Today I read in MediaPost’s Online Media Daily that insurance companies are going to spend about $980 million on internet marketing in 2007. That’s a lot. The breakdown will be about 50% to search, 30% online video and other forms of rich media, and 20% display.
The report, put out by eMarketer, showed that TV will still be getting the lion’s share of the ad budgets…because they work.
A quote:
the report found that some 59% of respondents would go online first after seeing a TV ad for an auto insurance company, either to visit the Web site specified in the ad, to visit the company’s corporate site or to use a search engine to find a site for the company.
That’s great and something that I would agree with. But here’s another quote from Lisa Philliips, a Marketer senior analyst and the report’s author as to why and how TV is effective as it addresses how to:
“build brand awareness and explain a complex product in simple terms” and it “is better served by large-scale broadcasts.”
This isn’t necessarily so. Large scale broadcasts are there to stir interest and to position a brand in a particular way. Explaining complex products and services can’t be done in a 30 second spot or a full page four color ad. It can frame a product to its intended audience. But that audience will want more . They’ll have questions. That’s why they have insurance salesmen to complete the sales marketing cycle.
But it would seem to me that, right now, insurance companies should be turning to the internet to develop conversational marketing strategies. Strategies and tactics that bring the customer closer to the information that they need to make better decisions, strategies that get to know the customer better by getting their feedback and finding out their needs.
With insurance, for the customer, several things are important.
Trust. Are they giving it to me straight? Are there any catches? Am I just an expense to them once I sign up?
Individuality…am I getting what I want and what I need do I have to sacrifce getting something while I have to pay for something that I don’t need. Am I just a number to them?
Reliability. Will they be there when I need them? Are there services something I can get without hassles? Am I just an inconvenience to them?
Engaging interested and qualified customers via conversational marketing strategies makes sense. And there seems to be a lot of money that’s looking to be spent.
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