NATIONAL Australia Bank went to great and unusual lengths to tell customers that it was breaking up with the other main banks yesterday. But will consumers still respect the bank in the morning?
Its marketing efforts ranged from a man playing piano on a ute outside rival bank offices to a huge multi-storey banner and actors staging vocal break-up scenes in restaurants across the country.
They are the latest efforts in competition between the big four, although it remains to be seen if the consumer is ultimately the winner from this ambush marketing.
In a series of advertisements aimed at grabbing market share, NAB claims it is changing to benefit customers, while Westpac has responded with a flurry of full-page newspaper advertisements, touting discounts for new mortgage customers.
NAB followed by taking the campaign another step further, hiring a piano player to sing a slow and howling rendition of Simply Red's If You Don't Know Me By Now outside the Melbourne headquarters of rival ANZ.
In Sydney, NAB unfurled a huge multi-storey banner from its George Street building spelling out its break-up letter to its rival. Meanwhile, NAB staff handed out tissues.
On Monday, the bank filmed more than 50 "break-up scenes" in restaurants and at city landmarks, posting its efforts on YouTube and Twitter.
While the banks' creative campaigns have sparked discussion, their content has been met with a degree of scepticism.
"Only the stupid will swallow your cheddar-filled ads," tweeted one person. "What did it cost for the plane with banner attached? Give with one hand, take with the other," said another.
The responses were a measure of consumer disillusionment with the banking sector, according to retail and business analyst Barry Urquhart.
He said consumers were still convinced that "all banks are bastards".
"What they are trying to do with this campaign is to 'decommodify' banking . . . NAB are picking up on the populism of the politicians and the public thinking [that the banks are] in collusion," Mr Urquhart said.
Treasurer Wayne Swan yesterday welcomed the "scrap" among the banks, saying it was a result of Labor moves to increase competition in the sector.
"It's terrific to see the NAB throwing down the gauntlet to the other banks," Mr Swan told reporters. "It's about time they had a scrap, it's about time we had a bit of competition."
Westpac boss Gail Kelly said NAB's moves confirmed that there was healthy competition in the mortgage market.
"I think what we are seeing are signs of excellent competitive intensity in the mortgage market," Mrs Kelly said.
But big investors fear the horseplay could lead to a price war, which could ultimately crimp profits.
Critics also cautioned it was risky move for NAB to appear like the jilted lover.
"Any company that tries to position itself as a responsible corporate citizen is appealing to a growing awareness among Australians that there are bad corporate citizens out there that should be avoided," Australia Institute's deputy director Josh Fear said.
Rival ANZ, which last year took a subtle dig at its rivals through its "Barbara" ads said it won't be losing sleep.
"We actually never knew we were together and we welcome competition now just as we have in the past," an ANZ spokesman said.
"What we are focusing on is our customers, not each other and so we won't be wasting a lot of time thinking about it," he said. With CHRIS ZAPPONE
Battle of the Banks
NAB takes out its-over-between-us fullpage newspaper ads distancing itself from the other banks. Honestly, it isnt you ... its me. Ive changed. Ive moved on. Maybe I should have left you months ago, went the ad, written in the form of a lovers break-up note.
NAB takes to the skies, announcing the break-up on a banner towed by a helicopter.
NAB also distributes tissues and CDs of break-up songs.
Westpac occupies even greater newsprint acreage, spruiking discounts on home loansfor new customers. Our best home loan is now even better, it boasts, urging readers to apply immediately.
ANZ responds with We actually never knew we were together ... the NAB campaign completely misses the point what we are focussing on is our customers, not each other and so we wont be wasting a lot of time thinking about it.
Commonwealth Bank announces nothing.
Events timed to coincide with earnings updates of the four banks.
Treasurer Wayne Swan welcomes the scrap its about time we had a bit of competition.
Frequently Asked Questions about this Article…
What was NAB's 'break-up' marketing campaign and what stunts did it include?
NAB ran a theatrical 'it's-over-between-us' campaign to grab attention and market share. Stunts included a piano player outside ANZ headquarters, a multi-storey banner on its George Street building, handing out tissues and CDs of break-up songs, filming more than 50 staged break-up scenes in restaurants and landmarks, full-page newspaper ads written as a break-up letter, and even aerial banners to announce the split.
Why did NAB run the campaign and what was it trying to achieve for customers?
NAB said it was changing to benefit customers and aimed to decommodify banking — positioning itself differently from rival big banks. The campaign was designed to grab market share and tap into public sentiment about competition in the banking sector.
How did rival banks like Westpac, ANZ and Commonwealth Bank respond to NAB's advertising push?
Westpac countered with a flurry of full-page newspaper ads promoting discounts for new mortgage customers, saying its best home loan was now even better. ANZ took a calmer tone, saying it welcomed competition and would focus on customers rather than the campaign. Commonwealth Bank did not announce anything in response.
How did consumers and the public react to the banks' 'battle of the banks' advertising?
Public reaction was mixed and included scepticism and criticism on social media. Some tweets called the ads misleading or expensive publicity stunts. Retail analyst Barry Urquhart said the responses reflected consumer disillusionment with banks, noting many customers still believe 'all banks are bastards.'
Could the marketing 'horseplay' among the big banks lead to a mortgage price war and affect profits?
Yes — the article notes that big investors fear the competitive stunts could escalate into a price war, which in turn could crimp profits. Westpac's mortgage discounts are an example of how marketing can translate into pricing moves that affect margins.
Did politicians comment on the increased competition between the big banks?
Treasurer Wayne Swan welcomed the 'scrap' among the banks, saying it was a result of Labor moves to increase competition in the sector and that it was 'terrific' to see NAB throwing down the gauntlet — comments that highlight the political interest in bank competition.
What risks did critics highlight about NAB trying to position itself as a more responsible bank?
Critics warned it's risky for NAB to appear like a jilted lover or to lean heavily on populist messaging. Josh Fear from the Australia Institute said companies that try to position themselves as responsible corporate citizens are appealing to growing public awareness of 'bad corporate citizens' to be avoided, implying reputational risks if the campaign backfires.
As an everyday investor, should I watch anything specific after this banks' advertising battle?
Keep an eye on mortgage pricing and bank earnings updates. The article notes events were timed around the big banks' earnings, and market watchers are concerned that aggressive price competition could reduce profitability. Monitoring official earnings reports and any sustained pricing moves is a sensible way to assess the campaign's financial impact.
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