Financial Services Ad Spending Drops 10% in 2008

Nielsen just released its ad spending data comparing the first three quarters of 2008 to 2007. In the financial industry, advertisers have already made significant cuts, with presumably more to come in 2009.

A sharp decrease in advertising spending by mortgage and loan sectors led a 10% slide in spending across the entire financial services industry so far this year. Mortgage and loan companies have spent 62% less — or $778 million —  on advertising during the first three quarters of 2008, compared with the same time period last year.

Overall, ad spending by financial services companies dropped from $5.9 billion in Q1-Q3 2007 to $5.3 billion through September of this year. (Note: Nielsen’s data excludes outdoor and B2B magazine ad spending.)

Traditional investment firms and mutual funds are increasing their budgets modestly — about 4-5%. Meanwhile, online investment firms are growing their budgets by almost 16% collectively, with some like E-Trade upping their budgets by 25%.

Lenders of all sorts — but especially mortgage companies — are slashing ad spending by nearly two-thirds.