There’s much talk about Web 2.0 and social media in the financial space these days. Often, you get the impression that you’re failing if you don’t have a MySpace page, a Facebook account, a blog, a Twitter account, etc.

Reality Check:

• Most people don’t want to hang out at a website created by a bank or credit union. There are very, very few examples to the contrary.
• Financial institutions grossly underestimate the immense amounts of time, energy and money it takes to create even a semi-successful Web 2.0 presence.
• Web 2.0 is all about creating content and engagement. What can you offer (and to whom?) that isn’t already available somewhere else in a better, bigger, or more well-known online venue?
• Don’t listen to anyone who mandates a specific Web 2.0 tool for your financial institution. Web 2.0 tools are simply a means to an end. They are not the only way to reach Gen-Y. There are other ways to reach the same audience.

The Make/Buy Decision

Building your own Web 2.0 presence from scratch isn’t the only option. You can successfully “draft” off someone who already has an established online reputation.

For example, take KeyBank. They teamed up with Etch-a-Sketch sensation and YouTube celebrity George Vlosich. This viral, time-lapse video shows the Etch-A-Sketch portrait of NBA star Carmelo Anthony as it was being drawn.

More than a million viewers have seen the KeyBank video on sites across the internet. The campaign won top honors at this year’s ABA awards ceremony.

If KeyBank set out to produce its own viral video, what would they have made? And how many people would have watched it?

Here’s another example: Citibank’s recent sponsorship of the popular Aussie entertainment website, ninemsn.

And then there’s Forum Credit Union, based in Indianapolis, who sponsors the Colts Fan Forum, an interactive subsection of the official NFL Colts.com website. The forum boasts 1,673 topics with 42,147 comments from its 9,395 members.

The site says there are over 1,500 active members. There were over 150 registered users online at the time this article was written. That’s 150 opportunities in one day to expose users to a Forum Credit Union marketing message as each one signs in. Not to mention the opportunities presented as each new user signs-up.

Reality Check: The NFL’s Colts might be able to get 10,000 fans at a website to a talk about something they are deeply passionate about. If you build your own Web 2.0 presence, how many people do you think you can draw? You don’t have Peyton Manning, so what do you have to offer?

Tips & Advice

If you’re going to partner with an existing, established online success, here are some tips:

1. Think locally.
   Whether you’re a huge regional bank or a small town credit union, you want an online community that covers your geographic area and not much more. You want to minimize “waste” just like you would with any media. You don’t buy TV channels in markets you’re not in, so why would you do something similar online? Pick the right partner and you’ll make sure you’re reaching the right audience.
2. Negotiate an exclusive.
   If you can’t be the only marketer tied to the website, event, etc., at least ensure you’re the only financial institution.
3. Someone needs to own it.
   There are no easy solutions. You can’t just write a check and expect big results. To maximize your opportunities, someone needs to be answering questions, representing your financial institution and interacting with the online community you’re sponsoring. Your logo gets you halfway to first base. Your people, your presence and your participation are what make you a well-respected member of an online community.  (Note: It will probably require at least 20 hours a week.)
4. Be creative.
   In what ways can you participate? A special profile in the community? What freebies can you offer? Where does your logo go? Banner ads? Email marketing? Can you sponsor a special section of the community? What can you do offline? How can you promote your relationship with the community to a broader audience?
5. Understand your motives.
   If you’re looking to build business, you’ll have to make sure your partner gives you opportunities to do more than slap a logo in a few places. You might be creating tons of “engagement,” but if it doesn’t help drive new business with your organization, you seriously need to ask yourself: “Why are we doing this?” You could certainly partner with an online community for purely altruistic motives. If that’s the case, just be clear with everyone on your team that it’s a CSR initiative. People in your organization need to know what to expect. Otherwise, someone will throw it back in your face someday and your partnership will get the axe.

