WASHINGTON — Economic conditions and recession are taking a toll, but banks continue to spend money on marketing their banking financial services.
According to a survey conducted by the American Bankers Association, bank holding companies spent more than $10 billion in non-salary marketing expenditures in 2007, only a slight decline of less than 2 percent from 2006. The data comes from the ABA Bank Marketing Survey Report, an online survey sent to commercial and savings banks, as well as savings and loan associations. This is the 22nd annual bank marketing survey.
Key findings:
- Customer acquisition was the top marketing goal in 2007 and 2008.
- One in three banks (33 percent) identified deposit growth as the biggest marketing challenge they may face over the next 12 months. Competition (23 percent) and the economy (22 percent) were the second and third most cited future issues.
- Nearly all banks (99 percent) had a Web presence, and almost two-thirds conduct marketing online. Rich-media ads (video/audio) and business blogs were rated as the most effective Internet marketing methods.
- The larger the bank, the more likely it was to have a formal cross-selling plan. In 2007, banks cross-sold an average of five products to customers.
- Community relations campaigns, such as donations and contributions, made up more than half of bank public relations expenditures. Public relations was the second-largest non-salary annual marketing expenditure after advertising.
"The marketing survey results confirmed what we suspected: In today's challenging and even more competitive banking environment, marketing remains one of the most valuable contributors to a bank's bottom line," said Maggie Kelly, ABA vice president of marketing. "The business intelligence contained in the report will inform bank marketing strategies across the country in all banking categories."
To obtain a full copy of the ABA Bank Marketing Survey Report, visit the ABA Web site.
