Brand First

We bank marketers are constantly plagued with a burning question: how do I split my ad dollars between brand and product advertising? I know I need to strengthen my bank’s brand, but I have line-of-business leaders breathing down my neck to run product ads.

Instead of burying the information like an online recipe, I’ll cut to the chase and answer you right here. You should spend at least 70% of your budget (creative and media) on brand advertising.

Why?

Your brand is how you show people why your bank floats above the rest in a sea of sameness. Well, that’s only if you’re correctly messaging your brand.

You need to understand that your largest group of potential customers at any given time is made up of people who’re upset enough at their current institution to go through the catharsis to change banks. Your potential customer isn’t thinking about how many ATMs you have or what your app looks like. They want to know if your app works. They’re desperate to know if someone will be there to help if something breaks. They want to know how their experience at your bank will be different than their current bank.

It’s not about features—it’s about feelings

Product advertising dominates the conversation at many banks, focusing on the newest innovations—to spend advertising dollars to support the dollars invested in technology. Brand advertising is often dismissed by bankers as vague or less tangible. “We paid for these products! Why are we just talking about the bank!?” But advertising products rarely differentiate one bank from another—they’re expected.   

• In the 1980s, banks spent millions installing ATMs. Then they spent millions more promoting them.
• Later, it was debit cards.
• Into the 90s and early 2000s, it was online banking.
• Then came mobile banking.
• And lately, PFMs, ITMs, and “value-added” DDAs.

Each time, banks invested heavily to keep pace with competitors and then launched campaigns promoting their new products. The result? The bank told the customer what made it the same as every other bank. 

Let’s be honest with ourselves: No one switches banks because of an ATM, a debit card, or mobile banking. These are expected features of any modern bank. People only leave their bank when they’re so dissatisfied that they can no longer tolerate it—when their frustration outweighs the inconvenience of switching. And switching banks is inconvenient. It’s like being stuck in a leaky boat—you might try to endure, but once the water rises past your ankles, you’ll jump in and swim. 

But in that sea of sameness, where do you head? To the bank that promises the experience you desire.

Branding is the backbone of your advertising strategy. When done well, builds the case for the reason why someone would choose your bank. Sure, one bank is  similar to another. But our job is to find the nuance that separates our bank and to magnify those subtle differences. Our job is to give the potential customer a reason to choose our bank. Brand advertising requires a shift in perspective—from thinking about products to thinking about people. It’s not about what you offer; it’s about why you matter—specifically when things are going wrong in someone’s life.

Your Ads Don’t Have to do All the Work 

Another item you must understand: your ad is only half of the equation. The other half is your audience. Your audience is a mosaic of individual needs, concerns, and aspirations. As we stated earlier, someone will only entertain your bank when they’ve had enough at their institution. Unless we want to reopen the debate of banking the unbanked, and I’d rather not.

Your audience brings their own needs, worries, and dreams into any ad that’s good enough to stop them and engage their minds. Effective ads don’t just speak; they listen. They answer the readers’ questions. They acknowledge their worries. And they reassure them we have the banking experience you’ve always wanted.

Perhaps the best way to communicate this is through an example. Think of these two scenarios:

Amelia, a single mom, is busy raising her daughter. She works a ton to make sure her daughter has everything she needs, but she also spends as much time as possible with her little girl. Her bank has messed up three of her last seven direct deposits. While she’s not living paycheck to paycheck, it does cause her to worry each and every pay period. “Will have I have to wait on my bank to get it together this time to make sure my paycheck is available?” She’s called the bank several times, and no one can identify the problem. It feels like they’re passing the buck to her employer, but Amelia has asked her coworkers. None of them have experienced the same issues with their banks. 

Amelia’s looking for a new bank. But it feels like she has no spare time to truly compare institutions. 