Bottom Line: Establishing a significant, respected and credible online presence by teaming-up with a website, forum, venue or personality that already has a community of followers can take a lot less time and energy than trying to create something from scratch. Of course it will cost more, but it’s about as close to a shortcut as you’ll find. And it still takes a lot of energy (read: “manpower”) to successfully support it.

Earlier this year, The Financial Brand reported on Citi’s record-setting $400 million sponsorship of the New York Mets stadium.

Now, not to be outdone, Bank of America is after an even bigger deal to sponsor the New York Yankees stadium. Any sponsorship of the highly-venerated New York Yankees stadium is expected to eclipse the Citi/Mets deal, worth $20 million a year for 20 years. That will likely place the B of A sponsorship at around half a billion dollars.

Such astronomical sponsorships are increasingly becoming the norm among financial institutions. Recently, Barclay’s also climbed into the stadium sponsorship stratosphere with its $400 million, 20-year deal for the New Jersey Nets stadium.

Key Fact: Citi and Barclay’s have lost billions of dollars in the last year. B of A, on the other hand, has continued posting positive net income into the billions over the last three consecutive quarters — arguably one of the toughest periods ever for financial institutions.

Even if you view such sponsorships as an unnecessary extravagance, at least B of A’s sponsorship of the Yankees would be on-brand for the bank. After years of floundering around with an implausible service promise, “Higher Standards,” Bank of America is now embracing its patriotic name and building a brand around all things American. Among the bank’s other sponsorships:

• The U.S. Olympic Team
• NASCAR
• Official sponsor of Major League Baseball
• MLB team sponsorships of the Yankees, Boston Red Sox and eight other teams
• Official sponsor of the National Football League
• NFL team sponsorships of the New England Patriots, Washington Redskins, Dallas Cowboys and Carolina Panthers (including the Panthers’ stadium).

The Panthers don’t really fit B of A’s portfolio, but the bank is “buying love” in its own backyard, Charolette, North Carolina, where the bank is based.

Reality Check: These sponsorships aren’t just about the branding and marketing opportunities they create. There’s also the personal motivations of executives who want luxury boxes at America’s prestige sports venues. Often, the rationalization goes something like this: “We can use those skyboxes to close big, important deals.”

At least in B of A’s case, they are maximizing their sponsorships through affinity products and services, such as debit cards featuring people’s favorite sport’s icons.

Here are this week’s stories of interest from around the web.
Click hotlinks for the complete story.

Money for Guns: Chase gives away prepaid debit cards for unregistered guns

Credit Score: Consumer Reports’ 12 best and 3 worst credit cards

Duel: Comparing ING vs. E-Trade click-through rates

Essay Contest: Credit union holds $1,500 ‘What Do You Want’ contest

Image Problems: Aussie credit unions in the same situation as U.S. peers

Pedal Pushing: 7.99% bike loans up to $2,500

Q&A Interview: Barclays sees how sponsorships can open doors in the U.S.

More Gas: DFCU-style gas promo from a Montana credit union

Online Media: Citibank’s exclusive sponsorship of popular Aussie website ‘The Fix’

Going Swimmingly: Visa happy with Phelps endorsement

Up for Review: ING’s £4 million direct mail account

Va Va Voom: Female employees pose in bank’s pinup calendar

That’s an Outhouse! But the sign says “Future home of Auburn-U FCU”

Bank 2.0: Struggling banks turn to social networking

Case Studies: Branding firm analyzes 9 different megabank brands

Taken to Task: Marketing expert blasts bank for mailers on neon paper

Today 8 Slides, Tomorrow the World: A Gen-Y plan with big ambitions, few specifics

Bridging the Golf: RBC reaches across the border to sponsor U.S. golf

Stepping Up to the Plate: Big banks defend expensive stadium sponsorships

Lend Me Some Green: Seattle CU rolls-out green auto, home and equity loans

Inside Every Banker…: RBC rep enthusiastic about credit unions

Role Reversal: 86-year old woman turns the table on her bank

Bank of America recently announced that it was introducing its first ever NASCAR-themed ad.

