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Q3. Why did BBVA sign multiyear sponsorship deals with NBA and ESPN?

Do you agree with this


Ans. As mentioned in the case, the company took a significant step of changing the name of the bank
to BBVA Compass. The changed name of the company was not recognizable to the past extent, for
increasing the brand awareness of the company, the decision was taken for signing a sponsoring
agreement of a multiyear NBA and ESPN. This decision was of sheer credibility and authenticity as
these signing would definitely and directly affect the level of brand awareness for the company.

One reason is to increase the brand recall of the company. After changing the name of the bank, the
awareness of the company was not up to the mark in the US. The company, therefore, correctly
signed a multiyear sponsorship deals with NBA and ESPN.

Changing the name of the company directly affected the brand awareness of the company in a
negative manner, and with these steps of signing sponsoring agreements with such known and
popular entities the company would be able to create the desired level of brand awareness amongst
the customer segment of the company.People love sports in the US, particularly NBA. It is the most
watched league in the country. Hence, the company’s association with the sport would definitely
increase the brand recall and awareness.Also, the company learned from its success in Spain by
associating with La Liga, the top tier soccer league in the country.

BBVA advertisements being advertised or aired between the prime time slots all over the US would
significantly affect the brand awareness levels for the bank. Marketing activities of such nature are
credible and are fruitful for the organization in the long run.

Q4. What are the various steps in the online acquisition process and how can the bank improve this

Ans. The various steps involved in the online acquisition process to acquire new customers include:

The online acquisition process includes both the search and display advertising clubbed along with
the offers. The various steps involved in this process include:

 Customers search for a checking account on the search networks like google, Yahoo!, Bing or
encounter a display ad on the display networks like AOL and Yahoo.
 The customers click on the ad given by the company which takes them to it’s landing page
 They have now an option to complete an application for a new checking account
 Once the application is completed, bank sees if the minimum credit score requirement is
met by the customer
 Once the bank, approves an account, the customer has to fund this account by depositing
the money within specified time period.

Display Search Total Online

Amount Spent $677,000 $516000 $1153000
Impressions 309274438 11529237 320803675
Clicks 139474 472433 611907
Completed Applications 7209 7107 14316
Cost per Application $88 $73 $81
Cost per thousand $2.19 $44.75 $3.6
Cost per click $4.85 $1.09 $1.9

Analysing the CPM and CPC of the two networks, the company should focus on increasing its target
area to cost per thousand impression in display ads to increase the brand awareness and to acquire
more customers while it should focus on the cost per click in the search network to see that the
customers are driven into their landing page to increase their business and they fill the application

With the use of the display and keyword planner the bank should focus on increasing their CPM
efficiency. Also the duplicate reach should be minimised to reduce the cost involved based on the
reach involved, for example the ad network of Value click provides just 3% reach with 54% duplicate
reaches, thus increasing the cost incurred for the company without adding significant value to the
companies ROI.

Q6. Why is the bank spending money across various display ad network? Which ad network is
working better than others and would you change the budget allocation among them?

Ans. Since the industry was almost saturated, the organization survival was dependent on the
attraction created among the customers. The top management decided to change the name of the
bank to BBVA Compass but it led to the brand recognition levels and brand awareness significantly
dropped due to it. They had to efficiently use the various ad network to reach the zenith. The core
role and usage of offline advertising is aimed at increasing and building the brand awareness for
improving the consideration among the potential customer segment of the organization. For
acquiring the desired level of brand awareness, the company has sufficiently adopted the offline
means of advertising like sponsoring popular events and entities like NBA, WNBA and ESPN. The role
company expects offline advertising to play is critical and of importance to the company.Business
activities despite the industry they belong to, the core reason for the success or the failure of a
company are its customers and at what levels the expectations of the customers are being met by
the organization through their offered services or products. Companies pay special attention
towards not only sustaining the level of their customer base but also towards increasing their
customer base by acquiring and attracting new customer Compasses utilizing the online means of
advertising for acquiring new customers. The role of online advertising is to increase the online
brand awareness of the company and also opening new checking accounts. Online availability of the
company and its primary offering can adequately increase the success ratio of the company as the
customer would easily be able to gain access to the required information regarding the company
and their needs with respect to the company’s offerings.

In order to achieve the ultimate goal of BBVA being one of the top ten largest U.S. banks. It should
allocate a larger portion of the marketing budget towards online channels, and less towards offline
channels. If we consider the option to increase online advertising activity, the fact that revenue
levels from online advertising have been growing at enormous rates over the past year would seem
to make it an effective solution (Taintor, 2013). According to an Internet Advertising Revenue Report
by the IAB, “in the first half of 2013, online advertising revenue totaled $20.1 billion, an 18-percent
increase from the same period in the previous year (Taintor, 2013).” Additionally, mobile advertising
is one of the hottest trends in the digital marketing industry, as improvements in the usability of
mobile apps and websites have essentially revolutionized the lives of many consumers (Stokes,
2011). With a greater focus on digital marketing, BBVA could not only reduce costs but substantially
increase its brand awareness. To implement the most effective online advertising strategies, BBVA
will need to analyze the performance of both its search and display advertising in recent years and
attempt to improve its website rankings by focusing on search engine optimization. Advertising on
social media is essentially free, and it allows for consumers to spread it to other consumers by
sharing tweets or posts. Social media is a highly effective platform for increasing brand awareness,
one of the main goals for Sottosanti and BBVA (Stokes, 2011). As for a contingency or backup plan to
this recommended course of action, BBVA could simply cut down on its paid search advertising and
focus on social media advertising if its budget for marketing activities turned out to be lower than
expected. Regardless, BBVA should aim to allocate somewhere in the 30-40% range of its marketing
budget towards online channels. This would certainly be a significant increase from the roughly 20%
it allocated to online advertising the previous year, but it would allow BBVA to increase its brand
awareness in a more efficient manner