Vital Stats - Northern Rock financial crisis

by Ben Knight, Media Week 25-Sep-07

The consumer chaos surrounding the run on Northern Rock has resulted in some frenzied online activity in the financial sector.

Although the FSA said Northern Rock was solvent, that it exceeded its
regulatory capital requirement and that it had a good-quality loan book,
the Bank of England's need to intervene has left thousands of homeowners

anxious.

The resulting online activity is evidence of how the credit crisis has
been affecting high-street customers.

When the news broke, the number of searches for "Northern Rock" more
than quadrupled, as consumer interest spiked.

The uncertainty also meant that Northern Rock customers began
panic-searching to find the best deal from alternative financial
companies.

The above graph demonstrates the increase in the number of impressions
the day after the news broke for those searching on savings-related
keywords, compared to the averages of the previous three Saturdays.

The recommended action for advertisers is to promote their savings and
deposit accounts with key messaging in order to attract those wishing to
open a new account.

Using pay-per-click is the most strategic method, and creative
advertising needs to convey three key messages:

1) Brand reliability

2) Speed and simplicity of the process for applying and the transferral
of funds

3) USP-focused promotion of the interest rates that customers can
expect

Using this online ad format, advertisers can immediately capitalise on
the rush of consumers looking to take their business elsewhere.

By Ben Knight, finance account director, The Search Works.