Outsmart the Giants: How Regional Banks Can Beat the Big Banks at Their Own Game with CTV Advertising

What’s in Your Media Plan?
If you’re one of the top financial brands, the answer to that question likely includes an eight-figure television ad spend. Television has been the cornerstone of big banks’ media campaigns for decades. But why is that? Our media landscape has drastically evolved; the decline of television has been predicted for years, with Nielsen data backing that claim. Yet, despite the headlines, TV still dominates big banks’ media mix. What could explain this? Is it corporate inertia — spend it or lose it? Is it a media plan stuck in 2015? Or is it a carefully crafted communication strategy rooted in research and results?
Given the budgets and the stakes involved, it’s likely the latter. These banks understand and value the brand awareness and recall that video provides, especially in an industry like banking, where establishing a top-of-mind presence is critical.
A Clear Winner
National banks have consistently relied on television as a key component of their advertising media mix. A compelling case for this investment is made in a recent report by Peter Field and the IPA, titled, Why TV is Still at the Heart of Effectiveness. Field argues that to drive maximum growth brands must deploy both long-term effectiveness strategies and bottom-of-the-funnel performance marketing. As the report states, TV remains the clear winner in delivering long-term effectiveness. Field’s case is well-documented, with research highlighting three key factors: Attention, Emotional Clout, and Trust. For the financial sector, the link Field draws between trust and profitability is particularly compelling and essential to consider when crafting media plans.
The Field report, along with other industry research, makes a strong case for TV. It’s safe to assume that big national banks have primary brand research that justifies their television investments. However, it’s also plausible that these large organizations, given their size, are slow to adapt to the changing television landscape — a fact evident in their advertising media mix.
In the most recent 12-month period (July 2023-June 2024), the top 100 banks allocated 36% of their total media spend to traditional television. While total spend remained flat compared to the previous year, the share of traditional television increased by 4 percentage points, equating to an 11% rise in spend.


A Wake-Up Call
The reach and differentiation that national television buys deliver is coveted by regional banks. But the point of this post is not to highlight how big banks dominate the video creative platform with their national footprint and massive budgets. The real news is the rapid shift in television viewing habits, favoring streaming platforms, and the fact that advertisers are not adjusting their buys as quickly as consumers are changing their behaviors.
According to eMarketer in an August 2024 post:
“By 2026, U.S. adults will spend 20% of their daily media time on various apps, streaming platforms, and entertainment services on connected TVs (CTVs). That will amount to 2 hours, 34 minutes per day—up from 59 minutes in 2019. However, only 8.1% of ad budgets will be allocated to CTV by 2026.”

This represents a huge opportunity for smaller banks, whose brand campaigns have long been constrained. This should be a wake-up call for every regional bank. CTV and streaming TV can be purchased more cost-effectively than traditional linear TV ever could. The ability to target by zip code and demographic is ideal for banks that serve specific geographic areas, rather than entire television markets. A video brand ad on the biggest screen in the house can capture attention, evoke an emotional connection, and build trust—all crucial elements in driving consumer behavior.
Seizing the Opportunity
Regional banks are emerging from a difficult period, marked by challenges in their commercial real estate portfolios and a tough interest rate environment, all while adapting to fintech competition. They also face pressure from Big Banks and credit unions, both large and small, all vying for consumer relationships. The headwinds of the past two years have been strong enough to cause many regional banks to scale back on brand campaigns and slow down acquisition marketing.
However, the first half of this year offers some rays of hope. Yes – the macroeconomic environment looks to be improving. But the marketing landscape also holds some very positive signs as well. First on that front: recent research indicates that Gen Z may not be as “digital only” as marketers might have assumed, despite living their entire lives with their devices.
National Survey: Baby Boomers and Gen Z least supportive of a cashless society
In a surprising twist, nearly 70% of Gen Z, despite their tech savviness, said they would not prefer a transition to a completely cashless society. This unexpectedly aligns them with almost 80% of baby boomers who share the same sentiment.
It’s critical that bank marketers begin to target Gen Z in the media channels they prefer with messages that resonate to their life stage and values. So, is it necessary to upend the media plan and add Tik Tok and YouTube Shorts? Media usage research offers another path, led by, you guessed it Streaming Video. CTV is a media channel quickly adopted by Gen Z; usage is above average for CTV networks like Tubi, Fubo, and Pluto. But different from other media preferences (looking at you Tik Tok) CTV is a channel that has garnered quick adoption and usage across the broader generation spectrum.
Reaching a bank’s potential customers in the CTV realm should be done through specific age/demographic targeted buys. ‘Reaching the masses’ should only be done through segmented buys that allow more careful budgeting and customized product/message delivery. CTV can be the channel to reach all but a ‘one size fits all’ approach to a buy is a huge mistake to be avoided.
eMarketer’s most recent CTV user by age share shows 48% of CTV viewership comes from the 25-54 age segment.

The Path for Regional Banks
There is a path to growth for regional banks if they proactively establish their value in the marketplace through brand campaigns that tell their story. A cost-effective creative platform that reaches the masses and provides compelling communication can be built by deploying television campaigns via streaming and CTV.
Embracing the flexibility and targeted precision of CTV, regional banks have the unique opportunity to innovate their media strategies and stay ahead of the curve. By adapting to changing consumer behaviors and media consumption trends, they can effectively and efficiently build brand awareness and trust, ensuring sustained growth and relevance in a competitive marketplace.
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