College students are one of the biggest target markets for credit card companies looking to expand their client base. And while the Credit Card Accountability Responsibility and Disclosure Act of 2009 restricted firms from advertising directly on campuses, many have been able to use social media to reach out.
In a recent interview with the Palm Beach Post, CardHub.com CEO Odysseas Papadimitriou said that engaging with young people on sites such as Facebook allows credit card firms to seek new customers on a “virtual campus.” He said that people who sign up with a certain company in their youth could become consistent cardmembers over their entire lives.
“Young people represent a very important demographic for banks, as they are potential lifelong customers, a large percentage of whom are on track to earn college degrees,” he told the newspaper. “It’s therefore no surprise that we’re seeing banks use the online games and websites that young people use almost religiously in order to connect with them.”
Other industry experts have commented on the changing marketing strategy when it comes to attracting young people. In an interview with The Associated Press, Credit.com’s Adam Levin said that firms were no longer able to give away T-shirts or other promotional items when trying to get students to sign a contract.Back To Blog