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75% Of Marketers Say Card-Linked Marketing Could Replace Other Methods

by Esther Shein
Contributing Writer
CMO.com

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Industry

Card-linked marketing (CLM), in which consumers receive targeted advertising through their online and mobile bank statements and cash-back offers based on purchase history, is a “suitable replacement” for traditional marketing strategies, according to a newly released survey by Cardlytics.

The October survey of 300 marketing professionals, which was aimed at learning about marketers’ attitudes toward CLM, found that three out of four marketers believe this approach could replace existing types of advertising, including email offers (48 percent), coupons (48 percent), newspaper advertising (30 percent), online search advertising (29 percent), and TV advertising (24 percent).

The study found that 87 percent of marketers believe the overall benefits of CLM include:

  • Better ability to reach loyal customers–49 percent
  • Helps consumers save money–47 percent
  • Ability to target offers based on consumer purchase history–45 percent
  • Increased sales for retailers–43 percent
  • Better ability to target new customers–41 percent
  • Improved customer satisfaction due to more relevant ads–33 percent
  • Precise measurement of marketing campaign results–27 percent

CLM targets consumers with retail offers based on individual purchase history, said Kasey Byrne, senior vice president of marketing at Cardlytics, which offers a card-linked advertising platform. While other channels base targeting on surveys, partial data, aggregated purchase history, or purchase history from a single store, “CLM can provide recommendations based on ‘whole-wallet’ spend -- the consumer's history across stores and categories,” Byrne told CMO.com.  

Respondents cited Christmas (66 percent) as the leading time of the year when they think CLM is most effective, followed by the back-to-school shopping season (57 percent), times when consumers need to save money (45 percent), and annual sales (37 percent).

Ninety-three percent of marketers said consumers would use CLM deals frequently on the following products and services, including groceries (74 percent), gas/convenience (71 percent), restaurants (66 percent), apparel (53 percent), and movies/entertainment (53 percent)

The Cardlytics survey also asked marketers what information about consumers would be useful for them to develop strong marketing campaigns. The top responses include:

  • Consumer spending trends (yearly, monthly, or day-to-day)–67 percent
  • Where people shop during certain times of the year–64 percent
  • How many times consumers shop at certain stores in a year–54 percent
  • Where consumers shop after they’ve shopped with your company–43 percent
  • Market share, based on consumer spending across all stores–45 percent

In terms of the types of information that marketers could receive from card-linked marketing programs, the findings were very similar:  

  • Consumer spending trends (yearly, monthly, or day-to-day)–64 percent
  • Where people shop during certain times of the year–63 percent
  • How many times consumers shop at certain stores in a year–56 percent
  • Where consumers shop after they’ve shopped with your company–40 percent
  • Market share, based on consumer spending across all stores–45 percent

While banks already offer incentives to consumers for using their cards, Byrne said CLM is different because the recommendations provided to consumers are based on actual purchase history, so the ads are more relevant, increasing their likelihood of use.

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