Transcript Emerging Trends in Digital Marketing for Insurance

Emerging Trends in Digital Marketing for Insurance
AM Best Insurance Marketing & Advertising Summit
Susan Engleson, Director
November 5, 2009
Agenda
 General Internet Trends
 Online Advertising
 Mobile
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General Internet Trends
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A Snapshot of US Internet Activity
In July 2009:
 195.5 million Americans used the Internet (+3%)
– Average user was online 20 days in the month, for a total of 30.4 hours
(+14%), and viewed 2,542 pages (+6%)
 81% of Internet visitors viewed an online video in the US, for an average of
8.3 hours each
 93% of Internet visitors conducted at least one search
– Average searcher conducted 106.4 searches
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Source: comScore Media Metrix, July 2009
comScore qSearch, July 2009
e-Commerce Reports, July 2009
What Properties are Driving Web Usage?
Facebook.com had
87.7MM UVs in July 09
 Twitter has
become a
prominent
Internet property
in less than 1
year.
 Other social
networking sites
including
Facebook
continue to grow
as well.
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Source: comScore Media Metrix, July 2009
While Companies Like Progressive Promote Blogs, Twitter, and
Facebook Pages, Customer Use Is Typically Low. Particular Campaigns
like “Tweets for Trees” can be Effective at Getting People to Engage.
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Some Companies, Such as GEICO, are Using tools like Facebook
Connect to Get More Information about their Visitors.
 Facebook Connect is a powerful set of APIs for
developers that lets users bring their identity and
connections everywhere. Developers can access a
user's:
 Identity: name, photos, events, and more.
 Social Graph: friends and connections.
 Stream: activity, distribution, and integration points
within Facebook, like stream stories and Publishers.
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Online Video Viewing is Growing Strongly with
Significant Growth Potential
Total US Streaming Minutes and Video Views
+137%
+87%
July 2008
July 2009
Hours per Viewer
3.9
8.3
Videos per Viewer
80.2
134.9
Minutes per Video
2.9
3.7
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 Sites heavy with
long-form content
have burst onto
the scene over
the past year.
 Specifically, Hulu
is now the sixth
most popular
video property.
 Over the past
year, this new
content type has
contributed to the
hours spent
streaming per
viewer increasing
by 113%.
Source: comScore Video Metrix, July 2009
Streaming in Insurance
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Source: comScore Video Metrix, September 2009
Online Advertising
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2008 Internet Advertising Revenues Showed Positive
Growth But Did Not Keep Pace With Previous Years
Internet Advertising Revenues ($B)
+26%
+10%
+35%
+30%
+32%
+76%
-12%
+22%
-15%
While growth rate slowed in the fourth quarter, showing the current economic
challenges, $23.4 billion revenue represents nonetheless the highest yearly results ever.
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Source: IAB Internet Advertising Revenue Report, 2008
Search accounts for more than twice as much online
advertising revenue as banner ads.
Internet Advertising Revenues by Ad Format
Leads/
Rich Sponsorship
Referrals
Media
E-mail
Banner Ads
Video Classifieds
Search
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Source: IAB Internet Advertising Revenue Report, 2008
Who are the top display advertisers in the online market?
Top advertisers include telecom companies such as AT&T, Verizon, Vonage, Sprint, and Deutsche
Telekom, along with financial services such as Scottrade and Experian.
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Source: comScore Ad Metrix, June 2009
Who are the top insurance display advertisers in the online market?
Total Insurance Online Ad
Impressions
2 Of The Top 10 Advertisers In The Insurance Category Are Aggregator Sites
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Source: comScore Ad Metrix, July 2009
Clicks on Display Ads Are a Misleading Metric and Don’t Reflect
Brand-Building Effects
 Click rates on online display ads have fallen dramatically in recent years to
levels under 0.1%
 Clicks don’t measure all of a campaign’s sales impact nor the cumulative
(latent) impact of ads
 Clicks don’t tell you anything about brand building effects
 Optimizing for high click rates does not necessarily improve campaign
performance
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82% of online campaigns analyzed by comScore have generated an
average lift of 22% in CPG brand sales in retail stores
 Campaigns we have analyzed
– Cookie Mixes, Cereal, Frozen Snacks, Pizza, Tea, Toothpaste, Juice Drinks,
Deodorants, Snack Bars, Pasta, Meals and more
 Online advertising (banners, rich media, search) increased (i.e. lifted) offline
brand sales in 82% of all campaigns
Offline Sales Effectiveness Studies
100%
80%
Percent Lift in
Dollar Sales
Average $ lift was 22%
82% of campaigns
showed a positive sales
or unit lift
60%
40%
20%
0%
-20%
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Source: comScore Advertising Effectiveness Studies
Another Strategy Insurance Companies Use for Brand Building is Microsites.
State Farm, Allstate, and American Family All Have ‘Teen Driving’ Sites.
Allstateteendriver.com
Betterteendriving.com: 46K Visitors
Teensafedriver.com
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Liberty Mutual Advertises (Online and Offline) Two Microsites –
Responsibilityproject.com and Whatsyourpolicy.com.
Total Display Ads Viewed (in Millions)
QE Aug 2009
Responsibilityproject.com
Whatsyourpolicy.com
96
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www.responsibilityproject.com Visitors:
QE Aug 08 – 526K
QE Aug 09 – 1,775K
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www.whatsyourpolicy.com Visitors:
QE Aug 08 – 352K
QE Aug 09 – 188K
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Mobile
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34% (80.1 million) of Mobile Users Browse, Use an Application or
Download. 14% of Mobile Users have a SmartPhone.
