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Digitalization in insurance marketing: How insurance companies can reach more customers with online ads

The world of online marketing has changed and developed constantly in recent years. A change that has also left its mark on the insurance industry. Whereas in the past, new customers were acquired primarily through word-of-mouth – i.e. personal recommendations between friends and acquaintances – today’s consumers usually look for information about suitable insurance policies in a more targeted manner via search engines and social networks.

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According to a representative study by the American software company Yext, consumers today increasingly trust search engines – especially Google, of course – instead of the company website itself when searching for a suitable insurance. According to a ranking of the digital agency mediaworx, only in Germany there are 5.3 million search requests a year on Google for insurance products (e.g. car insurance, legal protection insurance, private health insurance). If one includes alternative spellings (e.g. car insurance, legal protection, private health insurance) and multiple combinations (e.g. best car insurance, legal protection insurance without waiting period, private health insurance for employees), one comes even on estimated 53 million searches.

But not only the demand is high – also the offer is overwhelming. Especially among young people, customer loyalty is increasingly declining. It is therefore clear that insurance companies today must rely particularly heavily on digitization and online advertising such as Google Search Ads in order to prevail against the competition. This also becomes clear when you look at figures from the online portal Statista: From 2009 to 2019, the number of Internet users in Germany rose from 69% to 86%, and among 14 to 39-year-olds the number is even close to 100%.

So how can an insurance company use online advertising to attract more customers?

1. Google Search Ads

To position yourself on Google, you have basically two options: SEO (Search Engine Optimization) or SEA (Search Engine Advertising).

With SEO you optimize your website so that it appears in the natural, unpaid search results. With SEA, on the other hand, you place ads on search engines and appear in the paid search results. Google’s system for the latter is called Google Ads (formerly: AdWords).
No matter if you are a large insurance company or a smaller local enterprise – Google Ads is suitable for every company size and for nearly every budget, because one decides how much a click, thus a web page visitor, is worth to you and one has full control of the budget. The big advantage: consumers who see your ad have already actively searched for a suitable insurance policy on Google and are therefore more willing to buy. The desired target group can also be narrowed down precisely, so you can, for example, only address consumers of a certain location or a certain age group.

However, since there is a lot of competition, especially within the insurance sector, the CPC (cost-per-click, i.e. the price you pay per click on your ad) can sometimes be very high, therefore it is important to have sufficient know-how and expertise. Gonnado can help you to generate new leads and attract new customers for your insurance company with Google Search Ads.

2. Facebook Ads

As an insurance company you can also perfectly find your target group on Facebook. Facebook is by far the most frequently used social network: According to Statista, an astonishing 43% of the 14 to 69-year-olds surveyed in Germany say they use Facebook at least sometimes, so it is possible to reach millions of people with ads on Facebook.

The advantage: Compared to other platforms, the CPC (cost-per-click) on Facebook is lower and is therefore also suitable for insurance companies with lower budgets. With Facebook it is possible to reach even niche target groups and to define the desired target group precisely. In contrast to Google Ads, Facebook allows you to use one or more images or a video as an advertisement, which allows more room for creativity and attracts attention. With a retargeting campaign you can also reach users who have already visited your website, which makes a conversion more likely.

3. Personalized Coupons

Personalized coupons increase conversions and give certain users an incentive to subscribe to newsletters or buy an insurance product, for example. This allows you to successfully attract new customers and also retain existing customers in your company.
Coupons can be completely personalized, i.e. they can only be offered to users with certain characteristics, for example depending on personal data (age, gender, etc.), surfing behavior, purchasing behavior or scrolling behavior. With regard to insurance, for example, this could be a coupon for a 30% discount in the first three months when signing up for a car insurance, which is only displayed to users who have viewed the price list on the insurance website but want to leave the site again.

These so-called Website Layers increase your leads and sales by addressing your website visitors in a personalized way and enable conversion tracking on all channels.

Conclusion

Although many insurance companies still rely on print and TV advertising today, online advertising is getting more and more important due to the ongoing digitalization. Consumers increasingly rely on information they find on the Internet when making a purchase decision or signing a contract- instead of relying on personal recommendations or word-of-mouth, and providers can be easily compared on search engines such as Google.

In contrast to offline advertising, online advertising offers a high degree of control over the budget and target groups reached and thus also offers smaller insurance companies the chance to assert themselves. Especially now in times of Covid-19, insurance companies have to increase their digital presence to keep up with the competition in the long run.

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