For the first time ever, more money will be spent online this year than on newspapers and magazines combined. Financial institutions seem to be following suit, with 74 percent of financial marketers saying that their budgets are increasing to include online advertising, the highest of any category including social media.
The rapid development of Internet and Smartphone technology has paved the way for skyrocketing consumer adoption. A very significant shift online is happening in consumer behavior. Has your financial institution advertising begun to adapt and move online as well?
Advertising, A To Zines
Online advertising can encompass a number of elements, including paid search, display/banner ads, and mobile or video advertising. Search advertising can be considered the holy grail of online advertising. It delivers high click-through rates and prospects who are often at the end of the buying cycle and ready to purchase. There is an art to campaign set-up and management, such as selecting appropriate geographies and keywords, writing effective ads and testing creative, effective bidding strategies and optimization of performance.
Display advertising can include various media types, such as static, animated or rich media ads, along with mobile and video. There are a number of ad networks, including Google and Yahoo, which sell display advertising units. Display advertising is also offered by newspapers, television and radio stations as companion products to their “traditional” offerings. In addition, a number of web-only networks are popping up which can be local or banking-focused sites, also offering display advertising.
Mobile advertising merits its own mention. This year, for the first year ever, the United States will spend more than any other country on mobile advertising. Mobile advertising is comprised of at least two main categories: In-app advertising (advertising within iPhone and Android applications for example) and mobile web display – advertising shown while accessing Internet sites via a browser. It is predicted that in-app advertising spending will overtake mobile web display this year. Mobile ads can be text only or graphic and can be static or animated. A big benefit of mobile advertising is that you are often the only ad on the page, particularly within apps, so ads tend to get noticed.
Online Media Cost Concerns
There are many considerations when evaluating online media options:
Cost: Are you buying on a cost per thousand, cost per click or a flat rate based on impression share?
Geography: Be clear about what area you are buying. Many online platforms allow hyper-targeted geographies with a specific radius around each branch, towns or zip codes. Others only offer DMA-wide or other pre-set geography which may not be ideal.
Flexibility: Be wary of getting lured into longer-term commitments to get the best rate. The industry seems to be moving away from these long-term commitments, by allowing more flexibility in terms of flighting campaigns to better assess results and manage budgets, as well as stopping campaigns when rates change.
Reporting: Is reporting self-service, or will reporting be delivered at regular intervals? Also, be aware that reporting can and should be more than clicks, impressions and click-through rates. If a landing page is coded correctly and ads are set up with tracking codes, activity on landing pages can also be tracked. For example, you can see how many people clicked on “Open Now” and the media sources.
Analysis: Reporting is one thing, but looking at the reports and providing thoughtful analysis on results and opportunities for improvement is another. Will you get both? There are a number of parameters which can be evaluated, including efficiency of each media outlet used, keyword and negative keyword selection and testing creative versions – both landing pages and ads. Self-serve reporting, while easy on the vendor, requires more time by the user setting up reports and evaluating results.
Landing page considerations, where people click from the ad, are critical to strategize ahead of time to maximize the experience once potential customers get there. Landing pages and your website form the hub of online activity with all sources directed to them. Landing pages should be a direct response to the message or campaign being promoted with the goal being to maximize conversions. They should be eye catching, have an offer if possible, and promote the desired activity with strong call-to-actions. Disclosures and compliance logos are housed at the bottom of the landing page, one click away from any online ads or promotional mentions.
‘Critical Component’
Online advertising is an effective way to sell bank products and services. Ideally, three components should be in place for digital media results to be maximized. First, how easy is it to open or apply for an account, and can those actions be done seamlessly online? Second, financial institutions need to have appropriate products targeted to meet market demands. Digital-savvy individuals want products and services available online and at their convenience. Your website should make it easy for people to do business with you. And third, the proper online promotional channels should be utilized to communicate your product offerings and website capability. We call these three components the Three-Legged Stool. If one is not in place, online marketing efforts won’t be in balance.
Online advertising should be part of any financial institution’s marketing strategy. Campaigns can be targeted to local geographies, demographics or psychographic criteria. Online advertising is reportable and trackable in a way most other media sources are not. It can be easily turned on or off depending on which product, service or event you want to promote. Customers and prospects are spending time online, making decisions online and taking actions online. The reality is that online advertising is now a critical component in your marketing mix.
Tara Hershberger is vice president of media for Pannos Winzeler Marketing, in Bedford, N.H.., Pannoswinzeler.com; Email: tara@pannoswinzeler.com;
Twitter: @Tarahersh.
