Bbva

1307 WordsApr 21, 20166 Pages
A Case Study of BBVA Compass BBVA Compass is the fifteenth-largest bank in America. In December 2010, they considered about how to allocate the bank’s marketing budget in order to improve the brand awareness and market share. Based on the data and time line provided in the case material, this essay will use expected Customer Lifetime Value (LTV) to measure customer attractiveness versus customer profitability in their marketing decision making. 1. The role of online and offline advertising. From its marketing purpose, the major role of offline and online advertising was to build brand awareness and improve consideration among potential bank customers. In 2009, the brand awareness and consideration dropped significantly because of…show more content…
Cost Per Impression | $0.002 | $0.045 | $0.004 | CTR | 0.05% | 4.10% | 0.19% | Probability of Booking | 0.002% | 0.049% | 0.004% | LTV | $794 | $814 | $803 | Total Rev | $4,580,381 | $4,627,561 | $9,207,942 | ROI | 719% | 897% | 799% | Figure1. Current budget allocation of display advertising and search engine Assuming that in next year, the budget spends on display advertising will be decreased to 10% of the total budget, while the rest will spend on search engine. From this way the impact on total revenue will be around $1.5 million, which equals to 15% of increase rate. Actually, if BBVA keep enlarge the budget on search engine the increase rate of total revenue will keep grow. Next Year Budget Allocation | Display | Search | Total Online | Budget percentage | 10% | 90% | 100% | Next year spend | $122,200 | $1,099,800 | $1,222,000 | Impression next year | 59,330,198 | 24,573,362 | 83,903,560 | Booking next year | 1106 | 12118 | 13225 | Total Revenue | $878,685 | $9,863,161 | $10,741,846 | ROI | 724% | 881% | 866% | Figure2.
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