Nevada banks seek attention with new ad campaigns

Phil Levine

Thursday, April 6, 2000 | 10:42 a.m.

Takeover rumors

Shares of First Security Corp. rose 56 cents, or more than 5 percent Wednesday, as takeover speculation gained momentum, American Banker reported.

The collapse of First Security's merger with Zions has sparked widespread talk on Wall Street that the $23 billion-asset First Security will probably partner with or be bought by a banking company other than Zions, American Banker reported.

Among the names mentioned most often are BancWest Corp., a $17 billion-asset company based in Honolulu, and Wells Fargo & Co. of San Francisco, American Banker reported.

First Security traded this morning at $12.50, up another 12 cents.

Nevada consumers will find it difficult to escape a new barrage of multi-media advertising campaigns launched by the state's largest banks.

Bank of America, U.S. Bank, Wells Fargo and newcomer Washington Mutual are each promoting themselves as more customer-friendly than their crosstown rivals.

As Nevada's largest financial institution, B of A is actively marketing what it sees as the benefits of banking with the biggest financial player.

B of A Nevada President George Smith said his bank's national presence allows it to shape a nationwide image and to tweak its marketing campaign to a Nevada audience.

"We want our customers to recognize the value of banking with a national bank such as ours," said Smith. "With ATMS and branches in 21 states, people can travel across the country and bank as they would at home.

"We want that message to be clear to our customers."

To that end, Charlotte, N.C.-based B of A launched its first national advertising campaign in February.

Created by New York advertising firm Bozell Temerlin McClain Dallas and New York, the campaign is aimed at dispelling the idea that banks offer only products suited to their interests.

To ensure a broad audience, some B of A ads specifically targeted black, Asian and Hispanic customers and used various languages aimed at different market segments.

B of A rival Wells Fargo, Nevada's second-largest bank, is also involved in an ongoing multi-media advertising effort.

"We market ourselves in every type of media, including radio, television and print," said Audrey Tedore, vice president and director of marketing for Wells Fargo Bank's Nevada operations.

"We've had to increase our marketing efforts proportionate to the growth of the bank." Tedore declined to reveal how much the bank annually allots for its Nevada marketing efforts.

Last year, Wells' growth included one of the state's largest mergers ever when the San Francisco-based bank finalized its union with Norwest Bancorporation; prior to the merger, Wells had 89 Nevada branches, compared to its current 114 offices statewide.

One of the most aggressive and unusual ad campaigns is that of Seattle-based Washington Mutual Inc.

The nation's largest thrift is opening five Metro Las Vegas branches this month and plans to open a total of 21 branches by the end of the year.

Having completed 26 acquisitions since 1983, Washington Mutual has become adept at introducing itself to new markets and customers.

Last month, the bank was awarded the Retail Advertising Campaign Award by the Retail Advertising and Marketing Association for its 1998 campaign announcing its entrance into the California market.

Brad Davis, Washington Mutual's senior vice president of marketing, said the bank's Las Vegas marketing efforts include direct mail and target customers living within a 5 to 7-mile radius of new branches.

"We will be more of a retailer than a bank, and in this business it's really the art of being chosen," he said.

"In Las Vegas, we'll be using an array of media, including billboards and television ads, to increase awareness of our arrival."

Citing proprietary concerns, he declined to reveal the banks' marketing budget for Nevada.

Davis said the bank's marketing goals in Las Vegas differ from those at the time of its entrance into the California market.

That's because Las Vegas will serve as a test market for Washington Mutual's new financial retail store concept. The new offices will offer a wide cross-section of retail financial products, as well as information and Internet kiosks, and a children's play area.

"Unlike California, we're introducing a whole new way of banking into our Las Vegas branches," he said. "Over the next two months, we will be doing a lot of product advertising in the Las Vegas market."

An aggressive and expanding Nevada advertising campaign is also under way this year promoting Minneapolis-based U.S. Bancorp.

"Las Vegas is a huge (marketing) focus for our bank this year," said John Wilcox, U.S. Bank senior vice president and Nevada district manager.

"Las Vegas is one of the fastest growing markets in the country, and we want to increase our share of this market."

Barely three months into the new year, Wilcox said his bank has already launched major marketing and "goodwill" promotions designed to reflect its community commitment.

"In addition to our Goodwill Campaign, we've also started marketing our special higher-rate CDs," he said.

"We're also offering our customers a financial checkup, inviting them to come in and meet for free with our representatives, and see if we can help them improve their financial management."

With four new bricks and mortar offices -- and three new in-store branches -- slated to open in Las Vegas this year, Wilcox says his bank expects to further expand its Nevada marketing efforts.

U.S. Bank currently operates 51 Nevada branches.

"It's hard to quantify how much we intend to spend as our product groups are each allotted their own budgets," said Wilcox.

"However, I can say with some certainty that we in Nevada will have a larger slice of the (marketing budget) pie this year than we previously did."