The financial services industry spent 14.5 percent more on digital advertising this year than in 2015, eMarketer reported.
Some $8.37 billion was put toward digital advertising methods by the industry in 2016, representing 12.2 percent of total ad spending for the entire year, according to the site. Financial services has spent the third-largest amount on advertising of any industry, with retail and automotive securing the top two positions.
Spending on digital advertising by financial services is expected to grow, with a predicted 11.2 percent compound annual growth rate. This rate is in line with the 12 percent CAGR predicted for total digital ad spending in the U.S.
Salesforce noted that one of the biggest challenges facing the financial services industry in terms of digital advertising is its intense regulation, including rules from the Securities and Exchange Commission regarding data security and user privacy and confidentiality. However, financial services companies can securely leverage their data collections to design targeted advertising campaigns that build stronger connections with customers through social media, the source advised.