Advertising in the Banking Sector

As a rule, I start a thought process and then research my thoughts. In this case, too, I started looking for Pakistani bank TVCs that told a compelling story. The more I looked, the more it hurt. In the end, I had to go on painkillers. So did Dan Wieden.  For those who don’t know Wieden, he is the creator of one of the most iconic taglines in the world: ‘Just Do It.’ Wieden once said, “People don’t buy products or services, they buy stories, relationships and magic.”  Pakistani advertisers usually don’t like to listen to Wieden. By usually, I mean 90% of the time.  Ironically, when I once said this during a presentation in front of a rather reasonable and educated brand team, even they debated the line. They said it was not true because people buy brand benefits, not stories. Looking at the Nike commercials, they sell magic. They sell stories. And people buy it, making Nike the brand it is.  TVCs in the Banking Sector This article is not about Nike. It is about banking and storytelling in the banking sector.  If we look at most of the TVCs put out by banks in the last few years in Pakistan, they all suffer from the same syndrome most Pakistani advertising does—voiceover-based narrations over visual montages.  In the 2006 film, Stranger Than Fiction, Will Ferrell’s character constantly hear a voiceover as he goes about his typical day. That voiceover governs his life. Ordinary people, like us, do not have the luxury of having our lives described by a voiceover. Hence, we must rely on dialogue and communication. We must do the basic thing called ‘talking’.  It might still work if we could write monologues, like Barclay’s TVC of 2000, featuring Sir Anthony Hopkins.  Yet, Pakistani advertising thinks the entire country is Ferrell’s character in that movie. This makes the banking industry’s TVCs forgettable, run-of-the-mill, and boring. The kind of stuff that makes boardroom presentation decks look safe and well-presentable. It’s not that Pakistani banks have never told stories. One of my favorites was Al Habib’s 2004 campaign directed by Ayesha Jalil. Recently, HBL made a TVC targeting farmers, and it was a reasonably good attempt by Adcom. However, these are rare commodities. Let’s see what kind of products banks offer and whether they can be associated with storytelling.   <h2 style="text-align: justify;">Some Examples of Corporate Advertising </h2>Sir Anthony Hopkins’s Barclays commercial is a good example of corporate advertising. They singled out one RTB (Reason To Believe) and harped on it repeatedly to ensure audiences did not miss it.  Is being ‘big’ a good enough reason for anyone to have a relationship with a bank?  Surely, yes. Because being big means having the trust of a large customer base. It means the bank’s ability to provide liquidity at any time. It means that the bank’s infrastructure is strong, and consequently, the customer service is strong.  Barclays could have gone on to talk about its branch network, customer service, or infrastructure. But they opted for a compelling story that gave them the differentiation in their advertising that Pakistani banks lack.  Mastercard Campaigns Let’s talk about cards. Silk Bank’s credit card TVC gave me chills in my spine. However, we have examples of long-standing Mastercard campaigns that are priceless. They maintained their brand essence for decades, but their tone and messaging evolved. Even their VO-based campaign, showing a blind woman, had a reason and class to it.  A plethora of Bank Alfalah credit card TVCs does not come close to it.   Mr Bean Campaign HBL experimented with their Mr Bean campaign a few years ago – and the good thing about the campaign was the fact that HBL, despite being a financial institution, decided not to take itself too seriously.  That is a big achievement because most of our banks tend to take themselves more seriously than their customers and end up sounding pretentious in their communications.  I have deliberately avoided the inevitable comparison with Indian ads, but a Google search for TVCs by Indian banks, be it Axis or ICICI, may explain why Wieden was right.  I have stopped expecting that most Pakistani advertising will start believing in storytelling. One can only hope there will be a ray of light somewhere when banks other than HBL and a handful of others will start selling relationships and magic to their customers without taking themselves too seriously. Until then – Tylenol.      This article was contributed by our expert <a href="https://www.linkedin.com/in/samiqahar/" target="_blank" rel="noopener">Sami Qahar</a>   <h3 style="text-align: justify;">Frequently Asked Questions Answered by Sami Qahar</h3> <h2 style="text-align: justify;">1. What are some effective strategies banks use to differentiate themselves from competitors in corporate advertising campaigns?</h2>Banks use various strategies in their corporate advertising campaigns to differentiate themselves from their competitors. Here are some effective strategies commonly employed: Unique Value Proposition Banks focus on highlighting the unique value proposition that sets them apart from competitors. Emotional Appeal Many banks leverage emotional storytelling in their advertisements to connect with customers more deeply. Customer-Centric Approach Banks emphasize their commitment to customers by showcasing personalized services, tailored solutions, and convenient banking experiences. Brand Reputation and Trust Banks often highlight their long-standing history, stability, and market reputation to build customer trust. Financial Expertise Demonstrating expertise and knowledge in financial matters helps banks position themselves as reliable advisors. Technology and Innovation Banks highlight their investment in cutting-edge technology and digital banking solutions to differentiate themselves in a rapidly evolving landscape. Corporate Social Responsibility Many banks align their advertising campaigns with socially responsible initiatives. Targeted Segmentation Banks often tailor their advertising messages to specific customer segments. Competitive Offers Banks may use competitive offers, such as special interest rates, cashback rewards, or promotional packages, to attract customers and stand out from the competition. Distinctive Branding Banks focus on creating a distinctive brand identity through visual elements, slogans, jingles, or memorable characters.  <h2 style="text-align: justify;">2. What challenges do banks face in their corporate advertising efforts, and how can they be overcome to achieve effective results?