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How should banks advertise in a recession?
Posted by Eliza Williams, 18 February 2009, 14:59 Permalink Comments (19)
"Let us help you save money," coos NatWest in its latest ad. "Is this the most insincere bank ad ever?" reply bloggers
With bankers high up on most people's hit lists, and banks facing a barrage of negative publicity, how do advertising agencies tackle the tricky task of promoting them?
The first banking ads since the start of the recession are beginning to be released and the approach seems to be one of directness - reassuring voices telling customers that despite everything they're reading in the media, they are the bank that can be trusted. This is evident in Nationwide's recent print and poster campaign, which simply announces that they are 'Solid. Stable. Dependable. Exciting aren't we?'
Nationwide's new slogan
Others are taking a similar route, with an added emphasis on making banks appear more human and friendly. NatWest's latest series of ads (one shown top) emphasises its Money Sense advisors, who are on hand in branches across the country. The ads show a series of smiling customers exchanging banter with engaged and interested bank staff. This is perhaps not an experience that most of us are familiar with, and as a consequence the campaign has already engendered some backlash online.
Halifax stresses its human touch in its new ad campaign
Halifax's new spot feels similarly patronising, if a little more imaginatively performed. This one shows groups of bank employees forming human ladders and pyramids to present individuals with a five pound note, representing the money that is given each month by the bank to reward current account holders, "as a way of saying thank you". It isn't until the small print at the end that it is revealed that you only receive the money if you deposit £1000 a month.
HSBC Lumberjack ad - is this type of campaign still relevant for banks today?
Is this really the right tack? Certainly bank advertising of the HSBC ilk, whose ''world's local bank" campaign was becoming increasingly obscure of late (see Lumberjack spot above), feels inappropriate in the current financial climate. But short of releasing a film of bank CEOs pleading for forgiveness while being whipped by disgruntled customers, how can banks use advertising to win back consumers' confidence?
The "we're really trustworthy, honest" approach may seem the only available avenue at the moment, but are any of us really likely to believe it? How would you like your bank to talk to you?
19 Comments
"It isn’t until the small print at the end that it is revealed that you only receive the money if you deposit £1000 a month."
I think that's a little bit of a harsh criticism, I mean they have to have a limit otherwise people would be opening bank accounts just to get their free fivers. If this is someone's primary bank account that their salary is paid into then anyone earning around £16k or over will qualify anyway.
Bit of a harsh, unbalanced article there.
2009-02-18 15:29:09
Nationwide is a building society, not a bank, and as such is accountable to its owner-members rather than shareholders. Rather than maximising profits, the aim of a building society (or co-operative bank) is to provide the best possible products and services to its members. A small – and perhaps pedantic – point but rather prescient given the situation the demutualised Halifax Building Society, now part of HBOS, finds itself.
The slogan "Solid. Stable. Dependable. Exciting aren’t we?" refers to Nationwide's refusal to demutualise, despite pressure from sandbaggers.
2009-02-18 15:40:22
I've been asking myself this very question since the financial crisis started. Perhaps it would be wiser to cease using such obvious and visible forms of advertising as they could be seen as a waste of money by customers. Especially with the media concentrating so heavily on the financial sector at the moment, if a bank was willing to really look after its customers it wouldn't be too difficult to get coverage...but then am I expecting a little too much from the banks (HBOS down £10billion and still handing out bonuses?!?!? The shop I worked in beat its sales targets every month - I didn't get a penny!)
2009-02-18 15:53:36
Perhaps a simple apology would be a start?
2009-02-18 16:03:33
New customers only…
2009-02-18 23:23:53
The Halifax advert is dreadful. The way it's dressing up a fairly meagre 0.5% (or less) interest rate (certainly nothing special for a current account) as a pitifully small bribe that you ought to be grateful for is basically saying "we couldn't do any less for you if we tried".
Unfair to lump in Nationwide with the banks by the way - as fh say they are a mutual, not a bank, and haven't had losses anything like that of the banks.
