Digiday workshop sponsored by Cardlytics. Card-Linked Marketing is a completely new media channel, providing advertisers the possibility of reaching exactly the consumers they want, at significant scale. For the first time, advertisers can fine-tune their marketing based actionable Big Data. Cardlytics will discuss the industry, practical factors for success, and case studies for making the most of this new and effective channel. Speaker: Kasey Byrne, svp, marketing, Cardlytics

1. Cardlytics © Copyright 2013 Proprietary and Confidential
Reaching the Buyers
You Really Want
An Overview of Card-Linked Marketing
1Digiday Retail Summit

2. Cardlytics © Copyright 2013 Proprietary and Confidential
Card-Linked Marketing: Definition
• New, Effective Digital Advertising Channel
• Connects Digital Advertising to In-Store Sales
• Based on Consumer Purchase Transactions
2

3. Cardlytics © Copyright 2013 Proprietary and Confidential
Card-Linked Marketing: Connecting Digital
Advertising to In-Store Sales
• Target on Past Purchase Behavior
• Presented to the Consumer as a Bank Rewards Program
• Chosen Offers Directly on Card
• Pay-For-Performance & Extensive Metrics

4. Cardlytics © Copyright 2013 Proprietary and Confidential
Card-Linked Marketing: How It Works
• Target on Past Purchase Behavior
• Presented to the Consumer as a Bank Rewards Program
• Chosen Offers Directly on Card
• Pay-For-Performance & Extensive Metrics

5. Cardlytics © Copyright 2013 Proprietary and Confidential
Growth in Electronic Payments =
More Spend Data
43% 56% 69%
57% 44% 31%
1999 2005 2010
In-Store Payment Type
Cash/Check
Electronic
Payment
Source: BAI & Hitachi Study of Consumer Payments

6. Cardlytics © Copyright 2013 Proprietary and Confidential
Purchase Data &
Analytics Can Tell
You What
Happens …
Everywhere Else
Where Do Customers Buy…
When They’re Not Buying From You?
A Single
Retailer
Knows What
Happens
…
Inside the
Store

7. Cardlytics © Copyright 2013 Proprietary and Confidential
Every Purchase Tells a Story.
7
In June 2013, 77% of consumers with gym
memberships ate at QSRs, averaging 8 trips each.
During Summer 2012, Whole Foods shoppers spent
15% more on gasoline than non-shoppers.
In 2012, consumers who shopped at any florist spent
30% more at Victoria’s Secret than non-shoppers.

8. Cardlytics © Copyright 2013 Proprietary and Confidential
Insight & Analytics: Now What?
?

9. Cardlytics © Copyright 2013 Proprietary and Confidential
Card-Linked Marketing: How It Works
• Target on Past Purchase Behavior
• Presented to the Consumer as a Bank Rewards Program
• Chosen Offers Directly on Card
• Pay-For-Performance & Extensive Metrics

10. Cardlytics © Copyright 2013 Proprietary and Confidential 10
Card-Linked Marketing:
How it Works/Demo
Mobile Banking Application

11. Cardlytics © Copyright 2013 Proprietary and Confidential 11
Card-Linked Marketing
Demo:
BankAmeriDeals

12. Cardlytics © Copyright 2013 Proprietary and Confidential 12
Card-Linked Marketing
Demo:
Customer Engagement

13. Cardlytics © Copyright 2013 Proprietary and Confidential 13
Card-Linked Marketing
Demo:
Bank Rewards

14. Cardlytics © Copyright 2013 Proprietary and Confidential
Card-Linked Marketing: Connecting Digital
Advertising to In-Store Sales
• Target on Past Purchase Behavior
• Presented to the Consumer as a Bank Rewards Program
• Chosen Offers Directly on Card
• Pay-For-Performance & Extensive Metrics

15. Cardlytics © Copyright 2013 Proprietary and Confidential
Case Study #1
Using Card-Linked Marketing to:
Acquire New Customers
Question:
Large home improvement/home goods retailer wanted to
attract new customers
Next Step
• Identify home improvement category “spenders”.
• Use Card-Linked Marketing to present a marketing
offer only to those consumers.

16. Cardlytics © Copyright 2013 Proprietary and Confidential
Designing a Card-Linked Marketing Campaign
Targeting to Attract New Customers:
• Consumers living near stores
• Consumers who had shopped in Home Improvement (any store)
in the past 6 months
Marketing Offer:
• 15% Cash Back on in-store purchase
• Offered though bank debit cards

17. Cardlytics © Copyright 2013 Proprietary and Confidential
Campaign Result: Lasting New Customer Acquisition
Month 1 Month 2 Month 1 Month 2 Month 3
0%
35%
45%
25% 20% 21%
100% 65% 55% 75% 80% 79%
Competitors
Retailers
Pre-Campaign
Campaign Post-Campaign
Retailer vs. Competitor Share Over Time
100% = all category spend
Source: CATS

18. Cardlytics © Copyright 2013 Proprietary and Confidential
Thank You
Kasey Byrne
Senior Vice President, Marketing
kbyrne@cardlytics.com