Chase is the latest company to leverage its data on behalf of advertisers.
Chase is the latest company to leverage its data on behalf of advertisers.
JPMorgan Chase Bank announced Wednesday that a new division called Chase Media Solutions will allow marketers to lure Chase customers with targeted deals and discounts tied to their spending history.
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JPMorgan Chase Bank announced Wednesday that a new division called Chase Media Solutions will allow marketers to lure Chase customers with targeted deals and discounts tied to their spending history.
Chase joins companies ranging from Best Buy to Uber that have begun selling advertising space on apps, websites and other venues, often using shopper and user data to target messages. and generate revenue outside of core businesses.
The company has already offered targeted deals to customers through a program called Chase Offers, which will continue to include more relevant offers brokered by its new media division. become. Chase hopes its enhanced carousel of discounts on its app and website will give the credit card department a little more shine, as it hopes to maintain its position as the largest credit card issuer in the United States. This new division was created as a result of the company's acquisition of card-linked marketing platform Figg in 2022.
Advertisers have long sought ways to reduce waste by purchasing ads that are only seen by consumers who are most likely to become customers. Digital marketing giants like Facebook offered such specific targeting for a time in the late 2000s and 2010s, but changes made in response to online privacy concerns have made it difficult for relevant consumers to The accuracy of connecting ads is hampered. Customer acquisition costs on established digital platforms also increased.
Input: Almost everyone. Market research firm eMarketer predicts that global spending on retail media networks (a collective term for the advertising sales arm of retailers and other companies) will account for 21.6% of all digital ad spending by 2024. This is expected to increase from 15.1% in 2019.
Chase's entry into the “everything is an ad network” ecosystem does not include selling advertising space in the traditional sense, such as TV screens around branches.
Instead, advertisers in the Chase Offers section online and in its apps will now be able to target different subsets of consumers, including new shoppers, lapsed shoppers, and loyal shoppers, and banks Only the customers whose spending data predicts will be interested. For example, a pet care company's transactions won't be visible to anyone whose Chase transaction history suggests they're not a pet owner.
Unlike most retail media networks, Chase's only charges sellers a fee when a customer takes advantage of a deal and makes a purchase. This means companies can attribute results to their spending with Chase, and banks hope it will help interest rate marketers who are under pressure to prove their worth. said Rich Muehlstock, Chase's head of offers and e-commerce.
“We're going to be involved in larger campaigns because obviously there are other things that are always going to be important in building brand and awareness and things like that,” Muhlstock said. ”
Customers must activate the transaction in the Chase app or website. However, rather than relying on methods like discount codes, Chase automatically applies cash back to customers' cards after a purchase.
JPMorgan Chase & Co., which recently reported record annual profits of $49.55 billion, doesn't need an ad network to put it back in the black. But the company wants to give people more control over their shopping and purchasing experience.
In 2021, the company announced plans to acquire The Infatuation, a restaurant review site that includes the Zagat brand, and give some customers special access to its events and certain content on the site.
Alexander Saeedy contributed to this article.
Email Katie Deighton at katie.deighton@wsj.com.