Citigroup launches ad network and plans to buy Kard

Citigroup introduced Citi Commerce Media, a new advertising and data platform aimed at brands seeking access to its U.S. cardholders. The bank, which has a market value of about $225.2 billion, also plans to acquire rewards platform Kard to integrate its merchant and offer technology into the new service.

Citi Commerce Media intends to use transaction data from Citigroup's 70 million U.S. customers. Advertisers will use these insights to deliver targeted marketing campaigns without requiring the bank to add balance sheet risk.

The planned purchase of Kard supports management's push toward digital platforms and fee income. Investors will watch for disclosed revenue from Citi Commerce Media and Kard once the acquisition closes, particularly its effect on fee income and return on tangible common equity targets.