Friday, March 13, 2009

Banks' TV Ads Drive People To Invest

Not that US banks hold any authority in the world at the moment, but an interesting research has shown that U.S. banks seeing the highest returns on their advertising investment between 200 and 2008 and are not necessarily those spending the most but instead have the heaviest TV budgets.

A new report from financial-services research firm Aite Group - which examined ad-spending trends and return on advertising performance of 32 of the largest 50 U.S. retail banks from 2006 through 2008 - found that top 25% highest-performing banks are those with TV-heavy buys.

Ron Shevlin, senior analyst at Aite Group and author of the report said banks in the top performing quadrant - which include big names such as Citibank and Wachovia, as well as smaller companies Huntington, BB&T and Hudson Bank - did best in driving deposit, loan and IRA account growth.

While other banks succeeded in ramping different traditional metrics of advertising return, such as awareness, he said those ad dollars were ultimately lost because they did not result in new deposits, loan or IRA growth.quick

So could TV ads have contributed to the current financial melt-down? I'm not sure if there'll ever be conclusive proof on that issue but despite all the hype on new media and the death of TV ads, it's nice to know that it's still effective.

Via: AdAge