Posts Tagged ‘credit cards. buyer behavior’

Forget demographics … segment markets based on buying behavior.

November 4, 2011

TakeAway: MasterCard and Visa are entering the business of market research by tracking online purchases and using the info to identify market segments and target them.

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Excerpt From WSJ: “Using Credit Cards to Target Web Ads”

Visa  and MasterCard are using what they know about people’s credit-card purchases for targeting them with ads online.

This strategy is a technological feat: tying people’s Internet lives with shopping activities.

Some of the ideas, for instance, a weight-loss ad to a person who just swiped their card at a fast-food chain — then track whether that person bought the advertised products.

Currently, Web ads generally are based on a person’s online behavior but not information tied to his or her identity or activities in the brick-and-mortar world.

“There is a lot of data out there, but there is not a lot of data based on actual purchase transactions. We are taking it a level deeper…it is a much more precise targeting mechanism.”

MasterCard is pursuing a plan to sell marketers an analysis of anonymous, aggregated data sorted into marketing “segments,” such as people with a high propensity to be interested in international travel.

Visa is also currently pitching the ability to use cardholders’ anonymous buying histories, in aggregate, to tailor the ads people see online.

That would let advertisers, for instance, show cat-grooming offers to people in one area, and dog-grooming ads to people somewhere else, based on the group buying behavior in the areas as a whole.

Edit by ARK

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