Effect of digital advertising on the performance of commercial Banks in Kenya
The rise of digital advertising has had profound effects on the advertising industry and is shaping the advertising experience. Going forward, the effectiveness and low cost of digital advertising will compel many businesses to rethink the size and makeup of their advertising budgets. The purpose of this study was to determine the effects of digital advertising on the performance of commercial banks in Kenya. The research design employed in this study was a descriptive cross sectional survey design. The target population of this study was drawn from the marketing and communication department of all the 42 commercial banks in Kenya and included the marketing and communication staff (Managers and their assistants) of all the banks. Questionnaires were the main instrument for collecting the primary data from the respondents. The study used quantitative analysis to draw inferences and conclusions from the study. Looking at the extent digital marketing affected the performance measures, the study established that the banks market segment had improved over time under the use of digital advertising. The study also found out that digital advertising significantly affected commercial banks and is moving away from the traditional methods of doing financial transaction. The study further established that most commercial banks were shifting from the traditional advertising platforms such as newspapers, television radio and bill boards to more digital marketing platforms such as website design/development for bank, email marketing for banks, display advertising for banks, use of mobile apps for banks, online advertising and social media. This was promoted by the need to interaction more with customers; reduce the operational costs, increased technology change and the need to align their marketing with the bank’s strategic plan. The study concluded that banks market segment had improved over time under the use of digital advertising, the cost of advertising has gone down, the uptake of the banks products has increased, the banks market share has increased, the banks customer base has improved over time, the number of targeted clients reached is higher and the web traffic rate had increased when using digital advertising. The study recommends that the management of commercial banks should increase their investment in digital platforms so as to be in a position to take full advantage of the digital advertising potential as well as increase the performance of commercial banks.