The 30 second spot titled “Who’s Your Driver?” features footage of a number of top NASCAR Sprint Cup Series drivers whose likenesses are available on NASCAR Banking check cards and credit cards. Dale Earnhardt Jr., Jeff Gordon, Kasey Kahne, Juan Pablo Montoya and Martin Truex Jr., are featured in the new ad and are among the most popular drivers featured.

This ad is Bank of America’s third major campaign this year focused on sports fans, including deals with the Olympics and Major League Baseball (press release here). The brand has been very focused on upbeat, uplifting messages like “America’s Cheer 2008” (previous coverage from The Financial Brand here).

This latest spot starts with the line, “This is America, and you have the freedom to cheer.”

B of A has a good promotional tie-in with its co-branded debit and credit cards. At a special section of its website called “NASCAR RacePoints,” the bank details how you can earn points and “burn” them using their plastic products. You earn one RacePoint for every $4 in net retail check card purchases, and can spend them on exclusive NASCAR experiences, race tickets, NASCAR licensed products and goodies like flat panel TVs, iPods and much more.

Use the NASCAR card, get NASCAR stuff. “Earn and burn.” It’s a nice, self-reinforcing promotion.

Bank of America first launched its NASCAR program in 2007. As the “Official Bank of NASCAR,” B of A can offer NASCAR themed checks, debit and credit cards. B of A calls it ‘NASCAR Banking.’

“Our affinity products are some of the fastest growing products we have at the bank. And the NASCAR products are in the top 10 of those,” says Mike Hargrave, an executive with Bank of America’s NASCAR program.

It’s worth noting that B of A is headquartered in Charlotte, North Carolina, the heart of NASCAR country.

The NASCAR Banking ads, produced by worldwide advertising behemoth BBDO, won’t be running nationally until July.

You can read the full script for the spot on page 2. You can read B of A’s full press release here.

Bottom Line: NASCAR is on-brand for B of A. They should be the sponsor of American traditions like NASCAR. After all, their name is Bank of America. They’ve sponsored the Dallas Cowboys — “America’s Team” — for over two decades. The Olympics. MLB. And this announcement from today: the U.S. military. All things American. This is a much better, much more believable brand direction than “Higher Standards.” Two thumbs up.

Key Takeaway: Affinity products are a great way to engage people with a financial brand and counteract the dull, stodgy and boring image associated with the average bank or credit union. What brands can you link with? (Note: You don’t have to be a major brand, nor do you have to pick a major brand to partner with to succeed with this strategy.)

Netbanker: Only 263 daily users of Facebook for financial purposes

It’s Just Business: Credit unions chisel away at bank’s dominance of business lending

Dig This: Gonzobanker tells you why your financial brand needs ‘diggers’

Chuck Talks: Schwab’s “It’s People’s Money” campaign addresses dour economy

He’s With Me: Wachovia reassures customers as it phases out ‘A.G. Edwards’ name

Hoopty Love: An unusual auto loan promotion grows bigger

Getting Hits: Why you need a Wikipedia entry and how to go about it

Hi, My Name Is: ‘RidgeWorth Capital’ becomes new name of SunTrust unit

Third Time for Charms: Bellco CU sponsors huge St. Paddy’s Day parade for 3rd year

Book ‘Em: A Canadian CU writes a book for members on maximizing charitable donations

Bad Sign: City council vetoes one CU’s plans for a really big sign with its new logo

Chasing ATMs: Gas station franchise sells ATM branding rights to Chase

SignING Off: ING email to customers signed by ‘The CEO of Saving’

The latest TV commercial from Charlotte Metro Credit Union stars Charlotte Bobcats head coach Sam Vincent and player Jared Dudley. They share the stage (or “court,” to be more accurate) with a local professional actress.

This is the third spot in a series from Charlotte Metro that feature NBA stars (previous coverage here).

