The ad industry is expecting a further dramatic fall in financial services spending, on top of the 13% already seen this year, as the economic crisis deepens.
New financial regulation is also likely to be introduced, to tighten up some of the higher-risk lending advertising – a mainstay of daytime and digital TV spend.
The contraction follows a further round of consolidation and nationalisation, with Santander buying the struggling Alliance & Leicester and the savings business from Bradford & Bingley. B&B’s mortgage book has been nationalised, as the whole of Northern Rock was earlier this year.
Lloyds TSB last month announced it was acquiring the struggling HBOS, in a move which is expected to see the combined media spend reduced. It is thought that both Fortis and Morgan Stanley have slashed their marketing budgets and axed much of the media activity planned in the coming months.
Viacom Brand Solutions managing director Nick Bampton says: “Finance has already been hit with a 13% decline in ad spend this year. Further declines are likely, with the nationalisation, mergers and forced sales of banks and building societies creating synergies which will undoubtedly save money on advertising.”