Who is going to switch auto insurers in the next six months?
We don’t know the exact names yet, but there will be a lot of them — about ten percent of all car insurance consumers, according to a recent Rocket Fuel study.
But that’s not all. The company’s study, discussed in a CNN Money post, determined that digital display ads are nine times more effective than television advertising.
Rocket Fuel, a provider of artificial intelligence (AI) advertising solutions for digital marketers, conducted its recent “Insurance Top-of-Mind Awareness” study with more than 1,000 consumers who were asked about insurers in the auto, life, and homeowner categories.
What else did the study find out? Here are four interesting standouts:
1. 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.
2. 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.
3. Nearly half (44 percent) of consumers only look at a single quote before making a purchase.
4. Ten percent of consumers are likely to change auto insurance providers in the next six months, with price being the most likely factor (49 percent), followed by reputation (17 percent).
“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.”
The full report is available here.