In 2019, Nigeria’s Tier-1 banks, Access Bank, First Bank, United Bank of Africa, Zenith Bank and Guaranty Trust Bank spent ₦44 billion on advertisements. Since these banks operate in a saturated and highly competitive market, spending a huge sum to tell the people about their fast banking service, the benefit of their products and services, why customers should bank with them and what stands them out in the competitive market is important and logical. These banks prioritize marketing communication and they went all out for it in 2019.
First Bank recorded the highest amount used on advertisement in 2019 with ₦18. 4 billion. This is higher than the ₦7.8 billion they used for marketing communication two years ago. However, the ₦18.4 billion covers the advertisement of the FBN Holding PLC and its subsidiaries. The FBN Holding PLC is the parent company of the bank. Guaranty Trust Bank recorded the lowest amount spent on advertisements out of these five top banks.
In 2019, the bank spent ₦4 billion on marketing communication which is even lower than the ₦6.4 billion spent on advertisement two years ago. Not spending more than this amount is a deliberate act on the part of GT Bank, this is in a bid to control cost i.e. a cost control strategy. Access Bank recorded ₦6.3 billion on marketing communication in 2019 this is more than the ₦4.9 billion spent in 2018 for advertisement. Access bank acquired Diamond Bank on 1 April 2019 after the latter bank struggled for years with upping its capital from loan losses.
One could say the money spent on marketing strategy increased because the bank wants to advertise the products and services initially offered by the bank they acquired. Zenith Bank spent ₦7.9 billion on advertisement in 2019 although this is lower than the ₦9.6 billion the bank spent in 2018. Despite spending lower on market communication, the bank’s revenue and profit increased. United Bank of Africa has the biggest celebrity endorsement in the country. This bank uses celebrities like Wizkid for their advertisement and they pay the Nigerian singer and songwriter at least ₦1 billion.
The bank spent ₦7.4 billion on Marketing strategy in 2019 and ₦7.3 billion for advertisement last year. The use of big celebrities is a marketing strategy for the bank. Now let’s take a look at how advertisement helps revenue and Profit. Zenith Bank in 2019 made revenue of ₦662.3 and the sum of ₦208.9 as profit after tax. The bank for two consecutive years holds the position of the most profitable bank. The money sunk in the advertisement isn’t wasted at all.GT Bank is the second most profitable bank despite spending the lowest on market communication.
This means good service and excellent product can also yield a bank desired profit. Revenue of ₦296.2 and ₦196.8 as the amount for profit after tax in 2019. Access bank is in third place as the most profitable bank in 2019, it also has after Zenith bank the largest made revenue. ₦536.8 billion revenue and a profit after tax of ₦94.9 billion.United Bank 89 billion profit after tax. The first bank as stated by its unaudited statement made ₦61.9 billion profit after tax.