</h2>Banks face several challenges in their corporate advertising efforts. Overcoming these challenges requires careful planning, adaptability, and innovative approaches.  Here are some common challenges and potential solutions: Regulatory Compliance Banks operate in a heavily regulated environment, which can restrict the content and messaging of their advertisements. To overcome this challenge, banks must closely collaborate with legal and compliance teams to ensure their campaigns meet regulatory requirements while effectively communicating their value proposition. Building Trust Building trust is crucial for banks, especially during financial crises or scandals. Overcoming this challenge involves consistently delivering on promises, transparent communication, and showcasing the bank's commitment to ethical practices. Leveraging customer testimonials, case studies, or endorsements can also help build credibility. Information Overload Banks operate in a crowded marketplace with numerous financial products and services. Cutting through the clutter and effectively communicating the key messages can be challenging. Simplifying complex information, using clear and concise language, and focusing on the most relevant benefits for customers can help overcome information overload. Evolving Consumer Expectations Consumer expectations are continually evolving, particularly in the digital age. Banks need to adapt their advertising strategies to meet changing customer preferences. This may involve embracing digital channels, personalized messaging, interactive content, or leveraging emerging technologies like augmented reality or virtual reality. Competition from Fintech Startups Fintech startups and digital disruptors have emerged as formidable competitors to traditional banks. Overcoming this challenge requires banks to highlight their unique advantages, such as their established customer base, expertise, and ability to offer comprehensive financial services. Collaboration or partnerships with fintech firms can also help banks stay competitive. Balancing Technology and Human Touch With the increasing adoption of digital banking, banks need to strike a balance between technology-driven convenience and maintaining a human touch. Ensuring that advertising campaigns convey the availability of both digital and personal customer service can help address this challenge. Measuring Advertising ROI Measuring the Return on Investment (ROI) of advertising campaigns can be challenging, especially when it comes to attributing specific actions or conversions to advertising efforts.  Banks can overcome this challenge by implementing robust tracking and analytics systems, using key performance indicators (KPIs) aligned with business goals, and conducting market research to assess campaign effectiveness. Relevance and Personalization Delivering relevant and personalized advertising messages to customers is crucial. Banks can leverage data analytics and customer segmentation to tailor their campaigns to specific target audiences. This allows for more personalized messaging, improved customer engagement, and higher chances of campaign success. Reputation Management Banks face the risk of negative publicity or reputation damage due to various factors, including data breaches, customer complaints, or economic downturns.  Overcoming this challenge involves proactive reputation management, crisis communication plans, and addressing customer concerns promptly and transparently.  <h2 style="text-align: justify;">3. How do banks leverage advertising to promote their financial products and services, such as savings accounts, loans, and investment options?</h2>Effective advertising campaigns employ :<ul style="text-align: justify;"><li>Compelling storytelling</li><li>Clear and concise messaging</li><li>Visual elements</li><li>Persuasive calls to action</li></ul> The campaigns often leverage various media channels such as television, online platforms, print media, and targeted digital advertising to reach the desired audience segments.  <h2 style="text-align: justify;">4. How does the advertising landscape for banks differ in various regions or countries, and what cultural factors influence advertising strategies?</h2>The advertising landscape for banks can differ significantly across regions and countries due to cultural factors, regulatory frameworks, consumer behaviors, and market dynamics.  Here are some key considerations: <h2 style="text-align: justify;">Cultural Factors </h2>Values and Beliefs Cultural values and beliefs play a significant role in shaping advertising strategies. Sensitivity to Risk Cultural attitudes towards risk and financial matters influence advertising messaging. Communication Styles Different cultures have distinct communication styles, which impact the tone, language, and imagery used in advertising.  <h2 style="text-align: justify;">Regulatory Frameworks </h2> Advertising Regulations Regulatory frameworks vary across countries and regions, dictating what can and cannot be communicated in bank advertisements. Banks must navigate these regulations while ensuring their campaigns comply with legal requirements and industry standards.  <h2 style="text-align: justify;">Consumer Behaviours and Preferences </h2>Financial Literacy The level of financial literacy among consumers can influence advertising strategies. In regions with higher financial literacy rates, banks may adopt more technical or sophisticated messaging, whereas in areas with lower financial literacy, simpler and educational approaches may be more effective. Digital Adoption The degree of digital adoption and access to technology also impact advertising strategies. In regions where digital banking is prevalent, banks may focus on showcasing online and mobile banking features, while in areas with limited digital penetration, traditional media channels may still be vital.  <h2 style="text-align: justify;">Market Dynamics </h2>Competitive Landscape The competitive landscape differs across regions, with varying numbers and types of financial institutions. Economic Factors Economic conditions, including income levels, employment rates, and consumer spending patterns, influence advertising approaches.  <h2 style="text-align: justify;">Local Preferences and Traditions </h2>Local Iconography Incorporating local symbols, traditions, or cultural icons in advertisements can help resonate with the target audience and build familiarity. Language and Localization Advertisements must be tailored to the local language, idioms, and dialects to ensure effective communication.

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