JP Morgan Chase and Citibank led all banking and lending companies in online ad spending according to the most recent American Banker survey of financial services spending (May 2005).
Chase’s $50 million in online advertising was 21% of its entire advertising expense, the highest among major banks, and considerably above the 11% online share across all financial services companies. In comparison, Citi’s $49 million spent online was only 9% of its total advertising expense, slightly below the industry average.
NetBank, the 16th biggest online advertiser, was the percentage leader, funneling all but $100,000 of its $4.9 million in advertising into online initiatives. Two other major online advertisers spent more than half their money online last year: ING Direct spending 60% of its $40 million total online, and MBNA spending more than half its $14 million online.
Lending Tree, Quicken Loans, HSBC, Sovereign and East-West Mortgage all devoted about one-third of their advertising into the online channel.
Top-20 Financial Institutions Online Advertisers*
2004 Online Advertising (% of total advertising)*
1. JP Morgan Chase $50 million (21%)
2. Citigroup $49 million (9%)
3. American Express $28 million (9%)
4. Bank of America $25 million (9%)
5. ING Direct $24 million (60%)
6. Lending Tree $22 million (31%)
7. Ameriquest $16 million (13%)
8. Quicken Loans $10 million (33%)
9. Wells Fargo $9.2 million (14%)
10. HSBC $8.3 million (39%)
11. MBNA $7.0 million (51%)
12. Wachovia $6.3 million (7%)
13. E-Loan $6.1 million (21%)
14. NetBank $4.8 million (98%)
15. Discover $4.7 million (6%)
16. GM $3.8 million (4%)
17. Royal Bank $3.2 million (12%)
18. Sovereign $2.8 million (33%)
19. East-West Mtg. $2.7 million (32%)
20. WAMU $1.9 million (2%)
*Banking, Lending, Mortgage, or Credit Card segments only, does not include online brokerage, insurance, or investments.
If you look at the brokerage and mutual fund category, the spending accelerates. Four online brokers Ameritrade ($65 million), Scottrade ($63 million), Schwab ($58 million), and E*Trade $52 million) each outspent even the largest financial institution, and Netstock Direct ($32 million) outspent all but Citi and Chase.
Top-10 Brokerage & Mutual Funds
2004 Online Advertising (% of total advertising)
1. Ameritrade $65 (64%)
2. Scottrade $63 (87%)
3. Schwab $58 (35%)
4. E*Trade $52 (77%)
5. Netstock $32 (99%)
6. Harrisdirect $24 (78%)
7. Vanguard $12 (31%)
8. TD Bank $10 (17%)
9. Fidelity $5.3 (4%)
10. T.Rowe Price $3.8 (5%)
Download the Excel file with more details.
—JB