Marketing Budget of Europe Banking Companies Averaged USD 64.9 Million in 2012, Claims Timetric

30 Jan 2013 • by Natalie Aster

The European banking industry is ‘neutral’ about revenue growth in 2012–2013

The sovereign debt crisis, coupled with financial institutions going bankrupt in many of the European Union (EU) countries, forced governments to accept bailout packages which reduced the entire financial system. Within the European banking industry, 39% of survey respondents expect similar conditions to prevail over the next 12 months while 30% are ‘less optimistic’ with regards to revenue growth over the next 12 months, compared to the previous 12 months.

Level of consolidation in the banking industry is set to increase in 2012–2013

Executives anticipate increased levels of consolidation over the next 12 months. The main reasons for this are: changing capital requirement regulations, pressure on the bottom-line of companies forcing them to look for inorganic methods of growth, a growing focus on divestitures and a desire to increase their global market presence.

China, India and Russia are the most promising emerging markets

According to survey respondents, the five emerging markets that are expected to offer the strongest growth opportunities for the European banking industry in 2012–2013 are China, India, Russia, Brazil, and Eastern Europe.

China was identified as the leading emerging market by 47% of the respondents from banks. China’s rapid economic development has made it an attractive destination, not only for the banking industry but for other industries as well.

‘Market uncertainty’, ‘increasing competition’ and ‘regulatory issues’ are main concerns for the banking industry

Market uncertainty is an area of major concern for the banking industry companies amid the sovereign debt crisis. Instability of financial markets and economies has resulted in a decrease in lending by financial institutions. Declining real estate business, decrease in construction activity and financial stress on borrowers arising as a result of uncertain economic conditions or job loss all had an adverse effect on the banking industry.

Average annual marketing budget of companies expected to remain the same in 2012–2013

According to the report “Europe Banking Industry Outlook Survey 2012–2013: Industry Dynamics, Market Trends and Opportunities, Marketing Spend and Sales Strategies in Banking Industry” by Timetric, the average size of the annual marketing budget of the European banking industry respondents’ companies was US$73.2 million for 2012. In 2012, the average marketing budget was US$64.9 million for banking companies and US$94.6 million for other financial institutions. The industry survey revealed that the average marketing budgets, of both banks and other financial institutions, are expected to rise by 0.2% over the next 12 months.

Report Details:

Europe Banking Industry Outlook Survey 2012–2013: Industry Dynamics, Market Trends and Opportunities, Marketing Spend and Sales Strategies in Banking Industry
Published: September, 2012
Pages: 114
Price: US$ 2,000.00

‘Social media’, ‘online portals’, ‘mobile’, ‘corporate and brand websites’ and ‘email and newsletters’ will generate the largest proportion of future marketing investment.

A significant proportion of respondents from both banks and other financial institutions expect to increase their marketing expenditure on ‘social media and networking sites’, ‘mobile’, ‘online portals’, ‘email and newsletters’ and ‘corporate and brand websites’. These respondents plan to shift their marketing expenditure from traditional marketing channels to more modern online marketing channels due to the cost-effective nature of modern media.

‘Customer retention’, ‘customer acquisition’ and ‘cross-selling and up-selling’ are considered to be the main marketing objectives

Of all respondents from the banks, 64% consider ‘customer retention’ to be a ‘very important’ marketing objective, while 47% of respondents consider ‘cross-selling and up-selling’ and 44% of respondents identify ‘customer acquisition’ to be ‘very important’ marketing objectives.

More information can be found in the report “Europe Banking Industry Outlook Survey 2012–2013: Industry Dynamics, Market Trends and Opportunities, Marketing Spend and Sales Strategies in Banking Industry” by Timetric.

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