Banks, slow to advertise, picking up spending speed
The simple fact that these institutions are advertising more is a change, though. Until recently, banks, like other once-monopolistic institutions, simply didn't see the need for promotional campaigns.
"They didn't understand it was necessary," said Mikolaj Komornicki, media director with J.Walter Thompson/Parintex. "But the presence of foreign banks with a professional approach forced them to do so."
Although such market pressure has caused some attitudes to change, financial institutions are still well behind other more consumer-oriented sectors when it comes to the amount spent to promote their services.
"Of course, financial institutions don't spend as much as companies in the fast-moving consumer goods area," said Katarzyna Kuznicka, new business development manager at Ammirati Puris Lintas. "Financial products are not targeted at the mass market like detergents. That explains the difference in advertising campaign intensity."
For example during 1997, television ad spending for financial products - including bank, insurance and mutual fund offerings - amounted to zl. 45.7 million ($14 million), according to AGB Polska, which based the figures on official list prices. These products were seventh in total TV ad spending. The most ad zlotys were spent to advertise food and cosmetics products.
And the trend has continued in the first five months of 1998. From May to June this year, television ad spending for financial products amounted to zl. 30.1 million ($8.7 million), AGB said. Although this marked a 40% increase over spending in the first five months of 1997, these products were still seventh in terms of total ad spending.
The largest amount of spending was for food products, which increased nearly 90% in the first five months of this year to zl. 428 ($124 million), according to AGB. Coming in second was spending on cosmetics, also up 90% to zl. 309 million ($89.5 million), the company added.
"Sure we are far behind detergents or beer," said Iwona Wawrzyniuk, marketing manager at Bank Pekao. "But financial institutions have become more visible and advertising is getting more and more sophisticated."
This increased sophistication has been especially visible recently in bank advertising, according to Joe Senft, client services manager at J. Walter Thompson/Parintex. While banks initially focused their advertising almost exclusively on product offerings, they are now speaking up about brands, he added.
"Banks have started to recognize the strategic value of building brands," Senft said. "It's equally as important as information technology or consolidation efforts."
This is especially important as competition in the banking market gets stiffer and marketing becomes a vital tool in the battle for customers, he added.
"Banking products are competitive and similar to each other," said Robert Sikorski, media director with Market Link Advertising Agency. "The banks have to differentiate themselves and underline the characteristics most important to the customers, like confidence and safety."
Even the most staid banks are starting to realize this. The ongoing all-media campaign of Powszechna Kasa Oszczednosci Bank Panstwowy (PKO BP) - based on the slogan "A bank close to you" and produced by McCann-Erickson - is considered one of the most extensive bank campaigns aimed at brand building.
"It was the first attempt to change the image of our bank, which is still perceived as an old-fashioned savings bank," said Beata Grzeszczuk from PKO's promotion department. The bank correctly played to its strength - its largest-in-Poland retail network with more than 1,000 branches.
"It's the right approach," said Patrick Acheson, account manager with Saatchi & Saatchi. "What they promise to their customers is by definition a fact, but it's also an emotional claim."
Other banks are also working their brand images and in some cases the need to do so reflects the vast changes sweeping the market. The Pekao group launched a visual campaign, designed by Market Link Advertising Agency, to communicate its new bison logo as well as the consolidation of Pekao and three regional banks under the group umbrella. This spring, Pekao also launched a campaign for its initial public offering (IPO), which was produced by Market Link with television spots produced by Saatchi & Saatchi.
But building a brand doesn't mean banks have to put product ads on hold. They can combine both as Citibank did last September when it began to advertise the first product it was offering to individual customers as well as a first of its type product available in Poland - an international Visa credit card. The bank spent more than zl. 1 million ($312,500) for press, point-of-sales and outdoor ads featuring different animals.
In these two cities, to which the campaign was limited, Citibank is a top choice for 35% of the adult population, while its credit card is for 60%, according to Tomasz Kazimierowski, marketing manager at Citibank (Poland).
The campaign resulted in two awards for best advertising of the year - from daily newspaper Zycie and Gazeta Bankowa. The campaign also won praise from competitors.
