Chase Launches Chase Media Solutions, a New Digital Media Business, Connecting 80 Million U.S. Consumers with the Brands They Love
- Chase Media Solutions provides brands direct access to Chase's 80 million customers.
- The platform offers personalized cash back offers to customers based on their interests.
- Chase Media Solutions utilizes first-party data for precise targeting of customers.
- Brands can capture incremental spend on everyday purchases both in-store and online.
- Initial campaigns with Air Canada, Solo Stove, Blue Bottle, and Whataburger have shown significant traction in driving sales and new customer growth.
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Insights
The introduction of Chase Media Solutions represents a strategic move for JPMorgan Chase, leveraging their extensive customer data to create a unique value proposition in the digital media landscape. This initiative taps into the growing trend of retail media networks, where businesses capitalize on their customer interactions to offer targeted advertising, similar to what we've seen with large retailers like Amazon and Walmart.
From a market research perspective, the deployment of such a platform by a financial institution is innovative. It capitalizes on the first-party financial data that Chase has, which could provide unparalleled precision in targeting. This could lead to higher conversion rates and a more efficient marketing spend for brands. The success of the pilot campaigns indicates a strong potential for this platform to become a significant player in the advertising space, potentially disrupting traditional digital advertising models.
However, the reliance on first-party data also raises questions about privacy and data usage. Consumer concerns and regulatory scrutiny could impact the growth trajectory of Chase Media Solutions. It will be essential for Chase to navigate these concerns carefully to maintain customer trust.
From a financial standpoint, the launch of Chase Media Solutions could be a lucrative venture for JPMorgan Chase. It represents a diversification of revenue streams, potentially decreasing reliance on traditional banking income sources such as interest from loans. The ability to monetize their customer base through advertising could provide a steady stream of income with high margins, especially since the infrastructure uses existing data and customer relationships.
Moreover, the success of the pilot campaigns with notable brands such as Air Canada and Whataburger suggests that Chase Media Solutions could soon contribute positively to JPMorgan Chase's top-line growth. Investors will be watching closely for how this new business segment will influence the company's quarterly financials and whether it can sustain the initial momentum and scale effectively.
Long-term benefits could include enhanced customer engagement and retention, as the personalized offers increase customer interaction with the Chase brand. However, it's also critical to monitor the cost of maintaining and scaling this digital platform and the competitive response from other financial institutions and established digital advertising platforms.
The unique selling point of Chase Media Solutions is its use of first-party financial data for targeted advertising. This raises important considerations about data privacy and security. As a data privacy expert, I'd emphasize the importance of Chase maintaining the highest standards of data protection to prevent breaches that could erode consumer trust and lead to significant reputational damage.
While the platform could indeed offer better ROI and attribution for brands, the manner in which consumer data is handled will be under scrutiny. Chase must ensure that its practices align with data protection regulations such as GDPR and CCPA. The emphasis on trust and brand safety mentioned is reassuring, but ongoing transparency and consumer control over their data will be key to the platform's sustainable success.
Consumer attitudes towards data privacy are shifting and any perceived misuse of financial data could lead to a backlash. Therefore, while the business implications are positive, they are contingent upon responsible data stewardship.
New media platform delivers customers cash back while helping brands drive sales and business growth
As the only bank-led media platform of its kind, Chase Media Solutions combines the scale and audience of a retail media network with the exclusive advantages of Chase’s first-party financial data, institutional credibility and precise targeting capabilities. Today, the bank’s large consumer base and 6 million small business customers benefit from Chase’s wide range of travel, dining and shopping offerings — generating unparalleled insights across consumer categories.
The launch of Chase Media Solutions follows the integration of Figg, a leading card-linked marketing platform. JPMorgan Chase & Co. acquired Figg in 2022 as a natural step in Chase’s effort to build out its owned, two-sided commerce platform, and as part of the firm's vision to bring win-win value to both business clients and banking customers.
“Our deep understanding of consumer spending across categories has driven us to reimagine what retail media networks can offer,” said Rich Muhlstock, President of Chase Media Solutions. “Like retailers, we have first-party data and a dedicated audience. But what sets us apart is the unrivaled scale and insights from our customers – having long-served as a trusted guide for their financial decisions. Chase reaches across brands, merchants and shopping verticals, providing a comprehensive view of purchase behavior; this strengthens the degree of personalization, helping brands deliver offers that stoke consumer interests.”
Chase Media Solutions platform advantages
- First-party data: With Chase’s owned transaction data, brands and agencies can precisely target customers at scale based on purchase history (such as targeting new, lapsed or loyal customers)
- Better ROI and attribution: Brands capture incremental spend on everyday purchases both in-store and online with clear attribution for every media dollar spent
- Trust and brand safety: The platform is built on the foundational trust and institutional credibility of Chase, including a verified audience and brand-safe owned channels
Among initial pilot partners, Chase Media Solutions designed 30-day campaigns for Air Canada, Solo Stove, Blue Bottle and Whataburger, seeing significant traction for those brands in driving incremental sales and new customers growth.
Regarding the success of their initial campaign, Scott O’Leary, Vice President of Loyalty and Product for Air Canada said, “The Chase team succeeded in creating a thoughtful, targeted offer that exceeded our expectations. Two distinct offer constructs drove incremental revenue and awareness for Air Canada amongst Chase’s cardmember base. These tests clearly demonstrated the potential of the Chase Media Solutions channel, and we look forward to working together more in the future.”
About Chase
Chase is the
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Media Contacts
April Lee
april.k.lee@chase.com
201-788-9089
Michael Sinatra
michael.sinatra@chase.com
551-574-8031
Source: Chase
FAQ
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