1. Group Members:
Allyson Massoud
Alex Cannon
Savannah Howard
Michael Clarke
Alexis Nichole
Brigeda Hernandez
Brianna Hurliman
Advertising Account Planning MC 4317-005
Texas State University
Secondary Research Project for Venmo
September 19, 2016

2. “Most Reliable”
(google.com)
History
Venmo was started by Andrew Kortina and Iqram Magdon-Ismail. The two met as
freshmen attending the University of Pennsylvania. Being roommates, they started
something which is now slowly growing amongst many millennials for many uses. Iqram
forgot his wallet while going on a trip to visit Andrew, and it was this that sparked the idea
of Venmo. Andrew was having to pay for both of them during their trip, and this got them
thinking, “What if we could transfer money to each other instantly from our phones?”
According to The Hustle website, Andrew and Iqram spent the following years working for
different companies. For example, they worked for iminlikewithyou.com, which soon after
became OMGPOP, the gaming company behind Draw Something. They also worked for
Ticketleap and Bit.ly. In early 2009, they started brainstorming ideas and created software
that could turn a laptop into a cash register. Their first idea came when a friend wanted
help with opening her own yogurt shop. Andrew and Iqram started the process of getting
her set up and realized how terrible the traditional “point of sales software was.” All that
was required was a less-than-$50 USB magtek swiper. Over their course of business
adventures and practice with technology and sales, they created a social and fun app that
enabled people to transfer money instantly. “Venmo enables anyone with a mobile device
to send and receive payments via text message, creating a dialogue between buyers and
sellers. (“The Story of How Venmo was Started”, 2016)”

3. Citations:
 "Venmo Home." RSS. N.p., n.d. Web. 18 Sept. 2016.
 Https://www.facebook.com/kendall.baker.7. "The Story of How Venmo Was
Started." The Hustle. Kendall Baker, 01 Mar. 2016. Web. 18 Sept. 2016.
Products
Venmo offers a mobile app for its users to exchange money amongst each other by linking
the app with the user’s bank account and mobile contacts which recognizes who else has
the app, similar to snapchat. This makes it very simple for people to exchange funds when
cash is not readily available on hand at the time. The app is mostly used by millennials to
split tabs amongst friends or to share roommate expenses. No more IOUs, free to use.
(Venmo, 2016)
Viewing your balance! Memories, Fun,
Friends!

4. Place
Venmo is strictly an online entity. It’s most popular medium I through the mobile
application available on any smart phone, but venom can also be accessed using
desktops/laptops as well. All that is needed to access the website is to have an account with
Venmo.
Promotion
Venmo is launching its first ever ad campaign. 15-30 second video ads will begin to run
nationwide on cable networks such as Comedy Central and MTV, and will also appear on
online streaming sites like Hulu and YouTube. Their ad campaign will also include poster
ads, billboard ads, drink coasters and pizza boxes. This is a giant step for Venmo because its
promotion has largely been word-of-mouth to acquire new users since its launch in 2009.
This move was a response to a new competing mobile app called Zelle, which is set to
launch in 2017. Venmo’s ads will feature young people at social venues using to app and
will also feature their new slogan- “Pony up with Venmo.” The new ad campaign is set to
run for 2 months.

