SlideShare a Scribd company logo
▪ Caroline Aston
▪ Ezhilarasan Ravichandran
▪ Vaibhav Sharma
▪ Shobhit Sabharwal
▪ Sruti Seshadri
Presented by
Marketing Resource
Allocation
PROBLEM TO DISCUSS
How to allocate 2011
marketing and
advertising resources
HISTORY AND BACKGROUND
 “BBVA” Banco BilbaoVizcaya Argentaria, SA
 2nd largest in Spain
 US Market in 2004
 15th largest commercial US Bank
 Financial Crisis in USA
Valley
Bank
Compass
Bank
Guaranty
Bank
BBVA
GROUP
BBVA
COMPASS
BANK GOALS
▪ Top 10 in USA
▪ Sunbelt area
▪ Bank position
▪ Customized Solutions
▪ Breakthrough Innovations
▪ 3 line of business
CUSTOMERS AND TARGET
53%
12%
10%
11%
6%
5%
3%
% Branches (767)
Texas
Alabama
Arizona
California
Florida
Colorado
65%16%
6%
5%
5%
2%
1%
Percent Deposits
Texas
Alabama
Arizona
California
Florida
Colorado
▪ Mexican immigrants
▪ “Strivers”
▪ 25 to 54 years old
▪ $75000+
▪ Loans & Investments
▪ Lifetime value of account = $800
▪ Cost new customer < $200
▪ Branch customer - retention is higher
▪ Online customers – more profit
MARKETING GOALS
• Build awareness and trust
• Support various lines of
business
• Bring in new customers
• Increase total number of
accounts
• Improve satisfaction & retention
of current customers
• Cross – sell
BUDGET ALLOCATION PROCESS
▪ Overall sales goals & corporate objectives, growth potential of channels & markets,
review past performance.
▪ More resources in important markets – Dallas, Houston and Birmingham.
▪ Return on Investment on online advertising is trackable.
▪ Effectiveness of offline advertising is difficult to measure.
MARKETING BUDGET
 BBVA budget is smaller than that of large national
banks.
 Major part – supporting branches, direct mail,
promotional activities.
 Discretionary budget – advertising & creative
development- is small.
 50% of offline advertising spent on brand building.
 Rest on various product lines and regional
initiatives.
2,111
1,852
525
971
56
1,588
1,341
572 560
50
BoA Chase Wells Fargo Citi BBVA Compass
U.S. Marketing Spending by Major Banks ($ millions)
2008 2009
BBVA COMPASS’S ADVERTISING BUDGET BY MEDIA, 2010
https://www.youtube.com/watch?v=DrvCXa8sbh0 https://www.youtube.com/watch?v=5EWHgmAYxIg
4%
1%
7%
21%
53%
14%
BBVA compass’s advertising budget by media, 2010
Newspaper Magazine Outdoor Online TV Radio
OFFLINE MARKETING - BRAND BUILDING
 Improve brand awareness & consideration
among potential customers
 2007 & 2008, Compass brand – over 80%
awareness.
 2009 – BBVA Compass brand awareness at
48%
 2010 – target is 53% brand awareness.
SPONSORSHIPS
❖ BBVA
 NBA ,WNBA , NBA Development League
 La Liga BBVA
❖ BBVA Compass
 2010 BBVA Compass Bowl
 Texas Bowl
 Bell Helicopter Armed Forces Bowl
 New Mexico Bowl
https://www.youtube.com/watch?v=tHkqpbhduFI
ONLINE MARKETING
 The goal was to build online brand and acquire
new customer
 Almost half of the online budget was used for
new checking account customers
 BBVA used both search and display advertising
 Promotional offers (ipod, 100$ cash)
 Effective cost of promotions 100$ for new
online checking customer
 Process of acquiring new customers for an
online checking account
 Allocate same amounts to paid search and
display ads
PAID SEARCH
 Buying generic and branded keywords (Google,Yahoo, Bing) using
bid management tool
 Track clicks, click through rates, cost per click and cost per
application
 CTR : Click through rate is equal to the number of clicks
divided by the number of impressions.
 CPC : cost per click is the total cost of a campaign divided
by the number of clicks.
 Position :Average position of the search
 Share ofVoice :Ad shows how often that ad appears as
compared to the total impressions available for the specific
keyword groups
DISPLAY ADS AND COMPLEXITY
 Buying advertising space on websites
 Display ads deliver high number of impressions
 Display ads work with advertising network
 Consumers go through multiple exposure
before opening an account
Organic Search: Organic search is a term for search
engine results that are naturally generated and not
influenced by commercial relationships between an
organization and a search provider
Paid Search: Paid Search.Also referred to as Paid
Placement, Pay Per Click, and sometimes Search Engine
Marketing, paid search marketing allows advertisers to
pay to be listed within the Search Engine results page for
specific keyword or phrases.
Budget allocation for Paid Search marketing for Checking Campaign
Google
$288,000
56%
MSN
$ 37,000
7%
SuperPages
$70
0%
Yahoo!
$ 177,000
34%
Unified Marketplace
$14,000
3%
Impressions 11,529,237
Clicks 472,433
App. Started
40,653
4.10%
0.35%
0.06%
Completed 7,107
91.5%
83%
Funnel Report – Paid Search marketing for Checking Campaign
▪ Click through rate was just 4.10%.
▪ 91.5% user dropout from website
without starting account
application.
▪ 83% user doesn’t complete online
application.
▪ Only 7107 Application completed
out of 11,529,237 applications
▪ Avg cost per application is $73
AOL; $176,000 ; 28%
Tribal Fusion; $107,000
; 17%
Casale; $90,000 ; 14%
Revenue Science;
$74,000 ; 12%
24/7 Real Media;
$62,000 ; 10%
InterClick; $38,000 ;
6%
Yahoo; $30,000 ; 5%
Traffic Marketplace;
$29,000 ; 4%
Datran Media; $15,000
; 2%
ValueClick; $10,000 ;
2% AdBrite; $3,000 ; 0%
Budget Allocation for Display Marketing for Checking Campaign
Impressions 309,274,438
Clicks 139,474
App. Started
18,520
0.05%
0.01%
0.002%
Completed 7,209
Funnel Report – Display Marketing for Checking Campaign
80%
80%
▪ Click through rate was just 0.05%.
▪ 80% user dropout from website
without starting account application.
▪ 80% user don’t complete the online
application.
▪ Only 7209 Application completed out
of 309,274,438 impressions
▪ Avg cost per application is $88
24/7 Real Media,
1,767,393, 4%
AdBrite,
1,217,595, 3%
AOL, 9,165,496,
21%
Casale,
5,152,497,
12%
Datran Media,
1,772,829, 4%InterClick,
3,568,891, 8%
Revenue
Science,
4,992,957, 11%
Yahoo!,
3,017,113, 7%
Traffic
Marketplace,
6,637,292, 15%
Tribal Fusion,
5,051,966, 12%
ValueClick,
1,398,327, 3%
Yellow Pages,
156,771, 0%
Reach of Display Sites and Ad Networks
24/7 Real…
AdBrite, 45%
AOL, 37%
Casale, 43%
Datran Media,
42%
InterClick, 48%Revenue
Science, 45%
Yahoo!,
41%
Traffic
Marketplace,
33%
Tribal Fusion,
41%
ValueClick, 54%
Yellow Pages,
35%
Duplicate Percentage Reach
Duplicate Reach: Number of unique users exposed on that site and any of the other sites in the campaign.
Reach of Display Sites and Ad Networks (Jan – Feb 2010)
Causal effect of Display Ads on Paid Search Click and Conversion Rate
▪ A/B Experiment
▪ Users who were not exposed to any
display ads clicked on a paid search
ad , Conversion Rate : 1.26%
▪ Users who were exposed to display
ad through any one of the ad
networks clicked on a paid search
ad, Conversion Rate : 1.48%
PLAN OF ACTION
 Budget spending on media is estimated to be in the range of $11m to $14m for 2011.
 Other than that is spending on BBVA Compass specific sponsorship deals.
 Other costs are the major and discretionary budgets.
 The Bank’s goals and the Marketing goals must be kept in mind while framing the next
years budget.
 Though big sponsorships will bring good brand recognition, the shrinking in budget will
bring new challenges.
PLAN OF ACTION – BUDGET REASSIGNING
 2010 Budget
 Proposed 2011 Budget
 Online @ 28%
 TV reduce by 3%
 Radio reduce by 4%
 Newspaper, Magazine and Outdoor retain same %
Complex customer thinking requires us to play safe and maintain all forms of media advertising.
PLAN OF ACTION – INCREASE ONLINE SPENDING
http://www.pewinternet.org/2015/06/26/americans-internet-access-2000-2015/
In 2010
▪ 18 – 29 yr olds  92%
▪ 30 – 49 yr olds  85%
▪ 50 – 64 yr olds  74%
▪ 65+ yr olds  43%
PLAN OF ACTION
 The equity brought to the BBVA Compass brand by virtue of it having a large stable parent
bank BBVA can be marketed.
 BBVA’s La Liga sponsorship will be of great significance in all Spanish speaking communities.
BBVA Compass must make sure to benefit of that in USA.
 Local sports sponsorship deals should also help support brand awareness.
 The company has been through constant makeovers – that doesn’t inspire trust in the
middle of a financial crisis. So positive brand imaging is important.
 Lesser focus on just new checking accounts. Consumer savings are up because of the
Financial Crisis, so that is still main.
 But support for other operations must also go up. Services and other operations offered by
the bank also add to it overall perceived value.
PLAN OF ACTION
 All current digital partners can be retained. Duplicity – though unfortunate is necessary.
▪ Free Checking services must continue to be heavily advertised.
▪ Personalized services tie in with the banks’ position between large national banks and
small credit unions – they must also be emphasized.
▪ Easy online banking services (if available) must be advertised.
▪ Location targeting of the Sunbelt region in online marketing must be achieved.
 In offline marketing, it can be localized, but heavy when the sports events are on.
 Cross selling to current customers must be made a focus too.
Q & A
ThankYou

