Cardlytics Releases 2011 Transaction-Driven Marketing(TM) Results at NRF Big Show

NEW YORK, NY--(Marketwire -01/16/12)- Cardlytics, the pioneer of Transaction-Driven Marketing™, released aggregated advertiser performance results today at the NRF Big Show. 2011 results spanned across multiple retail categories. The results demonstrate Cardlytics' unique ability to drive large increases in incremental sales volume and measurable ROI for advertisers.

Key vertical market performance results*:

 
-------------------------------------------------------------------------
Category           Segment              Incremental $    Campaign ROI **
                                        Sales Growth (in (in first month)
                                        first month)
-------------------------------------------------------------------------
Food/Drug/Mass     New Customers        29.7%            437%
(Grocery, Dollar   Frequent Customers   10.7%            519%
 Stores, Mass
 Merchandiser)
-------------------------------------------------------------------------
Specialty Retail   New Customers        30.8%            244%
(Entertainment,    Current Customers    12.3%            559%
 Pet Specialty,
 Electronics,
 Sporting goods)
-------------------------------------------------------------------------
Apparel            New Customers        17.2%            618%
(Family, Discount  Current Customers    8.5%             618%
 & Department
 Stores)
-------------------------------------------------------------------------
Restaurant         New Customers        26.1%            444%
(Casual Dining &   Current Customers    10.7%            643%
 Quick Service
 Restaurants)
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* Results are based on volume increases among targeted consumer segments versus a random control group within that same segment.

** ROI is calculated by measuring incremental sales increase during campaign divided by total cost of campaign. This total cost includes the media fees as well as any associated consumer offer or discount. Ongoing purchase from new customers post campaign is not contemplated in this ROI.

Pat Venker, SVP Merchant Analytics, and a 20-year veteran of merchant analytics with Catalina, IRI and Nielsen, described the measurement methodology. "We set aside a control group from each target customer segment. The random generation of a control group allows us to validate that the targeted and control populations behaved similar in terms of sales and trips before a campaign. Once you've established that you have homogeneity between those two groups you simply measure the variance in the targeted volume to the control volume to measure incremental sales and trips. We do a battery of statistical testing at the completion of the campaign to validate the robustness of the results."

Long-Term ROI

While the immediate performance results announced here are impressive, the long-term ROI is significantly greater. ROI results in the chart above are based only the value of increased volume achieved during the campaign. Post campaign purchases by new or re-engaged customers, all tracked and reported by Cardlytics over time, multiplies return on investment.

It is these kind of results that led Sucharita Mulpuru, Vice President and Principal at Forrester, to comment in a recent webinar, "... this level of transactional detail, I've never seen before until companies like Cardlytics have made it possible -- which should bring marketing to a new level."

Through the Cardlytics platform, retailers nationwide are able to present consumers with relevant messages and offers based on consumers' actual buying behavior. Messages and rewards are delivered via trusted banking channels, including online and mobile banking, SMS and email. Cardlytics will reach 70% of all US households in the coming months.

"These performance results demonstrate the ground-breaking power of the Cardlytics platform to segment households by purchasing behavior and thereby deliver truly relevant rewards and advertising that drive increased purchasing and stellar returns for merchants," said Scott Grimes, CEO Cardlytics. "Because retailers only pay when we secure business, we virtually guarantee a strong return on investment."

About Cardlytics

Cardlytics is the pioneer and leader of the cutting edge field of transaction-driven marketing™, expected to grow into a multi-billion dollar industry in the US over the next four years, according to the Aite Group. The company's unique advertising platform enables banks to deliver rich, relevant rewards to its customers based on purchasing history while fully protecting their privacy. The platform is entirely merchant-funded with advertisers targeting consumers based on spending patterns: where, how much and how frequently they spend at a store and in the broader retail category. Since its founding in 2008, Cardlytics has been a leader of innovation with recent accolades including being named one of the 100 most innovative private companies in the world by Red Herring. For more information about Cardlytics, visit www.cardlytics.com.