Over the last few years Wealthsimple and Questrade have been a wonderful one-two punch. Both companies are aggressive marketers. And what might be effective is that Wealthsimple and Questrade go at the advertising from two different sides. Wealthsimple is more emotional and empowering. Questrade goes hard at the wealth destroying effect of high fees.
In my review of Wealthsimple I had suggested that they were Canada’s most famous Robo Advisor. That said, in their recent commercials, there’s no mention of the word Robo or digital wealth management.
Robo is a ‘bad word’ as I have often penned. But that is the handle that the category has been handed. That will change over time. These investment firms offer a mix of human and digital advice. It’s simply modern investing.
Perhaps that’s why one of these firms goes by the name ModernAdvisor.
It’s the combination of advice and the use of technology to better the investment process and returns. The format allows for much lower fees compared to mutual funds and typical advice.
I just love ‘Everyone’ as a piece of communication. It is simple. It is elegant. The production value is top notch of course. The track (music) is perfect.
It’s all inspirational and optimistic. It has more than a hint of disruption.
The message is clear.
In the ad biz the brief will inform to have a single-minded proposition. Most advertisers have trouble with that one. The brief will often use the word ‘and’ many times. The Wealthsimple Everyone commercial has the message in the title. The simple message is about empowerment.
Power to the people.
Everyone has access to the best financial tools. Everyone.Wealthsimple
Josh Book of Parameter Insights is an expert in the land of digital wealth management and the growing trends. Based on extensive research Josh knows what buttons these not-so-robo Advisors need to push. I poked him on Twitter about this ad. I had suggested to Josh that this ad ‘nails it’.
And that power is now in the hands of the people, literally. That is powerful imagery.
And Josh is right. The ad does not solve everything or try to communicate everything. When ads try too hard with too much information, they get lost. This ad invites you do discover how you might take control of your financial future. Getting noticed is difficult when it comes to advertising. It’s best to break through with a simple and relevant message.
Save your retirement with Questrade.
Great positioning. And it’s just so true. As Larry Bates of Beat The Bank will remind us – fees are wealth destroyers. They will have your retirement nest egg for lunch. You could lose from 30% to 50% of your portfolio to fees over time.
I took this pic on a trip downtown. This is the busiest place on earth. The Yonge and Bloor subway station in Toronto. So many eyeballs. They also had billboards at track level. They bought ’em all. No way this message is going to be mixed in with an IG Investors Group or TD Bank promise.
Here’s my review of the Questwealth Portfolios. This is the lowest fee option in the ‘Robo’ space up until about $350,000.
I was delighted to run into this subway takeover when I went downtown to help BMO open the TSX when they launched new ESG ETFs.
Questrade is also back with a fresh set of advisor-slapping commericals.
Wealthsimple and Questrade offer that one-two punch on the small screens, including online video.
Here’s You’re not still investing with Dad’s guy are you?
The message is clear.
Simple. Cheap. Managed portfolios.
Poor Dad’s guy. Or I guess the message is pity the folks still investing with Dad’s guy. Like his stupid older brother who has to muster up an uncomfortable throat clear.
Bro, you don’t want to retire 3o% richer? You ain’t coming to my cottage.
The communication is clear. That is job 1. I would only suggest more charm to disarm the situation. Some will consider the ads a little heavy-handed. But I’m still a big fan.
Most advisors hate them.
And the communication is based on that basic truth. High fees usually kill returns. We can be excused for producing heavy-hitting commercials. This is serious subject matter.
Cut The Crap Investing gives this the thumbs up.
WealthBar and hoity toity.
Love it. Now there’s some charm and personality. Yes, I think these folks have been talking with Josh. That’s very similar to the message that I infused in my review of WealthBar.
Once again, it’s disruptive. The message is empowerment. Here’s my review.
WealthBar appears to be very aggressive with online advertising. They follow me around. Of course we have targeted online advertising based on your activity and search history. I’m not seeing much from the big banks or mutual fund providers.
I’ve heard BMO radio ads for their BMO AdviceDirect option. That is a powerful and very robust combination. Here’s my post …
And of course it is the lower fee investment options that get almost all of the digital press. Bloggers are not going to write about the benefits of high fee mutual fund investing. MoneySense covers the money basics and beyond. When it comes to investing, ETFs get the nod. They major papers are continually writing on Robo’s and ETF investing. It’s a new world.
Collectively, it’s a one-sided communications battle.
Have the IGs and AGFs and big banks thrown in the towel? As we discovered in Canadian ETF report for 2019 Canadians are mostly moving monies into lower fee ETFs. For ad spend, it simply does not make sense to throw ‘good’ money at inferior investing. We are likely at that tipping point. Mutual fund providers will be happy to collect their fees and mostly stay quiet. After all there is still some $1.5 trillion in mutual funds. They’re are slowly bleeding assets.
You might turn RRSP into Retirement Robo Savings Plan. You have until March 2 to make a first 60-day contribution. Then, you can initiate the transfer of any high-fee investments. Technology makes it’s easier than you would think.
And about Dad’s guy, the advisor. They’re not all bad. But it’s hard to tell them apart.
To know that you’re receiving conflict-free advice, you might consider an advice-only planner.
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Thanks for reading my thoughts on the ad efforts of Wealthsimple and Questrade.
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