Seven funds spent $250m on advertising/marketing

Mike Taylor

Managing Editor and Publisher

31 October 2024

Between them, seven superannuation funds accounted for more than $250 million in advertising and marketing expenditure last financial year, according to new data released by the Australian Prudential Regulation Authority (APRA).

The six industry funds are:

AustralianSuper                                   $60,195,958

ART                                                         $41,812,501

Cbus                                                        $34,717,403

HESTA                                                    $34,155,011

Aware                                                      $29,524,122

Hostplus                                                 $24,350,011

REST                                                       $18,658,058

Australia’s largest superannuation fund organisation, the Association of Superannuation Funds of Australia (ASFA) has sought to justify the advertising/marketing spend of the funds, pointing out that advertising and sponsorship made up only 5.5% of the aggregate data.

What is more, it said that the advertising/marketing spends of the superannuation funds was on par with that of the banks and insurers.

In a statement issued almost immediately after the release of the APRA expenditure data, ASFA reinforced the competitive nature of the superannuation sector in Australia.

“In superannuation, marketing expenditure is a tool that helps funds communicate effectively with members about their retirement savings assisting members to make good decisions,” it said.

“The superannuation sector is a highly competitive environment by design. Successive governments have increasingly prioritised competition to build innovation and allow for differentiation which has delivered us a system the envy of the world.

“We are a sophisticated sector, able – through investments in brands – to attract global talent and to deliver double-digit returns time and again,” it said.

“As APRA’s data shows, advertising/sponsorship, at 5.5% percent of the aggregate data – or an average of $12.97 per year per member account – unlike administration services at 24% – is just one of many tools that funds use to engage members in a way that promotes informed, confident retirement decisions,” ASFA said.