Adding Up the Marketing Dollars Credit Card Management (08/00) Vol. 13, No. 5 p.58; Bowen, Cathy; Fitzgerald, Kate
According to a survey by Competitive Media Reporting,
Visa USA, MasterCard International, Discover Financial Services,
and American Express increased their advertising spending 14
percent last year, to $872.8 million. Visa increased ad spending
19 percent to $268.3 million, American Express boosted spending
14 percent to $198.1 million, and MasterCard boosted spending 14
percent to $155.6 million. Much of the spending increase can be
attributed to new ad-space competition from dot-com companies.
Also, card companies are spending more on Internet advertising.
For example, AmEx spent $4.8 million for the first time to
support online spending. Those card associations that went on
trial in June on antitrust charges filed by the U.S. Department
of Justice also increased spending for advertisements in an
attempt to raise consumer trust levels. Individual card issuers
continue to reach consumers through direct mail, telemarketing,
and their branches. While increasing their overall spending, the
major brands made many changes in advertising categories.
Advertising for the Visa check card rose 72 percent in 1999, with
the biggest share in network TV, followed by cable TV. AmEx
doubled its spending on magazine ads, and radio ad spending
jumped to nearly $8 million, up from $2.4 million a year earlier.
Other top issuers kept ad spending flat or decreased it. Bank of
America's spending dropped 10 percent and Chase Manhattan's
shrank 43 percent.