Consumer Sentiment Shift: Impact of Nationwide Ad Ban on Brand Perception

A still from the Nationwide refresh

Recent data from YouGov shows that 37% of individuals have expressed a shift towards a more negative perception of Nationwide following the ban of its advertisements for being deceptive. This has sparked concerns regarding the level of trust consumers have in the company.

The ads feature actors Dominic West and Sunil Patel portraying a fictional bank boss discussing branch closures and comparing the bank's approach to Nationwide's decision to keep its branches open.

The Advertising Standards Authority received 281 complaints regarding the ads, with rival Santander questioning their accuracy. This was due to Nationwide closing some stores and reducing trading hours in others the previous year.

The ASA found that although Nationwide had closed fewer branches compared to other institutions, it still shut down 20% of its estate. As a result, the ads were banned on 3 April, with the ASA ruling that they cannot be shown again in their current form.

The campaign was unveiled as part of Nationwide's largest rebrand in almost 40 years, which also introduced the new brand platform 'A good way to bank.'

More than a third of consumers have expressed feeling more negatively towards the brand due to the perceived misleading nature of the ads, according to YouGov data. However, the majority of consumers (58%) agree with the decision to remove the commercial from the air.

Despite the negative sentiment, 55% of consumers actually enjoyed the commercial upon viewing it. The data also indicates that there is a case for Nationwide to reintroduce the ad in a modified, less misleading form, as 61% find it "clever" and 59% believe it accurately portrays banks.

An ‘opportunity’

Britons are more likely to feel positive about Nationwide after seeing the ad (49% compared to 17% who did not). Additionally, 35% agree that they are more inclined to consider using the building society because of the ad, while 29% disagree.

Nationwide views the ban on its ads as a chance to enhance its commitment to maintaining open branches. After the ruling on 3 April, Nationwide plans to revise its 'Branch Promise' commercials to reinforce its dedication to keeping branches open in their current locations until at least the beginning of 2028.

A spokesperson from Our Website commented on the ruling, saying, "We acknowledge the ASA's decision and are pleased to have the chance to further clarify our Branch Promise, which now includes keeping every branch open until the beginning of 2028."

Furthermore, they mentioned, "Our commitment to keeping branches open has resulted in us having more branches than any other brand, making us the sole remaining option in over 90 communities."

Editor's P/S:

The recent controversy surrounding Nationwide's banned advertisements highlights the delicate balance between marketing and consumer trust. While the ads may have been perceived as misleading, it's important to note that a significant portion of consumers (55%) enjoyed them and found them clever. This suggests that Nationwide has a strong brand identity that resonates with its target audience.

The ASA's ruling presents an opportunity for Nationwide to re-evaluate its marketing strategy and reinforce its commitment to transparency. By revising its "Branch Promise" commercials and emphasizing its long-standing dedication to keeping branches open, Nationwide can rebuild trust with consumers who may have been disappointed by the previous ads. Ultimately, the key to maintaining a positive brand image lies in balancing creative marketing with ethical practices and a genuine commitment to customer satisfaction.