Laser ‘How advertising convinced Irish consumers of a better way to pay’.

INTRODUCTION / confusion with the debit card concept, MARKETING BACKGROUND in-grained resistance to ‘plastic cards’ In 1996 the leading banks and and general inertia or apathy. building societies combined to launch The last plastic card system to be the country’s first debit card, Laser, launched in Ireland were ATM cards following a successful regional test in (Banklink, Pass, etc.) back in 1978. It 1995. Debit cards had existed for a had taken 18 years for penetration of number of years in other European these cards to reach 36% of adults (an countries, but the concept was totally average of 55,000 per annum); while new and, therefore, required careful credit cards, launched in Ireland in the Client: explanation to Irish consumers. early 70’s, had still only a penetration Laser Card Services The participating institutions had of 18% of adults by the end of 1997. selectively offered their current The Laser card target, however, was Agency: account-holders information on Laser more ambitious. It was hoped to have Irish International through direct mail in the first half of 200,000 active card-holders and some 1996. In August, Irish International 300,000 transactions per month carried Team: were appointed to handle the broader out on the new card by the end of Peter McPartlin, consumer launch of the card. 1996 and also to have 4,000 retailers Dave McGloughlin, The Laser card works like an accepting Laser. Ray Stevenson, electronic cheque. When a person Marius Herbert purchases goods / services at selected THE ADVERTISING STRATEGY outlets, the cashier ‘swipes’ the card The advertising needed to clearly through their terminal, providing a and concisely communicate the specific receipt for the card-holder to sign. benefits of Laser and do this in a The payment is then debited from his manner that was distinctive, or her account within a couple of days. approachable and down-to-earth. It Laser, therefore, is a cheque also needed to create a unique brand replacement mechanism, with identity and personality for Laser - transactions being cheaper and swifter. which up to then was a name that was However, it needed also to be appended to everything from kitchen positioned as a more controllable knives to electrical retailers. alternative to credit cards and a more Impact was vital, not just because secure payment method than cash. Laser was another new product launch, but more because it was another new THE MARKETING OBJECTIVES product launch in the highly-cluttered Each element of Irish International’s financial services arena, where almost campaign had to play its role in £17m had been spent on media in the highlighting Laser’s unique strengths preceding 12 months alone. (e.g. security, speed, control, etc.) and The core creative idea was designed position it as “the better way to pay”. to help Laser forge its own brand In achieving this, the agency was also identity quite independently of its host acutely aware of the potential financial institutions. As the tone of consumer negatives, including the message had to be lively, charming

19 and accessible (and also because the main local stations in the prime Laser actual Laser card design varied from centres of Dublin, Cork, Limerick, one institution to another), the agency Galway and Waterford. chose an animation style for TV which Creating ‘stand out’ amongst the was then echoed in other media. clutter of financial services advertising “Waltz through your day with was an underlying requirement of the Laser. The better way to pay.” became Laser media strategy. Irish the central message, featuring on TV, a International developed two media couple moving effortlessly through a firsts for Laser. The agency’s media typical shopping trip, thanks to their research indicated that the Irish Times Laser card. was the key newspaper for targeting the likely ‘early adopters’ of Laser. THE MEDIA STRATEGY With the co-operation of the It was clear from the original brief newspaper, the agency took over its that awareness-generation was not the heavily-read Personal Column page on only task facing media. TV might launch day with a series of Laser card accomplish this quite easily, but the ‘footsteps’ and ‘earspaces’. more precise benefits of Laser, how the Targeting potential users during card worked and the need to put the the January sales was also vital. card “in danger of being used” at key Posters were an obvious choice, but shopping opportunities, also needed to many of the newer shopping centres be addressed. It was agreed that the (e.g. Jervis Street, Stephens Green, etc.) core target audience should be 25 - 55 lacked appropriate sites. In year old ABC1’s. conjunction with PML, the agency The various strands of the media developed new poster panels (DART mix and their individual roles were as card size) within the lifts delivering a follows: captive audience of shoppers to and TRADE PRESS: A pre-launch from the car parks. campaign to retailers in the grocery, restaurants and DIY sectors to promote THE RESULTS card acceptance. The performance of the Laser RTE TV: A programme-led buying campaign was continuously monitored strategy based on careful analysis of through tracking research conducted ABC1 adults viewing preferences. by Business & Market Research (BMR). NATIONAL PRESS: A selection of ‘ABC1 oriented’ titles carrying two Chart 1 ‘page-killer’ sizes specifically developed LASER - ADVERTISING AWARENESS: to exploit the opportunity provided by November 1996 - January 1997 Christmas shopping and the January Bank Account Holders : 25 - 55 Yrs. % 70 sales. In addition, smaller sizes were 65 65 62 developed to add frequency around 60 57 58 56 TOTAL the main Christmas shopping features. 53 AWARENESS 50

POSTERS: A range of sizes were 42 40 used to target card-holders at 35 32 30 appropriate times / locations, including 30 26 26 DART cards aimed at city commuters 24 23 24 20 17 18 and 6-sheets hand-picked at shopping SPONTANEOUS 10 centres where Laser was accepted. 10 8 RTE TV SUPPORT

RADIO: Promoting usage of the 0 PRESS PRESS

card amongst younger ABC1’s was Nov Nov Dec Dec Dec Jan Jan Jan Jan Jan particularly important. A separate 22 30 06 13 20 03 10 17 24 31 radio commercial was created for the Source: BMR Ltd.

