QUESTIONS:

1.What is the role of offline and online advertising in acquiring checking account customers for the bank?

2.In 2010, the bank allocated $1.22 million or 21% of the total ad budget to online advertising for acquiring checking account customers (see Tables B and C), while allocating the rest of the budget to offline marketing efforts for this account. However, only 5% of the new checking account customers came from the online channel, while offline branches accounted for 80% of the new checking accounts (page 3). Is the 2010 advertising budget allocation between offline and online media appropriate?

3.Why did BBVA sign multiyear sponsorship deals with NBA and ESPN? Do you agree with this decision?

4.What are the various steps in the online acquisition process and how can the bank improve this process?

5.What is the effective acquisition cost and lifetime value of customers acquired through the online channel?

6.What is the role of display and search advertising in acquiring new checking account customers? Is the 2010 advertising budget allocation between display and search appropriate?

7.Is the budget allocation among various search engines appropriate?

8.Why is the bank spending money across various display ad networks? Which ad networks are working better than others and would you change the budget allocation among them?