What’s the value of a bank advertising during our economic crisis? It may be a lot greater than you’d think.
In normal times, you might say a lack of advertising creates an “out of sight, out of mind” dilemma for banks. These days, it’s more like, “out of sight, out of business.”
The recent Nielsen IAG Financial Brand Confidence Study reveals a direct correlation between consumer confidence in the long-term health of financial institutions and their advertising and marketing efforts.
Overall, fewer than 38% of the people surveyed had confidence in their checking/savings bank.
According to the report, 55% of respondents who said they had seen more advertising for their financial institution reported having “complete confidence” in the financial health and soundness of their financial company and only 18% said they had “little or no confidence” in their company. However, among those who said they had seen less advertising, only 18% had “complete confidence” in their financial company and 45% said they had “little or no confidence” in their company.
When asked what factors would increase confidence in the safety and soundness of their financial institution, respondents cited:
• Seeing regular advertising for that institution (25%)
• Receiving regular mail or email offers from that institution (25%)
• Regularly seeing internet offers/advertising from that institution (21%)
• Reading positive stories in the press about that institution (44%)
The Nielsen IAG Financial Brand Confidence Study was a national online survey of 5500 U.S. respondents. Respondents were asked questions about their confidence in:
* the bank where they have their personal checking and savings accounts
* the company that handles their investments and retirement accounts
* their life insurance company
I know it’s tempting to cut back on advertising and other marketing efforts right now. But these days, getting consumers to have confidence in your bank’s brand is one of the most valuable things you can be doing for your brand.
And right now, while your competitors are cutting back on advertising and marketing, you have the perfect opportunity to grab a greater share of voice, even if spending at last year’s levels.
-Kevin McIntosh
RELATED POSTS:
Community Bank Customer Relationships Come Down To One Thing
How Will Your Bank Gain Consumer Trust In 2009
Kevin McIntosh develops creative branding ideas and social media strategies to help community banks differentiate from their competition.
To subscribe to this blog by email, please enter your email address in the subscribe box in the right-hand column.