More Related Content

What's hot

Mountain Man Brewing Company - Case Study
Mountain Man Brewing Company - Case StudyMountain Man Brewing Company - Case Study
Mountain Man Brewing Company - Case Study
Ashwin C
 
Hubspot Case Presentation - First Place
Hubspot Case Presentation - First PlaceHubspot Case Presentation - First Place
Hubspot Case Presentation - First Place
Connor Dismer
 
Metabical Case study
Metabical Case studyMetabical Case study
Metabical Case study
Team Pramkaew
 
AIR FRANCE INTERNET MARKETING
AIR FRANCE INTERNET MARKETINGAIR FRANCE INTERNET MARKETING
AIR FRANCE INTERNET MARKETING
Swarupa Rani Sahu
 
Case Analysis - HubSpot: Inbound Marketing and Web 2.0
Case Analysis - HubSpot: Inbound Marketing and Web 2.0 Case Analysis - HubSpot: Inbound Marketing and Web 2.0
Case Analysis - HubSpot: Inbound Marketing and Web 2.0
Saptarshi Dhar
 
Mountain dew
Mountain dewMountain dew
Mountain dew
Sasquatch S
 
Clique Pens - Case Study Solution by Kamal Allazov (Essay type)
Clique Pens - Case Study Solution by Kamal Allazov (Essay type)Clique Pens - Case Study Solution by Kamal Allazov (Essay type)
Clique Pens - Case Study Solution by Kamal Allazov (Essay type)
Kamal Allazov (MSc.)
 
