Although advisors
who work for well-known bank-owned investment dealers may take pride in their firms’ national brand recognition, for those at regional firms, it is all about being known in their markets.

Advisors surveyed in the Regional Dealers’ Report Card say national consumer advertising is not a primary concern. Rather, bringing in local clients, mostly through referrals, and maintaining long-lasting client relationships are more important. And often the best way to do that is by sponsoring local events.

“People in rural areas deal with whom they know,” says an advisor with Saskatoon-based Sentinel Financial Management Corp. , adding that spending a lot on expensive and flashy advertisements does not necessarily help a business flourish.

Only four of the seven firms surveyed use conventional media advertisements to promote their brand and increase public recognition. And the four that do advertise do not receive high performance ratings in the Report Card.

But advisors say the low scores are nothing to be concerned about. On the importance scale, consumer advertising rated a 5.8; only one other category scored lower — IPOs and new issues (3.9).

“We don’t do a lot of advertising, but I view that as a positive,” says one advisor at Vancouver-based Leede Financial Markets Inc. “Advertising is not coming out of our ears. Leede is not a marketing machine. It’s a different business model from the Street.”

Leede advisors rated their firm’s advertising a 5.6 — and its importance in the public domain at 5.3.

Vancouver-based Odlum Brown Ltd. has overcome the regional challenge and has successfully built its profile without launching a full-scale ad campaign. The firm got top scores in consumer advertising and public image, with 6.1 and 9.1, respectively.

President and CEO Ross Sher-wood attributes the high ranking to the firm’s strategy. “We do a great deal of stuff in the community, by donating money or volunteering. We do it at a corporate and an individual level,” he says.

Odlum Brown sponsors sporting events, such as the Vancouver Open tennis tournament, as well as arts and music festivals in Vancouver. “With these things, its our name in lights,” Sherwood says.

The firm also makes contributions to the community, such as charitable donations to hospitals and the United Way. It does occasionally advertise in local magazines.

An Odlum Brown advisor says the marketing strategy works well for the firm: “The sponsorship is low-key, which is in keeping with Odlum Brown’s image. Our patronage is well selected for charity and community events; it speaks to our clients. We wouldn’t do blatant, mass-media marketing. It wouldn’t be for us.”

A strategy that emphasizes word of mouth rather than media advertising is what gets the smaller regional firms noticed. “People deal with a broker, so a public image is not really important,” says a Leede advisor.

“We get our clients from personal referrals,” says another broker at Leede. “Ads are a waste of company dollars, in my opinion.”

Yet another Leede advisor reasons that keeping the ad budget down has advantages. “We don’t waste money on marketing. That’s why we get paid so well on our shares,” he says.

Montreal-based MacDougall, MacDougall & MacTier Inc. likewise reinforces its presence in its communities with sponsorships of special events and corporate philanthropy. Advisors say the approach has been effective in advancing the investment dealer’s overall public image.

“We are community-oriented, and tend to advertise where our clients tend to go. We are small, so naturally can’t afford to advertise in the Financial Post every week,” says a 3Macs advisor from Quebec. “Instead, we do sponsorships and promotions of special events.”

That is exactly how the marketing budget is being spent, says Tim Price, president and CEO of 3Macs: “Part of the personal contact is getting out into the community and supporting community events and community organizations.”

With a 5.0, the firm received one of the lowest scores for advertising. But its image in the public was ranked respectably high, at 8.9.

At Toronto-based GP Capital Corp. , advisors are responsible for promoting themselves on their home turf. GP Capital — and Leede, as well — will support advisors by contributing 50% of costs for marketing tools such as brochures. IE