goldman sachs fin tech 2013
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Cardlytics © Copyright 2013 Proprietary and Confidential
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Card Linked Marketing – Why it Matters
Goldman Sachs FinTech 2013
Cardlytics © Copyright 2013 Proprietary and Confidential
What is Card Linked Marketing?
• Target customers on past purchase behavior
• Advertise in secure digital channels
• Pay for performance
• Unprecedented Analytics
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Cardlytics is the leader
• Insight into spending for ~70% of U.S. households
• 11 billion transactions per year in the U.S.
• Leading institutions including Bank of America and Lloyds
Debit Card Credit Card Bill Pay/ACH
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Advertise in 3 main channels today
Mobile App 15m+
Phones & TabletsNotifications & Alerts
Online Banking 30m+
In-line TransactionsRewards Summary page
Email & Text – 10m+
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How does it work?Example: Mobile Banking Application
1. Offers presented
2. Click to link (activate)
3. Transact to save
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Why does this matter to Advertisers?
Scal
e • Reach millions of unique households
• Customers engage with advertising
Prec
isio
n • Target only those you want to reach
• Customer advertising based on past purchases
Anal
ytics • Precise ROI
for each segment targeted
• Unique insights based on actual purchases
Cardlytics © Copyright 2013 Proprietary and Confidential
Banks own all transaction data
1999 2005 2010
43%56%
69%
57%44%
31%
In-Store Payment Type
Cash/CheckElectronic Payment
Source: BAI & Hitachi Study of Consumer Payments
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Most of America uses debit for purchases
8
1999 2005 2010
49%
66%72%
51%
34%28%
In-Store Electronic Payments
Debit/PrepaidCredit
Source: BAI & Hitachi Study of Consumer Payments
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Online Banking is a massive untapped channel
9 Loginsa month typical for online banking
25%of users visit their online banking site every day
45%of 18-29 year-olds use mobile online banking
Source: Pew Internet & American Life Project
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Why does this channel matter to Advertisers?
Scal
e • Reach millions of unique households
• Customers engage with advertising
Prec
isio
n • Target only those you want to reach
• Customer advertising based on past purchases
Anal
ytics • Precise ROI
for each segment targeted
• Unique insights based on actual purchases
Cardlytics © Copyright 2013 Proprietary and Confidential
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Advertisers can target customers based on any combination of spend and location
Where They Shop
Where They Live What They Spend
When They Shop
Custom Consumer
Profiles
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Advertisers can reach all customers….
Total CategorySpend
New Infrequent Switchers Loyal
Type of Customer
Spend with Retailer
Spend within Category
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…But target each customer based on their value
Heavy Loyal
Heavy Switchers
New
Light
Average Annual Trips Advertising
Reinforce loyalty
Encourage another visit
Drive first time visit
Capture more share
3.5
0.7
3.0
7.0
1.0
3.0
0.0
2.6
Cardlytics © Copyright 2013 Proprietary and Confidential
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Why does this channel matter to Advertisers?
Scal
e • Reach millions of unique households
• Customers engage with advertising
Prec
isio
n • Target only those you want to reach
• Customer advertising based on past purchases
Anal
ytics • Precise ROI
for each segment targeted
• Unique insights based on actual purchases
Cardlytics © Copyright 2013 Proprietary and Confidential
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The data is powerful and can provide unique insights
In June 2013, 77% of consumers with gym memberships ate at QSRs, averaging 8 trips each.
During Summer 2012, Whole Foods shoppers spent 15% more on gasoline (with 2% less trips) than non-shoppers.
In 2012, consumers who shopped at any florist spent 30% more at Victoria’s Secret than non-shoppers.
Cardlytics © Copyright 2013 Proprietary and Confidential
The analytics change the way advertisers run their business
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Where do they shop?
How often do my best customer’s Shop the competition?
Retailer Trips Competitor Trip54
56
58
60
62
64
66
68
59
66
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We are going after a massive opportunity….
$681B Global Advertising Spend by Segment, 2013
TV$236B
Print$131B
Online Advertising$114B
Direct Mail$85B
Other$81B
Radio$35B
Source: IDC
Cardlytics © Copyright 2013 Proprietary and Confidential
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