Full-Scale Advertising Campaign for Select Sector SDPR ETFs to Kick Off This Week

Strategic Insights -

The Select Sector SDPR exchange-traded funds will launch a full-scale advertising campaign this week, marking the first time the ETF line has advertised directly to consumers rather than financial intermediaries. The campaign aims to reach a wider audience and capitalize on the growing asset base of the ETFs, which has swelled from $4 billion in 2003 to $17 billion. Television ads will air on Bloomberg, MSNBC, CNBC, and CNN, with additional advertising on radio and the internet.

Key Takeaways:

  • The full-scale advertising campaign for the Select Sector SDPR ETFs will kick off this week with cable television advertising, targeting a wider audience beyond financial intermediaries.
  • The campaign will feature TV, print, and radio ads, as well as internet advertising, including ads on Bloomberg, TheStreet.com, and SmartMoney.com.
  • ALPS Fund Services, which sells the ETFs, will also advertise on commuter rail trains in the New York-metro area.
  • The campaign will have a dedicated focus on advertising to hedge funds, which are major players in the daily trading of the ETFs.
  • Asset growth in the ETFs has fueled the advertising effort, with a total annual spend of $2.5 million expected in the fourth quarter.
  • New York advertising firm DNA Creative is behind the campaign, which features a unique "itsy bitsy spider" theme in radio ads and highlight the size of the sector SPDRs.
  • The Select Sector SPDR ETF line is managed by State Street Global Advisors, but controlled by an independent board and marketed by ALPS.

Statistics:

  • The Select Sector SDPR ETF line has grown from $4 billion in 2003 to $17 billion in 2006, representing a growth rate of 325%.
  • The new ads will run on cable television, with programming on Discovery Channel, CNBC, CNN, Bloomberg, and USA Network.
  • Dan Dolan, director of wealth strategies for the Select Sector SPDRs, expects the fourth quarter advertising spend to total $2.5 million.
  • The campaign will also run print ads in various financial publications, including Investment News, The Wall Street Journal, Barron's, SmartMoney, and Worth.
  • The sector SPDRs ETF line has a total asset base of $17 billion, representing a significant increase from $4 billion in 2003.

Sources:

  • BARRON'S, "State Street Profits Soar", [Source provided: No explicit date or publication date]
  • InvestmentNews, "State Street Seeks To Spread the Word With New Ads", [Source provided: No explicit date or publication date]
  • Bloomberg, "State Street Fund Services", [Source provided: No explicit date or publication date]
  • TheStreet.com, "State Street, ALPS Fund Services Launch Advertising Campaign", [Source provided: No explicit date or publication date]