Road to 2024: BFSI marketing to bank on digital, MarTech, and sports

In 2023, the BFSI sector witnessed a significant uptick in advertising spends. TAM's AdEx report for H1 2023 showed a 91% increase in digital ad impressions compared to the same period in 2022. Looking ahead to 2024, marketing experts expect a more calculated reallocation of resources towards digital mediums, with a closer focus on MarTech and AI. 

The reason behind this increased focus on digital is consumer migration. Uttam Tibrewal, Executive Director, AU Small Finance Bank has observed this pivot and tailored the bank’s marketing strategy accordingly.

“Digital media has played an important role in driving performance metrics, especially with increasing migration of users from TV to Connected TVs and Radio to Music Apps,” said Tibrewal. 

Similarly, Ravi Santhanam, Group Head, Chief Marketing Officer and Head – Direct to Consumer Business, HDFC Bank said that the brand needs to be present where the consumers are. 

Due to this, he said, “We are witnessing a balance in our spending across linear and digital media to reach out to our most valuable target groups.”

The reason behind digital getting a bigger share of the pie, as per Erum Kidwai, Sr. Vice President & Head- Marketing, Ageas Federal Life Insurance, is because digital media and marketing provide the brand with definitive ROI and allow it to target specific cohorts and segments as per its distribution and sales strategy. 

“This is the reason why we have never focused on expensive conventional media like TV and Print. Our customers have acknowledged with our thoughtful Ad campaigns our brand associations and we intend to continue reaching out to them through the same,” said Kidwai. 

Sharing what will be inside Future Generali India Life Insurance Company’s digital arsenal this year, CMO, Geetanjali Chugh Kothari told us that the allocation of the brand’s marketing budget is strategically directed towards MarTech, digital campaigns, and innovations. 

She said, “We are investing significantly in MarTech to enhance our technological capabilities, ensuring a seamless and data-driven approach to our marketing initiatives. Concurrently, a substantial portion of our budget is earmarked for Digital Campaigns and Innovations, aligning with our commitment to staying at the forefront of industry trends.”

Chugh explained that these investments are geared towards crafting impactful and innovative campaigns that resonate with the brand’s audience in the digital realm.

“We aim to optimize our reach, engagement, and overall effectiveness in connecting with our customer base,” she added.

Sports associations to be popular in the BFSI sector

The BFSI industry is also planning on investing more in sports marketing and collaborating with sports personalities in 2024. This is a strategic move to tap into the immense fanbase of sports enthusiasts, creating synergies that extend beyond conventional marketing approaches.

An example of this trend, as seen last year, is Ageas Federal Life Insurance's collaboration with Sachin Tendulkar for multiple campaigns which showed how technology disrupts various aspects of life. 

Kidwai highlighted that the Ageas Federal intends to continue focusing on sports associations along with digital marketing. 

On the reason why, he said, “It has allowed us to carve a niche in the Insurance sector and made our customers appreciate our efforts towards promoting financial and physical fitness as a brand philosophy.”

Similarly, Santhanam said, “Sports and content platforms are channels that we cannot give a miss to, in the current scenario.” 

Marketer's guide to meeting the needs of millennials and Gen Z

Young cohorts are an important part of BFSI’s target audience. With over 2 billion individuals globally, comprising approximately 30% of the world's population with a global spending power of US $853 billion, generation Z is changing how people buy things. 

To establish effective connections with Gen Z in 2024, experts advocate for a revamped marketing approach and share tips for communicating with them in the BFSI industry.

1. Acknowledge Gen Z's preference for quick solutions while emphasizing the long-term benefits of your products. 

2. Maintain brand authenticity and leverage the latest technology for targeted outreach.

3. As a digital marketer, stay aware of the real-time information accessible to the audience and consistently find ways to feature in their digital consumption. Tailor strategies for specific channels like Instagram and Facebook.

4. Prioritize personalization in digital outreach to create a tailored connection with consumers. Explore innovative influencer collaborations beyond traditional product plugs for optimal results.

5. Secure buy-in and top management support to explore new opportunities in this evolving digital landscape. 

6. Balance engagement and product promotion for maximum impact with the right audiences.

7. Blend linear and digital approaches to create a powerful brand impact and achieve robust results.

Trends expected in 2024

Experts we spoke to said that 2024 is poised for a multifaceted evolution, where quality and relevance will be the bedrock of content and technological advancements are set to reshape marketing campaigns.

1. The trajectory for 2024 underscores the continued reign of content. However, beyond quantity, the emphasis will shift towards quality and relevance.

2. With a surge in content consumption, particularly on smartphones, digital and social marketing platforms will be the primary media channels. The increasing trend in data consumption and the advent of technologies like 5G are expected to further solidify the dominance of digital and online advertising campaigns.

3. MarTech, a substantial force, is set to expand further. Its potential to analyze Big Data effortlessly, enhance operational efficiency, foster customer engagement, and optimize experiences will be harnessed.

4. Hyper-personalization of content, driven through predictive analytics, will play a crucial role in the marketing automation ecosystem. Customized conversations with customers will take precedence, moving away from the 'one size fits all' approach. Tailoring messages to individual needs and preferences will be the norm.

5. Customer loyalty dynamics are shifting, and marketing strategies will need to emphasize not just the features but the real and measurable advantages offerings bring to customers.

6. It's no longer solely about the brand; the focus extends to the overall customer experience. Providing seamless and engaging experiences across various touch points will be pivotal.

7. Anticipating a significant embrace of technological advancements like Deep Fake, Artificial Intelligence, and augmented reality in marketing campaigns.

8. Generative AI in Marketing is expected to take a mainstream role across design, communication, and marketing automation. 

With a calculated focus on digital mediums, the industry anticipates continued growth and innovation. The road to 2024 represents a journey of this transformation and adaptation, where the BFSI sector aims to create meaningful connections and stay at the forefront of industry trends.