume media.
The rise of fake news and privacy scandals over the past 12 months, as well as the Banking Royal Commission, has prompted consumers to reconsider their media consumption, and be more cautious and thoughtful about where they obtain their information.
They’re turning back to print as a trusted news source that provides informative, accurate and credible journalism.