CommBank’s ad spending in the first half of this year jumped by a quarter compared to the first half of last year, despite the bank’s profits dropping by six per cent.
Of course, despite the six per cent drop, CommBank still took home a staggering $9.45 billion. For the full year, CommBank’s advertising and marketing spending still increased by 13 per cent.
“Many Australians continue to be challenged by cost of living pressures and a fall in real household disposable income. With slower economic growth and moderating demand, our strong balance sheet allows us to continue to support our customers and the broader economy and deliver sustainable returns. We have made it easier for our customers to access hardship assistance; provided eligible homeowner customers with the option to suspend mortgage repayments; and supported all customers with access to money management tools,” said CEO Matt Comyn in a statement.
The bank’s retail arm saw its total cash net profit after tax drop by three per cent in the full year to $5.3 billion.
“We’re a utility, a service provision. We have the largest bank in the country with millions of customers, but we don’t tend to be a brand that conjures up a lot of emotion and passion for people,” CMO Jo Boundy told B&T as part of the CMO Power List earlier this year.
Its sponsorship of the Matildas during the Women’s World Cup in Australia and New Zealand in 2023 was one of the most talked about sponsorship deals recently. Boundy attributed this deal to growing consumer trust in the bank following its Royal Commission in 2019.
“You rarely get the opportunity to engage not only customers but the entire nation at a significant point of cultural change,” Boundy said.
“The sponsorship goes beyond just putting a logo on something; it’s about creating a sustainable and enduring difference. The recent Women’s World Cup sponsorship, in particular, has shown positive returns, with significant broadcast metrics, merchandise sales and an overall positive ROI.
“We have very high awareness and consideration but that varies across different cohorts and different age groups. We saw a lift, particularly during the World Cup, in awareness and consideration in the younger demographic… We’ve also seen much stronger associations with community and citizenship, like CBA as a brand that actually supports Australia, supports communities and citizenship. All of that ladders up to reputation and trust.”
How those associations stand up in the face of mega-profits during a cost-of-living crisis remains to be seen, however. For what it’s worth, CommBank also noted in its financials that it had some big plans in place to support consumers.
It said it was “Supporting Australians’ home ownership goals by helping more than 120,000 customers buy a home; lending $39 billion to support Australian businesses; connecting customers to more than $1.2 billion in grants, rebates and concessions through its Benefits finder tool; engaging three million customers monthly with money management tools; and maintaining the largest branch network in Australia, with a commitment to keep all CBA-branded regional branches open until at least the end of 2026.
