Armed with a new national lending capability (note 1), new slogan, “Let’s bank on each other,” and a window of opportunity to gain ground on the competition (note 2), person-to-person lending pioneer Prosper is preparing new marketing initiatives which include television and radio advertising. Prosper said in its blog Monday that the ads will begin test runs this week.
The two television spots feature short vignettes of real lenders and borrowers (see screenshot below). Prosper has also posted brief “behind-the-scenes” videos of the borrower and lender meeting while giving gushing testimonials about the service.
There is also a series of seven 30-second radio spots:
- Meet the lender/borrower spots featuring same pairs as the TV ads (2 ads)
- A young student borrowing from Prosper
- A small business person borrowing from Prosper
- A youngish woman borrowing from Prosper for debt consolidation
- A man borrowing from Prosper for home improvement
- A man borrowing from Prosper for a car loan
Preview the ads here (note 3).
Analysis
It will be interesting to see how the advertising is received. From a branding perspective, I think the ads are extremely effective, doing a good job communicating the benefits to both borrowers and lenders. And Prosper positions itself as a smart bank alternative without getting overly negative (e.g., Lending Tree’s $100-million “When banks compete” campaign in the late 1990s) or going so over the top (think WaMu) that you can’t recall who made the ad (see previous coverage here).
One thing I’m sure of: Prosper did a great job showcasing the ads on their website, including the very Web 2.0 touch of posting “behind-the-scenes” videos of the TV commercials.
Notes:
1. Prosper recently changed its process so all loans are originated by Utah industrial bank, WebBank, then resold to the winning Prosper bidders. The TV ad above even carries the fine print that, “Prosper lenders are loan purchasers.”
2. Prosper’s primary competitor, LendingClub, is currently operating at limited capacity as it seeks additional licensing/authority from regulatory bodies (coverage here). It, too, uses WebBank to originate all loans made through its platform. The latest entrant, Loanio, debuted its services at our April 29 Finovate Startup conference, but is still a few weeks away from a launch. A number of other P2P startups are in various stages of development with launches expected within the next 12 to 18 months.
3. For more information on the P2P lending market, see our Online Banking Report: Person-to-person Lending 2.0
