As an ad-agency, we often encounter a few common queries from our clients and one of those few queries is “why can’t my bank advertise on Netflix, HBO Go, and Uber?” Therefore we thought of answering that in our blog post.
Obviously, there are some definite limits when it comes to marketing a bank, as compared to other businesses with fewer restrictions and legal limitations.The problem with marketing to services like HBO Go, Netflix, and Uber, however, has little to do with legalities and everything to do with the fact that these companies aren’t interested in outside advertising and third-party marketing revenue. Netflix and HBO are notorious for running ads for their own shows and limited series, of course, but beyond that, they don’t advertise like some streaming services (we’re looking at you, Hulu).
Uber also doesn’t feel that advertising is a necessary part of its business services. It does provide a sort-of advertising by servicing brands through Uber Eats, but that’s a partnership that the restaurants also pay to benefit from in many cases. As a bank, the places where you can advertise are plentiful, but there are definitely some places where you just don’t be welcome.
Profit vs. Potential Revenue
The whole idea of marketing is that it earns money based on the success of a campaign. Therefore, by showing third-party commercials, these companies would be taking a risk on eating up valuable time with commercials that may earn them some money. Or, they could stick to advertising their own shows, series, and/or services and make their own money back in kind, practically guaranteeing bigger profits from an existing audience while still expanding their new customer base, as well.
For companies like Netflix, the hassle involved in third-party advertising is just too much. Not to mention the amount of people they’d have to hire to create a marketing department and handle all of the advertising that could (and would) be done across the massive Netflix platform. It ultimately just doesn’t make good financial sense for these companies when they can advertise their own products and shows and earn more as a result.
Users Aren’t Demanding Change
Currently, users are willing to pay slightly more for their Netflix service because they don’t have ads popping up every seven to nine minutes. They are happy to enjoy their shows, even with occasional Netflix-sponsored ads, and aren’t arguing about having any kind of advertising on their service. In fact, they aren’t even asking for a cheaper ad-supported option like that which is available from Hulu or Amazon Prime Video.
Since industry giants like Google and Amazon already have a corner on the digital marketing industry, it wouldn’t make sense for smaller companies like HBO Go and Netflix to waste their valuable marketing dollars trying to compete. People are happy to enjoy their services as they are, with or without ads, and at the current prices. While some services are better served by offering multiple ad-supported or premium ad-free options, these companies are profiting from not even trying to get in the game.
Data Recommendations
These companies are also notorious for using data to make recommendations to users. Netflix does this by monitoring what you watch and making recommendations of similar shows or movies. Uber might take advantage of your location history to suggest a new bar or restaurant to check out next time you hit the town. Collecting this data in marketing along with everyday operations would cost a small fortune, so the companies just don’t bother.
In Summary
Your bank can advertise in a lot of places online and on TV, but there are just some services that won’t bother with small-time digital marketing campaigns. Instead of focusing on who doesn’t want your ads, focus on where you can advertise your bank and its mobile app to get your customers’ attention and get the marketing results that you deserve.
(Sources: The Motley Fool, Reddit)
