buy now pay later Archives - NewProgrammatic Blog https://newprogrammatic.com/blog/tag/buy-now-pay-later/ NewProgrammatic Blog Wed, 11 May 2022 07:29:36 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 https://newprogrammatic.com/blog/wp-content/uploads/sites/2/2021/04/cropped-apple-icon-180x180-1-32x32.png buy now pay later Archives - NewProgrammatic Blog https://newprogrammatic.com/blog/tag/buy-now-pay-later/ 32 32 Buy Now Pay Later marketing in 2022. Brands and market overview https://newprogrammatic.com/blog/buy-now-pay-later-marketing-brands-market-overview/ https://newprogrammatic.com/blog/buy-now-pay-later-marketing-brands-market-overview/#respond Tue, 10 May 2022 15:30:54 +0000 https://newprogrammatic.com/blog/?p=303 As Buy Now Pay Later market continues its impressive growth in 2022, entering the BNPL industry advertising opportunities…

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As Buy Now Pay Later market continues its impressive growth in 2022, entering the BNPL industry advertising opportunities is a much-recommended practice for all companies.

Below, NewProgrammatic has prepared a shortlist of the most influential BNPL industry entities that offer eliciting advertising opportunities for worldwide brands.

Try the NewProgrammatic demo to discover how to boost conversions!

What are BNPL solutions?

Interest-free installments and flexible payment options are steadily becoming more important as changing users’ preferences have evolved in favor of Fintech solutions. Since BNPL providers have significantly increased their user bases, as well as the number of offered merchants, these platforms are currently more than valuable for advertisers.

BNPLs are user-friendly solutions that shifted from the status of market trends to serious competitors of conventional financing providers like traditional banks. As the name suggests, Buy Now Pay Later offers delayed payments for shopping online, giving users time to consider whether their purchase was the right decision, and prepare for the expense.

BNPL business models vary depending on the chosen platform, but the most prolific companies offer four-installment plans that are interest-free as long as users respect payment deadlines.

Who are BNPL users?

By offering interest-free installments, Buy Now Pay Later services appeal to audiences concerned about their spending and seek chances to utilize a privacy-oriented and cheaper format of consumer credit.

The popularity of these services is most visible among younger consumers from generations Y and Z. These users, who are currently setting trends in marketing, are known for their reluctance toward conventional banking solutions, loans, and credit cards. Studies show that 67% of Millennials do not have credit cards, and more people aged 18-34 are afraid of debt than of death or war.

Ascent’s study shows all marketers the extent of increasing adoption of Buy Now, Pay Later. Their 2021 research found that 55.8% of American consumers have used some form of BNPL services, and more than half of those who have not, believe they would try it within the following 12 months.

Buy Now Pay Later marketing opportunities

With this unoverlookable Buy Now Pay Later market growth, advertisers now have access to excessive, and well-converting traffic. Brands can find purchase-oriented users through precisely-tailored Search Autocomplete and Tiles Suggestions, directly answering their queries.

NewProgrammatic offers advertisers and brands a chance to access this constantly growing volume of traffic, and present the keyword-targeted audience with the intent-matched proposal. This applies to all advertisers, and not only the ones who offer BNPL payments. Key players like Klarna aren’t promoting BNPL merchants’ offers only, as the company dreams of becoming a search engine more than a marketplace.

What does it mean for brands?

Bidding for BNPL industry traffic is something that should be present on every Digital Marketer’s agenda in 2022. There are many perks for brands in terms of increasing brand safety, competitiveness in the market, making the brand more visible to customers, and reaching a purchase-oriented audience.

Make sure to read NewProgrammatic’s blog article on Brand-Safe Buy Now Pay Later Advertising in 2022, which presents an interesting perspective on the topic.

What are the benefits of advertising to a Buy Now Pay later audience?

5 things to remember about Buy Now Pay Later traffic and conversions

Buy Now Pay Later offers have a rather characteristic audience that could be shortly described as purchase-driven. The further conclusion is that these users should be more than wanted by all advertisers, as their motivation for entering BNPL platforms is to either find some interesting offers or finalize the purchase.

