Social media plays a huge role in influencing its users, often urging individuals to purchase items viewed on their feed. In line with this, more and more credit card giants are investing in social media platforms to get more potential clients to avail of their credit card offerings.
Pymnts reports that American Express Co. and Capital One Financial Corp are just some of the few big names in the industry that are heavily investing time and money to promote their goods and services. Both of these giants are shelling out big bucks to purchase space on the Internet, particularly on Facebook.
In the past year, American Express paid $13.5 million to promote their offerings on the Facebook platform. According to Pymnts, the company only spent $4 million worth of advertisement 2017.
On the other hand, Capital One reportedly spent $18.6 million in promotional and advertising materials on Facebook for 2018 alone. This was a huge leap compared to their initial spending of $2.8 million in 2017, showing the power and reach social media platforms have in today’s time and age.
Apart from these notable game-changers in the banking and finance industry, Discover Financial Services also opted to explore the social media scene by advertising with Facebook as well. In the past year alone, it has upped its game and bringing its spending to more than $1 million. In 2017, Pymnts notes that it only spent less than half a million in 2017, amounting to only $426,000.
Changing the Game
While many credit card companies find traditional forms of advertisement relevant and highly effective, such as mailed advertising, more issuers are now seeking to increase their reach through ads placed on social media channels.
Despite Capital One spent $377 million on mailed pitches in 2018, it also ventured out to invest more money in other forms of promotions. Seeking Alpha reports that the company partners up with Instagram and Twitter personalities to promote their credit cards.