The economic landscape of 2023 was a mixed bag. Inflation eased, the GDP grew, and new job creation was steady. However, credit card debt in the U.S. is rising, totaling over $1 trillion. Several drivers are behind this, but there is a silver lining for local media sellers. This increase in debt offers storylines for local financial advertising.
In this post, we’ll review the data and share ideas for ad campaigns.
What’s Behind the Increase in Credit Card Debt?
Credit card debt is rising for several reasons. Inflation prompted higher prices for food, gas and housing. Many people are in persistent debt, always carrying a balance. Using their credit cards is often the only way to pay for the essentials. Additionally, credit card rates increased due to the Federal Reserve’s rate hikes. The average is now 24.59%, an all-time high.
Financial stability remains out of reach for many, but local financial companies can play a role in this journey.
Financial Advertising Campaigns: Targeting Those in Debt
With so many consumers heavily in debt, they strongly need financial services to lift them from out of it. Most aren’t sure where to start and need financial literacy knowledge. That’s where your advertisers come into the picture — as a means to leave debt behind.
Here are some ideas for campaigns.
Basic Financial Literacy Classes for Adults
Credit unions, community banks and financial advisers can hold virtual or in-person sessions at no charge. Ads for these focus on getting people financially educated and demonstrate the institution’s credibility. Tactics to use include OTT/CTV, video display, social media and email marketing.
This top-funnel tactic can start a relationship. Trust would grow from there, which is crucial in the relationship between consumers and financial institutions. It could even be a series of lessons from an expert to cover everything from budgeting to investing.
Consolidation Loans to Eliminate Credit Card Debt
Many financial institutions, both traditional and digital-only, make personal loans to consolidate credit card debt at a lower interest rate. These funds get people out of the persistent debt cycle. Demographic targeting related to household income or home ownership would be effective. These promotions could run on display and social media. A local SEM (search engine marketing) campaign for keywords related to debt consolidation is also an option.
Ads for HELOC (Home Equity Line of Credit) Loans
Another way consumers can pay down high-interest debt is with a HELOC loan. Again, targeting would concentrate on specifics like home ownership. These ads would be effective on social media and OTT/CTV.
Savings Account Incentives
The key to paying off debt is being able to save. Even the smallest amounts can grow into something. If credit unions and banks want to increase savings account openings, they can offer an incentive like a high interest rate temporarily or a bonus amount.
Credit Counseling
There are also organizations that offer credit counseling. This guidance can help people learn how to manage money and debt. They can also negotiate with creditors to reduce credit card debt. The goal of credit counseling is to help consumers avoid bankruptcy. Companies that offer this must abide by the Federal Trade Commission requirements regarding charging fees for these services. Ad channels to consider include radio, OTT/CTV and display.
Help Local Financial Advertisers Support Consumers in Debt
With any financial advertising, the content must be accurate, compliant and relevant. As you propose ways organizations can aid those in debt, keep these things in mind. Ads that increase consumer knowledge and deliver real solutions will perform better.
Financial advertisers have an opportunity to become a relied upon and trusted partner. When these businesses use a consultative approach to campaigns, consumers are more likely to respond.