Below, find some of the most interesting/important aspects of engaging with BNPL audiences. These should give all marketers a clearer view as to why it is so beneficial to have their brands displayed in vastly-growing search bars.

Growing user-base

Users are what drives the BNPL industry forward, and that is why it was not until the pandemic online shopping popularity, that Buy Now Pay Later platforms’ numbers really skyrocketed.

In the US only, and we would like to remind you that this market is still catching up to Europe, Australia, and New Zealand in terms of BNPL popularity, there were 45.1 million BNPL users in 2021. This is almost a quadruple what was seen before the Covid-19 pandemic, as in 2019 there were “only” 11.6 million users in the US.

More customers and users mean that advertisers can access a wider, more diversified, and yet still purchase-driven audience.

AOV

An Average Order Value (AOV) is an important indicator of campaign success, as the higher AOV there is, the more revenue for a brand from just one conversion. The fact that BNPL solutions are most popular in richer societies – Western Europe, The United States of America, Australia, and New Zealand – means that the shopping carts are more likely to be packed.

Klarna’s study shows that some brands could increase their AOV even as much as 33% just by implementing BNPL payment options, which is definitely something worth reaching for. With the same number of orders, the brand is simply able to generate more revenue. Increasing AOV means that with the same marketing efforts and spending, the brand generates higher ROI.

Volumes

The impressive transaction volumes are also something that should speak directly to advertisers’ hearts. This is a chain reaction, as the more users access the larger number of merchants, the more impressive the overall results will be.

The conservative projections show that by 2025 the global BNPL volume will rise to $680 billion. But some experts claim that by 2024 the US market only will provide $100 billion worth of transactions.

These rising financial BNPL performances mean that brands are able to increase their sales simply by offering their services and products to bigger and richer audiences.

Merchants number

Joining BNPL solutions by new merchants and advertisers is something happening every second. Sezzle (now acquired by Zip) shared information, that their platform offered as many as 47,000 merchants at the beginning of 2022. Klarna on the other hand boasts of how their 400 thousand worldwide merchant base is constantly growing.

An increasing number of merchants does not necessarily mean that it will be much harder for brands to reach new customers. With programmatic solutions like Search Autocomplete, everybody can access keyword-targeted, relevant audiences.

The biggest and most prolific worldwide luxury attire, sports, house decor, nutrition, and food brands have already decided to jump in on the BNPL wave. It’s a brand-safe and reliable source of traffic, and therefore even the companies that dominate usual SERPs understand the value brought in by a highly-converting BNPL audience.

Top-performing GEOs

As we already signalized in the AOV section, marketers should consider buying BNPL ad space, as it reaches the audience that comes from GEOs (countries and regions) considered by the industry as Tier 1. These are developed countries with high consumer needs and the highest possibilities for brand-safe and quality advertisers.

Scandinavia is home to BNPL solutions, as the pioneer, Klarna, originates from the Swedish capital, Stockholm. Nordic countries, alongside Germany and the United Kingdom, are not only one of the most developed in the world and Europe but also some of the most prolific BNPL-spenders.

Australia and New Zealand are home to some most cutting-edge BNPL solutions providers, too. This is not an accident that these, both richer and fast-developing societies, have become keen users of BNPL offers.

There is still plenty of area for BNPL traffic to grow in the United States of America, as the society there is slowly but steadily getting convinced of these solutions. Industry analysis shows that the market in the United States is expected to grow by more than 66.5% in 2022.

The Asia-Pacific region should be considered a potent field for BNPL development, too, and definitely, a place offering an incredibly big consumer base. But there is more time needed for these markets to fully realize the potential held by BNPL market opportunities. The BNPL spending in Vietnam reached $40 million in 2020.

World map of the best GEOs for BNPL marketing

BNPL service providers overview

As the BNPL industry is constantly growing, all marketers should be aware of the buying benefits listed above. The biggest platforms that are available for users and advertisers are definitely the most competitive, but also the most rewarding places.

With often occurring changes and acquisitions, it will be best to keep track of all the BNPL industry news. Agreements and mergers open major new possibilities for advertisers that should unquestionably be capitalized on.