20 It was evident from this that the average card usage (+67%) and two lead media (TV and National Press) transaction volumes (+17%), as the were working, as planned, in a following figures show. (Chart 2) complementary way. RTE was Crucially though, the total generating the strongest overall investment in advertising of £330,000 awareness, but highest amongst in 1996 yielded a substantial financial younger and working-class adults. return for the participating Press awareness in contrast, was biased institutions. Some £42m of retail sales towards older and ABC1 adults, with were transacted through Laser radio and posters also fulfiling their between November 1996 - January individual roles. 1997. Some of this would presumably Overall, the research showed that have occurred anyway, without the aid the campaign had a significant effect of advertising. In an effort to on Laser brand awareness, particularly calculate the ‘natural’ Laser amongst its core audience, with the transaction value in that period and to ‘convenience’ and ‘safety’ benefits of help isolate the advertising the card directly attributable to the contribution, we have used the CSO’s advertising. More importantly, it retail sales indices for all retail outlets helped translate this awareness into in the Republic. (Chart 3)

Chart 2 LASER CARD / USAGE RESULTS : 1996 Target Base Pre-Advertising Post-Advertising (1996) (At Oct ‘96) (At Jan ‘97) Laser Cards Issued 200,000 125,000 215,000 (+7.5%) No. of Outlets 4,000 3,500 4,500 (+12.5%) Transactions Per Month 300,000 152,000 351,000 (+17%) Avg. Card Usage Per Annum 12 15 20 (+67%) Source: Laser Scheme

Chart 3 RETAIL SALES INDEX VS. LASER TRANSACTION VALUE Retail Sales Avg. Laser Trans. Total Period Index Value Per Month Value April - October ‘96 100 £1,714,000 £12.0m* November ‘96 102 £1,748,000 £1.75m December ‘96 102 £1,748,000 £1.75m January ‘97 105 £1,800,000 £1.80m ______Total Laser Transaction Value, April 1996 - January 1997 Excluding Advertising Effect £17.3m Including Advertising Effect £54.0m ______Advertising’s Financial Contribution £36.7m Source: Retail sales data from the Central Statistics Office. * £12m = £1,714,000 x 7 Months.

21 “Raising By applying the Retail Sales Index • In line with the 1998 advertising to Laser’s average transaction value objectives, usage of the card has brand between April - October 1996, we been broadened beyond simple awareness arrive at a logical estimate of the likely payment for groceries to increased was arguably transaction amounts between use for petrol, clothing, meals and November 1996 - January 1997. household appliances. the easy The net contribution of advertising As Julie Jones, the client on Laser part, but to Laser ‘sales’ was therefore £36.7m - Card, acknowledged: getting so a staggering 10-fold return on the “Raising brand awareness was initial investment of £330,000. arguably the easy part, but getting so many people many people to use their Laser Cards, to use their CONCLUSIONS so regularly, within such a short period Laser Cards, As a new product there is no doubt of time, was an achievement only that Laser began its life with a head- distinctive advertising could do.” so regularly, start, e.g. wide distribution, product within such a simplicity, convenience, etc. However, LAUNCHING LASER CARD - short period advertising certainly provided a catalyst SUMMARY for pushing take-up levels and usage Laser, Ireland’s first debit card, was of time, was well beyond original expectations, launched by the ten leading banks and an particularly in a sector where Irish building societies in early 1996. Irish achievement people are innately cautious about International were appointed to money and the use of ‘plastic’. undertake a consumer education and only Advertising has continued to be awareness campaign from November distinctive used in support of the Laser Card 1996. advertising brand during 1997 and 1998, again The initial targets for Laser were could do.” with spectacular results. (Chart 4) ambitious - 200,000 active card- Chart 4 Julie Jones, LASER CARD USAGE RESULTS: 1997 / 1998 Laser Card, Post Advertising Phases Phase 1 Phase 2 Phase 3 (At Jan ‘97) (At May ‘97) (At May ‘98) Laser Cards Issued 215,000 280,000 490,000 No. of Outlets 4,500 6,400 10,500 Transactions Per Month 351,000 580,000 1,300,000 Avg. Card Usage Per Annum 20 25 31 Monthly Transaction Value £14m £23m £52m Source: Laser Scheme

According to tracking research holders, 300,000 transactions per conducted by Lansdowne over that month and 4,000 participating retailers period of time: - particularly given the relatively low • Laser now has the same top-of-mind penetration of credit cards and Irish brand awareness as Mastercard and people’s traditional cautiousness in Amex and three times that of Diners relation to ‘plastic’ cards. Club. The agency needed to develop •Ownership and usage of the card advertising that would not only itself now exceeds that of Access / communicate the benefits of Laser, but Mastercard, Amex and Diners also create a brand personality and combined. ‘stand out’ amongst the £17m of

22 ‘advertising clutter’ spent annually audience of 25 - 55 year old ABC1’s. within the financial services sector. More importantly, awareness was The first phase of the “Waltz being translated into card transaction through your day with Laser” volumes (+17% above target) and high campaign ran across a variety of media average usage levels (+67%). The including TV, Newspapers, Radio and financial pay-off on Laser’s £330,000 Outdoor from November 1996 to investment in this first advertising January 1997. phase was spectacular, with £36.7m Tracking research quickly registered worth of additional transactions strong spontaneous and total attributable to the campaign’s impact - awareness levels amongst the core a 110-fold return on investment.

B/W press.

23 TV commercial . 24 6 sheet campaign.

25 Colour press .

B/W press.

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