By Chris Lee

Around 15 million people are estimated to have used a price comparison site in the last three months, according to recent research, highlighting the importance of comparison sites to consumers, especially in a fragile economic environment.

In an increasingly competitive market, comparison sites are marketing heavily to capture this growing audience. To learn more, NMK’s Chris Lee quizzed Simon Piper, head of business development and partnerships at Consumerchoices.co.uk, about the price comparison market and where it goes from here.

Consumerchoices operates a portfolio of eight price comparison and consumer advice websites predominantly focussing on communications services including broadband, home phone and digital TV. In addition to its own sites, Consumerchoices.co.uk runs a UK communications partner programme, providing comparison services to more than 20 websites including Comparethemarket.com, GoCompare.com and Confused.com.

What do you put the success of price comparison sites down to?

The comparison market in the UK is over 10 years old and has come a long way in that time. The growth in this sector over the last decade is due to an overwhelming demand from consumers for information which empowers them to make informed purchasing decisions and save money. The best comparison sites offer fair and unbiased advice to their users as well as equip them with everything they need to know to make the right choice. By developing an easily accessible and comprehensive comparison site that offers the latest news, advice and “how tos” Consumerchoices.co.uk has been able to turn its sites and those of its partners into credible information sources that users come back to time and again. Additionally, offering an Ofcom accredited comparison calculator, for example, when comparing broadband and telephone services ensures comprehensiveness, accuracy and impartiality.

How are Internet service providers (ISPs) using comparison sites as a marketing tool?

Many comparison sites produce editorial content for their users in the form of news, guides and general comment, plus they will often email direct to their registered user bases to reinforce this messaging. Building relationships with trusted comparison sites and embedding themselves within such activity is a logical extension to ISPs own marketing activities and is an established way of driving additional, high margin sales.

In such a tough market, how has Consumerchoices.co.uk optimised to stay competitive?

We deliver engaging content for our users and are constantly rolling out new products and services. In March we launched supplier ratings on our broadband and home phone services and in April 2010 we launched a new business broadband comparison service. Additionally, we have established a market leading sales distribution network which has significantly benefited both our – and our partners – comparison models. By continuing to innovate and provide services that resonate with our users and those of our partners, Consumerchoices.co.uk has seen its traffic from this source more than double over the last 18 months.

What social media channels do you use?

We use Twitter and LinkedIn, plus we provide a whole range of video guides that are syndicated onto YouTube.

What can we expect to see from the price comparison site market in the next year?

The recession has meant that consumers are re-evaluating all their spending habits and trying to find ways to cut costs wherever possible. Gone are the days of bashfully looking for special offers and tools to reduce expenses, in essence, it has become cool to save money. As the price comparison market is maturing, brands will be working harder to differentiate themselves to their users. Expect to see more engagement from price comparison sites as they promote their non-core products as a way to build a conversation and repeated interaction with their audience