Banks are beginning to embrace social media
In 2011 nearly 40% of banks used social media, such as Facebook or Twitter, for marketing purposes, up from 30% in 2009, according to an ABA survey. Banks are finding that social networking can be an effective means for communicating directly to consumers. Of the surveyed banks using social media outlets, Facebook is the most popular choice, being used by 76%.
The ABA Bank Marketing Survey Report detailed the marketing practices and strategies of 128 banks nationwide. The respondents were primarily commercial or savings institutions (87%) followed by savings and loan associations (13%). All surveyed banks held assets of $20 billion or under.
The survey also looked closely into how banks were spending their marketing dollars. Advertising, which includes direct marketing, got the biggest allocation, accounting for 52% of total bank marketing expenditures.
Taking a look at who bank marketers are targeting, retail customers/homeowners remained the most targeted group for bank product promotion, followed by professionals. Over half of the surveyed banks said they used market segmentation to promote their products and services with geographic location being the most-widely used segmentation criterion on the retail side.
And while banks recognize the importance of digital marketing, just as in previous years, the highest percentage of ad money was still directed at newspaper ads.