Visa Inc. is expanding efforts to promote its prepaid card products through a sponsorship of the Essence Music Festival taking place in New Orleans over the July 4 holiday weekend.
The magazine’s festival features African-American artists, such as Usher, Jennifer Hudson, Boyz II Men and Fantasia.
“When we looked at the affinities in the target market, we saw that this group has a passion for music, so this festival sponsorship is a really good connection with that target,” Kevin Burke, Visa head of global marketing strategy and marketing for the Americas, tells PaymentsSource.
For its general prepaid card marketing and in connection with the festival, the card company is using online, outdoor, television and radio advertising that seeks to educate about the benefits of prepaid cards, such having direct deposit and access to electronic payments for online and point-of-sale shopping, says Burke. The “Go Open A New World” tag line connects to Visa’s overall “More People Go With Visa” marketing campaign.
To support its festival sponsorship, Visa held a contest in which it gave away a VIP trip to the event. Earlier this month, it also began hosting an instant-win game on Facebook for 28 days.
Consumers must “like” the Facebook page to play the game, which has been giving away pairs of Beats Solo headphones, a Sony MP3 player and several MP3 email gift cards every day. The contest ends July 3.
Visa also has been promoting its sponsorship of the festival through multiple Essence channels, including online, print and email communications to the magazine’s subscription base.
During the festival, Visa will hold a daily on-site sweepstakes in which it will give away tickets to Essence-sponsored concerts. Visa and Essence plan to give away $500 for its Diva-On-A-Dime shopping spree give-away. Visa also will have representatives on hand to educate attendees about its prepaid products.
Market analysts say it is important to develop trust among unbanked or underbanked consumers, whom prepaid marketers often target (
Visa’s decision to sponsor a music event with Essence magazine should help build such trust because Essence is a trusted publication in the African American community and music is an integral part of that community, says Leylha Ahuile, senior multicultural analyst at Mintel Comperemedia, who has written reports about cultural groups and their attitudes about financial services.
“That community feels that Essence speaks to them and understands them, and right there connecting with that elevates the trust factor for Visa,” she notes.
Connecting with a music festival that caters to cultural groups having many unbanked or underbanked individuals is a good strategy for prepaid card issuers, says Ahuile. “All the elements needed to target this unbanked group are there,” she says.
