Tips for Marketing Banking and Finance Products on Amazon

Financial services advertising is a critical component of any marketing mix of a financial service or "FinServ" business. Without maintaining visibility and engaging new customers, FinServ companies will find it increasingly difficult to remain competitive. This is especially true in today's climate, where customers can choose between digital-only offerings, member-owned building societies, and more traditional financial institutions.

To help financial marketers remain competitive, Amazon provides a host of financial services advertising options. By leveraging Amazon's 250 million active users every month, advertisers can expand their reach and boost their profits.

In this article, we'll explore the fundamentals of banking marketing and discuss various FinServ advertising strategies that can be applied to Amazon. But first, let's explore what financial services are and why they're so important to customers.

What Are Financial Services and What Are Some Examples?

Financial services are products, processes, or transactions that help customers meet their financial goals. Examples include (but are not limited to):

• Banking services — checking, savings, and money market accounts, plus other banking products. 
• Credit card services — consumer credit cards and business credit cards (in physical or digital form).
• Investment services — stocks, bonds, mutual funds, crypto, and other investments.
• Insurance services — life, health, and car insurance policies, plus other types of financial protection.
• Transactional services — ACH and wire payments, peer-to-peer payments, cryptocurrency trading, and more.

According to data analytics firm Kantar, consumers value FinServ products for their convenience, ease of use, and customer service, with 79% of customers saying that the experience is as important as the financial product itself.

Financial technology or "FinTech" platforms have made transacting the above examples easier than ever. Nowadays, you can deposit a check through an online banking app or round up your daily spending to invest in stocks. You can even get an insurance quote in a matter of minutes and check out at the click of a button.

FinServ advertisers will need to tap into the convenience factor to attract Millennials, Gen Zers, and other digital natives who are used to fast and intuitive user experiences.

Why Do You Need Financial Services Marketing?

FinServ advertising is important for financial service providers because it helps to build brand awareness and showcase products or services. A strong financial services advertising strategy also helps FinServ brands reach a wider audience, connect with potential customers, and convert leads into paying customers.

Moreover, financial services marketing helps FinServ companies stand out from the competition. With financial services becoming increasingly accessible and consumers having more choices than ever, FinServ marketing is a key part of gaining the extra edge.

What Financial Services Can You Sell on Amazon?

Most FinServ providers may advertise their products through Amazon's robust multichannel ad platform. These include banking services, credit unions, financial advisors, payment processors, insurance companies, FinTech startups, and other financial services companies.

Advertisers have access to Amazon's Sponsored Products and Sponsored Brands ads to promote their financial wares. Both options are CPC (cost-per-click) based, meaning you only pay when someone clicks on the ad.

Additionally, Sponsored Display and Amazon DSP (or "demand-side platform") ads can reach audiences across Amazon's subsidiaries, including IMDb and Twitch. They can also be seen on third-party sites, apps, and social media platforms.

Advantages and Disadvantages of Selling Financial Services on Amazon

As with any platform, selling financial services on Amazon has both advantages and disadvantages.

The biggest advantage of FinServ advertising is the sheer reach and customer engagement Amazon provides. As mentioned earlier, the platform has over 250 million active users each month, with approximately 200 million Prime subscribers. That's enough potential customers to make banking marketing and other financial services advertising a lucrative affair.

On the other hand, FinServ companies may need to invest considerable resources into Amazon's multichannel ad platform to get the desired results. For instance, Amazon requires a monthly advertising budget of $15,000 per month in the U.S. and €10,000 per month in Germany, the U.K., and other European markets for its managed-service advertising option. This option is designed for companies that want maximum reach, as it grants them access to Amazon's large subsidiary network and third-party-platform advertising.

BidX charges a management fee of 15% of your monthly ad spend for accessing the DSP and managing your campaigns. Currently, this makes us the most cost-effective DSP partner. To use the DSP, we recommend a media budget of at least 5,000€. This means that the initial hurdle with BidX is significantly lower than with Amazon.

That said, Amazon's self-service ads such as Sponsored Products and Sponsored Brands are cost-per-click based, meaning they can be more cost-effective than managed-service ads. This could be a great option for FinServ start-ups or entrepreneurs who don't have the minimum spend just yet and are looking to test their financial service ads before increasing their budget.

What Are Some of the Challenges Facing the Financial Services Industry?

The FinServ industry is facing several challenges in the new digital era, from increasing competition to financial regulations. FinServ providers must be able to demonstrate compliance and financial safety to consumers. To remain relevant, they must also keep up with the latest technologies and mobile-friendly features that customers expect.

Another challenge that FinServ companies face today is how to get the right message across to the right audience at the right time! While Amazon's DSP option can help them build ads and target consumer segments on a granular level, it also comes with a hefty financial investment.

More importantly, companies that wish to excel in today's FinServ industry must prioritize customer service above the products they offer. Remember, 79% of customers value their experience with a FinServ provider more than the financial products themselves, according to the Kantar study.

Financial Services Advertising Strategies on Amazon

Advertisers need to ensure that their financial services marketing is tailored to work with Amazon's platform. Here are a few strategies FinServ providers should consider when advertising on Amazon:

1) Consider top-of-funnel tactics such as display and video ads to raise brand awareness and drive traffic

Your aim should be to consistently advertise your services in order to remain top-of-mind. That way, when a potential customer experiences a new life event, such as opening a new business or switching jobs, they'll think of you first and be enticed to act.

2) Consider lower-funnel actions such as "act-now" campaigns to convert leads into customers

When we talk about top-funnel vs. bottom-funnel advertising, we're making a distinction between awareness-building tactics (top) and conversion tactics (bottom). A customer who is at the bottom of the funnel has already been through most of the customer journey, from awareness to consideration, and is now ready to make a purchase. Promoting a limited-time offer or free trial can be a great way to push them over the edge and get them to act.

3) Leverage Amazon's DSP to create targeted campaigns

This will allow you to reach the right people at specific times, get the most out of your financial services budget, and measure your ROI. Remember, you'll have to invest financial resources into creating effective FinServ campaigns, but it can be a great way to grow your business in the long run.

4) Optimize financial services ads for mobile to ensure that customers get a seamless experience across all devices

This will also help you reach a wider audience as more and more consumers are relying on mobile devices for their financial transactions.

Final Thoughts

Financial services are an integral part of the modern economy. To succeed in this market, FinServ providers need to be mindful of the latest trends, technologies, and customer needs. With Amazon's financial services advertising, they can reach the right audiences at the right time, entice them to act, and take their FinServ business to the next level.

FinServ providers that don't want to leave their marketing strategies to chance have the option of working with a PPC automation tool to deliver the best results. At BidX, we're an approved Amazon DSP partner, meaning FinServ providers can tap into our expertise and resources to make the most of their ad spend. So, if you want to optimize your financial services advertising, don't hesitate to reach out.

Happy marketing!