Klarna Bank AB

Let’s start with one of the world’s leaders in the BNPL segment – Klarna. The Stockholm-based fintech giants started operating in 2005 and over almost two decades impressively expanded their global reach.

According to an official financial report published by the company, in 2021 Klarna dominated the market and managed to connect its consumers with more than 400 thousand retailers from all around the globe. Their merchandise volumes jumped to $80 billion from $53 billion in 2020 and $35 billion in 2019. That means that YoY the company noted around 151% volume growth, which only showcases how much trust they get from users, and how much need there is for the BNPL services.

Besides offering up to 4 interest-free installments, Klarna becomes a growingly important search engine used for finding the best-fit products. Their reports reveal that the solution managed to attract 147 million users from all around the world, and major brands like Nike, H & M Hennes & Mauritz AB, or ASOS are only some examples of brands that are present there.

Klarna.

PayPal in 4

As one of the biggest alternatives to traditional banking in terms of online payments, PayPal decided to offer a BNPL service to their 426 million customers. PayPal in 4 offers split payments to everyone who wants to use PayPal at checkout: 25% of the total price will be deducted from users’ accounts right away, and another 3 equal installments are due every 2 weeks.

The fact that payments could be controlled via the widely-owned PayPal app, and that the service is secured the same way that every PayPal transaction is, lures in millions of customers. By introducing the BNPL offer, PayPal immediately reached for a big Buy Now Pay Later market share, granting all of its users’ access to the service.

Thanks to that, over 400 million users have been granted access to BNPL payments available on all the websites that offer standard PayPal transactions. This should not be surprising that the service stormed the market, and according to C+R Research, PayPal is the most used BNPL provider (used by 57% of retailers) in the world.

We saw a 400% year-on-year rise in our volumes going through ‘buy now, pay later’ this past Black Friday [2021]. It’s booming right now. We had more than 1 million first-time users for the first time ever in the month of November.

Dan Schulman, the CEO of PayPal
PayPal BNPL

Zip (previously QuadPay)

Australian BNPL giants Zip have completed the acquisition of US-based QuadPay service in Q3 2020, and a year later started merging the two brands together. While Zip is mostly focused on Australian traffic, QuadPay was one of the most prominent brands in the United States, and the merger enabled both companies to vastly expand their worldwide reach.

Zip is currently operating in 12 markets, and its 2021 annual report shows a 147% increase in revenue ($397.5 million), 176% transaction volume increase ($5.8 billion), and 248% customer number increase (7.3 million). A major part of this growth was possible by acquiring new partners including Sezzle, Spotii, Twisto, TendoPay, and Payflex.

QuadPay allows users to have their payments broken into four interest-free installments that could be paid off during a 6 weeks-long period. Zip, previously QuadPay, is used by some world-renowned brands to promote their products and services, and among those are the likes of Gamestop, Target, Airbnb, Booking, and Nike.

Zip (previously Quadpay)

Afterpay

The Australian company offers a BNPL solution that has been branded as the most suitable for students thanks to its smart credit limits. The payments are split into four parts, and the user is required to pay the first 25% of the price immediately. The following three payments are due every two weeks.

The company managed to start cooperation with Google Pay in 2020 when it started providing the giant’s users with the possibility to use Buy Now, Pay Later model while shopping with Google Pay. This opens up whole new traffic possibilities for brands that want to be advertising on the BNPL platforms.

In June 2021, the Afterpay platform had now 16 million users and was cooperating with more than 85 thousand brands in Australia, New Zealand, Canada, the US, and the UK. Among those, users can find some renowned and well-established brands like Pandora, Crocs, Urban Outfitters, Adidas, Dr. Martens, and many more.

Afterpay

Affirm

Affirm’s services allow users to shop in their favorite places, both online and in-store with the possibility of paying back in 4 installment-free parts. The company’s Q4 report shows the quick growth that allows brands to have access to a wider range of Affirm’s impressions:

  • Affirm claimed that their active merchants’ number grew to 29,000, which is a 412% increase. This happened also thanks to the company’s integration with vastly-growing Shopify.
  • The active customer base grew by 97% and exceeded 7 million.
  • There was an 8% growth in the number of transactions per average active user.

