Financial Services' Online Ad Spend to Climb to $3.52 Billion.

eMarketer: (Financial services companies will increase their online ad spending this year by one-third to reach $2 billion. By 2010, this figure will grow to $3.52 billion.

The growth in online ad spending occurs as more consumers go online to find the best interest rates and payment terms, and to closely monitor their accounts. But as consumers become more and more comfortable with online financial services, they show less patience with direct mail. Consumers were inundated with a record volume of such mail in 2005—a record 100 billion pieces. Lead generation response rates dropped to 1.4% in 2004 from 2.5% in 2003.

E-mail marketing may offer an alternative. Direct mail has turned from being too much of a good thing for financial institutions into plain too much, especially for consumers.

Financial Services Online Marketing Publ 20060620