What's Up In Viral? April/May A Look Into Finacial Marketing Using Online Video

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This April and May, we took an in-depth look into how individual financial institutions have taken full advantage of digital marketing through the use of online video advertising. From talking babies to House of Cards' very own Kevin Spacey, we cover it all. This month's What's Up in Viral is here to answer all of your Financial marketing questions! http://www.viralgains.com/

Transcript of What's Up In Viral? April/May A Look Into Finacial Marketing Using Online Video

  • The financial industry has consistently spent more ondigital advertising than any other industry.

    Still, according to a report by eMarketer, digital ad spend-ing by the financial services industry will rise further from $5.2 billion in 2013 to $7.4 billion by 2017 (The U.S. Financial Industry 2013: Digital Ad Spending Forecast and Key Trends).

    This figure isnt surprising given that 57% of respondents to a survey conducted by PWC claimed that their bank would increase their digital investments in the coming two years.

    Sixty-three percent of respondents also noted that they expect to see a 6% hike in revenue because of the in-creased investment.

    Within the vast umbrella of digital advertising, mobile advertising, the video format and programmatic buying seem to show the most promise.

    THE FINANCIAL INDUSTRY LEADS IN DIGITAL SPEND

  • PROGRAMMATIC:Programmatic now delivers more than 33% of financial ads, according to the Journal of Financial Advertising and Marketing. In addition, more than half of financial brands will spend ad budgets through RTB and programmatic for both branding and direct marketing campaigns, said advisor to Martini Media, Skip Brand.

    BrightRolls Tod Sacerdoti is spot on with his prediction that nearly 75% percent of all digital video ad buys will be programmatic in 2014. Not only are these video buys more automated, measurable and transparent than TV, but they are also becoming more accessible to brands with the rise of sophisticated programmatic platforms, simple-to-use video executions and optimization.

    Programmatic is the new premium, and video is just the required first step for the financial advertisers to lead the way, said Brand.

    MOBILE: Spending by the financial services industry in the mobile adver-tising realm increased by 56% from 2012 to 2013the growth rate is expected to slow to 46% from 2013 to 2014.

    VIDEO: Although search and banner ad spends currently exceed that of video, the rate of spending on video is increasing at a greater rate than any other mobile format. There has been a 57% in-crease in the number of financial marketers expected to lever-age online video marketing between 2012 and 2013. Perhaps even more interesting, 58% of financial marketers claimed that video is VITAL to market financial services (Martini Media Inc.).

  • Banking is becoming synonymous with mobility. As your brands product and service oerings become increasingly digitized, so too should your marketing eorts. If youre trying to attract people who use online banking, online is where you need to advertise.

    Plus, competition from non-bank, digitized financial services like PayPal, means that banks have to step up their digital strategy to stay relevant and useful to the millennial consumer.

    DIGITAL SERVICES NEED DIGITAL PROMOTION

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  • BRAND DIFFERENTIATION

    Consumers view most banking brands as undesirable and wholly undierentiated, claims Simon Clough, Group Board Director, Clear. The digitalization of the industry is further commoditizing our brands, with fewer face-to-face interactions limiting our ability to set banks apart.

    Online video helps this situation tremendously. Banks should brand for the future, not for right now. Just being digital is not enough, you have to be the one defining WHAT digital is in order to make any kind of impact in the highly undierentiated finan-cial market. Small dierences in interest rates or other technical product dierentiators, while important, dont really dierenti-ate your brand. Cultivating your digital presence gives your brand a personality in the marketplace, and that is what allows your products to stand above the rest.

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  • INCREASED POINTS OF CONTACT WITH THE CONSUMER

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    Adopting a digitally focused strategy increases the number of times the consumer and bank connect and engage with each other. Its easy to transfer money to six friends using mobile banking. However, if you had to do it at a branch, youd either try to make one trip and interact with the bank one time, or not borrow money at all due to the hassle of returning. The ease of moving money around makes transferring it more likely and more frequent.

    Consequently, customers will engage with your brand more frequently the more digital you are. Adopting a digital strategy that focuses on mobile and multi-platform usability is also key. The number of people banking purely through their smartphones has increased every year, as has the number of people banking on both PCs and mobile devices. Pure PC use, however, has fallen steadily.

