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

Building brand awareness, gaining trust, and improving consideration among potential bank customers for opening new checking accounts is the role of offline and online advertising in acquiring checking account customers. Another role that offline and online advertising plays in acquiring checking account customers for the bank is by being a gateway for other lines of businesses within the banks entity. As a way to maximize the global awareness of the BBVA brand, they adopted the trade name BBVA Compass in 2009. Awareness for the new name dropped below 50%, to 48% in 2009 and the goal in 2010 was to raise brand awareness to 53%. BBVA sought to achieve this through stimulating both online and offline advertising in order to further build its online brand awareness and acquire new customers for different lines of the business. Offline advertisement covers sponsorships such as the multiyear deal with the NBA that would make it the official bank for the NBA, WNBA, and the NBA Development League in the United States, Spain, and Puerto Rico. Other huge sponsorship deals are Spain’s top professional soccer league and a major college football event. BBVA Compass uses both search and display advertising, generally accompanied by a promotional offer to encourage customers to open a new checking account. Offers included an iPod Nano or iPod Touch, 5% cash back or $100 or $150 in cash. On average, the effective cost of the promotions is about $100 for each new online checking customer.

2. Is the 2010 advertising budget allocation between offline and online media appropriate?

We do not believe that the advertising budget allocation is appropriate because 5% of the new checking accounts come from the online channel, 80% through the

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