madcomments

Can the Sun stretch into financial services?

Posted in General, Media, Branwell Johnson, Latest reporters' blogs September 10th, 2007 by Branwell Johnson

The Sun is to launch a pre-pay branded “chip and pin” Mastercard that it believes will be taken up by its readers. The newspaper is obviously placing a lot of value in its brand equity and ability to stretch it to include financial services, a sector where the watchword is trust.

Pre-pay cards are proliferating at a serious rate with Barclaycard advertising its Barclaycard/Oyster/Visa card with the slogan “It’s the three cards a Londoner needs.” But Barclaycard is part of Barclay’s and fluent in finance. The Sun is fluent in headlines about the McCanns, Big Brother and Lottery winners. What’s the brand strategy here?

For a start it’s not a charitable act, although a quote from The Sun’s partner, Tuxedo Money Solutions, says that the card “will change the way people think about pre-paid cards and management of their money as it offers security, convenience and importantly, protection from credit risk.”

The card costs £6.49 with a £5 cash back so The Sun and its partner picks up £1.49 for every sign-up. Then presumably there are huge cross-promotion opportunities and the possibility of selling on the data of those that choose to tick opt-in boxes.

Will the readers want to carry a Sun-branded card? That’s an interesting one. Fans of football clubs, TV shows and films have all signed up for appropriately branded credit cards but are tabloid readers that brand loyal?

Newspaper readers are increasingly promiscuous and often switch publications for the best giveaway/promotional offer of the day. The Sun wouldn’t be carrying out a 20 pence price cut promotion now if it didn’t believe that newspaper loyalty was paper thin (pardon the pun).

But with The Sun’s three million circulation and even bigger readership there’s a lucrative pond in which to fish. It looks like another Sun winner to me but I welcome any thoughts to the contrary.

To read the news story related to this blog, go to mad.co.uk