Financial institutions (FIs) will burst through the financial media network (FMN) door first cracked open in 2024. Chase made headlines in April by announcing its new ad business, followed by PayPal in May. They’re the most high-profile FIs to do so yet, signaling that FMNs could be a meaningful new revenue stream for the financial services industry.

FMNs will remain a niche but massively growing space. From 2024 to 2026, FMN ad spend will grow at a breakneck 106.3% compound annual growth rate (CAGR), per our forecast. While the segment will account for only 0.4% of US digital ad spending in 2026, this growth reflects FIs’ eagerness to monetize their first-party data.

Ad revenues are looking increasingly attractive to FIs:

• Margins for traditional financial products are shrinking. As consumers remain plagued by a higher cost of living, banks will face reduced credit card interchange fees, lending, and deposits. Meanwhile, regulators are restricting FIs’ ability to charge fees like interchange and overdraft. In this environment, high-margin ad revenues are especially appealing.
• The ad dollar jackpot keeps growing. September 2024 marked the 18th consecutive month of ad market expansion, per Guideline’s Ad Market Tracker. By launching FMNs, FIs could capture some of that spend. The prize is considerable: US digital ad spending will boom to $460.46 billion by the end of 2028, per our forecast.

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