HSBC is to focus the bulk of its pounds 100 million marketing budget on below-the-line activity in what is a major strategic shift for the high street bank.
It is diverting money it would have used for TV advertising into responsive press advertising and targeted communications. Direct marketing is set to become 'the cornerstone' of its communications strategy, the bank said.
'We feel we're better able to cater for our customers' needs by using the data we hold and targeting our customers via direct mail with products relevant to them,' said Martin Betts, HSBC head of communications.
TV will continue to be used for both HSBC group-level brand advertising and the bank's ITV Drama Premier sponsorship.
Offline direct marketing will form the core of HSBC's communications.
Martin Shaw, HSBC head of advertising and direct marketing, said the bank believed that traditional direct marketing 'is key to maintaining customer relationships.'
HSBC is not planning any e-marketing campaigns in the immediate future.
'It's an area we're still reviewing,' Betts said.
As part of its direct marketing rethink HSBC has formalised an agency roster for the first time. The key beneficiary is Rapier, newly appointed as the bank's lead agency alongside incumbent Advertising Principles.
Shaw said the bank was impressed by Rapier's 'insight into direct marketing strategy' and experience in database marketing and CRM.
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