MarTech Podcast ™ // Marketing + Technology = Business Growth
Episode: The Power Of Financial Media Networks
Release Date: December 31, 2024
Host: Benjamin Shapiro
Guest: Tom Burgess, President of Snip Media
Overview
In this insightful episode of the MarTech Podcast ™, host Benjamin Shapiro engages in a profound discussion with Tom Burgess, the President of Snip Media, about the burgeoning influence of financial media networks in the Consumer Packaged Goods (CPG) sector. They delve into how these networks, primarily operated by major banks, are revolutionizing marketing strategies by leveraging trust, data, and innovative media assets to drive business growth.
1. Introduction to Financial Media Networks
[01:15 - 02:10]
Benjamin Shapiro introduces the topic by highlighting the emergence of financial media networks as a pivotal development in the CPG landscape over the past decade. Tom Burgess elaborates on the concept, emphasizing how brands seek new audiences through trusted financial institutions.
Tom Burgess [02:10]:
"Imagine if you're a brand and you want to find a new audience. Like you just said, that's a hard thing to do."
2. Explaining Financial Media Networks
Segment: Expl Me
To simplify the concept, they use an analogy suitable for explaining financial media networks to a younger audience. Tom explains that banks are leveraging their trusted platforms to offer brands a unique channel to reach consumers.
Tom Burgess [02:36]:
"We have a opportunity as brands and Media executives and media people to monetize that channel. It's a brand new channel and the by far and away the most important piece of that channel is it's incredibly trusted and reliable."
3. Media Assets and Delivery Mechanisms
[04:53 - 07:09]
Benjamin probes deeper into the specific media assets that financial institutions possess. Tom outlines how banks utilize their digital assets—such as websites, mobile applications, and email communications—to promote CPG products effectively.
Tom Burgess [06:38]:
"The banks are primarily leveraging their digital assets. All right, it's web page, it's their mobile application. It is introduced while the consumers landing on like just logging into the page, they're promoting it there."
4. The Pillar of Trust
Segment: What's the Word?
When asked to encapsulate why financial media networks are effective, both agree that trust is the cornerstone of their success. The inherent trust consumers place in their banks translates into higher engagement rates for the offers presented.
Tom Burgess [07:25]:
"When you see that, that's amazing, right? Because they trust the bank. This is their trust, as you mentioned, it's where they put all their money."
5. Leveraging Brand Equity from Banks
[08:27 - 10:28]
Benjamin draws parallels between retail and financial media networks, noting that banks' established trust enhances the credibility of the brands they partner with. Tom agrees, explaining that this symbiotic relationship boosts brand equity on both sides.
Tom Burgess [09:09]:
"So the banks know that their brand is strong. They know they have a very trusted environment. But the brands are coming in and saying, I know I've got a good brand and you want to be associated with me."
6. Data Sharing and Privacy Considerations
[09:09 - 10:28]
The conversation shifts to data management, with Tom highlighting banks' superior first-party data capabilities. He underscores the importance of Personally Identifiable Information (PII) and Payment Card Information (PCI) in creating targeted and effective marketing campaigns.
Tom Burgess [09:09]:
"In a world where you now on traditional media, even retail media, you deal with pii, personally identifiable information. And PCI is the payment card information on the banks."
7. Applications for CPG Brands
Segment: Connection Request
Benjamin inquires about who stands to benefit most from financial media networks. Tom identifies large CPG brands, particularly those in everyday consumer goods, as the primary beneficiaries due to the consistent consumer engagement in these categories.
Tom Burgess [11:50]:
"But the brands are coming in and saying, I know I've got a good brand and you want to be associated with me."
8. Revenue Models and Partnerships
[13:08 - 14:53]
The discussion delves into the financial mechanics behind these networks. Tom explains how collaborations between banks and retailers can offset interchange fees through shared revenue from CPG promotions, creating a mutually beneficial ecosystem.
Tom Burgess [13:08]:
"There is a value proposition to the banks and to the retailers. So we've been kind of talking about CPGs here and banks and not bringing in the retailers as much."
9. Prioritized Categories and Consumer Engagement
[16:14 - 17:49]
Tom elaborates on the categories that banks prioritize for promotions, focusing on everyday essentials like groceries, beverages, health, and beauty products. He shares insights on consumer behaviors and engagement metrics, highlighting the high click-through rates for relevant offers.
Tom Burgess [16:14]:
"In this category, what it does is it makes that little blue/red card, the one I go to because, oh, I got to use that at the grocery."
10. Conclusion and Final Insights
[17:59 - End]
As the episode wraps up, Tom encourages brands to seize the opportunity to experiment and collaborate with banks through platforms like Snip Media. He emphasizes the readiness of banks to innovate and support unique marketing campaigns.
Tom Burgess [18:14]:
"The banks want to work with brands. They want to try it out and they're good fun environment to do it because they'll do anything if a brand wants to influence."
Key Takeaways
-
Trust is Paramount: Financial media networks benefit immensely from the inherent trust consumers place in their financial institutions.
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Data-Driven Targeting: Banks possess rich first-party data that enables precise targeting and attribution, enhancing the effectiveness of marketing campaigns.
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Strategic Partnerships: Collaborations between banks, retailers, and CPG brands can create sustainable revenue models and drive mutual growth.
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Focus on Everyday Essentials: Promotions centered around daily consumer needs, such as groceries and personal care items, yield higher engagement and conversion rates.
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Innovative Marketing Channels: Financial media networks represent a novel and effective channel for brands to reach and engage with consumers in a trusted environment.
Notable Quotes
-
Tom Burgess [02:36]:
"It's a brand new channel and the by far and away the most important piece of that channel is it's incredibly trusted and reliable." -
Tom Burgess [07:25]:
"When you see that, that's amazing, right? Because they trust the bank. This is their trust, as you mentioned, it's where they put all their money." -
Tom Burgess [09:09]:
"They know they have a very trusted environment. But the brands are coming in and saying, I know I've got a good brand and you want to be associated with me." -
Tom Burgess [18:14]:
"The banks want to work with brands. They want to try it out and they're good fun environment to do it because they'll do anything if a brand wants to influence."
Final Thoughts
This episode underscores the transformative potential of financial media networks in the CPG sector. By harnessing the power of trusted financial institutions, brands can achieve more targeted, trustworthy, and effective marketing outcomes. Tom Burgess's expertise provides a comprehensive roadmap for brands looking to navigate and capitalize on this innovative marketing frontier.
For more insights and detailed discussions, visit martechpod.com or connect with Tom Burgess on LinkedIn.