  • Today, the financial industrys target consumer is one who is accustomed to existing in a highly digitized world that is defined by convenience and immediacy. Young adults symbiotic relationship with technology means that the best way to engage them is to enter the digital space18 to 34-year-olds are far more interested in and likely to consume financial information via online video.

    In fact, while only 9% of total survey respondents claimed to have watched a video posted by a financial institution on YouTube or some other social media platform in the past year, a far higher 19% of respondents claimed to have watched one when the sample was reduced to the 18 to 34-year-old segment (Mintels Lifestage Marketing U.S., January 2013).

    REACHING THE YOUTH SEGMENT

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  • Although mobile banking consumers are on average 14 years younger than oine bankers, late adopters like boomers and se-niors seem to be demonstrating a growing anity for convenience-enhancing technologies. They have begun to increasingly rely on digital banking services to lighten the burden of their day-to-day schedules, much like they have been relying on services like EBay.

    REACHING THE BOOMERS & SENIORS

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  • Financial products and services are dicult to grasp for a significant portion of potential and existing consumers. Moreover, we seem to be entrenched in an age where new financial products and services are constantly being developed.

    While financial institutions neednt roll out a video explaining the future of Bitcoin, they could use online video to augment users understanding of their own oerings. Not only would this free up a significant amount of time for their in-branch person-nel and customer service representatives, but it would also enhance the consumer experience. Users can play, pause and replay customer service videos at their own convenience. People also tend to be somewhat less open to experimenting with a new product when it concerns their general financial standing. Having a video to walk them through it is incredibly beneficial.

    ENHANCED CONSUMER COMPREHENSION

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  • A report by Jim Marous on Banking Trends for 2014 cites an interesting claim by Nicole Sturgill, Director of Retail Banking Re-search, CEB Tower Group.

    Digital channels will mature from being transactional to being engaging in the coming year, she said.

    The financial industry has long been defined by a somber, number-driven, oftentimes negative brand image. Today, an increasing number of financial institutions seem to be leveraging digital media strategies like online video content curation to reposition themselves as more human (e.g. Bank of America, Wells Fargo, E*Trade).

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    AUGMENTED BRAND RELATABILITY

  • Total Mentions:

    Share of Voice:

    Facebook Likes:

    Kred Influence:

    Kred Outreach:

    341,258

    12%

    1,542,254

    674

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    DIGITALLY FOCUSED REBRANDING:Bank of America (BoA) unveiled a brand new campaign that focuses on the role the bank has played in helping people build their lives. BoA is trying to change its image from one of a bank that is all about the num-bers to one more focused on its customers. It transformed its Bank of Opportunity tagline to the more personable Lifes Better When Were Connected to reflect this shift.

    Not only does BoAs new tagline immediately raise the importance of being connected through technology, but it also reflects the brands adherence to a key industry trend. Financial institutions need to posi-tion themselves as brands that possess the same values as their poten-tial consumers in order to facilitate maximum engagement.

    SOCIAL MEDIA PRESENCE: The brand is also one of the most active on social media. It is constantly engaged in trying to connect to its customers in a more personal way. BoA was able to leverage the online space to give itself a more human and relatable face in the market.

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    FOCUS ON MOBILE: The bank reportedly has over 12 million mobile customers, a figure that increases by an average of 10,000 new subscribers every day.

    MERRILL LYNCH MERGER:Mergers and acquisitions can often lead to a confused brand image, especially when the two companies involved are highly recognizable names in the market. BoAs online ad placements on websites like CNN in 2013 have been extremely successful in uniting the two companies public images under one benevolent brand.

    The Bank of America brand elicits the highest level of aware-ness in the financial market as well as the highest levels of cur-rent use amongst its competitors (23%). The brands impressive standing in the market could be explained by its understanding of the need to grow its digital presence.

  • E*Trade made some big changes this year. It retired its partner-ship with Grey New York and phased out its iconic baby spot. E*Trades new relationship with Ogilvy and Mather led to the creation of its current Type E campaign.

    DIGITALLY FOCUSED REBRANDING:The Type E campaign is aimed at customers who are embracing technology and digital channels, said CMO Liza Landsman. It features House of Cards legend Kevin Spacey, wh