Katz: AM/FM Radio Boosts Awareness For Regional Banks.

Regional banks face an uphill battle in attracting new customers because consumers and business owners tend to remain loyal to their financial institutions, while national banks and large credit unions dominate public awareness, according to a new report from Katz Radio Group.

In its latest Insights report, Katz detailed the results of a custom brand lift study conducted with an unnamed regional financial institution to measure the impact of a localized advertising campaign across key East Coast growth markets. The research included pre- and post-campaign surveys of consumers and small-to-mid-sized business decision-makers, measuring changes in brand awareness, advertising recall, perceptions and consideration.

Before the campaign, the research found that national banks dominated top-of-mind awareness and consideration, while the regional institution struggled to gain visibility despite favorable opinions among those familiar with the brand.

“Respondents generally associated the featured regional bank with trustworthiness, community commitment, and customer service,” Katz says. “The brand faced a common challenge: consumers weren’t rejecting the bank, they simply weren’t thinking about it.”

Following the advertising campaign, the surveys found a significant increase in advertising recall. Among consumers, recall of the bank's advertising on AM/FM radio rose from 17% before the campaign to 44% afterward. Respondents also reported seeing or hearing the campaign across multiple media channels, which Katz said demonstrated the effectiveness of a coordinated advertising strategy.

The post-campaign research also found stronger perceptions of the bank among respondents who were familiar with the brand. Participants increasingly associated the institution with qualities such as trustworthiness, stability and security, experienced bankers, personalized service, straightforward banking, long-term customer relationships and community commitment.

“Negative perceptions remained minimal, while positive ratings increased across many of the brand attributes measured,” Katz reports.

The study also found that most consumers and business owners remain committed to their current financial institution and have little intention of switching providers in the near term. Even so, Katz said the campaign helped improve the bank's familiarity and credibility, increasing the likelihood that it would be considered when customers eventually evaluate new banking options.

“This is where AM/FM radio excels: delivering consistent reach and repeated exposure that builds trust over time, ensuring the brand is top of mind when consumers are finally ready to make a change,” Katz concludes.