Magazine article American Banker

Capital One, Playing Catch-Up On-Line, Signs Marketing Deal

Magazine article American Banker

Capital One, Playing Catch-Up On-Line, Signs Marketing Deal

Article excerpt

In one of its first Internet-related deals, Capital One Financial Corp. has signed a marketing agreement with on-line advertising agency DoubleClick Inc.

Capital One has been slower than some other large credit card issuersnotably Bank One Corp.'s First USA division, Providian Financial Corp., and Fleet Financial Group-to make a splash on the Internet. Its top executives said the DoubleClick deal, which took effect May 15, marks the beginning of efforts to fortify Internet activities.

Under the deal, the advertising agency places on-line ads for Capital One on certain clients' Web sites. Capital One, of Falls Church, Va., gains the status of "preferred credit card issuer" on DoubleClick sites.

The agency, based in New York, maintains the "DoubleClick Network" of 60 Web sites-including Altavista, Dilbert, U.S. News & World Report, and Macromedia-to which it funnels advertising.

DoubleClick calls its ad placement system, in which it selects the sites with the most favorable demographics for each advertiser, "dynamic advertising reporting and targeting." Among the sites where Capital One's ads might appear are those of the A&E television network's "Biography" program; Modern Bride magazine; and AT&T, whose AnyWho site-a telephone directory lookup service-is in the DoubleClick Network.

Terms of the DoubleClick/Capital One agreement were not disclosed, but industry sources said Capital One will pay commissions only when a new card account is generated through the ads, not when an on-line application is submitted. This skirts a complaint by some card issuers that applications received on-line tend to be of lower quality than those garnered from direct mail.

Capital One is "committed to do a lot more than just advertise our products on-line," said Richard D. Fairbank, chairman and chief executive officer. …

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