Podcast Summary: Next in Media – "What's a Bank Like Chase Doing Selling Advertising?"

Episode Details:

• Title: What's a Bank Like Chase Doing Selling Advertising?
• Host: Mike Shields
• Guest: Rich Molstock, President of Chase Media Solutions
• Release Date: January 7, 2025

Introduction

In this episode of Next in Media, host Mike Shields delves into the unconventional venture of a major bank entering the advertising space. He sits down with Rich Molstock, the President of Chase Media Solutions, to explore Chase Bank's strategic move into the retail and commerce media sectors. The conversation navigates through Chase's motivations, operational strategies, data privacy concerns, and future aspirations in the dynamic landscape of media, marketing, and advertising.

Why Chase is Entering the Advertising Space

Mike begins by addressing the surprising entry of financial institutions like Chase and United into the retail media arena.

Mike Shields [01:01]:
"What's a bank like Chase doing selling advertising? It's one of the more interesting businesses in the industry right now."

Rich Molstock [01:23]:
"We're really about how can we bridge the gap between what brands need and what consumers want. It's about reaching individuals at every stage of their financial journey."

Chase leverages its position as the number one consumer bank and the leading business card issuer to connect brands with their vast customer base of 80 million. By integrating personalized offers and cash-back incentives, Chase aims to create value-driven advertising experiences that resonate with consumers.

Building Chase Media Solutions

The discussion shifts to the foundational steps Chase took to establish its media solutions.

Rich Molstock [03:37]:
"We launched Chase Offers in 2018 to connect customers to the brands they love and reward them with cash back. Recognizing the need for deeper personalization, we acquired Fig, a startup specializing in offer platforms, and rebranded to create Chase Media Solutions in April."

This strategic acquisition allowed Chase to retain customer data internally, ensuring enhanced personalization without relying on third-party cookies. Chase Media Solutions focuses on precision targeting based on customer transactions and spending behaviors, which surpasses traditional cookie-based methods in accuracy and relevance.

Ensuring Data Privacy and Regulatory Compliance

Given the sensitive nature of financial data, maintaining customer trust and adhering to regulatory standards is paramount for Chase.

Rich Molstock [05:52]:
"We are more regulated than anyone else in the advertising industry. We ensure customer trust, privacy, brand safety, and security in every aspect of our operations."

Chase’s approach involves:

• Regular communication with regulators to maintain transparency.
• Protecting customer data by never sharing it directly with advertisers.
• Delivering offers through brand-safe channels, ensuring that advertisements align with consumer interests and do not compromise the bank’s reputation.

Launching and Initial Campaigns

Mike inquires about Chase's initial forays into advertising campaigns and their outcomes.

Rich Molstock [07:08]:
"Chase Media Solutions is the media company behind Chase Offers. On the consumer side, customers earn cash back on their favorite brands. For brands, we provide the opportunity to reach a relevant audience and drive purchases with a pay-per-performance model."

Chase's first campaigns emphasized personalized discounts tailored to various spending categories such as retail, travel, dining, and more. This not only encouraged customer engagement but also drove incremental sales for participating merchants.

Future Plans and Expansion

Exploring the future trajectory, Rich outlines Chase’s plans to expand beyond digital platforms.

Rich Molstock [15:20]:
"We are expanding beyond our mobile app and website. With 4,700 branches and 15,000 ATMs nationwide, we can deliver relevant offers in physical locations, such as ATMs or major sports venues. For instance, a billboard in Times Square utilizes QR codes to engage consumers directly."

Chase intends to integrate its advertising efforts with its extensive physical infrastructure, offering real-time, location-based promotions that enhance consumer convenience and drive foot traffic to local businesses.

Market Position and Sustainability

Mike probes into the sustainability of Chase’s advertising venture amidst a crowded market.

Rich Molstock [17:12]:
"There will likely be consolidation in the retail media space. However, our advantage lies in our comprehensive data that captures consumer spending across all categories and retailers, providing broader insights compared to niche retail networks."

Chase differentiates itself by offering a holistic view of consumer behavior, enabling brands to formulate comprehensive marketing strategies that extend beyond single retailers. This broad-based approach positions Chase as a potentially dominant player in the evolving retail media landscape.

Consumer Insights and Strategy

The conversation highlights how Chase utilizes consumer behavior insights to inform advertising strategies.

Rich Molstock [18:29]:
"We share spend insights with advertisers and provide real-time reporting to track campaign performance. Offers are tailored based on category-specific consumer behavior, ensuring relevance and effectiveness."

Chase emphasizes customized offer structures that align with both consumer preferences and brand objectives. By analyzing trends such as inflation impacts or shifts in spending habits, Chase can guide brands in optimizing their campaigns for better engagement and ROI.

Conclusion

In wrapping up, Mike acknowledges the innovative strides Chase is making in the advertising domain.

Mike Shields [20:01]:
"Great conversation. Thanks for taking the time, Rich."

Rich Molstock [20:07]:
"Thank you, Mike. Have a good one."

Chase’s foray into media solutions exemplifies how traditional financial institutions can evolve by leveraging data-driven strategies and customer-centric approaches. As technology and consumer expectations continue to shape the media landscape, Chase Media Solutions is poised to navigate and influence the future of advertising with its unique blend of financial expertise and marketing innovation.

Key Takeaways:

• Chase Media Solutions bridges the gap between brands and consumers using robust financial data.
• Personalization is at the core, ensuring that offers are relevant and value-driven.
• Data privacy and regulatory compliance are prioritized to maintain trust and security.
• Expansion plans include integrating advertising with Chase’s extensive physical presence.
• Comprehensive consumer insights provide brands with the tools to craft effective, measurable advertising strategies.

Notable Quotes:

• Rich Molstock [01:23]:
  "We're really about how can we bridge the gap between what brands need and what consumers want."

• Rich Molstock [05:28]:
  "We cannot fail when it comes to customer trust, privacy, brand safety and security."

• Rich Molstock [15:20]:
  "We are expanding beyond our mobile app and website... engaging consumers directly."

• Rich Molstock [17:12]:
  "Our comprehensive data captures consumer spending across all categories and retailers."

• Rich Molstock [18:29]:
  "Offers are tailored based on category-specific consumer behavior, ensuring relevance and effectiveness."

This episode offers valuable insights into how a leading financial institution like Chase is innovatively integrating advertising into its core business model, leveraging data and customer relationships to create mutually beneficial opportunities for both consumers and brands.