Red lobster powerpoint!
Red lobster powerpoint!Red lobster powerpoint!
Red lobster powerpoint!
MacKenzie Walters
 
Metabical
MetabicalMetabical
HubSpot - Inbound marketing and web 2.0 case study
HubSpot - Inbound marketing and web 2.0 case studyHubSpot - Inbound marketing and web 2.0 case study
HubSpot - Inbound marketing and web 2.0 case study
Ronak Shah
 
Harvard Business case third(MedNet.com confronts "click through" competition)
Harvard Business case third(MedNet.com confronts "click through" competition)Harvard Business case third(MedNet.com confronts "click through" competition)
Harvard Business case third(MedNet.com confronts "click through" competition)
Sameer mathur
 
Starbucks delivering customer service
Starbucks delivering customer serviceStarbucks delivering customer service
Starbucks delivering customer service
Monoj Kumar Rabha
 
Culinarian Cookware case study analysis
Culinarian Cookware case study analysisCulinarian Cookware case study analysis
Culinarian Cookware case study analysis
Saurabh Mhase
 
Hubspot Case Analysis
Hubspot Case AnalysisHubspot Case Analysis
Hubspot Case Analysis
Yemi Adejumo
 
Virgin mobile USA pricing first time case analysis
Virgin mobile USA pricing first time case analysisVirgin mobile USA pricing first time case analysis
Virgin mobile USA pricing first time case analysis
Siddharth Dhamija
 
Air france case study
Air france case studyAir france case study
Air france case study
Arthur Marot
 
Mednet.com Confronts "Click-Through" Competition
Mednet.com Confronts "Click-Through" CompetitionMednet.com Confronts "Click-Through" Competition
Mednet.com Confronts "Click-Through" Competition
Sameer Mathur
 
Case Analysis - Making stickk stick
Case Analysis - Making stickk stickCase Analysis - Making stickk stick
Case Analysis - Making stickk stick
Danh Đỗ
 
Pillsbury cookie challenge wac
Pillsbury cookie challenge   wacPillsbury cookie challenge   wac
Pillsbury cookie challenge wac
Syeda Zauwia Riaz
 
Nestle Refrigerated Foods: Contadina Pasta & Pizza (A) - Case Analysis
Nestle Refrigerated Foods: Contadina Pasta & Pizza (A) - Case AnalysisNestle Refrigerated Foods: Contadina Pasta & Pizza (A) - Case Analysis
Nestle Refrigerated Foods: Contadina Pasta & Pizza (A) - Case Analysis
Nikhil Saraf
 

What's hot (20)

Mountain Man Brewing Company - Case Study
Mountain Man Brewing Company - Case StudyMountain Man Brewing Company - Case Study
Mountain Man Brewing Company - Case Study
 
Hubspot Case Presentation - First Place
Hubspot Case Presentation - First PlaceHubspot Case Presentation - First Place
Hubspot Case Presentation - First Place
 
Metabical Case study
Metabical Case studyMetabical Case study
Metabical Case study
 
AIR FRANCE INTERNET MARKETING
AIR FRANCE INTERNET MARKETINGAIR FRANCE INTERNET MARKETING
AIR FRANCE INTERNET MARKETING
 
Case Analysis - HubSpot: Inbound Marketing and Web 2.0
Case Analysis - HubSpot: Inbound Marketing and Web 2.0 Case Analysis - HubSpot: Inbound Marketing and Web 2.0
Case Analysis - HubSpot: Inbound Marketing and Web 2.0
 
Mountain dew
Mountain dewMountain dew
Mountain dew
 
Clique Pens - Case Study Solution by Kamal Allazov (Essay type)
Clique Pens - Case Study Solution by Kamal Allazov (Essay type)Clique Pens - Case Study Solution by Kamal Allazov (Essay type)
Clique Pens - Case Study Solution by Kamal Allazov (Essay type)
 
Red lobster powerpoint!
Red lobster powerpoint!Red lobster powerpoint!
Red lobster powerpoint!
 
Metabical
MetabicalMetabical
Metabical
 
HubSpot - Inbound marketing and web 2.0 case study
HubSpot - Inbound marketing and web 2.0 case studyHubSpot - Inbound marketing and web 2.0 case study
HubSpot - Inbound marketing and web 2.0 case study
 
Harvard Business case third(MedNet.com confronts "click through" competition)
Harvard Business case third(MedNet.com confronts "click through" competition)Harvard Business case third(MedNet.com confronts "click through" competition)
Harvard Business case third(MedNet.com confronts "click through" competition)
 
Starbucks delivering customer service
Starbucks delivering customer serviceStarbucks delivering customer service
Starbucks delivering customer service
 
Culinarian Cookware case study analysis
Culinarian Cookware case study analysisCulinarian Cookware case study analysis
Culinarian Cookware case study analysis
 
Hubspot Case Analysis
Hubspot Case AnalysisHubspot Case Analysis
Hubspot Case Analysis
 
Virgin mobile USA pricing first time case analysis
Virgin mobile USA pricing first time case analysisVirgin mobile USA pricing first time case analysis
Virgin mobile USA pricing first time case analysis
 
Air france case study
Air france case studyAir france case study
Air france case study
 
Mednet.com Confronts "Click-Through" Competition
Mednet.com Confronts "Click-Through" CompetitionMednet.com Confronts "Click-Through" Competition
Mednet.com Confronts "Click-Through" Competition
 
Case Analysis - Making stickk stick
Case Analysis - Making stickk stickCase Analysis - Making stickk stick
Case Analysis - Making stickk stick
 
