Insurers Are Moving More Ad Dollars Online
September 11th, 2007 Posted in NewsThe internet marketing fever has not only captured the retail and travel industry but it had also captured the business that also needs wide market for its products: the insurance companies.
Although insurers understood the need to personally visit or contact prospect clients, they did not deny the importance on displaying ads on the most used technology of the modern times which is the internet. The move will increase in the coming years as eMarketers predicted that US insurers are expected to give out promotional expenditures of up to 980 million dollars or 38% increase this year. Correspondingly, there would be a 41% or 1.38 billion dollar spending increase in 2008. A study from the eMarketers revealed that not only does insurance companies are moving into online advertisement but even other financial service industries like banks and credit companies. The spending of other financial sectors also increased as they move into the trend.
With the increase on spending predicted, the financial services sector would turn out to be the second largest industry for online spending next to retail outlets and insurance companies seems to lead the way among the financial market. On the year 2006 alone, insurance companies spend about 28% for the sectors ad online and in 2007; it will rise to about 30% in total ad spending. By 2011, it is foreseen that insurance advertisements will reach to at least 35% of the total financial sector for online ad spending.
Online advertisements will become a trend in financial sectors. The question is whether the increase in spending will be due to high online ad rates or as an additional spending from the traditional ad exposure which is by the use of television.
Researchers believe that insurers will push more dollars for online ad on top of the television ads that they want to take advantage of as the baby boomer generation is on its ways in the coming years. This will give the insurance companies an array of opportunities to reach bigger markets with the use of such in-demand technology as television and internet. With the exposure to these powerful media, insurance companies can readily present their products and services in an attractive and promotional way and offer consumers the ability to purchase their policies. This trend opened an opportunity for the insurance company to be involved in internet marketing which posed to be one of the powerful media for product exposure and promotional activities that would compensate the corresponding increased spending.
According to Lisa Philipps, eMarketer Senior Analyst and author of Insurance Marketing Online: Meeting Customer Expectations?, there will be a continuous increase in both online and traditional ad spending in the coming years. “The trend will continue as more consumers turn to the internet not only to compare quotes but also to apply directly for policies from auto, health, life and homeowner insurer”, she said in a report. There is indeed reward that await as opportunities increase for insurance companies no matter how huge the increase in spending is.
