Answer 1

Role:
The long term objective of BBVA was to improve satisfaction, build trust and retention of
current customers resulting in gaining enough new customers to crack the top ten list of largest
U.S. commercial banks.

The offline advertising objective was to create brand awareness, brand building, consideration
and positioning of the brand in the market. This was done by investing large budget of offline
advertising in the brand awareness programs also, getting the sponsorship deals with National
Basketball Association (NBA), WNBA, ESPN and NBA development league in USA, Spain and
Puerto Rico. Which enhanced the overall BBVA’s commitment to sport which already include
the partnership with La Liga BBVA. This made BBVA as their official bank and created image as a
bank with the values of passion, teamwork and fair play inherent in both sports.

The online advertising objective was to appear in paid searches on google, msn, yahoo, etc.
with the help of keywords, appear on display advertisements with promotional ads like $150
earn back when opening a new checking account to attract new online customers to open new
checking accounts. Media contracts that is display marketing and ad networks were also one of
the online advertising sources used by BBVA like 24/7 real media, AdBrite, AOL, Datran Media,
etc.

Differences in Offline ads vs Online ads:

Cost per application - online = $81 whereas offline $20.
New checking accounts - 5% from online whereas 95% from offline (80% branch, 15%
telephone and direct mail).
Annual income of BBVA - Higher in online as compared to offline.
Account balance - Low in online as compared to offline.
Measuring - can easily measure online effectiveness compared to offline.
Retention rate - 55% in online whereas 65% in offline.
Application approval percentage - 80% in online whereas 95% to 100% in offline.

The brand awareness and consideration were continuously rising at the rate of minimum 5%
increase every year from 2009 to 2012 which means that the brand is benefiting from the
advertising techniques that are being followed.
BBVA’s sponsorship agreements with NBA, ESPN, etc. as their official bank will definitely help
the bank to re-create awareness and will ultimately lead to new customers.
With little high cost per application in online, BBVA is able to create 320,803,675 impressions in
the year 2010 which converted 14,316 completed applications which is a good way to start as,
online platform is on its rise and will lead to much more growth than current growth and will
ultimately surpass the offline platform as introduction to mobile banking, all services online,
etc. will impact in gaining new customers resulting higher annual income to BBVA.
Answer 2
It definitely makes sense to spend so much money on sponsorships for the growth of BBVA
group to achieve its long term objective to be in top ten list of largest U.S. commercial banks
and to build trust.
The signing of multiyear sponsorship deals with NBA, ESPN, etc. will increase the awareness of
the brand which was reduced after the company decided to change its name to BBVA Compass.
The signing of multiyear sponsorship gave an authenticity to BBVA which directly affect the
level of brand awareness of the company.

BASIS PROS CONS

REACH Wide reach.
COST Worth the investment.
RELIANCE Can rely on this medium of
advertisement.
DEMOGRAPHICS Can reach to children,
women, men and elders.
TARGET COUNTIRES Good for sports watching
countries like USA, Spain, etc. sports watching countries.
ADVERTISING BUDGET Can reduce the advertisement Have to plan for long term
budget spent on TV which
was 53%.
TERM OF CONTRACT Multiyear contract binds the
companies for long period
which give BBVA an
advantage to re-create trust
within that period.
Only to the viewers of the
games or channel.
Very high cost. Requires a lot
of time to cover.
Cannot solely rely on this.
Need to continue other
mediums also which were
benefitting.
Specific to certain age limit
and certain income level.
Cannot be effective in non-
break even as to cover the
investment cost.
Long term contract is not
useful when BBVA has gained
all the advantages which was
planned.

In my opinion along with the sponsorship, BBVA should continue the paid searches like on
google and yahoo and AOL (highest impressions with lowest CPA) as display marketing which
are giving the best results along with the services like free checking account, convenient branch
locations, easy online banking services, etc. which are the top priority of choice for primary
bank.