In the latest dentsu Global Ad Spend Forecasts published in December 2024, spending from advertisers in the Finance Services Industry (FSI) is forecast to grow by 6.4% in 2025, the highest growth of any of the categories analyzed. In this article, we explain the industry changes that are driving opportunities for advertisers.
The raging war to capture and retain customers
As a result of COVID-19, supply chain disruption and geopolitical conflicts, the past few years have led to economic instability, and people around the world have seen a rise in the cost of everything from groceries to insurance premiums. As consumers try to navigate the pressing money questions in their everyday lives, they increasingly turn towards the online tools and data available to them, making shopping and price comparison a more natural part of the path to purchase of financial services.
Insurance presents a case in point. Macro factors like the rise in extreme weather events due to climate change have increased premiums for homeowners, and new cars are more expensive and harder to fix when they go wrong, given the amount of technology they contain. With renewal premiums surging by more than the underlying level of inflation, churn in insurance is a considerable problem, with many customers shopping around for new deals. Data from the UK indicates that approximately 40% switched providers in 2024.
This landscape makes advertising increasingly critical to reach new customers and retain existing ones for players in the finance services industry.
New advertising channels open new growth opportunities for FSI
Traditional service providers face increasing pressure from a new set of competitors: companies designed to appeal to digital native consumers who want financial services tailored to how they want to live their lives. Think apps and chat rather than branches and face-to-face discussions.
These companies, from neo-banks like Revolut and Monzo, to insurance operators like Lemonade and Ditto Insurance, are digital and mobile first, with easier onboarding, faster response times and less (if any) physical presence – all attributes than they can extoll in their advertising.
However, established institutions also have a lot that they can talk about in their own ads. Many play on their heritage and trust, pointing to their size, scale and reliability. They can argue for the advantages of trusting an institution that has greater resources and has weathered multiple financial storms and eras over ones that are newer and may go the way of other new fashions. Furthermore, they have far more data from their larger customer base, to better understand consumers’ needs over multiple life stages with the help of artificial intelligence.
The latest dentsu CMO Navigator Media Edition, asked 1,900 CMOs in 13 markets about future opportunities and concerns. When addressing AI, 38% said they were prioritizing their focus around audience insights, targeting and segmentation.
Paid media is increasingly offering FSI companies ways to target customers who have opted out of receiving direct mail – either physically or in emails – by putting these messages into media moments where they are most likely to be useful, noticed and acted upon.
The dentsu Global Ad Spend Forecasts reports that 59.4% of spend is now on digital channels around the world. As such, new channels are emerging for FSI advertisers, who are becoming more confident of spending on newer platforms. For example, TikTok has – unlikely as it sounds – become a source of financial education for many young people, with the emergence of FinTok content and influencers.
According to research, Americans who saw FinTok content gained 42 pieces of financial knowledge from the platform in 2024, which helps to explain the growing interest from advertisers. At a time when money is top of mind for many, it pays to investigate new channels.
From changing consumer behaviors to new technology rising, 2025 is set to be a growth year for advertising in the FSI category. To find out more about ad spend trends across industries, download the dentsu Global Ad Spend Forecasts today.
