The four payment card networks collectively spent more than $1.5 billion in global marketing during the second quarter (2Q/14), a year-on-year (Y/Y) increase of 10.3% and a quarter-to-quarter (Q/Q) increase of 32.1%. Most of the networks ramped down marketing in the slow first quarter (1Q/14). However, the average quarterly spending over the past five quarters was $1417 million, compared to $1554 for 2Q/14, according to CardData.
As always American Express (AX) , with its diverse financial products, lead the charge spending with nearly $1 billion in the 2Q/14, a 25% Y/Y increase. The other three networks all reported Y/Y declines in marketing expense.
Over the past five quarters, AX spent an average of $804 million quarterly. For 2Q/14 AX spent $985 million, compared to $613 million in 1Q/14 and $786 million in 2Q/13, for a Y/Y increase of 25.3% and a Q/Q increase of 60.1%.
Over the past five quarters, Visa (VS) spent an average of $233 million quarterly. For 2Q/14 VS spent $228 million, compared to $245 million in 1Q/14 and $252 million in 2Q/13, for a Y/Y decrease of 9.5% and a Q/Q decrease of 6.9%.
Over the past five quarters, MasterCard (MC) spent an average of $207 million quarterly. For 2Q/14 MC spent $173 million, compared to $149 million in 1Q/14 and $186 million in 2Q/13, for a Y/Y decrease of 7.0% but a Q/Q increase of 16.1%. The abnormality in the Q/Q spending is due to the fact MC spent $321 million in 4Q/13 and $149 million in 1Q/14.
Over the past five quarters, Discover (DS) spent an average of $177 million quarterly. For 2Q/14 DS spent $168 million, compared to $169 million in 1Q/14 and $185 million in 2Q/13, for a Y/Y decrease of 9.2% and a Q/Q decrease of 0.5%.
RAM Research projects Network Marketing Expense will slightly increase in the third quarter to $1578 billion.
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