Consumers tell us today that they pay attention to advertising. In the Raddon Research Insights report Marketing to the Modern Consumer, we report that 40% of U.S. consumers are at least somewhat influenced by advertising. And nearly half of consumers have made a purchasing decision based on an ad.

Compared to other generations, Millennial and Gen Z consumers are more likely to change their opinion, make a purchase, or research a product after seeing an ad.

That is why we do it, right?

Be Noticeable and Stay True to Your Brand

In the financial services industry, we must focus on what consumers are noticing and why. We must be sure our ads are attention getting and brand appropriate.

Figure 1: Likelihood of Consumers Paying Attention to an Advertisement by Type of Businesss

Do Consumers View Ads Differently By Industry?

Q: For each of the following types of businesses, products or services, please indicate how likely you are to pay attention to advertisements you see or receive from them.

FI = financial institution. Source: Marketing to the Modern Consumer, Raddon Research Insights, 2023. 

In the Raddon Research Insights Study, the population for whom the likelihood of viewing a financial services ad is 20%. Consumers will pay attention to ads for grocery stores, food and beverage companies, and even restaurants far sooner than a financial services ad, as these are often more frequent purchases than those needed from a financial institution. 

Figure 2: Likelihood to Respond to Current Financial Institution Advertisement

Gen Z Is More Affected by Ads From Their Primary Financial Institution Than One May Think

Q: If you see an ad from a financial institution you currently use, are you more likely to respond/be affected by it than a financial institution you do not use? (n=1,522)

Source: Marketing to the Modern Consumer, Raddon Research Insights, 2023

At a generational level, Gen X and Boomers are not as likely to pay attention to financial institution ads. But almost 30% of Millennials and 40% of Gen Z are likely or very likely to pay attention to ads, pushing the average up.

Many of these advertising categories have moved to experiential marketing. They show great experiences that the viewer could have if they just had the right clothes, ate at the best restaurants or had the coolest equipment in their home electronic stack. These companies help the consumer see the experience the product will provide, making their life better.

Have you moved your marketing to the experiential marketing level? Financial institutions need to reframe thinking from promoting rates or fees to illustrating your value proposition. This reframing will help you connect to consumers, so they understand you are making a difference in account holders’ lives, whether through a new home, saving money or contributing to savings for their desired future. This approach requires the use of data to personalize the messages in a way that resonates with your desired consumer. 

Spend Your Valuable Marketing Resources in the Right Places

Every financial institution is considering ways to spend marketing dollars wisely. While email is more cost effective than direct mail and television, it comes in third when we ask consumers how they want to hear from their financial institution. But remember that each generation does have preferences on channels. 

Figure 3: Top Four Advertising Mediums Preferred by Generation

Your Target Audience Should Determine Your Ad Medium

Q: Which advertising channels do you prefer to receive information about financial products/services? (n=1,532)

Source: Marketing to the Modern Consumer, Raddon Research Insights, 2023

When we look closer at the generations, it is clear that we need to consider a well-rounded channel selection. You may say, “But only 22% of Gen Z want direct mail” – that is still 22%. Don’t completely miss out on the medium, but consider your concentrations and messages in each media. Consider your mediums to ensure you have a well-rounded approach.

Figure 4: Consumers More Likely to Respond to Ads With Discounts and Rewards

Make Your Offer Matter (to Both the Consumer and the Financial Institution)

Q: Are you more likely to respond to financial advertisements if they offer special discounts, rewards, or incentives? (n=1,532)

Source: Marketing to the Modern Consumer, Raddon Research Insights, 2023 

Fifty percent or more of Gen Z, Millennials and even Gen X are more likely to respond to a financial institution’s advertisement if it contains a reward or discount.

But the offers need to be specific and provide a valuable reward for the consumer. While the FI needs to ensure a valuable offer, try to not make it too complicated … or at least make it achievable.

Let us look at Chase, for example. The advertisement in the illustration below was received by a millennial 25-year-old in the mail. Chase knows that this 25-year old is a good saver from their data acquisition. The offer is achievable and makes sense to the consumer. And to deepen engagement, Chase offers even more.

Source: Chase Bank

Chase is clearly asking for the customer to open a checking account to receive a $300 bonus. Or, if the consumer wants to save, they can get $200 to open the Chase savings account. But to sweeten the pot, as they say, the customer can do both and get $900 with a $400 bonus. This was a targeted direct mail to a millennial who is a saver. The offer is beneficial to both the financial institution and the consumer, and Chase wants both deposits and relationships.

There are other offers out there that are asking for deposits and providing big incentives to do so.

Key Takeaways

1.     Consider your marketing media to ensure you have a well-rounded approach.

2.     How do your offers compare to others in the market and nationally?

3.     Are you clearly defining your value proposition and connecting it to the needs of the consumer?

4.     Are you direct and easy to understand?

If you are offering a reward, is it beneficial to both parties? Track, measure and adapt as necessary.