Affirm is a San Francisco-based company, and up until 2021, it operated on the market in the US only. In Q4 2021 it expanded to Australia, and even before that it announced an Amazon partnership for BNPL payments of $50 and more.

Affirm

Laybuy

Laybuy Group Holdings Limited has a BNPL platform that is gaining immense popularity in New Zealand and Australia, both being growingly important Buy Now Pay Later markets. Kiwi-originated service was also introduced to the United Kingdom, with Gross Merchandise Value (GMV) there reaching a 38% YoY increase. For New Zealand and Australia, Laybuy has registered a 25% YoY GMV increase for January and February 2022.

As for the active user base, Laybuy is closing to a big milestone of 1 million. There are also over 13,400 merchants available for these audiences, and on a quarterly basis, both of these numbers rise. A projected 43-48% revenue increase in the 2022 forecast period explains perfectly why Laybuy has ambitions of entering more markets and challenging bigger competitors.

Compared to most major BNPL platforms, Laybuy offers a quite favorable installment payments model, where expenses are split into six weekly parts. Laybuy automatically charges the credit card submitted by the user.

Laybuy

Apple Pay Later

Although Apple has not released any final version of its BNPL product, it has been almost official that this kind of service will sooner or later become available for Apple Pay users. Especially since Apple Pay services are used on an everyday basis by over 500 million users, this could potentially be a game-changer for the Buy Now Pay Later industry.

The market impatiently awaits more news on that matter, as entering media buying opportunities with Apple BNPL services should be a viable option for all advertisers. But for now, we’re only suggesting preparing for the right moment.

Most common BNPL providers in the world

How to start advertising on the BNPL provider platform?

In order to fully embrace the Buy Now Pay Later media buying opportunities, marketers will need a programmatic tool that helps them set up campaigns and access the highly motivated audience. NewProgrammatic solutions include smooth and user-friendly suggestions delivered via keyword-based Search Autocomplete functionality and Programmatic Tiles.

With these automated solutions, an advertiser is able to target a specific audience and reach it at the exact moment they require a recommendation as to where to finalize their purchases. All this without any privacy-violating third party data processing. The BNPL advertising with NewProgrammatic is based on intent-targeting, as it proves to be far more efficient than typical demographic targeting.

See how to increase sales, AOV, and brand visibility.
Request a NewProgrammatic demo!

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Brand-Safe Buy Now Pay Later Advertising in 2022 https://newprogrammatic.com/blog/brand-safe-buy-now-pay-later-advertising-2022/ https://newprogrammatic.com/blog/brand-safe-buy-now-pay-later-advertising-2022/#respond Thu, 28 Apr 2022 08:11:38 +0000 https://newprogrammatic.com/blog/?p=300 Imagine shopping online without having to pay for things right away but also without having to use your…

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Imagine shopping online without having to pay for things right away but also without having to use your credit card or applying for a loan…

A few years ago it would be considered by many a wishful thinking, but today it’s just as simple as ever.

The first BNPL platforms emerged in 2005, but only in the last few years have they become quite important for the e-commerce industry. Naturally, where’s demand, the supply follows, hence top brands decided to quickly follow the new buying model and, of course, capitalize on it.

And those looking to capitalize on programmatic media buying can now benefit from the BNPL hype as well.

In this article, we’re taking a closer look at how brand-safe programmatic advertising solutions can help your business get more exposure with BNPL platforms… even if you’re not there.

BNPL 101. What are the Buy Now, Pay Later platforms?

In order to fully embrace the potential that is being offered by BNPL platforms, every marketer needs to understand the mechanisms behind it. These platforms are solutions that allow customers to make purchases without the need to pay for them right away at checkout. In fact, BNPL gives users the possibility to have their orders shipped right after the transaction and pay the money back to the platform in full or in accordance with installment plans.

