Banks expect to spend more on marketing this year than last.
Banks spent $3.8 billion in 2001 to promote products, services and their corporate brands. And while marketing expenditures were down 2.4% from the $3.9 billion in 2000, they were 26.1% above the 1999 level of $3 billion, according to a survey by the American Bankers Association.
The growth in spending resumed in 2002.
Marketing expenditures are estimated to be $4 billion this year, or 4.5% more than in 2001, the survey found.
“Bank budgets were set during the aftermath of Sept. 11,” said Alisha Johnson, chair of the ABA Marketing Network Council. “Facing an uncertain economic future, marketing budgets were slashed. This year has turned out to be a better year than expected. The increased spending reflects that optimism.
Advertising remained the most widely used promotion tool in the banking industry and accounted for more than half of total marketing expenditures. Next in line was public relations, with almost a quarter of marketing expenses allocated to this function.
On average, 61.4% of marketing expenditures were allocated to promoting retail services, 26.5% to products and services for small businesses and 1.9% to large corporations.
The survey was conducted from March through June 2002 and queried 189 banks representing a cross section of the banking industry.
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