Pillsbury cookie challenge wac
Pillsbury cookie challenge   wacPillsbury cookie challenge   wac
Pillsbury cookie challenge wac
 
Nestle Refrigerated Foods: Contadina Pasta & Pizza (A) - Case Analysis
Nestle Refrigerated Foods: Contadina Pasta & Pizza (A) - Case AnalysisNestle Refrigerated Foods: Contadina Pasta & Pizza (A) - Case Analysis
Nestle Refrigerated Foods: Contadina Pasta & Pizza (A) - Case Analysis
 

Similar to Bbva marketing management case

HubSpot 2017 State of Inbound Report
HubSpot 2017 State of Inbound ReportHubSpot 2017 State of Inbound Report
HubSpot 2017 State of Inbound Report
Sagefrog Marketing Group, LLC
 
Win with Retargeting - Getting Started Right
Win with Retargeting - Getting Started RightWin with Retargeting - Getting Started Right
Win with Retargeting - Getting Started Right
Maximize Digital Media
 
marketing strategy workshop - what you need to market your digital project ea...
marketing strategy workshop - what you need to market your digital project ea...marketing strategy workshop - what you need to market your digital project ea...
marketing strategy workshop - what you need to market your digital project ea...
Mutaz Ghuni
 
Lead Nurturing Beyond The Inbox
Lead Nurturing Beyond The InboxLead Nurturing Beyond The Inbox
Lead Nurturing Beyond The Inbox
G3 Communications
 
UVP Presentation_WithAnimation
UVP Presentation_WithAnimationUVP Presentation_WithAnimation
UVP Presentation_WithAnimation
ifeanyi onuoha
 
Rachel Lim Yun Shi's Digital Portfolio
Rachel Lim Yun Shi's Digital PortfolioRachel Lim Yun Shi's Digital Portfolio
Rachel Lim Yun Shi's Digital Portfolio
Rachel Lim
 
Digital marketing
Digital marketingDigital marketing
Digital marketing
Urmi Hermoso Burbujeante
 
Reimagine Growth 2: Customer Acquisition (NAM Version)
Reimagine Growth 2: Customer Acquisition (NAM Version)Reimagine Growth 2: Customer Acquisition (NAM Version)
Reimagine Growth 2: Customer Acquisition (NAM Version)
CleverTap
 
Cashrewards Why We Do What We Do?
Cashrewards Why We Do What We Do?Cashrewards Why We Do What We Do?
Cashrewards Why We Do What We Do?
Chris Garner
 
Argyle CMO ThinkTank Boston
Argyle CMO ThinkTank BostonArgyle CMO ThinkTank Boston
Argyle CMO ThinkTank Boston
MediaMath
 
Team 5 - Marketing Plan
Team 5 - Marketing PlanTeam 5 - Marketing Plan
Team 5 - Marketing Plan
Codie Leigh
 
Better webbuilder businessplan
Better webbuilder businessplanBetter webbuilder businessplan
Better webbuilder businessplan
Tong Hieu
 
10MarketingTips_AulwardGraphics
10MarketingTips_AulwardGraphics10MarketingTips_AulwardGraphics
10MarketingTips_AulwardGraphics
Chawana Champagne
 
Restaurant mroi
Restaurant mroiRestaurant mroi
Restaurant mroi
Michael Wolfe
 
Marketing ROI Measurement for Restaurants
Marketing ROI Measurement for RestaurantsMarketing ROI Measurement for Restaurants
Marketing ROI Measurement for Restaurants
Michael Wolfe
 
Facebook ads - How much does it really cost to acquire customers? By Etienne ...
Facebook ads - How much does it really cost to acquire customers? By Etienne ...Facebook ads - How much does it really cost to acquire customers? By Etienne ...
Facebook ads - How much does it really cost to acquire customers? By Etienne ...
TheFamily
 
Massive ad
Massive adMassive ad
Massive ad
Fera Kodjo Ekpeh
 
Zodiac & InfoTrust Webinar: The Basics of Customer Lifetime Value 5.9.17
Zodiac & InfoTrust Webinar: The Basics of Customer Lifetime Value 5.9.17Zodiac & InfoTrust Webinar: The Basics of Customer Lifetime Value 5.9.17
Zodiac & InfoTrust Webinar: The Basics of Customer Lifetime Value 5.9.17
ZodiacMetrics
 
How to Do Acquisition to Gain New Customer in Digital Channels by Indra Kusum...
How to Do Acquisition to Gain New Customer in Digital Channels by Indra Kusum...How to Do Acquisition to Gain New Customer in Digital Channels by Indra Kusum...
How to Do Acquisition to Gain New Customer in Digital Channels by Indra Kusum...
Akademi Berbagi
 
Why digital marketing ?
Why digital marketing ?Why digital marketing ?
Why digital marketing ?
Igen D
 

Similar to Bbva marketing management case (20)

HubSpot 2017 State of Inbound Report
HubSpot 2017 State of Inbound ReportHubSpot 2017 State of Inbound Report
HubSpot 2017 State of Inbound Report
 
Win with Retargeting - Getting Started Right
Win with Retargeting - Getting Started RightWin with Retargeting - Getting Started Right
Win with Retargeting - Getting Started Right
 
marketing strategy workshop - what you need to market your digital project ea...
marketing strategy workshop - what you need to market your digital project ea...marketing strategy workshop - what you need to market your digital project ea...
marketing strategy workshop - what you need to market your digital project ea...
 
