2024 is full of headlines with announcements of fintechs and banks entering the advertising business. Some of the big names such as JP Morgan Chase, Revolut, and PayPal have all started or have plans to start selling ads on their platforms.
The advertising business has always been dominated by big tech companies such as Google, Facebook, Amazon, and TikTok. In 2023, the world’s ten largest digital advertisers—Google, Facebook, Amazon, TikTok, Tencent Microsoft, Baidu, JD com, Apple, and LinkedIn—grossed over $492 billion. Brands and marketers worldwide have spent a whopping $3 trillion on digital ads in the past five years.
As we can see, advertising is one of the biggest business markets in the world, which makes it very attractive to fintech businesses. If fintechs previously focused on merchants within their network, now they are expanding beyond this limitation.
In my opinion, this move by fintechs and banks makes total sense as the world becomes more digital and integrated. Open banking and, moving forward, open finance technologies can further help these companies enrich their customer data, and generative AI makes customer experience and ads more targeted. Naturally, this opens more opportunities for fintechs and banks to further expand their business solutions, and I don’t think they will be willing to miss out on this opportunity.
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