Citi is jumping into the ad business and entering a fast-growing and competitive market
The banking giant is letting brands target ads to its more than 70 million customers based on their spending habits.
Citi, the financial institution, is venturing into the advertising industry. The company aims to connect advertisers with its 70 million customers by targeting ads based on customers' spending habits. This move makes Citi one of many non-advertising companies leveraging customer data to build ad businesses. Citi's new unit, Citi Commerce Media, will allow brands to advertise to customers through its app, website, and other platforms.
Pilot campaigns with various brands resulted in a 15% increase in spending for those who saw the ads. Citi's platform will be informed by data from 6.5 billion transactions annually across 700 spending categories. As financial institutions, Citi and other financial media networks have a more comprehensive picture of customers' spending compared to typical retail media networks.
JPMorgan Chase, PayPal, Mastercard, and American Express have also entered this market in recent years. Citi's entry into this competitive market comes with the support of Kard, a commerce, media, and rewards platform it acquired. Citi aims to target customers at different stages of the purchase cycle and emphasizes transparency and data privacy in its advertising efforts.
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