Abstract
Co-branding has entered its late adolescence and is a fixture of American
marketing, and increasingly so, of the global payments industry. There are
literally thousands of co-branded and affinity card programs on offer.
According to some industry estimates, approximately 45% of the cards in the
wallets of U.S. consumers are co-branded or affinity cards. The overall
co-branded card market is larger than the affinity market in terms of number
of accounts and outstandings. However, the sheer number of affinity card
programs dwarfs the number of co-branding cards because so many affinity
programs tend to be small. With over three quarters of U.S. adults (pretty
much the entire credit worthy adult population) owning at least one credit and
debit card, co-branded and affinity card marketers are seeking to fashion
programs to attract new or under-penetrated consumer segments. Thus card
industry professionals are taking fresh looks at ethnic groups and at the
affluent and at the other end of the scale the non-affluent and unbanked. In
most segments, airlines, hotels, organizations, the big customer lists have
been thoroughly mined. Co-branders are also trying to create programs that
will capture the interest of consumers at significant life stages, teens,
college students, new drivers, engaged couple, young married and mature
adults, etc. Similarly they are trying craft programs that will capture a
lifestyle. If the consumer has an interested, a passion, an event or desire,
some issuer somewhere is trying to craft a program for it.
Co-Branded and Affinity Credit Cards in the U.S. focuses on the U.S. market
for co-branded and affinity cards, in which Packaged Facts estimates that by
year-end 2006, roughly 30-60 million U.S. consumers carried over 320 million
co-branded and affinity credit cards, up from Packaged Facts estimate of 212.1
million in 2003. Consumers used them in at least 9.4 billion transactions
worth at least $849 billion. The report provides an overview of the major
market players; a survey of recent and ongoing litigation and regulation of
the market; and market share of major issuers, as well as leading growth and
marketing trends and an examination of their latest co-brand products and
technology, particularly contactless technology. Competitive profiles of the
major card associations and top card issuers provide added insight into their
recent activity and future plans, while data from Simmons Market Research
Bureau paints a picture of card users, from demographics to opinions to card
usage rates.
Report Methodology
The information in Co-branded and Affinity Credit Cards in the U.S. is based
on both primary and secondary research. Primary research involved extensive
interviews with senior marketing, public relations and industry executives
within the banking, retail and credit card markets and consultants to the
industry, including American Express, MasterCard, Visa, JPMorganChase, Edgar,
Dunn & Company, Advantage Consulting, Auriemma Consulting, Entadem, Maritz
Loyalty, the Nilson Report, Strategic Planning & Marketing (UK) and
Synergistics Research Corp. Secondary research entailed data-gathering from
relevant trade, business, and government sources, including company
literature, annual reports and 10(k) filings, white papers, and data from
databases such as CardData, CardLine, Colloquy and The Wise Marketer.
Permission was also graciously granted to use data from The Nilson Report, one
of the mostly widely read and respected publications in the credit card
industry. Consumer data was obtained from Simmons Market Research
Bureau’s Fall 2006 National Consumer Study. Media spending data was
obtained from TNS Media Intelligence.
About the Author
An expert in primary research, Té Revesz is the principal of Revesz
International and Kentera Associates. She has conducted thousands of in-depth
interviews with business, political and labor experts around the world. She
was featured in Super Searchers Go to the Source as one of the US’s top
primary researchers. Prior to founding Kentera Associates, Té headed
the Healthcare and Industrial Practices of FIND/SVP’s Strategic
Consulting and Research Group and was its International Practice Coordinator.
She was also a Director of FIND’s Signia Partners division. Before
joining FIND, Té served at Business International as Director of North
American Publications, Editor-In-Chief of its global newsletter, and helped
create BI’s global risk assessment product. She also worked at
Prudential-Bache’s financial planning group and at Citibank’s
Washington Representative Office.
What You’ll Get in this Report
Co-Branded and Affinity Credit Cards in the U.S. makes important predictions
and recommendations regarding the future of this market, and pinpoints ways
current and prospective players can capitalize on current trends and spearhead
new ones. No other market research report provides both the comprehensive
analysis and extensive data that Co-Branded and Affinity Credit Cards in the
U.S. offers.
Plus, you’ll benefit from extensive data, presented in easy-to-read and
practical charts, tables and graphs.
How You Will Benefit from this Report
If your company is already doing business in the co-branded and affinity
credit card market, or is considering making the leap, you will find this
report invaluable, as it provides a comprehensive package of information and
insight not offered in any other single source. You will gain a thorough
understanding of the current market for co-branded and affinity credit cards,
as well as projected markets and trends through 2011.
This report will help:
- Marketing Managers identify market opportunities and develop
targeted promotion plans for co-branded and affinity credit cards.
- Research and development professionals stay on top of competitor
initiatives and explore demand for co-branded and affinity credit cards.
- Advertising agencies working with clients in the banking and retail
industries understand the product buyer to develop messages and images that
compel consumers to use co-branded and affinity credit cards.
- Business development executives understand the dynamics of the
market and identify possible partnerships.
- Information and research center librarians provide market
researchers, brand and product managers and other colleagues with the vital
information they need to do their jobs more effectively.
View Cart