Although the Buy Now Pay Later model of payment could resemble a standard bank loan format, it is not associated with it, nor a credit card balance. What needs to be widely understood, is that the best BNPL solutions are mostly free of interest, and offer the highest extent of Fintech-driven safety for all parties. No steps include a major financial institution or a bank. And in most cases, interests, too. In 2022, fintech solutions are much more welcome and will only keep on changing the retail industry as we know it today.

How can a brand benefit from BNPL advertising?

An insightful marketer should understand how to use the characteristics of the BNPL audience in order to elevate sales, and earnings, accordingly. The industry has already learned how to tame programmatic advertising possibilities, and use those to win specifically targeted ad impressions. With BNPL it has become possible to precisely find an already purchase-driven audience that does not require convincing to spend money. What it needs is a suggestion on where to do so, and shoppers will gladly accept accurate recommendations.

For example, NewProgrammatic allows advertisers to access the BNPL media buying model, offering advertising solutions that make this process intuitive and efficiently presenting users with subtle, but really helpful keyword-based ads even before their query is fully typed in.

Buy Now Pay Later advertising is not for BNPL transactions only

Although Buy Now Pay Later offers are core to the BNPL platforms’ operations, they are not a necessity for a brand offered there. This should be remembered by advertisers and brands – a company does not need to have a Buy Now, Pay Later system implemented in order to be displayed on the effective BNPL traffic sources.

Like in the example we gave above, while creating a programmatic campaign, brands are able to use the precise BNPL targeting and reach the highly-converting users without exactly offering Buy Now Pay Later transactions. This way they are able to fully capitalize on audience preferences, have access to a purchase-driven user base and advertise in a brand-safe and respected environment.

Book a call with NewProgrammatic to see how to avoid most common search ads problems

Intent-based targeting boosts conversions

Marketers from all niches are highly aware of the fact that their brands’ performance will improve once their marketing efforts are correctly targeted. And although the traditional, demographic-based marketing approach has been a go-to strategy for a long time, it has been proven to be less effective than finding the right, highly-converting audience based on their intent.

Identifying user behaviors online and offering the ads to the people who actually seek proposals in that matter has become a crucial part of modern ICP (Ideal Customer Profile) building. And with BNPL platforms it has become possible to get access to detailed profiles of people who are already looking for solutions offered by the marketer’s brand.

With that knowledge and proper programmatic campaign creation solutions, a brand is able to prioritize those purchase-driven BNPL platform users, elevating conversions, sales, and profits. In fact, a well intent targeted campaign may require a smaller budget to perform better than broader, RON-type advertising.

A higher Average Order Value

Klarna’s insights suggest that implementing BNPL could impressively increase the AOV (Average Order Value), too. For some brands, the increase of AOV could be as much as 33%. This is due to the fact that with Buy Now Pay Later’s prolonged payment period, a consumer is able to afford more products. It also elevates the sense of financial stability.

Reaching the customer at the perfect moment

Timing is a key feature of programmatic advertising, and the BNPL model allows brands to reach their target audience exactly at the moment they expect it to happen. This applies especially to the NewProgrammatic advertising solutions, as they directly answer users’ queries before they finish typing them.

As a result, marketers are able to find the best converting audience by simply reaching out to the people who are most likely to become customers as they are already purchase-oriented.

Brand visibility and becoming competitive

In order to be able to make sales, a brand needs to find a way to jostle with competitors for user engagement and attention. Increased brand visibility and tapping into your competitors’ niches are on every marketer’s agenda. And that can be easily achieved through advertising on BNPL platforms.

Brand familiarity has always been an important aspect of building a position both in local and international markets. If potential customers are aware of the brand’s existence and offer, it will be much more convenient for advertisers to present the results.

Various marketing and user-behavior studies utilizing eye-tracking technology found that internet users will more eagerly click on familiar brand names while conducting their searches. The extent to which such findings apply is quite impressive, as according to Secret Life of Search research, 82% of internet users choose familiar brands as their first-click option.

This leaves marketers of smaller, and less recognized brands with a hard nut to crack. On one hand, typical SERPs on common keywords become unavailable for them, as most often they cannot compete financially with the giants. On the other hand, building brand awareness becomes harder if users tend to focus on familiar names.

