Native Bank Advertising: Guaranteed ROAS and Consumer Trial Using Purchaser Data

Sara Thomas
person using mobile phone

If you use mobile banking, you’ve probably been served a Native Bank ad. Maybe it was cash back for buying your morning Starbucks, or 5% off your Target run. If you own a business, you might have wondered how to advertise in a bank app. Or you might have assumed that only national chains and mega-retailers have pockets deep enough to access to this type of advertising.

Native Bank advertising is actually more accessible than you might think, and the return on ad spend (ROAS) is some of the best out there.

What exactly is Native Bank advertising?

When mobile banking users access their bank’s app, they often have access to an offers section. This landing page displays various deals for shopping, usually 5% or 10% cash back. Users then click on the offer to save it, and when they use their debit card to make a purchase at the retailer, the cash back is automatically credited to their account.

How are the cash back offers selected?

The banks use purchaser data to gain consumer insights. Retailers ads are then placed in the platform, and their offers are served up to consumers who are a good fit.

The cash back offers are dictated by the banks, and typically range from 5% to 10% in credited funds from each transaction.

Who sees the ads?

The targeting varies, and is based on the retailer’s goal. Usually the targeting starts with consumers who have shopped at a competitor, and expands from there.

If you want to drive trial, targeting might be narrowed to only include consumers who have never shopped at your store. If the goal is increased transactions from existing customers, you can revise targeting to achieve that. The program allows for precise targeting, which results in a high conversion rate.

One note: because of the nature of the platform, it’s not possible to geotarget. Once you’re on the platform, a transaction at ANY of your locations is included. However, you will have access to a report which shows the division of total transactions across all locations, including your website.

What does it cost?

Media fees for Native Bank advertising are directly tied to transactions. You only pay a fee when a consumer makes a purchase with the debit card linked to the bank offering the rebate. Media fees vary and are calculated as a percentage of sales.

One downside to Native Bank advertising is that there’s typically a spend minimum to participate. This number is usually around $50,000 media spend, which can be a barrier to smaller retailers. But remember: you only pay when a transaction occurs. When you consider that, the spend minimum becomes easier to swallow, and you may be able to plan for the incremental sales to offset the media spend. That minimum $50k spend usually comes with a ROAS of at least 9:1, meaning $450,000 in incremental sales.

Campaign costs also vary and depend on the type of retailer, seasonality, and other factors. Each campaign is built out based on purchaser data, with a projection made based on the actual flight dates. Using that data makes it possible to closely predict how many consumers will access the offer and shop at your store or website.

As with any projection, there is room for error on either side—some campaigns over-perform, and some under-perform. The important thing to remember is that you only pay a media fee when a transaction occurs. With that in mind, most participants tend not to cap their spend, as each transaction means incremental dollars in the till.

Does it work?

According to eMarketer, there are more than 115 million mobile banking users in the US, with that number projected to grow. That means a large pool of data from which to pull, and plenty of users that can be converted to customers. But what are the actual results?

In general, retailers who use native bank advertising can expect to see an average 10:1 ROAS. The data also allows tracking of return trips occurring after the campaign ends, delivering a longer-term picture of the impact of the program.

It’s very difficult to count on a “sure thing” in advertising, but Native Bank advertising comes pretty close. If you’re looking for an advertising program with high ROI and a guaranteed return on ad spend, contact Charlton Marketing to learn more about Native Bank advertising, and find out if it’s a good fit for your business.