A&L switches to below the line

Alliance & Leicester is planning to switch much of its 18m above-the-line budget, through BMP DDB, below-the-line, after appointing a core roster of three direct marketing agencies.

The building society, which is preparing for flotation early next year, says it is planning “a sizeable increase” to its existing 10m below-the-line budget.

Head of direct marketing for Alliance & Leicester, Simon Knibbs, says the appointment of Barraclough Hall Woolston Grey, Judith Donavan Associates and Aspen Direct does not alter the company’s relationship with BMP.

“We are redirecting our marketing budget below the line to reflect the general trend in financial services, which is increasingly directly driven. But this does not alter the status of our relationship with BMP,” says Knibbs.

The direct marketing business will be divided between the three agencies. BHWG will handle work for the Alliance Account, mortgages and current account; JDA will work on personal finance; and Aspen Direct will work for all Alliance & Leicester’s Giro products and recruitment of customers for its Post Offices-based current accounts.

According to Register MEAL, Alliance & Leicester spent more than 18m above the line last year. However, sources in the building society says the figure is now less than 10m.