A Profile of Metropolitan Commercial Radio Listeners and Their Personal Banking
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BANKING ON RADIO A PROFILE OF METROPOLITAN COMMERCIAL RADIO LISTENERS AND THEIR PERSONAL BANKING JULY 2017 Copyright © 2017 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. RADIO STILL “MONEY” WITH CONSUMERS Currently, around 19% of Australians feel they ‘have no money spare’ for those little extras in life. At the other end of the scale is a similar number (21%) who feel ‘financially free’ and the remainder are either ‘meeting their (rising) expenses’ or ‘building up their savings’. When it comes to personal banking and our interactions with the ‘Big 4’ banks, we’re mostly satisfied – around 60-76% are either very or quite satisfied across those financial segments. There is another layer of neutrality here, which leaves only 4-9% actively saying they’re not satisfied. These may be small numbers, but they still represent big dollars if these consumers are switching between banking providers. Dissatisfaction is also not the only reason a customer may switch. Around 11% of commercial radio listeners say they are very or quite likely to change their main financial institution (MFI) in the next six months. High fees and charges (19% of commercial radio listeners) and poor interest rates (14%) are the most prevalent reasons. If these consumers do follow through on those intentions, what are they looking for? What services/offers may catch their attention? More than one-in-five (22%) commercial radio listeners list their investment/ savings priority for the next 2-3 years as ‘saving for a car or holiday’; while 18% are ‘paying off their home’; and 18% also ‘saving for retirement’. Based on the variety of these goals along consumers’ individual financial situation path, we’ve segmented them into four key groups: Battlers, Survivors, Savers and Flyers. A consumer’s current position along this path does have an impact on whether they ‘prefer to deal with one provider for everything’ or ‘deal with a specialist for each need’. Battlers, for example, are more likely to get it all done in the one place; while Flyers are more likely to deal with multiple providers/services. Battlers, Survivors, Savers and Flyers exhibit different characteristics and have different needs, making it important for advertisers and media publishers to understand these dynamics when talking to the individual Copyright © 2017 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 2 groups. Commercial radio is well-placed to reach consumers in each financial segment – breakfast, morning and afternoon sessions are the prime times, each reaching between 36% and 50% of the segment. This overview of personal banking has been constructed with Commercial Radio listeners in mind and designed to interpret their preferences, perceptions and intentions. Any reference to Australia or Australians in this report means consumers across the five major capital cities in Australia. Unless otherwise specified, audience and population are people aged 18 years and older. Copyright © 2017 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 3 OUR CURRENT FINANCIAL SITUATION Almost two-in-five (38%) Australians aged 18+ (metropolitan markets) say they’re able to meet expenses. However, due to the rising costs of living, either through inflation or increased taxation, they find themselves forced into involuntary savings, i.e. they are consuming less as the cost of living has increased faster than their income. The remaining population falls evenly into three financial groups - those experiencing financial hardship (19%), those with savings gradually building up (21%), and those who are financially free (21%). CURRENT FINANCIAL SITUATION 21% 19% No money to spare Meeting expenses/involuntary saving Savings gradually building up 21% Financially free 38% For the majority of Australians aged 18+ (62%), their main financial account is with one of the big four banks (CBA, ANZ, NAB, Westpac). When looking at all dealings with banks, this number increases to 74%. *Spending on extras or few financial concerns Copyright © 2017 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 4 MFI BANK BALANCE Ap 18+ Meeting Expenses/ Involuntary Savings 28% 39% 7% 6% 8% 8% 26% 18% No Money To Spare Savings Gradually Building Up 32% 25% 7% 8% 8% 9% 25% 28% Financially Free 14% 5% 9% 35% $<10K $10K to $19,999K $20,000 to $49,999 $50k+ [% of metropolitan market population aged 18+] Question: Approximately, what is the total balance of all your deposits and loans (including credit card balance/s) held with your MFI? Note: Table rows do not total 100% as some respondents choose not to answer this question *Spending on extras or few financial concerns Copyright © 2017 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 5 Financial institutions, particularly the banks, receive their share of criticism but could this mean they’re just an easy target? Actual dissatisfaction levels (with MFI) are relatively low. Satisfaction levels are highest amongst those ‘meeting expenses’ and with ‘savings building up’. SATISFACTION WITH MFI AP 18+ Meeting expenses/ involuntary savings 69% 70% 18% 20% 6% 6% No money to spare Savings gradually building up 76% 59% 15% 23% 5% 9% Financially free 69% 14% 4% Very satisfied or Quite satisfied Neutral Not very satisfied/Not at all satisfied *Spending on extras or few financial concerns [% of metropolitan market population aged 18+] Note: Table rows do not total 100% as not all respondents identify as having a main financial institution Copyright © 2017 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 6 COMMERCIAL RADIO LISTENERS - FINANCIAL PROFILES The commercial radio audience has been grouped into four mutually exclusive groups based on their current financial situation: 1 BATTLERS – 1,758,000 COMMERCIAL RADIO LISTENERS 18+ 2 SURVIVORS – 3,432,000 COMMERCIAL RADIO LISTENERS 18+ 3 SAVERS– 1,966,000 COMMERCIAL RADIO LISTENERS 18+ 4 FLYERS – 1,874,000 COMMERCIAL RADIO LISTENERS 18+ 20.75% 19.47% Battlers Survivors Savers 21.77% Flyers 38% Copyright © 2017 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 7 1 BATTLERS – 1,758,000 COMMERCIAL RADIO LISTENERS 18+ BATTLERS CLASSIFY THEIR CURRENT FINANCIAL SITUATION AS HAVING ‘HAVING NO MONEY TO SPARE’ 16% 10% 54% 46% LIVE IN BRISBANE LIVE IN ADELAIDE ARE FEMALES ARE MALES (IX 113) AND (IX 118) AVERAGE PERSONAL AVERAGE 77% 24% INCOME IS HOUSEHOLD INCOME ARE AGED LESS LIKELY $40K p.a. IS $74K p.a. 18-54 YEARS TO BE AGED (COMMERCIAL (COMMERCIAL RADIO (IX 117) 55+ RADIO LISTENER LISTENER AVERAGE AVERAGE $51K P.A.) $95K P.A.) 12% 12% 10% UNEMPLOYED LABOURERS AND HOME DUTIES (IX 216), RELATED (IX 138) (IX 128) 27% 61% 35% 45% ARE SINGLE/ LIVE IN HOUSEHOLDS ARE YOUNG RENT THE NEVER MARRIED OF THREE OR MORE FAMILIES CURRENT (IX 125) PEOPLE, 19% MORE (IX 112) HOME THEY LIKELY TO HAVE LIVE IN (IX 143) MORE THAN FIVE PEOPLE IN THE HOME Compared to the other listener groups, this segment: • Has the heaviest representation of people aged 40-54 (31%) • Has the highest % of unemployment and the lowest % of tertiary qualified • Has the strongest skew to upper/lower blue collar occupations • Is more likely to have 5 or more people in the household [Base: Commercial Radio Listeners 18+] [ix = indexed against metro 18+ population] Question build: No money to spare Copyright © 2017 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 8 2 SURVIVORS – 3,432,000 COMMERCIAL RADIO LISTENERS 18+ SURVIVORS CLASSIFY THEIR CURRENT FINANCIAL SITUATION AS ‘ABLE TO MEET EXPENSES, BUT DUE TO THE RISING COSTS OF LIVING THEY FIND THEMSELVES FORCED INTO INVOLUNTARY SAVINGS (COST OF LIVING HAS INCREASED FASTER THAN INCOME)’ 30% 32% 15% 54% 46% LIVE IN LIVE IN LIVE IN ARE FEMALES ARE MALES SYDNEY MELBOURNE BRISBANE AVERAGE PERSONAL AVERAGE 31% INCOME IS HOUSEHOLD INCOME LESS LIKELY $46K p.a. IS $87K p.a. TO BE AGED (COMMERCIAL (COMMERCIAL RADIO 55+ RADIO LISTENER LISTENER AVERAGE AVERAGE $51K P.A.) $95K P.A.) MORE LIKELY TO WORK IN THE FOLLOWING OCCUPATIONS: TRADES, LABOURERS, CLERKS, HOME DUTIES 41% ONE-IN-THREE 25% ARE YOUNG CURRENTLY LIVE IN LIVE IN OR OLDER A HOME THEY OWN HOUSEHOLDS FAMILIES (MORTGAGED) OF FOUR OR (IX 112) MORE PEOPLE [Base: Commercial Radio Listeners 18+] Question build: Manage to meet expenses or involuntary savings Copyright © 2017 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 9 3 SAVERS– 1,966,000 COMMERCIAL RADIO LISTENERS 18+ SAVERS CLASSIFY THEIR CURRENT FINANCIAL SITUATION AS ‘SAVINGS GRADUALLY BUILDING UP’ 31% 36% LIVE IN SYDNEY LIVE IN MELBOURNE CLOSE TO EVEN (IX 110) MALE/FEMALE SPLIT AVERAGE PERSONAL AVERAGE 33% INCOME IS HOUSEHOLD INCOME ARE AGED $54K p.a. IS $106K p.a. 25-39 (IX 110) (COMMERCIAL (COMMERCIAL RADIO RADIO LISTENER LISTENER AVERAGE AVERAGE $51K P.A.) $95K P.A.) 22% 19% 36% WORK IN MORE LIKELY TO ARE DEGREE ‘PROFESSIONAL’ WORK IN ‘UPPER/ QUALIFIED OCCUPATIONS LOWER WHITE COLLAR’ (IX 118) (IX 132) PROFESSIONS 40% HAVE CHILDREN IN THE HOME – IN LINE WITH NATIONAL AVERAGE Compared to the other listener groups, this segment: • Has the highest proportion of Melbournians (36%) • Has the heaviest representation of people aged 25-39 (33%) • Has the highest share of those in white collar occupations (59%) [Base: Commercial Radio Listeners 18+] Question build: Savings gradually building up Copyright © 2017 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.