EFFIE AWARDS BRIEF OF EFFECTIVENESS
Bank of America: The Mortgage Campaign Brand Name: Bank of America Product Type or Description: Mortgage Category for this Entry: Financial Services/Products Campaign Title: The Mortgage Campaign Agency: Bozell Client: Bank of America Marketing Challenge Winning the mortgage game, without the lowest rate. The mortgage business is largely a rate game. And until 2002 many thought it was a name Bank of America couldn’t win. As a full-service consumer bank they couldn’t offer the lowest rates and were far outspent by their mortgage company competitors — like Ditech who’s $56.8M was nearly 9 times what Bank of America spent in 2001. Mortgages weren’t available at the branches — only by phone, the web or through brokers — and consumer research indicated a significant lack of awareness of Bank of America as a mortgage lender. Bank of America hoped to change all that with a new “hassle free” mortgage process and a significantly increased media budget. But as the mortgage season began, interest rates were sinking to record lows. Media coverage added to the competitive clutter reminding consumers that it was a great time to get a great rate. And then, just prior to launch, rival Washington Mutual beat them to market with a campaign for an “easier mortgage process.” As the launch date neared Bank of America’s chances of winning the mortgage game didn’t look good. Campaign Objectives Our objective was to reverse the trend of Bank of America mortgages under performing against the industry average. To do this we would need to change the mindset that rate is the only thing that matters when it comes to mortgages. Target Audience Repeat homebuyers. On average they are 40-year old college graduates, employed with HHI $75K+. But more important than their EFFIE® Awards New York American Marketing Association 116 E. 27th St., 6th Floor, New York, NY 10016 Tel: 212-687-3280 Fax: 212-557-9242 2003: The information available through effie.org is the property of the New York American Marketing Association and is protected by copyright and other intellectual property laws. This brief may be displayed, reformatted and printed for your personal use only. By using this site, you agree not to reproduce, retransmit, distribute, sell, publicly display, publish or broadcast the information to anyone without the prior written consent of the New York American Marketing Association.
demographics is their experience. Having gone through the mortgage process before they know what a hassle it can be and how much paperwork it involves. They are also and more likely to be approved for a mortgage and one of the least targeted groups by competitors. Creative Strategy 80% less paperwork Bank of America couldn’t win on rates, so they changed the game. They defined a new enemy, paperwork, and found an articulation of it that beat the competition. In a numbers driven environment they defined their “hassle-free” process not just as “easier” but as “80% less paperwork.” Although they didn’t have the lowest rate, the creative strategy let Bank of America claim the least amount of paperwork: Bank of America will reduce my (paper) work by 80%. Other Communications Programs No other communications programs were used in conjunction with this Advertising Campaign. Media Strategy The $30 million Mortgage Campaign was the first significant campaign for Bank of America mortgages. It represented a $23.4 million increase over the previous year. The media mix consisted of network and cable television, national magazines, local newspapers and local real estate publications. The campaign launched on May 13th and ended in September. Media • • • •
Television Newspaper Consumer Magazine Other: Local Real Estate Publication
Total Media Expenditures: •
$20 million and over
Evidence of Results • • • • •
The Mortgage Campaign helped reverse a trend of Bank of America mortgages performing below the industry average Before the campaign Bank of America under performed the MBAA Index by as much as 14% (in March 2002) and an average of 7% over the four months prior. Since its launch The Mortgage Campaign helped the Bank of America consistently exceed the MBAA Index. Bank of America mortgage performance improved each month the campaign aired, reaching a high of 59% better than the MBAA Index in September. The increased applications generated by The Mortgage Campaign reduce Bank of America acquisition costs by more than $1.5 million dollars.
Note: The MBAA Index is a market composite index published weekly by the Mortgage Bankers Association of America (MBAA). It is used as an industry benchmark for mortgage applications much like the Dow Jones Industrial Average is used as a benchmark for the stock market. EFFIE® Awards New York American Marketing Association 116 E. 27th St., 6th Floor, New York, NY 10016 Tel: 212-687-3280 Fax: 212-557-9242 2003: The information available through effie.org is the property of the New York American Marketing Association and is protected by copyright and other intellectual property laws. This brief may be displayed, reformatted and printed for your personal use only. By using this site, you agree not to reproduce, retransmit, distribute, sell, publicly display, publish or broadcast the information to anyone without the prior written consent of the New York American Marketing Association.
Other Results: • The Mortgage Campaign was so successful that the Bank of America considered stopping it early because they couldn’t handle the volume. • • •
A customer actually walked up to the counter at a Bank of America banking center and began hitting his head on the counter (imitating the man in the commercial) as he asked for information about our mortgage process. CNN thought so highly of the spots that they set up an on-air reunion of the two principals from the “Love Letter” spot along with an interview with Bank of America’s Chief Marketing Officer. The TV spots “Letter” and ‘Dinner” made the shortlist at Cannes in 2002.
EFFIE® Awards New York American Marketing Association 116 E. 27th St., 6th Floor, New York, NY 10016 Tel: 212-687-3280 Fax: 212-557-9242 2003: The information available through effie.org is the property of the New York American Marketing Association and is protected by copyright and other intellectual property laws. This brief may be displayed, reformatted and printed for your personal use only. By using this site, you agree not to reproduce, retransmit, distribute, sell, publicly display, publish or broadcast the information to anyone without the prior written consent of the New York American Marketing Association.