Promoting Credit Unions in the Age of Ad Blockers

Learn why affiliate marketing has become a leading digital channel.               

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Credit unions rely on digital channels to reach potential members. According to a 2020 survey from America's Credit Unions (formerly CUNA), credit unions allocated over 27% of their marketing budgets to digital advertising. Still, the recent popularity of ad blockers could pose a new challenge for credit union brands looking to promote their financial products or services in this channel.

Statista reports that half of online users don't like to see targeted ads when they search the web for specific terms. This means that traditional digital advertising formats, such as display ads and search ads, are becoming less effective than before. According to Hootsuite's Digital Trends Report, 42.7% of internet users worldwide use ad-blocking technology, which means ad blockers won't disappear anytime soon.

A new approach to overcome this challenge is for credit union marketers to rely less on ads and focus more on partnerships. Credit unions can include affiliate marketing in their strategy to avoid the risk of these software or browser extensions blocking their efforts.

Affiliate marketing occurs when a brand partners with publishers, such as big websites, niche blogs or influencers, to promote its products or services. The affiliates receive payment for each lead or conversion they generate.

This type of marketing is beneficial for credit union brands in times of ad blockers for several reasons, including the following:

Affiliate content dodges ad blockers. In affiliate marketing, traditional display ads are not used. Instead, affiliates create various types of content to promote financial products or services. This content includes blog posts, videos, social media posts and newsletters. Affiliates use their storytelling skills to create engaging and compelling content that attracts and resonates with their audience, making it hard for ad blockers to function.

Exposure and trust building. In today's digital landscape, internet users often resist traditional digital advertisements due to their perceived intrusiveness. However, this resistance doesn't extend to affiliates, who typically cater to specific niche audiences that trust them. Collaborating with affiliates who align with the target demographic of credit unions can enhance credibility for the credit unions while simultaneously providing visibility and exposure for their brand.

Reaching audiences already looking for specific financial products. Credit unions can partner with websites that include personal finance products and services, such as rate comparison sites. These types of websites attract audiences researching mortgages, insurance, credit cards and other financial products. By placing content in front of these, credit unions can reach potential members who are actively looking for specific financial products.

Cost-effective member acquisition. Pay-per-click ads were once a low-cost form of advertising. They were a safe bet for credit union marketers trying to make the most of their marketing budget. With time, more financial institutions started paying for these digital ads, increasing the cost of this model. Additionally, pay-per-click advertising doesn't always ensure that the clicks generated will result in high-quality leads.

The affiliate marketing model is cost-effective for credit unions seeking new members because it's based on a different model. Instead of pay-per-click, affiliates usually work with a performance-based model, which means they only get paid if they achieve the credit union's desired action.

The surge in adblocker usage necessitates financial marketers to reassess their tactics and seek out alternative avenues for reaching potential customers. In this era dominated by ad blockers, affiliate marketing emerges as a compelling solution to this challenge.

We're likely to witness more credit unions turning to affiliate marketing because it provides a cost-effective way to expand their reach, drive traffic to their sites and achieve measurable results – all while avoiding ad blockers and competing effectively in the digital landscape.

With or without the threat of ad blockers, affiliate marketing is a powerful strategy that community banks and credit unions can employ to reach a wider audience, increase conversion rates and compete with larger financial institutions despite having smaller marketing budgets.

Nicky Senyard

Nicky Senyard is CEO and Founder for Fintel Connect, a Vancouver, British Columbia, Canada-based performance marketing technology company serving the financial industry.