April 20, 2024

Chase Bank is launching a new retail media platform that allows brands to market directly to its 80 million customers — using data on their spending habits.

Through the newly minted Chase Media Solutions, businesses will be able to target users with personalized offers and provide incentives to customers, like cash back, the New York-based bank said Wednesday.

Using customers’ transaction data, which is owned by the bank, brands and advertising agencies can “precisely target customers at scale based on purchase history,” for example, by advertising to new, lapsed, or loyal customers differently.

“Like retailers, we have first-party data and a dedicated audience,” said Rich Muhlstock, president of Chase Media Solutions. “But what sets us apart is the unrivaled scale and insights from our customers — having long-served as a trusted guide for their financial decisions.”

The bank is hoping to combine insights from its large customer base and 6 million small business customers as part of its efforts to build out its own two-sided commerce platform and bring in benefits to both business clients and banking customers. Chase Media Solutions follows from the integration of card-linked marketing platform Figg, which JPMorgan Chase & Co. acquired in 2022, the bank said.

Retail media networks like Chase Media Solutions are a form of advertising platform that gives retailers the ability to sell off ad space on their digital channels to outside brands. These platforms were given a major boost by the surge in online shopping during the pandemic.

Management consulting firm Bain & Company estimates that retail media is currently a $61 billion industry — double what it was in 2021. And it’s expected to continue growing at an annual rate of 10% through 2026, making it an increasingly competitive area.

Chase is joining the ranks of other major players in retail media, including Amazon Advertising, Walmart Connect, as well as lesser known platforms offered by Home Depot and Best Buy.

The bank said it piloted the platform in 30-day campaigns for Air Canada, Blue Bottle, Whataburger and Solo Stove, and saw “significant traction” in driving sales and new customer growth.

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