Lead Nurturing Beyond The Inbox
Lead Nurturing Beyond The InboxLead Nurturing Beyond The Inbox
Lead Nurturing Beyond The Inbox
 
UVP Presentation_WithAnimation
UVP Presentation_WithAnimationUVP Presentation_WithAnimation
UVP Presentation_WithAnimation
 
Rachel Lim Yun Shi's Digital Portfolio
Rachel Lim Yun Shi's Digital PortfolioRachel Lim Yun Shi's Digital Portfolio
Rachel Lim Yun Shi's Digital Portfolio
 
Digital marketing
Digital marketingDigital marketing
Digital marketing
 
Reimagine Growth 2: Customer Acquisition (NAM Version)
Reimagine Growth 2: Customer Acquisition (NAM Version)Reimagine Growth 2: Customer Acquisition (NAM Version)
Reimagine Growth 2: Customer Acquisition (NAM Version)
 
Cashrewards Why We Do What We Do?
Cashrewards Why We Do What We Do?Cashrewards Why We Do What We Do?
Cashrewards Why We Do What We Do?
 
Argyle CMO ThinkTank Boston
Argyle CMO ThinkTank BostonArgyle CMO ThinkTank Boston
Argyle CMO ThinkTank Boston
 
Team 5 - Marketing Plan
Team 5 - Marketing PlanTeam 5 - Marketing Plan
Team 5 - Marketing Plan
 
Better webbuilder businessplan
Better webbuilder businessplanBetter webbuilder businessplan
Better webbuilder businessplan
 
10MarketingTips_AulwardGraphics
10MarketingTips_AulwardGraphics10MarketingTips_AulwardGraphics
10MarketingTips_AulwardGraphics
 
Restaurant mroi
Restaurant mroiRestaurant mroi
Restaurant mroi
 
Marketing ROI Measurement for Restaurants
Marketing ROI Measurement for RestaurantsMarketing ROI Measurement for Restaurants
Marketing ROI Measurement for Restaurants
 
Facebook ads - How much does it really cost to acquire customers? By Etienne ...
Facebook ads - How much does it really cost to acquire customers? By Etienne ...Facebook ads - How much does it really cost to acquire customers? By Etienne ...
Facebook ads - How much does it really cost to acquire customers? By Etienne ...
 
Massive ad
Massive adMassive ad
Massive ad
 
Zodiac & InfoTrust Webinar: The Basics of Customer Lifetime Value 5.9.17
Zodiac & InfoTrust Webinar: The Basics of Customer Lifetime Value 5.9.17Zodiac & InfoTrust Webinar: The Basics of Customer Lifetime Value 5.9.17
Zodiac & InfoTrust Webinar: The Basics of Customer Lifetime Value 5.9.17
 
How to Do Acquisition to Gain New Customer in Digital Channels by Indra Kusum...
How to Do Acquisition to Gain New Customer in Digital Channels by Indra Kusum...How to Do Acquisition to Gain New Customer in Digital Channels by Indra Kusum...
How to Do Acquisition to Gain New Customer in Digital Channels by Indra Kusum...
 
Why digital marketing ?
Why digital marketing ?Why digital marketing ?
Why digital marketing ?
 

Recently uploaded

Data-Driven Personalization - Build a Competitive Advantage by Knowing Your C...
Data-Driven Personalization - Build a Competitive Advantage by Knowing Your C...Data-Driven Personalization - Build a Competitive Advantage by Knowing Your C...
Data-Driven Personalization - Build a Competitive Advantage by Knowing Your C...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
THE STORY COMMUNICATION Credential 2024.pptx
THE STORY COMMUNICATION Credential 2024.pptxTHE STORY COMMUNICATION Credential 2024.pptx
THE STORY COMMUNICATION Credential 2024.pptx
huyenngo62
 
Advanced Storytelling Concepts for Marketers
Advanced Storytelling Concepts for MarketersAdvanced Storytelling Concepts for Marketers
Advanced Storytelling Concepts for Marketers
Ed Shimp
 
Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge...
Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge...Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge...
Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
INTRODUCTION TO SEARCH ENGINE OPTIMIZATION (SEO).pptx
INTRODUCTION TO SEARCH ENGINE OPTIMIZATION (SEO).pptxINTRODUCTION TO SEARCH ENGINE OPTIMIZATION (SEO).pptx
INTRODUCTION TO SEARCH ENGINE OPTIMIZATION (SEO).pptx
Giorgio Chiesa
 
Marketing in the Age of AI - Shifting CX from Monologue to Dialogue - Susan W...
Marketing in the Age of AI - Shifting CX from Monologue to Dialogue - Susan W...Marketing in the Age of AI - Shifting CX from Monologue to Dialogue - Susan W...
Marketing in the Age of AI - Shifting CX from Monologue to Dialogue - Susan W...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Learn more about affiliate marketing as a beginner
Learn more about affiliate marketing as a beginnerLearn more about affiliate marketing as a beginner
Learn more about affiliate marketing as a beginner
MichaelGiles34
 
What Software is Used in Marketing in 2024.
What Software is Used in Marketing in 2024.What Software is Used in Marketing in 2024.
What Software is Used in Marketing in 2024.
Ishaaq6
 
Boost Your Instagram Views Instantly Proven Free Strategies.
Boost Your Instagram Views Instantly Proven Free Strategies.Boost Your Instagram Views Instantly Proven Free Strategies.
Boost Your Instagram Views Instantly Proven Free Strategies.
InstBlast Marketing
 
