Reader's Digest, First USA in Credit Card Marketing Pact

Share this content:
The Reader's Digest Association Inc., Pleasantville, NY, yesterday unveiled an agreement with First USA that will allow the Charlotte, NC, financial services marketer to offer Reader's Digest-brand credit cards to Reader's Digest customers.

The companies would not discuss the specific terms of the agreement, although Stephen J. Morello, a Reader's Digest spokesman, said the publisher and direct marketer expected to receive revenues from the deal in both fixed and variable components.

David Webster, a spokesman for First USA, said partners in the company's affinity programs typically receive a percentage of each transaction made on the cards and a fee for each new cardholder that First USA is able to sign up. First USA's other publishing partners include Forbes, Golf Magazine, Hispanic Publishing, The Nation and Time Life.

The partnership marks the first time Reader's Digest has ever placed its brand on a credit card. Morello said that although First USA would handle the marketing of the cards, Reader's Digest probably would participate by including marketing materials in mailings to its customers and within its own media vehicles. He said the first offers would be mailed during the current fiscal year, which ends next June.

The agreement follows several other marketing agreements that Reader's Digest has unveiled during the past few weeks, including two insurance-marketing alliances and some Web-based initiatives.

Marta Nichols, an analyst at investment firm Donaldson Lufkin & Jenrette, San Francisco, said she expected the company to announce yet another insurance-marketing program very soon.

"It's something that has generated profitability for them in the past," she said. "And they've had a number of partners who have been interested in having access to their customer list."

Reader's Digest, which has a database of 50 million names, said earlier this year that it planned to broaden its product and service offerings within the areas of "home, health, finance, family and faith."

Next Article in Data/Analytics

Sign up to our newsletters

Company of the Week

PAN Communications is an award-winning integrated marketing and public relations agency for B2B technology and healthcare brands. PAN's data-driven approach allows the firm to specialize in public relations, social media, content and influencer marketing, and data and analytics. PAN partners with brands to create unique, integrated campaigns that captivate audiences and drive measurable results. PAN services clients out of the firm's four offices: Boston, San Francisco, New York City and Orlando.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above