After a lull caused by the ailing economy, advertising spending for card products is on the rise.
JPMorgan Chase & Co. and Capital One Financial Corp., for example, made sizable increases in ad spending last year, according to research from New York-based Kantar Media Intelligence (see chart). Chase’s spending on card advertising jumped 97.2%, to $361 million from $183 million in 2009, while Cap One’s spending jumped 84.7%, to $200.8 million from $108.7 million.
Both issuers have increased their ad spending to support new niche rewards products, namely Chase’s Sapphire premium credit card and Cap One’s Venture card, notes Jon Swallen, Kantar Media senior vice president of research. Both cards feature flashy commercials that tout travel-rewards benefits. Cap One also recently launched a national TV ad campaign featuring Alec Baldwin from television’s “30 Rock” sitcom to promote the Venture card.
In general, card issuers are re-targeting markets, such as affluent consumers, and are focusing on rewards specific to travel, according to Kantar Media.
However, issuers also are focusing on providing practical value, such as Chase’s Slate card. That product features Blueprint, which offers Chase cardholders payment plans to pay off certain purchases or the card’s balance over a specified period of time.
Chase’s focus on Blueprint in its advertising is a response to the Credit Card Accountability, Responsibility and Disclosure Act’s edict to make card terms more transparent and to give customers more control over their accounts, Swallen says. “Chase is taking a requirement that some viewed as a burden and is turning it into an opportunity to be the first to promote it,” he says.
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