Top Six Banks That Spent Billions On Advert In Three Months

Advertising and  Marketing is a crucial part of the banking industry. It is one of the instruments used by banks to poach each other's customers or clients and reach the unbanked population. In order to ensure they have the biggest exposure needed to switch loyalty, six banks spent billions of naira each in just three months on Advertising and Marketing - for some, the amount spent translates into higher revenue, for others, not so much.

AllNews dug through the financial statements of eleven Nigerian banks to discover which bank spent the largest budget on Advertising and Marketing and which banks spending reduced their spendings. Surprisingly, AllNews discovered an underdog in the banking industry led the highest spender, while the big names queued behind it in Q1 2020.

Top Six Banks With Highest Advertising & Marketing Budget In Q1 2020

AllNews discovered that only six banks spent over a billion naira on Advertising & Marketing in the first three months of 2020, while the remaining five banks' Advertising and Marketing budget stood at millions of naira.

Going through the financial statement of Fidelity Bank, it was revealed that the bank spent N2.6 billion on Advertising & Marketing in the first quarter of 2020. A significant rise when compared to its Advertising & Marketing budget for the corresponding period of 2019 when Fidelity Bank spent N1.2 billion. This places the bank at the top of the list. Recall that the bank had signed an endorsement deal with D'Banj even though the deal is heading for the rocks due to sexual abuse against the singer; although he has denied the allegation.

The second-highest spender is First Bank, which spent N2 billion on its Advertising & Marketing to promote its services to customers and prospective clients. The N2 billion was spent in the first three months of this year, although the budget for Advertising & Marketing dropped when compared to the amount spent in the corresponding quarter of 2019. First Bank had spent N2.9 billion in Q1 2019, even higher than that of Fidelity Bank's budget for Q1 2020. The reason for the reduction was not made public.

As expected, Guaranty Trust Bank (GTBank) was on the top six list, taking the third position on the list with N1.878 billion. The bank upped its spending for the first quarter in 2020 when compared to the Advertising & Marketing budget for the corresponding period of 2019 Q1. GTBank's financial report showed that the bank spent N1.3 billion in Q1 2019.

Following GTBank closely on the list is Zenith Bank which reports showed that N1.871 billion was disbursed for Advertising & Marketing of its services in Q1 2020. The Q1 2020 budget surpassed the N1.819 billion spent in the first three months of last year .

United Bank for Africa (UBA) came fifth on the list of the highest budget for Advertising & Marketing in Q1 2020. UBA reported that it spent N1.6 billion on marketing in the first quarter of this year,. This shows a  reduction in UBA's budget when compared to the N1.7 billion spent in the corresponding period of Q1 2019. Note that popular Nigerian singer, Wizkid, is an ambassador of UBA.

Completing the list of banks that spent billions on Advertising & Marketing is Access Bank. The largest bank in Africa by customer size increased its budget for Q1 2020 to N1.3 billion, surpassing the N961 million it spent on Advertising & Marketing in 2019.

Note that popular singer, Waje, and Nollywood actress Omotunde Adebowale-David, popularly called Adaku, are celebrities on Access Bank's payroll after featuring in Access Bank's 'W' advert.

Banks That Spent Millions On Advertising & Marketing

Top Five Banks That Spent Millions On Advertising In Three Months

The following banks could only afford to spend millions of naira on Advertising and Marketing, unlike the aforementioned banks on the billion naira table. The following list covers five Nigerian banks which are the usual suspects in the millionaire club.

According to its financial report, FCMB spent N790 million on Advertising & Marketing within three months to give its financial service more exposure in the banking industry and among the untapped customer base. This was an increase in budget when compared to the amount spent in Q1 2019, which was N753 million.

Next on the list is Stanbic IBTC Holdings Plc which spent N394 million on Advertising & Marketing between January and March ending this year. The amount spent in Q1 2020 is more than the N260 million spent in the first three months of last year; reflecting a slight rise in budget for service exposure.

AllNews discovered that Wema Bank spent N329 million during the period under review. It could be stated that Wema Bank drastically increased its spending for Advertising & Marketing when the Q1 budget is compared to the N211 million spent in the first quarter of 2019.

Union Bank was fourth on the list following the N267 million it spent on Advertising & Marketing in Q1 2020. The budget recorded a sharp decline this year's first quarter when compared to the N460 million spent last year's Q1 on Advertising & Marketing.

Sterling Bank completed the list with it's N223 billion budget for Advertising & Marketing in the first quarter of this year. The advert spend experienced a nosedive from the N727 million spent in three months last year.