Mastering SEO for Google in the AI Era - Dennis Yu
Mastering SEO for Google in the AI Era - Dennis YuMastering SEO for Google in the AI Era - Dennis Yu
How to Kickstart Content Marketing With A Small Team - Dennis Shiao
How to Kickstart Content Marketing With A Small Team - Dennis ShiaoHow to Kickstart Content Marketing With A Small Team - Dennis Shiao
How to Kickstart Content Marketing With A Small Team - Dennis Shiao
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Mastering Your Online Visibility - Fernando Angulo
Mastering Your Online Visibility - Fernando AnguloMastering Your Online Visibility - Fernando Angulo
Boost Your Instagram Views Instantly Proven Free Strategies.pptx
Boost Your Instagram Views Instantly Proven Free Strategies.pptxBoost Your Instagram Views Instantly Proven Free Strategies.pptx
Boost Your Instagram Views Instantly Proven Free Strategies.pptx
InstBlast Marketing
 
Influencer Marketing Master Class - Alexis Andreasik
Influencer Marketing Master Class - Alexis AndreasikInfluencer Marketing Master Class - Alexis Andreasik
Influencer Marketing Master Class - Alexis Andreasik
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Mastering SEO for Google in the AI Era - Dennis Yu
Mastering SEO for Google in the AI Era - Dennis YuMastering SEO for Google in the AI Era - Dennis Yu
Get Off the Bandwagon - Separating Digital Marketing Myths from Truth - Scott...
Get Off the Bandwagon - Separating Digital Marketing Myths from Truth - Scott...Get Off the Bandwagon - Separating Digital Marketing Myths from Truth - Scott...
Get Off the Bandwagon - Separating Digital Marketing Myths from Truth - Scott...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Crafting Seamless B2B Customer Journeys - Strategies for Exceptional Experien...
Crafting Seamless B2B Customer Journeys - Strategies for Exceptional Experien...Crafting Seamless B2B Customer Journeys - Strategies for Exceptional Experien...
Crafting Seamless B2B Customer Journeys - Strategies for Exceptional Experien...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Content Marketing Blueprint For Content Strategy, content creation, content d...
Content Marketing Blueprint For Content Strategy, content creation, content d...Content Marketing Blueprint For Content Strategy, content creation, content d...
Content Marketing Blueprint For Content Strategy, content creation, content d...
Bertie Birchfield
 

Recently uploaded (20)

Data-Driven Personalization - Build a Competitive Advantage by Knowing Your C...
Data-Driven Personalization - Build a Competitive Advantage by Knowing Your C...Data-Driven Personalization - Build a Competitive Advantage by Knowing Your C...
Data-Driven Personalization - Build a Competitive Advantage by Knowing Your C...
 
THE STORY COMMUNICATION Credential 2024.pptx
THE STORY COMMUNICATION Credential 2024.pptxTHE STORY COMMUNICATION Credential 2024.pptx
THE STORY COMMUNICATION Credential 2024.pptx
 
Advanced Storytelling Concepts for Marketers
Advanced Storytelling Concepts for MarketersAdvanced Storytelling Concepts for Marketers
Advanced Storytelling Concepts for Marketers
 
Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge...
Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge...Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge...
Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge...
 
INTRODUCTION TO SEARCH ENGINE OPTIMIZATION (SEO).pptx
INTRODUCTION TO SEARCH ENGINE OPTIMIZATION (SEO).pptxINTRODUCTION TO SEARCH ENGINE OPTIMIZATION (SEO).pptx
INTRODUCTION TO SEARCH ENGINE OPTIMIZATION (SEO).pptx
 
Marketing in the Age of AI - Shifting CX from Monologue to Dialogue - Susan W...
Marketing in the Age of AI - Shifting CX from Monologue to Dialogue - Susan W...Marketing in the Age of AI - Shifting CX from Monologue to Dialogue - Susan W...
Marketing in the Age of AI - Shifting CX from Monologue to Dialogue - Susan W...
 
Learn more about affiliate marketing as a beginner
Learn more about affiliate marketing as a beginnerLearn more about affiliate marketing as a beginner
Learn more about affiliate marketing as a beginner
 
What Software is Used in Marketing in 2024.
What Software is Used in Marketing in 2024.What Software is Used in Marketing in 2024.
What Software is Used in Marketing in 2024.
 
Boost Your Instagram Views Instantly Proven Free Strategies.
Boost Your Instagram Views Instantly Proven Free Strategies.Boost Your Instagram Views Instantly Proven Free Strategies.
Boost Your Instagram Views Instantly Proven Free Strategies.
 
Mastering SEO for Google in the AI Era - Dennis Yu
Mastering SEO for Google in the AI Era - Dennis YuMastering SEO for Google in the AI Era - Dennis Yu
Mastering SEO for Google in the AI Era - Dennis Yu
 
Unleash the Power of Storytelling - Win Hearts, Change Minds, Get Results - R...
Unleash the Power of Storytelling - Win Hearts, Change Minds, Get Results - R...Unleash the Power of Storytelling - Win Hearts, Change Minds, Get Results - R...
Unleash the Power of Storytelling - Win Hearts, Change Minds, Get Results - R...
 
How to Kickstart Content Marketing With A Small Team - Dennis Shiao
How to Kickstart Content Marketing With A Small Team - Dennis ShiaoHow to Kickstart Content Marketing With A Small Team - Dennis Shiao
How to Kickstart Content Marketing With A Small Team - Dennis Shiao
 
Mastering Your Online Visibility - Fernando Angulo
Mastering Your Online Visibility - Fernando AnguloMastering Your Online Visibility - Fernando Angulo
Mastering Your Online Visibility - Fernando Angulo
 
Boost Your Instagram Views Instantly Proven Free Strategies.pptx
Boost Your Instagram Views Instantly Proven Free Strategies.pptxBoost Your Instagram Views Instantly Proven Free Strategies.pptx
Boost Your Instagram Views Instantly Proven Free Strategies.pptx
 
Amazing and On Point - Ramon Ray, USA TODAY
Amazing and On Point - Ramon Ray, USA TODAYAmazing and On Point - Ramon Ray, USA TODAY
Amazing and On Point - Ramon Ray, USA TODAY
 
