Tier-1 banks with highest adspend in the last 5 years
By Abimbola Mohammed
Poised to grow their market profitability while building on their equities, banks in the tier-1 category in Nigeria have intensified efforts in brand advertising and marketing. Specifically, leading brands with key holds on major niche segments of the Nigerian financial market have taken to aggressive marketing and advertising thereby doubling on their total annual advertising spend in the last five years.
A special intelligence market survey by MARKETING EDGE Magazine, the leading brand and advertising focused magazine has revealed that tier-1 banks like FirstBank, UBA, GTBank, Access Bank and Zenith Bank (FUGAZ) have turned towards aggressive marketing, using multi-media channels platform in creating top of the mind awareness for their products and service offerings.
According to marketing intelligence, no less than N250.2billion has been committed by these banks in the last five years. The breakdown are:
Access Bank spent N11.32 billion on advertising and marketing expenses in 2020. This represents an 80.49% increase when compared to N6.3 billion recorded in 2019, which is more than N4.9 billion spent on the same purpose for the year 2018. It could be recalled that Access Bank acquired Diamond Bank in the year 2019 which may be attributed to the rise in its Adspend. In 2017, Access Bank also spent the sum of N6 billion in 2017 for adverts and N4.2 billion in 2016 for the same purpose.
Access Bank Plc, commonly known as Access Bank is a Nigerian multinational commercial bank, owned by Access Bank Group. It is licensed by the Central Bank of Nigeria, the national banking regulator.
Originally a corporate bank, the organisation acquired personal and business banking platforms from Nigeria’s International Commercial Bank in 2012. Access Bank is presently one of the five largest banks in Nigeria in terms of assets, loans, deposits and branch network. The merger of Access Bank and Diamond Bank on 1 April 2019 has made Access Bank the largest bank in Africa.
It has more than 600 branches and service outlets, spanning three continents, 12 countries and 36 million customers. The Bank employs 28,000 people in its operations in Nigeria, Sub-Saharan Africa and the United Kingdom, with representative offices in China, Lebanon, India and the UAE.
First Bank of Nigeria (FBN) Holdings, the leading financial institute, spent N7.72 billion in year 2020, while in the first quarter of 2019 it spent the highest amount on advertising and marketing communications with N18.4 billion, this is significantly higher than the N7.8 billion that was recorded in 2018 while in 2017, it spent the sum of N6.4 billion against the N6.2 billion it spent for the same purpose in 2016.
First Bank of Nigeria Limited (FirstBank) is a Nigerian multinational bank and financial services company headquartered in Lagos Nigeria. It is the premier bank in West Africa with its impact woven into the fabric of society. FirstBank operates as a parent company in Nigeria, with the subsidiaries FBN Bank in the Republic of Congo, Ghana, The Gambia, Guinea, Sierra-Leone and Senegal; FBN Bank UK Limited in the United Kingdom with a branch in Paris; First Bank Representative Office in Beijing to capture trade-related business between geographies. First Bank also operates First Pension Custodian Nigeria Limited, Nigeria’s foremost pensions custodian. The teeming customers of the First Bank Group are serviced from a network of over 700 business locations across Africa. To promote financial inclusion and reach the unbanked and underbanked, First Bank has an extensive Agent Banking network, with over 53,000 agent locations across Nigeria. The Bank specialises in retail banking and has the largest client base in West Africa, with over 18 million customers. For eight consecutive years (2011 – 2018) FirstBank received the Best Retail Bank in Nigeria award by The Asian Banker.
Zenith Bank Plc in 2020 it spent N7.66 billion while in 2019 N7.9 billion was spent by this highly profitable bank on advertising and marketing communications. Interestingly, even though this amount is lower than the N9.6 billion 2018, it is also the highest spender in 2017, having recorded N8.8 billion as its total costs on adverts for the financial year ended. This is a little less than N9.5 billion which the company spent on adverts in 2016.
Zenith Bank Plc was established in May 1990, and commenced operations in July of the same year as a commercial bank. The Bank became a public limited company on June 17, 2004 and was listed on the Nigerian Stock Exchange (NSE) on October 21, 2004 following a highly successful Initial Public Offering (IPO). Zenith Bank Plc currently has a shareholder base of about one million and is Nigeria’s biggest bank by tier-1 capital. In 2013, the Bank listed $850 million worth of its shares at $6.80 each on the London Stock Exchange (LSE).
Headquartered in Lagos, Nigeria, Zenith Bank Plc has over 500 branches and business offices in prime commercial centres in all states of the federation and the Federal Capital Territory (FCT). In March 2007, Zenith Bank was licensed by the Financial Services Authority (FSA) of the United Kingdom to establish Zenith Bank (UK) Limited as the United Kingdom subsidiary of Zenith Bank Plc.
Guaranty Trust Bank Plc in 2020 N1.8 billion was spent on marketing and advertising and according to information obtained from GTBank’s audited financial statement for full-year 2019; about N4 billion was spent on advertising and sales promotion same while in 2018 N6.4 billion was spent for the same purpose. The total sum of N7 billion was spent in 2017 against N7.4 billion which it spent in 2016.
Guaranty Trust Bank Plc also known as GTBank is a Nigerian multinational financial institution, that offers online/internet banking, retail banking, corporate banking, investment banking and asset management services, with its head office in Victoria Island, Lagos.
The bank was formed in 1988 by over 35 young Nigerians in their thirties, spearheaded mostly by Tayo Aderinokun and Fola Adeola, but also included Femi Pedro, Gbolade Osibodu, Femi Akingbe, Akin Opeodu and others.
United Bank for Africa (UBA) Plc N8.51 billion was spent in 2020, while the bank spent about N7.4 billion on advertising and marketing communications in 2019. This makes UBA the third highest spender on advertising and marketing, compared to the other tier-1 banks. In 2018, it incurred a total cost of N7.3 billion for the same purpose. In 2017 it spent N7.4 billion against N3.6 billion which it spent in 2016.
United Bank for Africa (UBA) PLC is a leading pan-African financial services institution with a global footprint. We have a clear purpose to be a role model for African businesses by creating superior value for all our stakeholders. For more than seven decades, we have been providing superior financial services to small businesses, corporations, governments, institutions and individuals globally. We are present in the United Kingdom, the U.S.A. and France.
UBA has a large footprint across the globe operating in 20 African countries: Republique du Benin, Burkina Faso, Cameroun, Congo Brazzaville, Congo DRC, Cote d’ivoire, Gabon, Ghana, Guinea, Kenya, Liberia, Mali, Mozambique, Nigeria, Senegal, Sierra Leone, Tanzania, Tchad, Uganda and Zambia. The Bank also operates in the United Kingdom, the United States of America and with a presence in Paris.
RECOMMENDED ARTICLES
Comment
No comments found.