5. Price
“In comparison, Venmo's parent company, PayPal charges a 2.9% fee for all debit and
credit card transactions. While Venmo presently reports zero revenue, its current
operations help extend the reach of PayPal, which generated $9.24 billion in revenue in
2015” (investopedia.com). Because it is free to use, Venmo is actually losing money because
it is eating the cost of staff and systems while they build their network. However, this year
will be the transition to revenues, if not profit. Venmo is now allowing merchants to take
payments. Paypal owns Venmo and probably unsurprisingly, they are going to follow the
exact same pricing model, charging merchants 3%. However, under these payments, if you
use a credit card to fund your Venmo, you won’t get charged, only the seller. Venmo is
starting to work with a number of businesses that will allow customers to pay using
Venmo. Venmo will then charge the businesses to do this thus creating revenue
(fortune.com).
Citations:
 Reuters. "This Payment App Urges Its Young Users to ‘Pony Up’ in New Ad
Campaign." Fortune This Payment App Urges Its Young Users to Pony Up in New Ad
Campaign Comments. Reuters, 11 Sept. 2016. Web. 19 Sept. 2016.
 Seth, Shobhit. "A Look at Venmo's Business Model and Competition."Investopedia.
N.p., 15 Mar. 2016. Web. 19 Sept. 2016.
The Consumer of the Brand
Apps such as Venmo are targeted at a new generation of bankers. According to an article
from Connecticut Banking, Venmo appeals to younger generations because of the social
networking aspect it provides. Consumers view it as a more convenient and reliable way to
repay others. It allows the users to transfer money between their personal bank accounts,
regardless of the bank. This is something that most mobile banking apps can’t do. Mobile
money transfer apps have become a threat to traditional banks, since they can reach a
larger network of people.
When it comes to banking, there is a big difference in what certain generations value.
Generation Y (born in the 1980s and 1990s) and millennials (born between the 1990s and
early 2000s) value convenience and speed over relationships, while the older generations
may value the personal touch that a more traditional banking experience gives.

6. According to Paypal’s research, millennials (roughly between ages 18-34) are twice as
likely to shop online than the general population. Fortune.com says Venmo was the third
most popular app downloaded last year.
What does the millennial consumer look like? According to marketingcharts.com, the
median income for younger millennials is $25k, while it’s almost double that ($48k) for
older millenials. Only 21% of millennials are married, while 42% of baby boomers were
married at the same age. Almost 1 in 4 millennials have a Bachelor’s degree or higher,
making them the most educated generation. millennials are the most ethnically and racially
diverse generation, with 19% being Hispanic, 14% African-American, and 5% Asian.
Millennials are much more likely to be found in urban environments than in suburban
areas, breaking away from the “white picket fence” ideology. The markets with the highest
concentration of millennials are primarily in the western side of the country. Fun fact:
Austin has one of the highest concentrations of millennials, making it a good market for
Venmo!
The Venmo consumer shares and spends money with friends. They share cabs, buy each
other drinks, cover tabs when someone's short, and go out to dinner in large groups.
According to Business Insider, this is what makes the app so appealing. It understands the
spending habits of young people, and can make divvying up the tab far less awkward. If
someone doesn’t bring the cash to pay up front, which is common as millennials seldom
carry large amounts of cash, this person can still pay their friend back right away. And
instead of bothering someone to pay you back, which can be awkward, Venmo makes it
easy to send a friendly reminder without being too abrasive.
According to CNN Money, older millennials such as young parents are actually looking to
save more money than previous generations. Since millennials have acquired so much
student debt, nearly half of parents in their early thirties say they want to pay for their
children’s college. That’s up from 16% in 2007. Hence the popularity of the sharing
economy and splitting the tab.
Millennials are a thrifty generation. According to a report from CNBC, they spend about a
quarter less than Gen Xers and Baby Boomers, even though they make more frequent
purchases and go out more often. Most of their money goes towards retail and dining, and
their knowledge of the web makes it a lot easier to find deals and discounts. Their income is
actually lower than what Gen Xers were making at the same age. There is one thing
millennials outspend older generations on: coffee, which is a reflection of their “on-the-go”
culture. Venmo is perfect from someone running from place to place.
It’s fun, easy, and has an impact amongst
millennials