Influencer Marketing Master Class - Alexis Andreasik
Influencer Marketing Master Class - Alexis AndreasikInfluencer Marketing Master Class - Alexis Andreasik
Influencer Marketing Master Class - Alexis Andreasik
 
Mastering SEO for Google in the AI Era - Dennis Yu
Mastering SEO for Google in the AI Era - Dennis YuMastering SEO for Google in the AI Era - Dennis Yu
Mastering SEO for Google in the AI Era - Dennis Yu
 
Get Off the Bandwagon - Separating Digital Marketing Myths from Truth - Scott...
Get Off the Bandwagon - Separating Digital Marketing Myths from Truth - Scott...Get Off the Bandwagon - Separating Digital Marketing Myths from Truth - Scott...
Get Off the Bandwagon - Separating Digital Marketing Myths from Truth - Scott...
 
Crafting Seamless B2B Customer Journeys - Strategies for Exceptional Experien...
Crafting Seamless B2B Customer Journeys - Strategies for Exceptional Experien...Crafting Seamless B2B Customer Journeys - Strategies for Exceptional Experien...
Crafting Seamless B2B Customer Journeys - Strategies for Exceptional Experien...
 
Content Marketing Blueprint For Content Strategy, content creation, content d...
Content Marketing Blueprint For Content Strategy, content creation, content d...Content Marketing Blueprint For Content Strategy, content creation, content d...
Content Marketing Blueprint For Content Strategy, content creation, content d...
 

