Welcome!

News Feed Item

Digital Display Advertising Nine Times More Effective Than TV for Auto Insurance Brands, According to Rocket Fuel Study

Cross-Channel Ad Spend More Effective Than TV Alone

REDWOOD CITY, CA -- (Marketwired) -- 08/20/14 -- Insurance companies face a bumpy road ahead when it comes to retaining customers and staying top-of-mind for consumers. According to a study released today by Rocket Fuel (NASDAQ: FUEL), a leading provider of artificial intelligence (AI) advertising solutions for digital marketers, 10 percent of consumers will change providers in the next six months, and companies that spent their advertising dollars on display advertising won top-of-mind brand awareness among consumers.

Rocket Fuel's "Insurance Top-of-Mind Awareness" study surveyed 1,026 consumers about insurers in the auto, life, and homeowner's insurance sectors. Key findings from the study include:

Top-of-Mind Awareness Forecasts Shifts in Market Share

  • Top-of-mind awareness is highly correlated with market share for both auto insurance (0.83) and homeowner's insurance (0.87), and modeling either as a function of ad spend yielded the same feature set.
  • In the auto insurance sector, GEICO (21%), State Farm (19%) and Allstate (16%) lead top-of-mind awareness.
  • Cross-channel ad spend was a key predictor of top-of-mind awareness for auto and life insurance providers, with digital display ad spend being nine times more effective at driving top-of-mind awareness than TV.
  • Nearly half (44%) of consumers only look at a single quote before making a purchase.

Digital Advertising Fuels Increases in Brand Awareness

  • Display advertising was the strongest positive feature in driving top-of-mind awareness for auto and life insurance providers, particularly against overcrowded TV channels.
  • For every $1 million an auto insurer spent on digital or display advertising, the brand was likely to see the biggest lift in top-of-mind awareness compared to the same spend in TV, print, search or radio. This difference is in part due to the oversaturation of TV advertising at the broadcast, cable, and local levels by auto insurance providers.

Shifting Market Share

  • 1 in 10 consumers are likely to change providers in the next six months, with price being the most likely factor (49%) in the decision to change providers, followed by reputation (17%). For consumers that begin their journey online, they are most likely to complete it online as well.
  • Consumers are more likely to sign up for new insurance or request a quote on Thursdays and in the evenings between 6 and 9 p.m. and are most likely to convert within eight hours of exposure to an ad.
  • Insurance advertisers can shift top-of-mind awareness by reigning in spending to competitive levels on traditional channels and increasing spend on newer and underserved channels, such as display, mobile, and video.

"Consumers are bombarded with a deluge of options when it comes to choosing an insurance provider -- and this competitive climate shows that top-of-mind awareness is key for insurers to win over the customer," said Robert Jones, Research Director at Rocket Fuel. "Due to the oversaturation of TV advertising, auto and life insurers can generate better ROI from their marketing programs by shifting budget from TV channels into digital, particularly digital display, which is currently under-utilized by most providers."

Key Digital Creative Attributes For Increased Performance

To get the best value from online display advertising, Rocket Fuel found five key attributes for increased performance of insurance marketing programs:

Animating ads does not improve conversion rates: While insurance ads see a 64 percent boost in click-through rates as a result of animation, it provides no discernible improvement in conversion rates.
Blue and red backgrounds perform best: Insurance ads with red or blue backgrounds tend to have conversion rates 20 percent higher than the average, while also producing better click-through rate performance.
Human faces improve conversion rates: Insurance ads featuring a person or human face generate conversion rates more than 177 percent higher than those without a human or face.
"Apply now" is the most effective call to action: Among calls to action, "apply now" had the highest conversion rates, outperforming "get a quote" by 80 percent.
Price-focused messaging doesn't matter: Insurance ads without pricing information perform as well as those that include it, possibly due to oversaturation of price-focused messaging in insurance ads already.

For more information and to review the full report, please visit http://rocketfuel.com/blog/insurance-top-of-mind-awareness-q2-2014.

Join Rocket Fuel on August 21, 2014 at 11 a.m. PDT for new webinar, http://info.rocketfuel.com/InsuranceBrandAwarnessWebinar.html. The webinar will also be available on-demand as of August 22, 2014.

Methodology

The study surveyed 1,026 consumers in May 2014 on top-of-mind awareness for insurance providers in the auto, homeowner's and life insurance sectors, as well as general attitudinal questions about insurance. Study awareness results were compared to market-share data from the National Association of Insurance Commissioners for auto, homeowner's and life insurance from 2012 and 2013 and channel-spend data for each brand from Kantar. Using this data, Rocket Fuel modeled awareness as a function of ad spend for each brand to determine how accurately spend in various channels could predict top-of-mind awareness and which channels produced the most efficient results.

About Rocket Fuel
Rocket Fuel delivers a leading programmatic media-buying platform at Big Data scale that harnesses the power of artificial intelligence (AI) to improve marketing ROI in digital media across web, mobile, video, and social channels. Rocket Fuel powers digital advertising and marketing programs globally for customers in North America, Europe, and Japan. Customers trust Rocket Fuel's Advertising That Learns® platform to achieve brand and direct-response objectives in diverse industries from luxury cars to financial services to retail. Rocket Fuel, a GSA approved vendor, currently operates in more than 20 offices worldwide and trades on the NASDAQ Global Select Market under the ticker symbol "FUEL." For more information, please visit http://www.rocketfuel.com or call 1-888-717-8873.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Digital transformation is too big and important for our future success to not understand the rules that apply to it. The first three rules for winning in this age of hyper-digital transformation are: Advantages in speed, analytics and operational tempos must be captured by implementing an optimized information logistics system (OILS) Real-time operational tempos (IT, people and business processes) must be achieved Businesses that can "analyze data and act and with speed" will dominate those t...
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, will compare the Jevons Paradox to modern-day enterprise IT, e...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...