Tuesday 15 April 2008

Economy forces high street banks to cut ad budget

Five of the UK's biggest banks have cut their advertising budgets in the first quarter of the year, according to new research.

A report, conducted by Nielsen Media Research, has revealed that high street banks, including Lloyds TSB, HSBC and Royal Bank of Scotland, all slashed their adspend in the first three months of 2008, reports Brand Republic.

RBS made the biggest percentage cut, reducing their spend by 56 per cent to £1.9 million compared to the same period in 2007, followed by Lloyds TSB, who reduced its spend by 51 per cent to £7.9 million, from £16.2 million the year previously.

HSBC also cut its spending to £6.6 million in the same period, a reduction of seven per cent.

Martin Sambrook, managing partner of media consultancy Billetts, told the news provider: "Finance brands really are at the forefront of the UK's economic problems.

"We should not be surprised that they are the first to make cuts in adspend."

High street banks Barclays and Halifax, however, increased their spending by 1.4 per cent and three per cent respectively.

Category: Marketing campaigns

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