Equity release advertising vital: ERSA

The body said that at a time when advertising costs were competitive, the medium could pose a real opportunity for IFAs to invest in when looking to attract new customers. 

The results, taken from a survey of equity release customers, also found that nearly one fifth used their existing financial adviser (19%) and only 7% relied on word of mouth recommendations when looking for their equity release product. The number of respondents who shopped around online dropped from 35% in April 2009 to 26% currently.

The survey also found that of the 61% who said they shopped around for their product, as opposed to going straight to one financial adviser, 19% spent between one and three months searching. Around 12% said they shopped around for four to six months, and 13% shopped around for over six months. Roughly 17% of respondents shopped around for less than one month.

Claire Barker, chairman of the ERSA, said IFAs should ensure they considered all communication mediums available, in order to maximise exposure to the potential consumer. 

“Although a good reputation can lead to word-of-mouth recommendations, this isn’t the most obvious method of finding a suitable product. While many IFAs may feel they do not have the budget, it is definitely worth taking a look at advertising costs in local publications as now may well be the time to invest.”