An article in last week’s Bloomberg Businessweek starts out by saying: “Quirky TV ads have made E*Trade Financial famous but have done little to help pitch its functional appeal to investors.” Hmm.
The article goes on to say that while the baby has increased brand recognition since he began airing in 2008, the 9.4% increase in E*Trade’s brokerage accounts since then pales in comparison to Charles Schwab’s 13.5% increase and TD Ameritrade’s 24% increase. In short, that while the company may boast some of the most popular ads on tv, it still can’t make a profit. Yikes!
E*Trade’s solution is to increase their overall advertising budget, and half the amount of spots it will run featuring the baby. (Steverman, 2011)
What do you think? Is this a smart approach? What would you do?
Steverman, B. (2011, February 16). E*Trade Looks To Outgrow That Talking Baby. businessweek.com. Retrieved February 23, 2011, from