SA banks reduce adspend while digital banks grow
The new banks emerging to disrupt the sector are showing rapid growth in their customer base while using little to no advertising
The banking landscape in SA is seeing significant change; the new banks emerging to disrupt the sector are showing rapid growth in their customer base while using little to no advertising. According to research conducted by Ornico, between November 2018 and January 2019 there was a decrease in advertising spend among the top banks, as compared to the same period a year earlier. Analysing the two periods, Ornico found that SA’s top financial services institutions had fewer new adverts flighting for the first time across all mediums. Of the top six banks whose advertising spend was analysed, only Absa was consistent in the number of new advertisements it released. Number of new ads by banks from November 2017 to January 2018 and November 2018 to January 2019
The two periods show a decline of 38% in terms of new advertisements flighting for the first time, released by the biggest brands in the sector. Nedbank, Standard Bank and African Bank show the biggest declines, pointing to ...