Grant has owned his own business for 20 years. He’s been planning to expand for the past three years. The timing is finally right. The equipment he needs has advanced sufficiently to meet his needs. Building materials are reasonable, and the lot adjacent to his current location has come up for sale. He’s met with two banks, but he’s had to call them each week to get any update. One banker says he’s waiting on his credit department. The other banker keeps asking for other sources of income and collateral but aren’t really communicating what’s missing. Grant’s not getting enough answers, and he’s worried the opportunity will slip by. 

Grant’s looking for a new bank. But he’s busy running his business, and he’s worried that every bank might just be the same.

Now, let’s say we put the same ads in front of Amelia and Grant.

Ad A is a retail-centric ad. It talks about branch and ATM locations. It mentions cashback checking and customizable debit cards. This ad should perform better for Amelia. She’s looking for a retail bank, after all. But, likely, Grant will tune out. He’s looking for a business bank.

Ad B is a business ad. It talks about competitive rates and local decisions. It mentions a local lender (with her picture!). Grant should be more interested in this ad. Maybe he’ll give them a chance to bid on his loan. Meanwhile, this doesn’t look like a bank for Amelia.

Let’s consider a third ad—a brand ad that captures the bank’s core values—dedication, responsiveness, and care. This ad should resonate with both Amelia and Grant. They both feel like their existing bank left them out in the cold. The right brand ad will speak to their pains and let them know they’ll be taken care of. 

Amelia and Grant aren’t just looking for features; they’re looking for solutions to their frustrations. What they want, what they’re desperate for, is a promise of something better—a bank that listens, cares, and takes action.

Think of a brand ad as a universal translator. It doesn’t matter if the customer is upset with a botched paycheck or a stalled business loan—the ad speaks to their frustrations and promises a better way forward. This is the kind of connection that great branding creates. It’s not about listing features or pitching products; it’s about saying, “We see you. We hear you. We’re here for you.” 

But what happens after that? Community banks, in particular, pride themselves on putting the customer first. If your bank really believes and practices this, it will attract a customer with its brand, and let the customer decide which product or service to adopt.

So, you’re saying, even if we’re trying to sell checking accounts, we should be happy if a business lending customer comes in from our ads?

Hell yes.

When you have a chance to attract a new relationship, you attract them. You meet the customer where they are, and you serve them. Then you comprehensively onboard that customer—letting them know what all your bank has to offer. This sets you up to use email and other platforms to nurture (cross-sell) the other products.

Yes, it’s a longer approach. But you can’t squander an opportunity to attract a new customer. Plus, you were never going to attract someone with a checking account ad that was looking for a loan. If this doesn’t resonate with you, I’m truly, truly sorry for you and your bank.

A true client-first approach means serving the customer to make their lives easier and their banking relationship more valuable. With thoughtful follow-ups, email nurturing, and targeted digital outreach, you’re not just adding products—you’re embedding yourself into their daily lives. You’re helping them reach their goals. This isn’t just retention; it’s relationship-building at its finest.

Budget Allocation: The other 30%

So, we said 70% toward brand. What about the rest? Allocate 20% to line-of-business advertising. This shows that you’re a retail bank, a business bank, and a mortgage bank. Use the remaining 10% on product advertising to promote specific offerings, but only as part of a broader, brand-centric strategy. These ads are the accents on the masterpiece, not the canvas itself.

In banking, trust and connection are everything. People move when they feel abandoned or unheard. Your brand is your promise that things will be different—that you understand who they are and what they need. It’s paramount that you’re able and willing to articulate the nuance that sets your bank apart. That’s the bridge between frustration and hope. And you have to back this with ad dollars.

No one asks, “Where do you deposit or your money?” or “Where is your checking account?”

The question that one customer asks another is, “Where you bank?” And the follow-up is,

“Are you happy there?”

What does your bank do to make your customers happy? Do you make them feel more cared-for than their current bank?

At its heart, advertising is about connection. It’s about taking the essence of your institution and making it resonate with real people. Don’t squander this opportunity. Use your brand to tell a story of trust, reliability, and care. Because, at the end of the day, products don’t build loyalty. Relationships do.