Finance firms' spend on traditional marketing relating to lending, across mortgages, credit cards and personal loans, has plunged since the squeeze began.
Total adspend by banks, building societies and credit-card companies on advertising and direct marketing, excluding search and email, fell by £15m or 28% to £38m in September, following a 27% drop in August, according to exclusive data from Thomson Intermedia.
There has been a particularly notable fall in investment in direct mail and print for credit card products. 'There may be a shift to cost-effective forms of digital marketing,' said Paul Ryan, head of insight at Thomson Intermedia. Spending on credit-card promotions in traditional media fell by 23%-53% every month from January to September.
Credit card companies spent £45.9m less on direct mail over the period year on year, a 49% drop.
Marketing spend on mortgages rose until September, when it fell 19%. Mortgage approvals fell from 100,000 in September to 88,000 in October, the lowest level since February 2005, according to the Bank of England.