Timing Poor

Barclays Bank Delaware is running full-page newspaper ads for its VISA Black Card, a carbon card offering 24-hour concierge services for a $495/year fee, and targeted at about 1% of U.S. residents.

I can't decide if this strategy makes sense, or it's absolutely nuts.

Pros:

• The ultra-rich are still really, really rich, even if their stock portfolios have declined by the same percentages as ours.  Targeting rich people might make sense because they're a more reliable consumer segment
• A card targeted at the rich suggests that the issuing bank is confident, if not downright solvent. So it will help recruit the not-so-rich
• A wacky Roger Moore as 007-era charge card is a brilliant distraction from the news that might otherwise come out about the issuing bank...or any bank

Cons:

• The super-rich don't need another concierge service, and who cares anyway?  I visited a mall in Glendale earlier this week that had guys in tuxedos giving concierge services to anybody visiting the place
• 12% of mortgages in America are in some form of arrears, joblessness is at 7%, and the words "great," "depression," and "the sequel" are starting to appear in the same sentence (with first letter capitalized, no less).  Recruiting more regular folks to run up credit accounts doesn't seem like a prudent business strategy
• Distraction?  Is that possible?  When every third person you talk to during the day is looking for a job, I'm not sure an ad for a silly make-believe near-luxury consumer can command much of my attention (this column notwithstanding)

One of the promises in the full-page newspaper ad is that cardmembers will get "Luxury Gifts from some of the world's top brands."  This is an interesting proposition, considering that many of those brands are finding it hard to exact any sort of premium payment for the brand-ness.  Again, a real payoff, or another example of a surreal, silly product?

Here's a twist for 'em: how about replacing the concierge services with a debt/tax advisor who'll help members restructure their loans, obligations, and payments to government?  In other words, use our card and we'll help you stretch out your financials as far as possible.

Now that's a service that would warrant ads targeting the ultra-rich as well as we dim bulbs.

Comments

[Jon Posey]

Unrelated (or possibly related) thought/question: Is there such a thing as price transparency in branding? For example if a company explained why the prices were going up for a class of products (and not just that silly letter cable providers send us when they raise their pricing) would it create brand loyalty and perhaps lead to sales?

[Nell Minow]

I saw this ad and at first thought it was a parody or possibly a mistake by the printer who accidentally ran an ad from two years ago. It is hard for me to believe anyone eligible will go for this and easy for me to believe it will annoy everyone else and diminish the brand further.