2009-02-19 13:07:11
@fh
@Chris
You're right - I should have made the distinction between building societies and banks in the piece. However Nationwide's current advertising and slogan is an obvious reaction to the recession and the behaviour of the banks so I think is relevant to include here.
Eliza Williams
2009-02-19 13:12:58
Given the ridiculous bank charges that natwest apply the only advice they should be giving is change to another bank!
2009-02-19 14:15:24
Of course they should advertise. What we need now is a little confidence. We need banks to become competitive about their interest rates, we need them to become innovative in how they attract savers, we need them to offer credit, we need them to offer mortgages. And we need people to see that this is happening. That means advertising. This recession won't end if people stick their heads in the sand.
It concerns me that Creative Review is agonising about principles when so many people are losing their jobs, and so many companies are going bust. Shouldn't you be promoting creativity and the benefits it can bring to clients?
The act of advertising will require the services of an ad agency, and a film production company, and a media company, and a repro house, and direct mail agency, and a digital agency, and a casting agent, and a post production house, and a location finder, and a film crew......who will all be paid...and that means work, employment and more money moving around the economy.
So yes, stop the hand-wringing and advertise. A lot.
2009-02-20 13:03:02
Hard to justify advertising campaigns when the tax payer has just bailed them out. Wasn't the money meant to boost bank lending rather than boost the bank's image.
2009-02-20 13:06:32
The banks haven't really been advertising to customers for a long time. They never really had to. Banks selling 'products' and having 'sales' seemed to be the product of over eager marketing departments rather the want to provide for customers.
Likewise, Natwest's previously self-depreciating campaigns and Halifax's OTT musical extravaganza's always seemed like Banks simply showing off rather than communicating messages of trust or encouragement.
I'm personally hoping recent events will see a more away from on over-reliance on marketing and 'products' and a return to promoting banks as a 'service'.
2009-02-20 13:06:48
It is ironic that HBOS (Halifax) – owned by Lloyds Banking group have had losses of around £10billion.
The advertising announces: ‘Solid. Stable. Dependable. Exciting aren’t we?’
Does not sound: ‘Solid. Stable. Dependable. To me…
2009-02-20 13:20:07
wrong slogan, Nationwide is:Solid. Stable. Dependable.
Just goes to show they all seem the same, to me anyhow.
2009-02-20 13:26:21
Why does a bank need to be casual exciting? Next thing they'll be doing is playing a new sony bravia ad, and sticking the HSBC logo at the end. It doesn't make much sense other than to give the agenceys a thrill/coolness. If I was art director I'd suggest doing a bank ad something along the lines of Master of their craft, like a Jewelers(A bank of sorts?) or chocolatiers.
2009-02-21 00:41:28
Check out:
http://www.motiondesign.nl/#/motion/showreel/alexcommercial
a totally different approach to a bank commercial in times of crises
2009-02-23 09:35:09
Spread the Love: http://www.vimeo.com/3261363
2009-02-24 10:15:44
Here's another approach:
http://www.wearebecu.org/watch.html
WA-local Credit Union appealing to the people of WA
2009-02-24 20:18:54
David...i found your blog a breath of fresh air. How can we say banks should'nt advertise. i work for a bank which will remain un named and i understand the importance of advertising. Most banks have a pot for advertising that is negotiated per 18 month term. This pot would have been planned and spent well before the recession. without advertising new products cannot be introduced, and the banks can't make money. aren't we supposed to be getting out of the recession?Natwest have taken the human approach. Halifax have moved from the smiling/singing member of staff and taken a more serious approach. We need to be supportive to our banks in this current climate.
2009-02-26 20:01:12
Your local banking institution can actually establish the marketing campaign by being humble and becoming a trustworthy business relationship. Banking is now moving into the social network arena. This is potentially a positive step, providing they do respond to clients comments and questions.
2010-08-25 09:06:06
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