1. b. The current marketing budget allocation for Online Media is about 21% of the total media budget. We agree to the current budget allocation for the following reasons: * Online medium is perceived as high potential and high growth medium. As such it is critical to stay appropriately invested in the medium for the long haul * The online channel allows for more focussed targeting and brand communication.
This is highlighted by an explicit mention of BBVA partners using proprietary data and algorithms to identify sites for display advertisements * The channel is easier to operate and monitor (easier to calculate ROI). This allows the management to measure the impact of their actions and take further actions appropriately * The channel also allows for flexibility for short term but high impact decisions.
This could mean better focus on the target market or generating more eyeballs during either festive and sports events or any other local event attracting a lot of consumer attention * BBVA has identified their ideal target market as individuals in the age group of 25-54 with an annual household income of greater than 75,000 USD. This will be an increasingly net savvy segment and therefore an aggressive spend on the online medium is warranted * The captive market base for BBVA has typically been Mexicans and Latin American immigrants.
An assumption that can be made here is that these would typically be individuals with blue collar jobs. BBVA aims to go main-stream with its consumers and diversify into the ‘more affluent’ consumer segments – typically be more internet savvy. Given the emphasis on increasing brand awareness and establishing itself in the consideration set of people, high upfront spending on online media is critical * Online media is also very successful in ensuring that an individual can see advertisements / displays multiple times.
This would help in the subsequent stages of the brand check funnel. Multiple touch points with the consumer would help moving the brand from awareness to consideration levels * Also, supplements endeavour of increasing checking accounts opened online * Online media allows the bank to showcase the breadth of their offerings to consumers which can otherwise only be serviced by bank visits. This frees up vital time at branches.
It must be noted that it is difficult to showcase the breadth and flexibility of their offerings through most offline channels * BBVA is targeting strivers who are both aggressive and anxious about their money. It would be a fair assumption to say that a large number of such individuals would be using the internet (search engines and otherwise) to better organize their finances. Having a strong online presence would allow BBVA to get into the consideration set of these individuals . Display and Search Advertising play different but complementary roles in acquiring new checking customers for BBVA. This is explained further below. * Display advertising is a medium of push advertising while paid searches are a medium of pull advertising * Typically display and search advertising reach different audiences. Display typically helps in generating awareness and getting into the consideration set of potential consumers.
While paid searches for some keywords as ‘consumer checking’, ‘checking account’ help again in awareness generation, those associated with keywords as ‘BBVA Compass’, ‘BBVA’ come relatively lower down the purchase funnel at the consideration and intent to buy levels * In other words, display advertising helps in getting new customers into the funnel (broadening the mouth of the funnel) while paid searches would help in ensuring that there are lower drop-offs as we move lower down the funnel * Display advertising also plays a critical role in creating a brand because of its visual appeal thus having larger retention / create more impressions.
A more well received brand increases its chances of consumer acceptance – in this case bank account openings * The impact of both these strategies is also very measurable (paid searches more so). This allows managers to be informed of the ramifications of their strategy and therefore allows for more effective implementation and course correction measures In essence, an effective push and pull strategy would mean that a push effort through display would be followed up with a pull effort through a paid search or a direct visit to the website.
In this sense, both work in tandem and are supplementary endeavours. Both are also very focussed efforts (because of more focused targeting) thereby also reducing the time and capital required to reach the target. Therefore a combination of Display and Search Advertising helps improve the effectiveness of an online marketing strategy.