2. In 2010, the bank allocated 1,22 million or 21% of total ad budget to online advertising for acquiring checking account customers while allocating rest of the budget to offline marketing efforts.
8. Why is the bank spending money across various display a=d networks? Which networks arew working better, would you change the allocation among them?
Requirements: as long as answers the questions
However only 5% of new checking account customers come from online channel, while offline is 80%
Is the 2010 media allocation correct?
Answer preview
As explained in the case study, display and search advertising play significant roles in client acquisition. For instance, the display ads provided BBVA Compass advertising space and the opportunity to liaise with multiple publishers like AOL and Yahoo, facilitating the publishing of marketing campaigns. Further, paid searches allowed the bank to purchase generic keywords whereby clients can easily access the information they need through Google, Yahoo, or Bing search. The budget allocation for the display ads in 2010 was $677,000, and paid search ads amounted to $545,000 (Gupta & Davies-Gavin, 2012). The display ads, which had a high budget allocation, generated fewer clicks than the search ads. Hence, the budget allocation was unreasonable.
