How Top Buy It Now and Pay Later Solutions Advertise on Social Media

Once a niche payment concept, offers to buy now, pay later (BNPL) have increased during the pandemic. According to an Ascent study, 56% of consumers have now used a BNPL service, up from 38% in July 2020. To understand how leading BNPL solutions, including Klarna, Affirm and Afterpay, advertise on major social media platforms, BrandTotal to analyse thousands of their paid social media ad campaigns over a 90-day period from July 13 to September 10.

These leading BNPL solutions rely heavily on social media to educate buyers and this is where Klarna is leading the way in advertising. In BrandTotal’s analysis of Paid Voice Share (SOV), Klarna dominated with 51% SOV, compared to 35% for Affirm and 14% for Afterpay. This ranking changed, however, when between August and September, Afterpay’s SOV reached 32% and Affirmer’s SOV reached 27%.

Since young people have grown up in a digital age where brand discovery and payment are just a few clicks away from Instagram, BNPL platforms know how to strategically target a younger audience that is more open to this new form. technology-based payment model.

Of the three BNPL solutions analyzed by BrandTotal, Klarna was the most likely to advertise to Gen Z on social media, with half of her ad impressions targeting the demographic. By comparison, 41% of Affirm impressions and only 8% of Gen Z Afterpay target. Additionally, BrandTotal found that 83% of all BNPL social media ads targeted women, with just 17% targeting men.

Klarna also tops the other two on video views. According to data from BrandTotal, Klarna had 46.2 million video views across all of its paid social ads, while Afterpay came in second with 1.7 million views, followed by Affirm with 1. 5 million. Klarna’s dominance here might indicate her reliance on video across campaigns, which Gen Z is known to prefer static images or text.

Finally, BrandTotal discovered that Klarna and Affirm share very similar advertising strategies on social networks; both allocate most of their social mix to Twitter, LinkedIn and YouTube. Afterpay, on the other hand, focuses primarily on Facebook and Instagram, with no investment in YouTube.

Recent BrandTotal data echoes the findings Auriemma Group, showing that while merchants have historically been the most common provider of point-of-sale payout plans, these BNPL providers with short-term solutions are closing the gap.

A study by Auriemma found that between Q1 2019 and Q1 2021, there was an increase of more than 10 percentage points in the number of debit cardholders offering a BNPL plan in-store or online. . In addition, more than half of the people offered to BNPL in a physical store (56%) or online (51%) say they have signed up for the option, which again represents an increase of more than 10 points. percentage since the first quarter of 2019.

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