Bbva Marketing Case Study

1. What is the role of offline and online advertising in acquiring checking account customers for the bank?

Online advertising plays an important role in spreading brand awareness. Over 11,500,000 impressions were seen on the internet by “active” potential consumers and a further 310,000,000 Impressions were apparent passively. Although Paid Search and Display only brought 3,809 and 3,864 funded accounts in 2009, online advertising main impact has been reaching such a large audience.

The Segment BBVA is now targeting is wealthier than their initial target segment of immigrants. The main stream market has multiple financial needs and thus is likely to go to a branch after Internet research to discuss opening an account. Hence online advertising is imperative in bringing potential customers to BBVA.

Offline advertising is used to build brand awareness further and make potential bank customers consider BBVA. BBVA are in a period of flux in terms of promoting their brand (after adopting a new trade name) . By means of sponsorships with popular sporting leagues and broadcasters, BBVA is using the power of offline marketing to extend its outreach and position itself as a trustworthy brand.

2. Is the 2010 advertising budget allocation between offline and online media appropriate?

The 2010 advertising budget allocation between the offline and online media seems to be appropriate.

If you work the results it would seem the cost per customer through the online advertising is clearly higher than through offline advertising (compare $147 to $35). However, only online advertising allows such a broad reach of prospective customers (611,907 clicks) who could potentially open an account in the branch. Further on, we believe the Cost per acquisition statistics are skewed because there are many more costs (staff, building etc) involved in setting an account up in branch that have not been apportioned in the offline advertising budget. Finally...