Just Voice
35%
Mobile Media
34%
Text Message (and
not Mobile Media)
31%
The number of users who just Use Voice Has Decreased 17% Year Over Year
Product: MobiLens
Data: Three month average ending June 09
Country: US - N= 33,453
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Smartphone: Apple, RIM, Windows, Google, Palm, Symbian
Mobile Media Users (Mobile Browsers, Application Users and
Downloaders) Are Growing 20% Year Over Year
% Mobile Media Users and % New Device Owners
36.0%
14.0%
34.0%
13.0%
32.0%
12.0%
30.0%
10.8%
29.6%
11.0%
28.0%
10.0%
26.0%
24.0%
8.3%
9.0%
8.0%
7.5%
22.0%
7.0%
20.0%
6.0%
200806 200807 200808 200809 200810 200811 200812 200901 200902 200903 200904 200905 200906
Mobile Media Users
Device < 2months old (one month snapshot data)
Increase in mobile media users linked to handset sales cycle.
Product: MobiLens
Data: Three month average ending June 09
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Country: US - N= 33,453
% Device < 2 Months Old
% Market
34.4%
The iPhone Craze
 7.8M iPhone users – only 10% of Mobile Users who Browse, Use an
Application or Download
 14.2M Blackberry users, 6.9M Windows Mobile users
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iPhone Has the Youngest, Most Affluent, and Most Highly Educated
Users Among Smartphones
All Mobile
Subscribers
233M
Age
18-24
25-34
35-44
All Smartphones
Microsoft
RIM
Apple
33.8M
6.9M
14.2M
7.8M
13.1%
17.9%
17.6%
125
161
130
131
169
121
114
142
148
139
180
114
14.8%
26.9%
113
162
119
138
117
171
99
190
22.0%
12.2%
138
159
117
141
136
168
157
172
Income
$75k to <$100k
$100k+
Education
Bachelors degree
Graduate degree
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71% of survey respondents said they complete financial and insurance
transactions online, while only 25% stated that they use their mobile phone
Q. Please select ALL methods that you use to complete financial and
insurance transactions (please select as many as apply)
Source: comScore Mobile Financial Survey, February 2009
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n = 1,713
36% of respondents stated that visiting their financial institution/insurance
provider’s website was the primary method for completing transactions.
Q. Please select your PRIMARY method for completing financial and
insurance transactions (please select only one answer)
Source: comScore Mobile Financial Survey, February 2009
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n = 1,713
While 31% of mobile financial users stated they accessed their
financial services account on their mobile while at home, a quarter
stated they do so while running errands.
Q. Where do you primarily access your financial accounts via your mobile
phone? (Of respondents who stated they access their bank account, brokerage,
or credit card accounts on mobile)
Source: comScore Mobile Financial Survey, February 2009
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n = 1,713
The most common reason for not accessing personal financial accounts via
mobile phone was because respondents do not use Internet, in general, on
their phone.
Q. You said that you currently do not access your personal financial accounts via
your mobile phone. Why do you not use these services? (Please select all that apply)
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Source: comScore Mobile Financial Survey, February 2009
n = 1,713
More than 60% of respondents stated they would never use their mobile
device to access their auto insurance account.
Q. Would you be interested in accessing your auto insurance account via
your mobile phone if it was available in the future?
Source: comScore Mobile Financial Survey, February 2009
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n = 1,713
Of respondents who are interested in accessing their auto insurance
account on a mobile phone, 73% stated they would like to use it to
report an accident and find contact information on their agent.
Q. The following is a list of auto insurance services that may become available on your mobile phone in
the future. Please indicate which services you would be interested in using on your mobile phone in the
future. (Of respondents that said they would be interested in accessing their auto insurance account on their
mobile phone in the future – 23%)
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Source: comScore Mobile Financial Survey, February 2009
n = 1,713
25% of Mobile Owners Are Now Receiving Text Message Ads, a 32%
Year Over Year Growth
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
% Market
Year on Year Growth
2.5% of Ads Served Via Text Messages Are From The Financial Services Industry
Product: MobiLens
Data: Three month average ending June 09
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Country: US - N= 33,453
% Year on Year Growth
% Market
Received Text Message Ads by Industry Sector
Automotive Provides the Top Non-Mobile Sector for Mobile
Banner Ads
% of Mobile Banner Ads by Industry Sector
(blue bars - mobile sectors / red bars - non-mobile sectors)
Food Retail
Leisure Facilities
Internet Software & Services
Hotels, Resorts & Cruise Lines
Mobile Music & Video
1.0%
1.2%
1.5%
2.1%
2.3%
Application Software
2.5%
Automotive Retail
2.5%
Wireless Telecommunication Services
Specialized Consumer Services
Movies & Entertainment
2.6%
2.9%
4.0%
Mobile Personalization
4.7%
Automobile Manufacturers
5.1%
Mobile Social Media
5.9%
Mobile Games and Applications
11.4%
Mobile Publishing
14.4%
Broadcasting & Cable TV
16.8%
% of products advertised
Product: Ad Metrix Mobile
Data: Three month average ending June 09
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Country: US
Several Insurance Sites Are Advertising Via Mobile Banners
Insurance Mobile Banner Creatives and Top Publisher Sites
mlb.com Mobile
Yahoo! Mobile
abc.com Mobile
411.com Mobile
Perez Hilton Mobile
USA Today Mobile
NASCAR Mobile
ESPN Mobile
Source: Ad Metrix Mobile
Data: August 2009
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Country: US
Emerging Trends
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Emerging Trends in Digital Marketing for Insurance
 As online video streaming continues to explode, insurance companies will
also increase their advertising in this format
 Insurance companies will increase online display advertising as it
increasingly is viewed and measured as brand advertising, not direct
response advertising
– Microsites will also be measured for their branding impact
 Expect a surge in mobile media users with new handsets purchased during
the holidays
– While iPhone provides the most attractive audience, Blackberry has the most
Smartphone users and the new App World
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