The solution could be, again, BNPL advertising, allowing brands to become visible by skipping the SERPs altogether.

It increases brand awareness and brings purchase-driven customers to the landing page. See, how NewProgrammatic could help your brand increase its reach.

Benefits of advertising to BNPL audience:

- Reaching a highly motivated audience
- Displaying relevant ads at the relevant moment
- Increasing brand visibility
- Higher Average Order Value
- Increasing the brand's competitiveness

User expectations for a BNPL provider

The popularity of BNPL solutions is not a coincidence, it’s a direct response to what the audience expects. This applies mostly to younger generations of consumers that are highly literate with technology and hence seek smooth user experience, tend to be very brand-oriented, and do not enjoy the thought of loans. Today’s users also value their privacy and appreciate a well-timed effort-saving suggestion. With that being said, companies that follow these trends will be able to effectively attract customers.

This enabled industry to forge a model that is beneficial for everybody. On one side, programmatic advertising on BNPL markets attracts the consumers who enjoy delayed payment opportunities, and will gladly take a suggestion as to what brands to focus on. On the other side, there are advertisers who now have access to a highly purchase-convinced brand-safe audience, which can elevate their campaign’s efficiency.

There is a structural shift going on in payments more broadly because of the changing behavior of the next generation. As the Millennials and Gen Z spend more, that will drive that spend to these more modern offerings.

Jason Orthman, Hyperion Asset Management (for Australian Financial Review).

Where are BNPL solutions most popular?

It’s safe to say that BNPL adoption is at its early stage in the USA and Europe, as Buy Now Pay Later transactions have not yet become the driving force in worldwide e-commerce. It only accounted for 1.6% of total e-commerce sales in the United States of America in 2020, but the projections suggest that it could reach 4.5% by 2024.

European markets are not homogenous in that matter, as Sweden, the UK, and Germany emerge as leaders in the BNPL e-commerce payments. This should not be surprising for the industry, as Sweden is actually home to BNPL. Klarna, the pioneer in Buy Now Pay Later services, has been founded in Stockholm. The region of Europe, just like the USA, opened up to the BNPL solutions, and reports from Q4 2021 only confirm that. According to the BNPL Survey, in Europe, the industry will expectedly grow by 54.7% in 2022.

In the breakdown of domestic e-commerce payments, right behind Scandinavian countries and Germany, are Australia and New Zealand. Once again, those are highly innovative regions in terms of Fintech and greatly developed countries in general. New Zealand and Australia together made up 20% of the global e-commerce market share in 2020.

Precise suggestions

There is a fine line between what could be perceived as intrusive advertising, and an anticipated query suggestion. Modern users expect accuracy and good timing, and providing exactly that is a way of gaining their trust.

To attract more consumers and conversions, the industry needs to focus on advertising in brand-safe conditions, where it is part of an established environment that a platform presents suggestions to its users. As those recommendations are part of a deal between a purchase-oriented audience and the BNPL solution provider, they are highly expected.

This is an effective synergy that leaves all the parties in the marketing equation satisfied. Thus, by neglecting BNPL traffic and conversions, marketers and brands repudiate trendy and highly rewarding solutions for market reach.

The reluctance toward debts

Having witnessed a financial crisis once every few years, Millennials and Gen Z representatives have developed a fear of financial instability connected with the unpredicted financial market behaviors. Younger audiences do not see loans as a solution to their needs. That is why financial liabilities with third-party companies, and not banks, are a much-appreciated opportunity for them.

According to American Psychological Association’s study, people between the ages of 18 and 34 are more scared of debt (34%) than of death (20%) and war (17%). Having been raised in relatively safe times, new customers perceive the financial trouble they witnessed watching their parents struggle with as a more perilous circumstance.

That is why more than half of Millennials (67%) do not have a credit card at all. These users need independence, but it does not change the fact that they still enjoy flexible payment options. The difference between them and their parents and grandparents is that Millennials and Gen Z require more transparency and security.

The modern way to do it is to use buy-now-pay-later. It’s consumer-friendly. It’s not unfair. It doesn’t have any fees. It’s really transparent. It’s often mobile and digitally available for online shopping.