The $150 million credit union has clearly embraced TV advertising with its sizable investment. Consider the cost of things like celebrity endorsements, a professional production company, location shoots and crowd shots. That stuff isn’t cheap.The spot dwells on two messages: “free checking” and “anyone can join.”

SCRIPT FOR “COACH” :30
Coach Vincent: Okay. It’s Charlotte Metro Credit Union. You know anyone can join right?
Regular Gal: Right!
Coach Vincent: Here’s what you do. Get the free checking. And that gets you the online banking and internet bill pay.
Player Dudley: Anyone can join?
Coach Vincent: What did I just say? Then you can check out other great Metro services like depositing checks from home.
Regular Gal: Got it!
Announcer: Charlotte Metro Credit Union is a proud partner of the NBA Charlotte Bobcats.
Player Dudley: Anyone can join?
Coach Vincent: Yesss…!

Because TV ads are always seen by a large non-member audience, choosing free checking as the spot’s main product offer is logical. But the ad squeezes in some quick blurbs about “online banking” and “home deposit” that viewers aren’t likely to retain. Most people won’t remember more than this: “Bobcats,” “NBA,” “Charlotte Metro,” “free checking,” and “anyone can join.” That’s if they remember that much. It takes a lot to really drive a point home to today’s advertising immune audience.

According to actress Kara Edwards who appeared in the commercial, the spot took a full day to shoot on two locations. It was written by Nathan Tothrow and directed by Joanne Hock of Emulsion Arts. The cinema-quality special effects were added by Tony Elwood of Indievision.

Reality Check: TV ads are effective tools for building brand awareness and shaping perceptions over the long term, but they seldom trigger any direct or immediate reaction from the audience. Be clear about your expectations and objectives before pursuing a television advertising strategy.

It looks like Charlotte Metro is doing things right. They aren’t skimping. They seem to be in the capable hands of partners that can be trusted. And the final product will likely create positive brand associations with a wider audience.

Bottom Line: Good TV ads cost money. First there’s the production, then there’s the media buy. Making cheap spots and/or airing them only a few of times is a complete waste of time and money.

Key Question: How does Charlotte Metro measure the impact or results of TV ad campaigns like this?

FORUM Credit Union in Indiana is sponsoring the Indianapolis Colts’ ‘Fan Forum,’ linked off of a banner ad on the team’s official NFL website (left-hand column).

The forum has some impressive numbers to offer. The main forum has over 400 “threads” (basically “separate discussions”), where users have contributed their thoughts almost 10,000 times. Fans talk about the team, the playoffs, NFL draft picks and tickets.

At one point back in December 2005, the forum had 1,692 individuals online at one time, suggesting the site has tens of thousands of registered users.

In exchange for its sponsorship, the credit union gets an exclusive, omnipresent banner ad at the forum.

Bottom Line: This is great brand affinity for the credit union, with tremendous opportunities to forge deep relationships with consumers.

Also note the obvious name connection. It so obvious, it’s almost awkward saying “FORUM Fan Forum.” But it works.

Key Takeaway: Online forums are excellent tools to engage people deeper with brands and subjects they are passionate about.

Reader Beware: Forums are hard to get going. They require a specific focus with passionate, well-defined audience. They also require a tremendous amount of care and feeding.

Suggestion: If you haven’t ever tried a forum, go Google “forum” and “[insert-your-hobby-or-pastime-here].” Give it a whirl. They can be very exciting, informational and robust.

Windsor Family Credit Union will be paying $1.62 million over 10 years to name a new arena in its hometown as ‘WFCU Centre.’ (The good news: That’s only $1.45 million or so in U.S. dollars.)

It’s unclear if the deal will be evenly divided into 10 annual payments of $162,000, or if there were any additional promotional opportunities afforded to the credit union in exchange for its sponsorship.

The credit union has over $570 million in assets, making it one of the top 30 biggest credit unions in Canada.