Rivals' campaigns putting squeeze on Moneysupermarket
The battle of price comparisons websites has claimed a major casualty after leading player Moneysupermarket.com said sales growth stalled during July.
Shares in the company, whose ad campaign is based on the slogan 'You're So Moneysupermarket', slumped 15% after rivals launched TV advertising campaigns featuring talking meerkats and a portly opera singer.
It is looking to reverse its fortunes with a new campaign, which it hopes will claw back customers who have deserted it after a government stimulus scheme depressed interest rates. The company said it is confident in its prospects after posting a 71% surge in pre-tax profits to £15.1m in first six months of the year.
The Chester-based group, which makes money by directing people to the websites of banks, insurers, airlines, mobile phone operators and utility giants, saw money revenues fall 13% to £27.9m during its first half. Money transactions fell 14% to 10,484.
Competition intensified with the launch of new adverts featuring Go Compare's opera singer Wynne Evans and Compare the Market's talking meerkats.
That held back Moneysupermarket's growth in July versus a strong month a year ago when its own high-profile campaign launched.