Paid Marketing: A Boost for Your Community Bank

These three letters can make or break any bank’s marketing efforts: ROI, or return on investment. Being able to demonstrate the value of campaigns for a wide variety of products, services and audiences is an increasingly important job for any marketer.

Many community banks are realizing value from the quantifiable metrics provided by paid digital marketing efforts like content marketing, search engine optimization (SEO), social media, display or video ads.

Traditional vs. digital marketing 

Traditional campaigns usually target a broad audience. They’re used to build awareness of a brand, product or service; support moves into new territories; or promote services that might appeal to a wide range of potential customers. 

“With the right analytics in place, you can start tracking responses right from the moment you post something.”

—Leslie Osman, IncredibleBank

With digital campaigns, things get much more specific. Marketers can choose the demographics of intended audiences with precision and can try out different approaches (such as tone of voice, messaging or imagery) until they hit on successful ones. 

“With the right analytics in place, you can start tracking responses right from the moment you post something, allowing you to review data from click to conversion to the opening of a product or service,” says Leslie Osman, vice president of marketing at $1.9 billion-asset IncredibleBank in Wausau, Wis.

Types of paid digital

There are many different options for paid digital marketing, and they’re changing all the time. What they all have in common is a reputation for generating tangible outcomes through precision targeting, says Bruce Gemmill, senior vice president and chief marketing officer at $2.3 billion-asset FVCbank in Fairfax, Va.

One of Gemmill’s top picks is Google Ads. “It’s an excellent choice if you want to reach an audience that’s already interested in what you have to offer,” he says. “On the plus side, these ads are measurable and effective. But competition can be fierce, and the costs per click can add up.”

Other options include social media ads, which Gemmill says are “great for targeting specific audiences and using interesting ad formats.” However, they may not get the desired amount of organic reach and may underperform due to ad fatigue—when consumers resist or avoid an ad because of overexposure.

Display ads are a good choice for visually increasing brand awareness, but he notes that, as with social media ads, the click-through rates can be lower, and people might get tired of seeing them. Everyone is hopping onto the video bandwagon these days, and Gemmill notes that videos have the potential to be highly engaging. “Still, you need to factor in video production costs,” he says, “and you need to finely craft your messaging to contend with consumers’ increasingly short attention spans.”

“You need to be consistent in your [content library] approach, and it’s good to be aware that it can take time to rank organically on search engines with only content marketing.”

—Jennifer Kerch, Stillman Bank

For a low-cost option, consider this suggestion from Jennifer Kerch, marketing and social media specialist at $600 million-asset Stillman Bank in Stillman Valley, Ill. She says banks with limited budgets can always beef up a content marketing library of blog posts, infographics and videos. 

“It’s generally free of cost, and it’s a catalyst for every other type of digital marketing effort,” she says. “You need to be consistent in your approach, and it’s good to be aware that it can take time to rank organically on search engines with only content marketing.” 

Kerch also points to the value of SEO marketing, which uses keywords to put information high on the search results page. “It’s cost effective, and it can increase brand visibility,” she says. “On the downside, it takes a lot of time and education to learn how to strategically employ those keywords.” As with most other channels, search engines like Google don’t stay still, so the learning curve never really flattens. The algorithms are constantly changing.

In-house or agency?

While some banks are dedicated to DIY marketing, others rely on agency help. “I’ve found that outsourcing the digital pieces that change rapidly is best for me,” Osman says. “It doesn’t require me to stay on top of all the changes or risk having a specialist in house who becomes obsolete because the role needs to change so much.”

Outsourcing some work to an agency, she explains, “allows our internal staff to know our brand and how we show up, and to study our audiences and goals. Because we know our brand and strategies better than anyone, we can translate that to our agency partner, who helps us execute.”

Budgetary considerations

As you’re considering what you can accomplish within your budget, keep this advice from Osman in mind. “The warmer the lead, the more expensive your budget will be,” she says. “I’ve done digital campaigns for as little as $5,000 and for as much as $500,000. It’s hard to give an exact price because it’s based on what you’re selling, where you’re selling, how many people you’re selling to and who else is selling.” 

Gemmill agrees: “Even for a community bank with a limited budget, paid digital marketing can deliver results for banks. Start small, prioritize channels [such as Google, display advertising or social media] and optimize campaigns based on performance. 

“Investing time and resources in digital marketing is crucial for staying competitive in today’s digital‑first world.”