As restrictions on contracts-for-differences brokers came into effect at the beginning of this month, companies are having to employ new marketing strategies in order to reach their prospective clients.
One company that has spent the past month doing this is FxPro. Over the past few weeks, the firm has uploaded a series of adverts to its YouTube channel in what appears to be a new effort to reach out to clients.
The firm started its new marketing campaign just over two weeks ago and began by uploading four videos in English.
Each of the broker’s videos features a different game or sport. The first upload features the Chinese game Go (the one that Google built an artificial intelligence-based computer to play). After this, the broker uploaded three videos focusing on sports more familiar to a western audience – boxing, football, and archery.
Investing in Video
As with most broker adverts, these feature some rather heady music that aims to add a level of intensity to trading. There is also the now regular mix of sports and trading as the broker aims to compare the similar skill purportedly required to succeed in both fields.
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Having uploaded these four videos to its YouTube channel, FxPro then spent the past couple of weeks uploading the same videos but in different languages. A week ago the broker uploaded the videos with Polish commentary and followed this up in the past 24-hours by uploading them again, this time in Spanish, Italian, and German.
The English ads appear to have been reasonably successful, with the four videos having between 10,000 to 31,000 views. Those in other languages have substantially fewer but, given they have mostly been up for less than a day, that’s understandable.
A Change in Tack?
More interestingly for our readership, this could be a new means by which brokers advertise their services. Google, Facebook, and the European Securities and Markets Authority have all tightened the screw on brokers by preventing them from advertising in one way or another.
How effective a strategy this will be remains to be seen. After all, YouTube is owned by Google, which has placed a number of roadblocks in the way of online trading firms.
The quality of the adverts is another point of note. All four look as though they cost a fair penny to make – these are not just pay-per-click banners flashing along the sideboard of a website.
In fact, strong investment in advertising could be the name of the game now for FX and CFD brokers. This Tuesday, for instance, eToro announced a $5 million partnership with seven different Premier League football clubs.