Insurers still use TV/Web combo to reach consumers

This year, online ad spending by insurance companies and financial services will reach $980 million, up 35 percent from 2006. That level of spending on the Internet makes the financial services industry second only to retail. At first glance these figures indicate that the industry has fully committed to online advertising. But a closer look reveals a surprising trend.

According to TNS Media Intelligence, TV advertising for this category grew nearly 30 percent in 2005 and another 23 percent in 2006 while Internet advertising fell slightly. This decline most likely indicates that advertisers are moving spending out of display ads into search and rich media.

What does this mean for your company?

Growth in insurance spending will continue as marketers scramble to target the wave of retiring baby boomers and as the health insurance industry tries to cope with the impact of health savings accounts and individuals purchasing their own health insurance policies. TV’s reach with these individuals is powerful; studies by comScore report that 59 percent of respondents would go online first after seeing an ad on TV for an insurance company, either to visit the company website or to use a search engine to find the company site.

Our take-away advice: Your PR and marketing budget should definitely include a mix of traditional broadcast media along with a strong online presence.

Source: “Insurers Use TV, Web for One-Two Punch,” eMarketer.com, August 8, 2007

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