7. (google.com)
Citations:
 Dallett, Lydia. "Here's Why Mobile Payments App Venmo Is Crushing The
Competition Among College-Age Users." Business Insider. Business Insider, Inc, 23
Jan. 2014. Web. 18 Sept. 2016.
 February 24, 2014 - by MarketingCharts Staff. "Demographic Stats About US
Millennials." MarketingCharts. Watershed Publishing, 24 Feb. 2014. Web. 18 Sept.
2016.
 Lobosco, Katie. "Millennials Are Saving for College for Their Own Kids."CNNMoney.
Cable News Network, 24 Sept. 2015. Web. 18 Sept. 2016.
 MATTHEW, GALGANI. "PayPal Finding Its Mobile Mojo With Millennials Via Venmo
App." Investors Business Daily19 Feb. 2016: 1. Regional Business News. Web. 10 Sept.
2016.
 Rao, Leena. "Paypal Is Okay If Millennials Don't Know It Owns
Venmo." Fortune.Com (2016): 1. Business Source Complete. Web. 10 Sept. 2016
 Rovi, Nicole, and Ryan Whalen. "Technology Companies Are Encroaching Upon
Mobile Banking." Connecticut Banking (2016): 10-11. Business Source Complete.
Web. 10 Sept. 2016.
 Weiss, Josh. "Millennials Outspend Older People on This One Item." CNBC. CNBC LLC,
16 May 2016. Web. 18 Sept. 2016.

8. The Category
Digital wallets, also referred to as mobile payment, are a sub-system of electronic money,
which allows an individual to make electronic commerce transactions using a smartphone.
Bitcoin, the first decentralized digital currency, was introduced as an idea in 2008. Bitcoin’s
worldwide system was released in January of 2009 and was based on peer-to-peer
transactions that are directly between its users. Bitcoin was an early digital wallet that had
no transaction fees and was accepted by merchants, which allowed users to buy physical
goods, not just online. The same year, Venmo launched their text message-based mobile
payment system, which was later upgraded into a social app. Google Wallet was released in
2011, followed by the launch of Apple Pay in 2014.
Although the adoption rate of mobile payment apps has been slow due to security concerns
from users and retailers being unequipped with the right technology, the market is
expected to continually grow. By 2017, mobile payment apps are expected to receive 50%
of revenue of all digital commerce in the United States. According to Forbes, mobile
commerce is expected to grow 42% between 2013 and 2016, while electronic commerce is
only predicted to grow 13%. Millennials became the early adopters of mobile payment
apps because they have grown up with mobile technology. According to AdWeek, 55% of
mobile payment users were within the age of 18 to 34 in 2014. The industry was worth
$3.5 billion in 2013 and is predicted to be worth $27.5 billion by 2016. Worldwide, the
industry revenue for mobile payment in 2015 was $450 billion and is expected to reach $1
trillion by 2019.
The traditional competitors of Venmo include Android Pay, Apple Pay, and Popmoney.
Snapcash, Square Cash, and Facebook Messenger are among the non-traditional
competitors in the electronic payment landscape. The largest competitors, Android Pay and
Apple Pay, face limitations, as they are only available on their corresponding smartphones.
While comparable to Venmo, Popmoney charges the user money to make transactions and
only works with a small number of banks. Snapcash, a non-traditional competitor, allows
the user to instantly make P2P transactions through the Snapchat text feature. Square Cash
promotes only debit card money transactions through the app or email. Facebook
Messenger launched its own money transfer service allowing money transfer with debit
cards.
The 4 P’s for 3 Competitors:
Android Pay is a mobile payment app created by Google that stores credit card and debit
card information. The app allows for fast and easy payment in stores or in an app. The app
is only available on android smartphones, but is accepted by numerous companies in stores
or in a specific brand’s mobile app. Android Pay is not worldwide yet. The U.K. was the first
country outside of the United States to adopt this payment system, and was shortly

