The Case for ATM Advertising
ATMs are much more than simple cash dispensers. They have become a very targeted and highly trackable marketing solution for advertisers looking to reach specific geographical areas and demographics. ATM advertising also helps ATM deployers access to a new revenue stream that helps to cover their base-line operating costs.
With Banks doing what they can to limit access to cash and drive an increase in the electronic payment space independently deployed ATMs are fast becoming the main source for cash throughout Australia. Originally cash was predominantly sourced from branch located bank ATMs. ATMs are now found in a wider range of locations, including but not limited to; convenience stores, major airports and ports, shopping centres, gas stations and pubs.
ATM users; are a sought-after
The vast majority will have bank accounts and good credit ratings. ATMs may also be the only cost-effective way to engage with some customer segments notoriously difficult for other media to reach, e.g. males aged between 18 and 35. People feel comfortable using ATMs. They are a trusted customer interface, in most cases used by cardholders at least once a week.
Many of the off-site ATMs are located in areas where consumers could make a purchase decision, such as retail outlets. As cardholders are waiting for the machine to process their cash withdrawal, the bank or IDA is in a very strong position to communicate its own or a third party’s message on the screen.
ATM advertising is a major opportunity for banks to cross-sell more of their own products. Third party advertisers want to get one-to-one access to the huge number of people who use ATMs.
Advertising can be delivered through a variety of channels:
- On-screen advertising
- ATM receipts can be printed with barcodes that can be redeemed as part of the offer to customers
- Coupons can be dispensed by the machines and used to get discounts off the cost of future purchases.
For some banks ATM advertising is replacing direct mail altogether. Diebold estimates that response rates of up to 20 percent can be generated on self-service terminals – ten times higher than the average for direct mail campaigns.
While deployers with large ATM networks may have an advantage in terms of coverage, third party messages can be highly customised, down to the level of having different campaigns running on individual ATMs. The results of any campaign can be measured in great detail. According to NCR, ATM advertising is 65% cheaper and 200% more effective than direct mail.
For example, an ATM standing beside the soft drinks department in a grocery store would be an excellent place for a soft drinks manufacturer to run a campaign, targeting existing or potential new customers.
ATM deployers need to select which of their units will participate in the advertising programme, as well providing details of their locations and transaction volumes – via a third party processor or dealing directly with a media agency – to potential advertisers. The deployer should also decide which type of advertising it will carry.
The business case for ATM advertising is strong. As has been shown, it often delivers far higher returns than direct mail and other advertising media.
Customers can be targeted in a range of ways – on-screen messages, coupons, or offers on their ATM receipts.
ATM advertising opens up a new revenue stream for ATM deployers and, most importantly, provides value to advertisers who can measure the effectiveness of their advertising spend to a very granular level.