Andy Colman is an Associate Research Analyst for Mintel Comperemedia.
In the Inflation Exploration blog series, Mintel explores all the ways that inflation effects consumers around the globe.
Brands in the financial services space are offering new marketing strategies to capture what they can from a shrinking share of consumer dollars. By using the terms ‘inflation’ and ‘recession,’ they are tailoring marketing campaigns to capitalize on growing consumer concerns.
1. Promoting alternative investments
When it comes to investing, people typically think about stocks, bonds, mutual funds, ETFs, and, as of more recently, cryptocurrency. In the face of financial uncertainty and underperforming traditional investment vehicles, some brands have turned to ‘inflation-proof’ assets such as precious metals, fine art, and even wine.
2. Creating a conquerable entity
Using language such as ‘beat,’ ‘outpace,’ and ‘protect,’ brands marketing inflation-proof financial tools sought to personify inflation. By creating a common, definable enemy, brands are able to take the side of the consumer and present ways in which inflation can be conquered as a team.
3. Cementing consumer relationships
In difficult times, consumers look to brands for guidance. Through education and conversation, brands that lead individuals through the struggle of rising prices and the threat of recession will create long-lasting relationships with their consumers. Brands that used the word ‘recession’ often prioritized education over acquisition.
Marketing products or services specifically to mitigate inflationary pressures
Comperemedia Omni data shows that brands have increased inflation-related marketing efforts to match consumer sentiments. According to Google Trends, the term ‘inflation’ achieved a search index of 100 in Aug’22, meaning ‘inflation’ is at its peak of internet searches since 2004.
In paid Facebook efforts, AcreTrader promoted purchasing shares of farmland as a way to mitigate the financial pressures of inflation. In its messaging, AcreTrader used words like, ‘easy’ and ‘simplified’ to show prospective investors who might not be familiar with farming practices that they could also be involved. To elevate this campaign and re-iterate the inflation-proof status of farmland, AcreTrader could highlight the importance of farming in both bear and bull markets, and point out that, people need food regardless.
In paid social engagements, Charles Schwab promoted a live discussion event to educate current and prospective clients on interest rates, market volatility, and of course, inflation. Unlike other brands in the competitive set, Charles Schwab created a virtual community environment where people could feel connected and unisolated in their confusion surrounding the economy. Through creating a group of like-minded individuals, curious about similar topics, Charles Schwab hoped to make participants feel reassured and comfortable with the Charles Schwab brand through affinity.
Brands that used the term ‘recession’ in marketing activities typically sought to educate rather than sell to consumers. Daylight, for example, generated a ‘recession money rulebook’ to inform readers and create a positive brand association hoping consumers will consider Daylight as a brand with the answers moving forward. It is important for brands to use words like ‘recession’ intentionallywith organic messaging that present their offering as a solution to a problem.
Interested to learn more?
For more information, data, brand examples and expert recommendations on how inflation is inspiring niche marketing opportunities for financial services, download the free report now. Mintel clients can access the full report here.
Source: Comperemedia Omni [1/1/2022-8/1/2022] as of 8/17/2022