David Sandström, Klarna’s Chief Marketing Officer (for Verdict.co).

Covid-struck e-commerce market

There is no doubt that Covid-19 has heavily changed the way consumers, brands, and marketers need to operate on the market. With people losing jobs, and brands seeking major savings, both sides of a previously well-cemented system needed to adjust to the new reality.

The first thing that most consumers did when the pandemic broke out, was to suspend all extra spending. In times of uncertainty, BNPL platforms provided exactly that – a possibility to save money while not being forced to postpone shopping.

The statistics show that perfectly. Adobe conducted e-commerce-focused research that highlighted how Buy Now Pay Later platforms grew 215% YoY in the first two months of 2021. Moreover, BNPL service providers have noticed that customers are placing orders 18% larger on average.

This directly benefits the brands, as by offering their products and services on BNPL platforms they are able to elevate sales, capitalizing on user behaviors. But advertisers should bear in mind that 65% of BNPL transactions include payments of less than $500. 

Credit Karma’s 2021 research shows that as much as one-third of BNPL purchases (32% of those) are for $100 and less. Younger audiences, Millennials, and Gen Z, mostly use BNPL for more frequent, but less valuable acquisitions. Big-ticket item purchases worth $3,000 or more are more common among Gen X and Boomers(+). Respectively, 11% and 17% of these users have used BNPL solutions for purchases of $3,000 or more

First-party data security

Another result of having younger generations create market trends is a major focus that has to be put on user privacy. Third-party data trading is not welcome anymore, as audiences are highly alert to what happens with their information. This transmits to how modern programmatic advertising needs to be conducted, and this is where NewProgrammatic and BNPL platforms come in handy.

This combination offers safe, yet precise penetration of the highest-tier audience without any need for third-party data processing. Users consciously agree to Buy Now Pay Later platforms for processing their data so that ads are precise and well-tailored.

The BNPL platforms do not inform advertisers about user profiles, and therefore protect the audience’s data. NewProgrammatic ads are keyword-based. This means that in a split second when the user is typing their query, a precise ad is being matched to them.

For more information about Cookieless advertising for a cookieless world, we recommend reading NewProgrammatic article on the topic.

Cookieless programmatic buy now pay later advertising is a safe practice for the brands

What major BNPL brands should advertisers pay attention to?

The BNPL segment of e-commerce has been constantly growing due to user preferences, market changes, and an increased interest in safer, cookieless solutions. That is how the industry has been able to attract new business partners and widen its user base, offering even more traffic to the advertisers.

Due to the fact that volumes and conversions are crucial in process of advertising, all brands should get well accustomed to the most popular BNPL solutions. Mainstream companies offer, in fact, the widest possibilities, and really valuable traffic.

The below set of most popular brands in the BNPL industry is a great starting point for all advertisers who seek to explore these possibilities.

  • Klarna
  • Zip (previously QuadPay)
  • Afterpay
  • Affirm
  • Laybuy
  • PayPal
In 2021, Buy Now Pay Later advertising platforms continued growing:
- Klarna’s volumes grew by 151% in 2021
- Zip (previously QuadPay) had a 176% transaction volume increase in 2021
- Afterpay had 16 million active users in June 2021
- Affirm’s active user base exceeded 7 million

Conclusions

With the pace of development in the BNPL niche and the new possibilities that this segment offers to the advertisers, there is no reason why any marketing specialist should ignore BNPL traffic. And the future seems to be looking really bright for these fintech services, as more customers, especially from younger audiences, trust leading BNPL solutions.

More than certainly, brands in 2022 should not be forgetting about entering the BNPL advertising for all the opportunities:

  • Advertising on a cookieless basis without any third-party data nonconsensual processing
  • Becoming fully compliant with modern user preferences for online shopping
  • Offering well-timed and contextually relevant advertising
  • Reaching purchase-oriented audience
  • Effective competition against other brands
  • Increasing brand awareness and conversions at once
  • Embracing the brand-safe advertising

Does your brand want to elevate the sales and increase its visibility?
Check out the NewProgrammatic demo!

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