"Before Citibank, banks were referred to as status symbols, like cars or cellular phones," said PKO's Grzeszczuk.
"What Citibank did was very brave and innovative."
"They didn't understand it was necessary," said Mikolaj Komornicki, media director with J.Walter Thompson/Parintex. "But the presence of foreign banks with a professional approach forced them to do so."
Although such market pressure has caused some attitudes to change, financial institutions are still well behind other more consumer-oriented sectors when it comes to the amount spent to promote their services.
"Of course, financial institutions don't spend as much as companies in the fast-moving consumer goods area," said Katarzyna Kuznicka, new business development manager at Ammirati Puris Lintas. "Financial products are not targeted at the mass market like detergents. That explains the difference in advertising campaign intensity."
For example during 1997, television ad spending for financial products - including bank, insurance and mutual fund offerings - amounted to zl. 45.7 million ($14 million), according to AGB Polska, which based the figures on official list prices. These products were seventh in total TV ad spending. The most ad zlotys were spent to advertise food and cosmetics products.
And the trend has continued in the first five months of 1998. From May to June this year, television ad spending for financial products amounted to zl. 30.1 million ($8.7 million), AGB said. Although this marked a 40% increase over spending in the first five months of 1997, these products were still seventh in terms of total ad spending.
The largest amount of spending was for food products, which increased nearly 90% in the first five months of this year to zl. 428 ($124 million), according to AGB. Coming in second was spending on cosmetics, also up 90% to zl. 309 million ($89.5 million), the company added.
"Sure we are far behind detergents or beer," said Iwona Wawrzyniuk, marketing manager at Bank Pekao. "But financial institutions have become more visible and advertising is getting more and more sophisticated."
This increased sophistication has been especially visible recently in bank advertising, according to Joe Senft, client services manager at J. Walter Thompson/Parintex. While banks initially focused their advertising almost exclusively on product offerings, they are now speaking up about brands, he added.
"Banks have started to recognize the strategic value of building brands," Senft said. "It's equally as important as information technology or consolidation efforts."
This is especially important as competition in the banking market gets stiffer and marketing becomes a vital tool in the battle for customers, he added.
"Banking products are competitive and similar to each other," said Robert Sikorski, media director with Market Link Advertising Agency. "The banks have to differentiate themselves and underline the characteristics most important to the customers, like confidence and safety."
Even the most staid banks are starting to realize this. The ongoing all-media campaign of Powszechna Kasa Oszczednosci Bank Panstwowy (PKO BP) - based on the slogan "A bank close to you" and produced by McCann-Erickson - is considered one of the most extensive bank campaigns aimed at brand building.
"It was the first attempt to change the image of our bank, which is still perceived as an old-fashioned savings bank," said Beata Grzeszczuk from PKO's promotion department. The bank correctly played to its strength - its largest-in-Poland retail network with more than 1,000 branches.
"It's the right approach," said Patrick Acheson, account manager with Saatchi & Saatchi. "What they promise to their customers is by definition a fact, but it's also an emotional claim."
Other banks are also working their brand images and in some cases the need to do so reflects the vast changes sweeping the market. The Pekao group launched a visual campaign, designed by Market Link Advertising Agency, to communicate its new bison logo as well as the consolidation of Pekao and three regional banks under the group umbrella. This spring, Pekao also launched a campaign for its initial public offering (IPO), which was produced by Market Link with television spots produced by Saatchi & Saatchi.
But building a brand doesn't mean banks have to put product ads on hold. They can combine both as Citibank did last September when it began to advertise the first product it was offering to individual customers as well as a first of its type product available in Poland - an international Visa credit card. The bank spent more than zl. 1 million ($312,500) for press, point-of-sales and outdoor ads featuring different animals.
In these two cities, to which the campaign was limited, Citibank is a top choice for 35% of the adult population, while its credit card is for 60%, according to Tomasz Kazimierowski, marketing manager at Citibank (Poland).
The campaign resulted in two awards for best advertising of the year - from daily newspaper Zycie and Gazeta Bankowa. The campaign also won praise from competitors.
"Before Citibank, banks were referred to as status symbols, like cars or cellular phones," said PKO's Grzeszczuk.
"What Citibank did was very brave and innovative."
