Buy now, pay later services have taken off in Australia as a way of getting goods now without a credit card.
At the same time the platforms are disrupting both the online retail and finance sectors.
The two most popular buy now, pay later brands in Australia -- AfterPay and ZipPay -- have used advertising to successfully connect with consumers.
Nielsen Portfolio says most of the advertising spend has been on free-to-air metro television, with a slight skew toward Sydney (27%) and Brisbane (28%) between 2015 and 2019.
Advertising, however, fell by 27% between 2018 and 2019 with brands increasing their concentration on search and social advertising.
"The rise of buy now, pay later platforms highlight how digital and social advertising can be a cost-effective way of reaching your target audience, particularly for online shoppers," says Nielsen in a study.
"At the same time, the impact of maintaining above-the-line media channels as part of the media mix shouldn’t be underestimated.
"Affiliate TV advertising could be a smart way to drive usage, awareness and site traffic for both retailers and buy now, pay later brands."
Key findings from Nielsen:
- 65% of Australians who have used buy now, pay later payment methods are aged 18-44
- 91% of Australians are aware of buy now, pay later services
- The two most popular buy now, pay later brands in Australia are AfterPay and ZipPay
- Advertising spend for these providers has been on free-to-air metro television, with a slight skew toward Sydney (27%) and Brisbane (28%) between 2015 and 2019.
- Advertising from these providers has, however, declined by 27% between 2018 and 2019—with brands increasing their concentration on search and social advertising
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