Amex cites sponsorship strategy for Gen Z and Millennial credit card surge
The surge in Millennials and Gen Zers taking out American Express cards is “definitely” down to the financial services provider going big on sponsorship, it says.
The New York-headquartered card issuer states that over 60 per cent of Amex’s new global consumer card acquisitions “represent Millennials and Gen Z”, something they attribute to their drive in sport and music sponsorship.
American Express recently expanded into Formula 1, has a growing footprint in the NFL, long associations with the US Open, the Wimbledon Championships and in the NBA, as well as Premier League club Brighton and Hove Albion, while it is gearing up for the Las Vegas Grand Prix next weekend.
In entertainment, Amex works with the O2 owner AEG, which also runs BST Hyde Park, and offers early access to tickets across the industry.
Asked whether the sponsorship strategy is directly responsible for the jump in younger customers, Amex’s Vice president of global brand sponsorships and experiential marketing Aaron Burke said: “Definitely.”
“One of the main things that we track is brand consideration amongst our card members and also amongst our prospects,” he added.
“There is a direct link that we track. We feel very confident in that and I’m not just saying that because it’s my part of the shop.”
American Express using data to service fans
A recent study found that 25 per cent of Gen Zers rely on their credit cards to help them through financial emergencies.
It has led to the market for cards becoming more competitive, with millions of young people looking to get their hands on one.
Burke tells City PM that American Expresss is “very data led” when it comes to translating partnerships into customers.
“So everything from the partners and the partnerships that we identify and ultimately how we deliver is all based on what we understand from fans in terms of what they want,” he adds.
“A lot of the things that people want across these different properties are similar. They want that differentiated priority access, which is obviously something we have a long heritage in as a brand, we’ve been able to bring to all of these things.
“It’s delivering on things that alleviate a pain point, so an example of that might be the inner-ear radios that we deliver at Wimbledon and in Formula 1. Delivering [customers] greater access to the things they love doesn’t always just mean a ticket.”