Bbva marketing management case

  • 1. ▪ Caroline Aston ▪ Ezhilarasan Ravichandran ▪ Vaibhav Sharma ▪ Shobhit Sabharwal ▪ Sruti Seshadri Presented by Marketing Resource Allocation
  • 2. PROBLEM TO DISCUSS How to allocate 2011 marketing and advertising resources
  • 3. HISTORY AND BACKGROUND  “BBVA” Banco BilbaoVizcaya Argentaria, SA  2nd largest in Spain  US Market in 2004  15th largest commercial US Bank  Financial Crisis in USA Valley Bank Compass Bank Guaranty Bank BBVA GROUP BBVA COMPASS
  • 4. BANK GOALS ▪ Top 10 in USA ▪ Sunbelt area ▪ Bank position ▪ Customized Solutions ▪ Breakthrough Innovations ▪ 3 line of business
  • 5. CUSTOMERS AND TARGET 53% 12% 10% 11% 6% 5% 3% % Branches (767) Texas Alabama Arizona California Florida Colorado 65%16% 6% 5% 5% 2% 1% Percent Deposits Texas Alabama Arizona California Florida Colorado ▪ Mexican immigrants ▪ “Strivers” ▪ 25 to 54 years old ▪ $75000+ ▪ Loans & Investments ▪ Lifetime value of account = $800 ▪ Cost new customer < $200 ▪ Branch customer - retention is higher ▪ Online customers – more profit
  • 6. MARKETING GOALS • Build awareness and trust • Support various lines of business • Bring in new customers • Increase total number of accounts • Improve satisfaction & retention of current customers • Cross – sell
  • 7. BUDGET ALLOCATION PROCESS ▪ Overall sales goals & corporate objectives, growth potential of channels & markets, review past performance. ▪ More resources in important markets – Dallas, Houston and Birmingham. ▪ Return on Investment on online advertising is trackable. ▪ Effectiveness of offline advertising is difficult to measure.
  • 8. MARKETING BUDGET  BBVA budget is smaller than that of large national banks.  Major part – supporting branches, direct mail, promotional activities.  Discretionary budget – advertising & creative development- is small.  50% of offline advertising spent on brand building.  Rest on various product lines and regional initiatives. 2,111 1,852 525 971 56 1,588 1,341 572 560 50 BoA Chase Wells Fargo Citi BBVA Compass U.S. Marketing Spending by Major Banks ($ millions) 2008 2009
  • 9. BBVA COMPASS’S ADVERTISING BUDGET BY MEDIA, 2010 https://www.youtube.com/watch?v=DrvCXa8sbh0 https://www.youtube.com/watch?v=5EWHgmAYxIg 4% 1% 7% 21% 53% 14% BBVA compass’s advertising budget by media, 2010 Newspaper Magazine Outdoor Online TV Radio
  • 10. OFFLINE MARKETING - BRAND BUILDING  Improve brand awareness & consideration among potential customers  2007 & 2008, Compass brand – over 80% awareness.  2009 – BBVA Compass brand awareness at 48%  2010 – target is 53% brand awareness.
  • 11. SPONSORSHIPS ❖ BBVA  NBA ,WNBA , NBA Development League  La Liga BBVA ❖ BBVA Compass  2010 BBVA Compass Bowl  Texas Bowl  Bell Helicopter Armed Forces Bowl  New Mexico Bowl https://www.youtube.com/watch?v=tHkqpbhduFI
  • 12. ONLINE MARKETING  The goal was to build online brand and acquire new customer  Almost half of the online budget was used for new checking account customers  BBVA used both search and display advertising  Promotional offers (ipod, 100$ cash)  Effective cost of promotions 100$ for new online checking customer  Process of acquiring new customers for an online checking account  Allocate same amounts to paid search and display ads
  • 13. PAID SEARCH  Buying generic and branded keywords (Google,Yahoo, Bing) using bid management tool  Track clicks, click through rates, cost per click and cost per application  CTR : Click through rate is equal to the number of clicks divided by the number of impressions.  CPC : cost per click is the total cost of a campaign divided by the number of clicks.  Position :Average position of the search  Share ofVoice :Ad shows how often that ad appears as compared to the total impressions available for the specific keyword groups
  • 14. DISPLAY ADS AND COMPLEXITY  Buying advertising space on websites  Display ads deliver high number of impressions  Display ads work with advertising network  Consumers go through multiple exposure before opening an account
  • 15. Organic Search: Organic search is a term for search engine results that are naturally generated and not influenced by commercial relationships between an organization and a search provider Paid Search: Paid Search.Also referred to as Paid Placement, Pay Per Click, and sometimes Search Engine Marketing, paid search marketing allows advertisers to pay to be listed within the Search Engine results page for specific keyword or phrases.
  • 16. Budget allocation for Paid Search marketing for Checking Campaign Google $288,000 56% MSN $ 37,000 7% SuperPages $70 0% Yahoo! $ 177,000 34% Unified Marketplace $14,000 3%
  • 17. Impressions 11,529,237 Clicks 472,433 App. Started 40,653 4.10% 0.35% 0.06% Completed 7,107 91.5% 83% Funnel Report – Paid Search marketing for Checking Campaign ▪ Click through rate was just 4.10%. ▪ 91.5% user dropout from website without starting account application. ▪ 83% user doesn’t complete online application. ▪ Only 7107 Application completed out of 11,529,237 applications ▪ Avg cost per application is $73
  • 18. AOL; $176,000 ; 28% Tribal Fusion; $107,000 ; 17% Casale; $90,000 ; 14% Revenue Science; $74,000 ; 12% 24/7 Real Media; $62,000 ; 10% InterClick; $38,000 ; 6% Yahoo; $30,000 ; 5% Traffic Marketplace; $29,000 ; 4% Datran Media; $15,000 ; 2% ValueClick; $10,000 ; 2% AdBrite; $3,000 ; 0% Budget Allocation for Display Marketing for Checking Campaign
  • 19. Impressions 309,274,438 Clicks 139,474 App. Started 18,520 0.05% 0.01% 0.002% Completed 7,209 Funnel Report – Display Marketing for Checking Campaign 80% 80% ▪ Click through rate was just 0.05%. ▪ 80% user dropout from website without starting account application. ▪ 80% user don’t complete the online application. ▪ Only 7209 Application completed out of 309,274,438 impressions ▪ Avg cost per application is $88
  • 20. 24/7 Real Media, 1,767,393, 4% AdBrite, 1,217,595, 3% AOL, 9,165,496, 21% Casale, 5,152,497, 12% Datran Media, 1,772,829, 4%InterClick, 3,568,891, 8% Revenue Science, 4,992,957, 11% Yahoo!, 3,017,113, 7% Traffic Marketplace, 6,637,292, 15% Tribal Fusion, 5,051,966, 12% ValueClick, 1,398,327, 3% Yellow Pages, 156,771, 0% Reach of Display Sites and Ad Networks 24/7 Real… AdBrite, 45% AOL, 37% Casale, 43% Datran Media, 42% InterClick, 48%Revenue Science, 45% Yahoo!, 41% Traffic Marketplace, 33% Tribal Fusion, 41% ValueClick, 54% Yellow Pages, 35% Duplicate Percentage Reach Duplicate Reach: Number of unique users exposed on that site and any of the other sites in the campaign. Reach of Display Sites and Ad Networks (Jan – Feb 2010)
  • 21. Causal effect of Display Ads on Paid Search Click and Conversion Rate ▪ A/B Experiment ▪ Users who were not exposed to any display ads clicked on a paid search ad , Conversion Rate : 1.26% ▪ Users who were exposed to display ad through any one of the ad networks clicked on a paid search ad, Conversion Rate : 1.48%
  • 22. PLAN OF ACTION  Budget spending on media is estimated to be in the range of $11m to $14m for 2011.  Other than that is spending on BBVA Compass specific sponsorship deals.  Other costs are the major and discretionary budgets.  The Bank’s goals and the Marketing goals must be kept in mind while framing the next years budget.  Though big sponsorships will bring good brand recognition, the shrinking in budget will bring new challenges.
  • 23. PLAN OF ACTION – BUDGET REASSIGNING  2010 Budget  Proposed 2011 Budget  Online @ 28%  TV reduce by 3%  Radio reduce by 4%  Newspaper, Magazine and Outdoor retain same % Complex customer thinking requires us to play safe and maintain all forms of media advertising.
  • 24. PLAN OF ACTION – INCREASE ONLINE SPENDING http://www.pewinternet.org/2015/06/26/americans-internet-access-2000-2015/ In 2010 ▪ 18 – 29 yr olds  92% ▪ 30 – 49 yr olds  85% ▪ 50 – 64 yr olds  74% ▪ 65+ yr olds  43%
  • 25. PLAN OF ACTION  The equity brought to the BBVA Compass brand by virtue of it having a large stable parent bank BBVA can be marketed.  BBVA’s La Liga sponsorship will be of great significance in all Spanish speaking communities. BBVA Compass must make sure to benefit of that in USA.  Local sports sponsorship deals should also help support brand awareness.  The company has been through constant makeovers – that doesn’t inspire trust in the middle of a financial crisis. So positive brand imaging is important.  Lesser focus on just new checking accounts. Consumer savings are up because of the Financial Crisis, so that is still main.  But support for other operations must also go up. Services and other operations offered by the bank also add to it overall perceived value.
  • 26. PLAN OF ACTION  All current digital partners can be retained. Duplicity – though unfortunate is necessary. ▪ Free Checking services must continue to be heavily advertised. ▪ Personalized services tie in with the banks’ position between large national banks and small credit unions – they must also be emphasized. ▪ Easy online banking services (if available) must be advertised. ▪ Location targeting of the Sunbelt region in online marketing must be achieved.  In offline marketing, it can be localized, but heavy when the sports events are on.  Cross selling to current customers must be made a focus too.