HSBC and Citi fight for local globetrotters

One marker of the potential of the Australian market for foreign banks is the amount of spending on advertising by two of the best known global banks, HSBC and Citibank.

HSBC stepped up a hefty advertising campaign over the long weekend, representing the bank's most concentrated advertising spend in years.

The campaign features a fresh round of free-to-air and Pay TV TVCs which were screened nationally from Sunday, with print and online advertisements appearing from Monday. Additionally HSBC has secured a five-year partnership to control airbridge advertising space across international and domestic airports.

HSBC Australia head of marketing Darren Friedlander said: "HSBC is committed to growing its presence in Australia and through this new campaign we are investing in the HSBC brand in the Australian market. Airbridge advertising is central to this. The deal gives HSBC exclusive access to the space, which it will use to run a global ad campaign devised by JWT."

The airbridge campaign is the most expensive in Australian history and targets both arrivals and departures in Sydney, Melbourne, Brisbane, and Perth, reaching up to 85 million domestic and international passengers.

The airbridge advertising concept was pioneered by the HSBC Group and initially launched at London's Heathrow Airport in 2001. The concept has been adapted for 48 airports in 24 countries around the world.

"Airbridge advertising is representative of our ability to offer customers both international reach and local knowledge and with our global banking offerings to both personal and corporate customers, we can offer them a seamless
international banking experience wherever they are in the world," Friedlander said.

The ongoing marketing commitment has propped up HSBC's global position as the "most valuable banking brand in the world", valued at $28.5 billion, according to Brand Finance.

According to Nielsen, HSBC's core media spend in the 12 months to March was $7.7 million, up from $5.9 million in the previous 12 months.

Friedlander said that the campaign would be leveraging HSBC's international reach at a local level.  

In April HSBC opened a new branch in North Sydney, which will be followed by a Canberra branch in the third quarter of 2010. HSBC plans to grow its local branch network by five to ten branches each year.

The marketing and retail expansion push is set to take on the presence of international rivals Citibank and ING, who are fighting for the premium end of Australia's growing migrant population.

This month ING Direct launched its biggest product offering and marketing blitz since the late 1990s with its Orange Everyday account campaign.

The Orange Everyday is being positioned as an antidote to the big banks' standard fees and charges. The national campaign is being displayed across television commercials, newspaper wraps, 3D outdoor, bus shelter wraps, Volvo taxis, café screens, radio and shopping centres.

In April Citibank invested in a significant re-branding campaign targeting "aspirationally affluent" and globally-minded customers. Citibank claims that this target sweet spot comprises around two million Australians. It also has a keen eye on capturing Asian-based customers who want to do business locally.

"The India to Australia corridor currently moves the second highest volume of retail cash transfers within Citibank globally. These trends are exciting; and being a global bank we are in the best position to capture this group of people," said Roy Gori, CEO Citibank Australia.