Comparison Sites - Old Hat or Modern Essential?
Known for their creative advertising campaigns, comparison websites have been responsible for creating several consumer ‘champions’ in recent years. They’ve also earned praise for steering bewildered people towards products that aren’t so punishing on the bank account. Strangely, an opinion piece from the Financial Times implied that the role of comparison websites in consumer decision-making could decline due to rule changes and an oversaturated market - but is that true?
Expert Opinion
Over the last decade, comparison sites became a necessity in the UK due to overly complex industries like energy, insurance, and travel. However, increasingly, much of the growth in this area has been in sorting one digital product from another. People interested in VPNs, anti-virus software, and games (etc.) now have the option to source expert opinions before parting with their money, making entire business sectors safer and cheaper for the less financially literate.
It’s hard to find a product niche that isn’t overseen by one comparison website or another. Casinos, long the residents of brick-and-mortar premises, have dramatically increased the number of such places online due to the need for scrutiny of welcome bonuses and Ts&Cs. The site Bonusfinder United Kingdom rates brands such as Pokerstars Casino and Zodiac Casino highly for their customer offering. They also help players find answers to frequently asked questions.
Is the usage of comparison services truly as widespread as the newspapers seem to suggest, though? As interest rates and other cost-of-living metrics climb, the comparison site becomes less of a luxury and more of a way to shore up finances for something else. Research company Statista reports that between half and three-quarters (58% to 75%, depending on age group) of people in the UK have visited one of these pages in the past, indicating that saving money is a concern of just about everybody.
Smaller Businesses
The worry among consumers is that, in sectors such as energy, the comparison site could become redundant simply because suppliers themselves have nothing to offer to people interested in changing providers. With that in mind, already-popular websites could become less about saving money and more of a running commentary on rapidly climbing prices. Inevitably, this may also produce a bit of a crisis within smaller businesses like the not-for-profit Ebico Living, which may find opportunities to offer competition few and far between.
On that latter point, larger providers are in the blessed position of being able to manufacture better prices by increasing the amount of loss they’re willing to suffer to get new people on board. Of course, this is a short-term solution that hinges on the cost-of-living falling within a short amount of time, and on energy costs returning to the more normal position of being the lesser evil, compared to wearing a coat and hat indoors. Put another way, the next few months could be crucial for both consumers and suppliers.
Overall, comparison sites with a digital focus seem to be in a much stronger position than those serving more traditional industries - yet it's unlikely that either type will disappear.