9. followed by other countries. Google has released one commercial to promote Android Pay
with the slogan “Pay Your Way.” Google’s app is free and does not charge transaction fees,
which is identical to Apple Pay.
Similar to Android Pay, Apple Pay is a mobile payment system created by Apple that
creates an easier way to pay in stores, in apps, or on the web. Apple Pay stores the credit
and debit card information but never shares the information when making a transaction for
a more secure way to pay. Apple Pay is only available on iOS devices and is available in ten
countries including the United States, with more to be added in the future. Brands that
support the Apple Pay feature have been advertising their support in their own ads. Digital
advertising of the app resulted in a 26% increase in overall transactions according to USA
Technologies. Apple released an ad highlighting the app in the “If it’s not an iPhone”
campaign. Apple Pay is free to download and does not charge transaction fees for the
merchants or users.
Popmoney is a peer-to-peer payment service that was created by CashEdge and is now
owned by Fiserv. Unlike Apple Pay or Android Pay, Popmoney charges transaction fees and
is not instantaneous as transactions can take one to three days. Money transactions are
taken directly from the sender’s bank account and sent to the receiver’s bank account. The
service provided by Popmoney is only available in the United States and can be
downloaded on any smartphone. Popmoney has run TV ads as well as running an ad
campaign during the holidays, where the company donated to a nonprofit organization
every time money was sent using the app according to Fiserv. Popmoney is free to
download but each transaction costs $0.95, unlike the competition Apple and Google, which
have no transaction fees.
Citations:
 Blair, Ian. "Mobile Commerce Trends For The Second Half Of 2016." Forbes. Forbes
Magazine, 27 May 2016. Web. 18 Sept. 2016.
 Rampton, John. "The Evolution of the Mobile payment." TechCrunch. N.p., 17 June
2016. Web. 18 Sept. 2016
 Campbell, Jason. "Millennials Abandon Cash for Mobile Payment Apps." AdWeek.
AdWeek, 18 Aug. 2014. Web. 18 Sept. 2016.
 Johnson, Lauren. "Here's Everything You Need to Know About Mobile Payments."
AdWeek. AdWeek, 5 Mar. 2015. Web. 18 Sept. 2016.
 Seth, Shobhit. "A Look at Venmo's Business Model and Competition." Investopedia.
N.p., 15 Mar. 2016. Web. 18 Sept. 2016.
 Boden, Rian. "Apple Pay Advertising Increases Contactless Payments at Self-service
Machines • NFC World." NFC World. N.p., 16 June 2016. Web. 18 Sept. 2016.

10.  Roberts, Tom. "Popmoney Sparks Donations This Holiday Season." Blog. Fiserv, 3
Dec. 2014. Web. 18 Sept. 2016.
Competitive Creative Analysis
Popmoney:
Ad #1
https://www.youtube.com/watch?v=kYKBYSGiUYQ
The ad primarily targets parents and college-aged people. The goal is to convince the
audience their app is an easy way to repay someone. It tries to simplify the process. The
strategy is to communicate that their brand has the ability to simplify a process, that many
people find tedious, through an app. The primary type of persuasive strategy used is
'demonstration.' The whole ad is centered around demonstrating the different times you
would use the app.
Ad #2
https://www.youtube.com/watch?v=97JdRYi6HRo
This ad targets consumers that think dealing with cash and going to ATM is a hassle.
Popmoney wants to convince consumers that handling money will be easier when they use
their app. The ad attempts to communicate that with this app, dealing with money
transfers and tracking bank account(s) will be faster and easier. The types of persuasive
strategy used are ‘testimonial’ and ‘slice-of-life’. In the ad, a woman is telling two
gentlemen about all of the ways this app can help them in their day-to-day routine and
simplify some of their money issues. The ad portrays these men as consumers who have
trouble keeping up with debts and expenses, which most consumers can relate to.
Android Pay:
Ad #1
https://www.youtube.com/watch?v=OueObu2aA_M
This ad is talking to technologically savvy college-aged kids. The goal of the ad is to show
what all the app can do and how many different ways you can use the app. It tries to make
the process look seamless as well. The strategy is to communicate that this is the future of
paying. The ad shows many different people in many different stores using different cards
to pay for things, showing that everyone is using it for everything. The two main types of
strategies used are 'slice-of-life' and 'demonstration'. The ad conveys its message by
demonstrating in real word scenarios.

