Banks have become more dependent on advertising campaigns because of the market being infiltrated with options; therefore, advertising is the best option to gain new clients.
The question of why banks have become more dependent on advertising campaigns is best answered by referencing how insurance companies have also been relying on advertising campaigns to garner more clients. This article will first explain the phenomenon amongst insurance companies, before expanding on why banks have also become dependent on advertising campaigns.
In the 1990s, insurance companies had a standard way of creating commercials. The commercials would feature a problematic situation, such as a car accident, thereafter, an insurance expert would appear out of the blue and detail why the problem would have been avoided if they had insured with the advertised insurance company. However, the marketing strategy did not work because it did not differentiate one insurance company from the other. Therefore, when GEICO worked with marketing agency, Martin Agency, to create its mascot, Gecko, it changed the way the insurance companies advertised themselves.
Thereafter, there was an influx of insurance companies introducing their own mascots. The trend has now become standard practice for insurance companies, with the likes of Progressive and Allstate following suit.
In line with this train of thought, it is believed that banks have also begun to adopt the same model. Considering that the banking sector has become saturated with new banks that are subsidiaries of larger banks, it would make sense that banks have turned to advertising and agencies to attract more clients. However, banks have not adopted the use of a mascot, as they still rely heavily on their taglines and logos to promote their services. Therefore, when reflecting on some of the most popular bank commercials, the tagline is often more memorable than the content of the actual commercial.