Chase Bank: A Media Company

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Chase Bank is now a media company.

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On Wednesday, Chase announced Chase Media Solutions, its new digital media business allowing brands to connect with the financial institution’s 80 million customers and 6 million small business accounts. Chase Media Solutions plans to show ads to customers on brand-safe channels like Chase’s website or directly in the Chase app.

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Chase is the latest to join so-called retail media networks, many of which are growing fast:

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• Amazon Advertising generated $46.9 billion in revenue in 2023, up 24% from the prior year
• Walmart Connect, Walmart’s media business, generated $3.4 billion in revenue in 2023, up 28% from the prior year
• Target’s Roundel generated $1.5Bn in revenue in 2023, up 20% from the prior year

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The results from Chase’s initial pilot projects are impressive. In a 30-day campaign, Air Canada added almost 10,000 new customers who spent $2.3 million. The campaign cost was not revealed, but Scott O’Leary, Vice President of Loyalty and Product for Air Canada, said the campaign “exceeded expectations.”

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One of Chase’s platform advantages, which could also be why they launched now, is trust and brand safety. Some advertisers have moved off of social media platforms due to ads appearing next to hate speech, misinformation, and similarly negative rhetoric.

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While retail media networks show no signs of slowing down, some concerns exist. One major fear from marketers is that advertiser budgets are being used to fund sales from existing and known customers via retail media networks rather than to drive brand growth with new customers. Another is the lack of standardization–making it difficult to compare results across platforms.