How much does your bank know about you?
In this fascinating era, ad platforms aspire to become retailers, and retailers yearn to transform into ad platforms. Amidst this identity crisis, retailers have unearthed the gold mine that is first-party data on buyer preferences. Giants like Amazon, Tesco, and Spotify have been busy bees, constructing their own advertising networks. But why, you ask?
Good question! Investment into retail media, the umbrella term for the advertising arms of retailers and other entities, is predicted to gobble up 21.6% of all digital advertising spend in 2024, up from a mere 15.1% in 2019, according to the soothsayers at market research company EMarketer.
Retailers stepping into this arena seemed like a natural progression to me. However, the plot thickened when JP Morgan Chase, a banking behemoth in the US, splurged $140 billion to enter the retail media space. They plan to let advertisers target customers based on their current account activities, mimicking Amazon's strategy of allowing brands to target based on purchase history.
This move, while sure to grab headlines, especially with their plan to only charge advertisers upon completion of a purchase, prompted me to ponder a deeper question – what does your bank account say about you?
Let's face it, your bank knows you better than your own mother. It's privy to your income, your guilty pleasure takeaways, and exactly how much you splurge when you're supposed to be saving. The mere thought sends shivers down my spine, reminiscent of the terror of handing over bank statements to a mortgage broker praying I would be deemed a financially responsible person.?
This begs the question: how far is too far? What level of intrusion will consumers tolerate?
领英推荐
Closer to home, Revolut in the Irish market is set to introduce new targeting and advertising options. However, this move doesn't seem as invasive, perhaps due to the nature of their services??
Considering the fees and charges we already pay to banks, will this new advertising venture affect brand perceptions, or will consumers simply not care? It's possible that more privacy-conscious customers might start managing their finances differently, potentially favoring competitors.
It will be fascinating to see how this unfolds, both from a consumer and a media specialist perspective.
To my bank, if you're reading this, I'd like to be categorized as a homeowner with an unshakeable addiction to coffee, please!