11. Ad #2
https://www.youtube.com/watch?v=Idy9Y7DwRmo
This ad is talking to busy consumers who are always on the go; the consumers that live a
fast-paced life. The goal of this ad is to show consumers how quickly they can use this app
and save a lot of time. The ad also conveys how easily this app is integrated into consumers’
purchasing habits. The communication strategy of this ad is to show that anyone from any
avenue of life can use this app. This app is for everyone, no matter what they spend their
money on. The types of persuasive strategy used in the advertisement are ‘USP’ and
‘demonstration’. This advertisement shows what the app is best at: speed. The main
character is in a rush, and the ad demonstrates how to use the app and how fast it can be
used as he makes his purchases.
Apple Pay:
Ad #1
https://www.youtube.com/watch?v=C9w4mG0TdUU
This ad is talking to musicians and friends. The goal of the ad is to build on the Apple Pay
brand with an inspiring commercial. The ad is used to communicate to music lovers and
groups of friends watching, not necessarily trying to grow the market but to solidify the
brand. The ad is unique in that it doesn't really show too much of what it's advertising
except for a bit at the end. The creative strategy used here is 'slice-of-life' and it tries to stir
up emotions as it shows the friends and the music.
Ad #2
http://blogs-images.forbes.com/roberthof/files/2014/10/applepay.png
This ad is trying to appeal to consumers who think carrying multiple cards and cash with
them is a hassle; also consumers that are forgetful. The goal of this ad is to show consumers
the easy future of mobile banking: no hassle with wallets, cash, or multiple credit/debit
cards. The communications strategy for this ad is to convey that mobile banking does not
have to be stressful; it can be fast and easy. The persuasive creative strategy used in this ad
is ‘symbolize the benefit’. This ad is straightforward and directly states this app’s benefits
and how it can help consumers.
Competitive Creative Analysis Summary
The ads that we chose to analyze came from different companies but they all have the same
goal in mind: to get consumers to use their product. In this case, the product is their money
managing app. All of these companies used similar strategies even though they are in
competition with each other. This is a result of the fact that they have the same target
consumers: money spenders. Popmoney’s advertising consisted of demonstrations and

12. relatable testimonials. They wanted to show people that this was an easier way to bank by
using relatable examples that the average person has experienced. Android Pay targeted
spenders that are always on the go and want results fast, like college students,
businessmen, and tech savvy individuals. Apple Pay portrayed their app as the perfect
solution for consumers who make a lot of purchases daily and do not have the patience for
multiple credit cards and/or cash. The repeating factors that are emphasized in all of these
ads is how easy they are to use and how these apps make money transfers and payments
on the go much faster.
SWOT Analysis
Strengths
 Allows customers to pay from their phone,
rather than cash and cards.
 Free to use
 One of the newest forms of technology used
for exchanging money in the U.S.
 Peer-to-peer technologies that make life
easier for quick payments to trusted friends
and businesses.
 Largely recognized by millennials
 With next-day transfers, it’s faster to get cash
out compared to other competitors.
Weaknesses
 Only in the United States
 Security remains an issue with users who are
skeptical of paying by phone.
 Payments can be made to those who don’t
have Venmo, but in order to accept money,
they must sign up.
 Venmo’s reputation has been an issue with
business professionals since majority of
users have it for miscellaneous items.
 Users should not transfer money while
connected it a public Wi-Fi network. –
Hackers can easily obtain your bank
information.
 Requires internet connection.

13. Opportunities
 Venmo is able to reach a larger audience since
the app can be used with IOS and Androids
unlike several competitors.
 Because Venmo is used with a social network
of people, it allows users to see what their
friends are doing.
 Banks have been slow to add P2P payments,
allowing Venmo grow in popularity with
millennials and young professionals.
 Transaction fees allow Venmo to generate a
revenue, unlike most platforms using
advertisements to make money.
 Small market and network untapped to the
majority of people.
Threats
 Issues of security have come into light with
the Federal Trade Commission.
 Competitors that have been around longer,
have the bigger audience.
 When using the app, features allow you to
send money to people near by, but this can
also result in sending cash to the wrong
person.
 This app allows users to remained signed in
at all times, giving hackers and strangers
access to your account information.
 Traditional cash, checks, and banks still pose
a threat.