A PROJECT REPORT

ON

“Advertising Effectiveness on Consumer Decision Making”

Submitted by

NACHIKET MILIND SHILOTRI

Roll NO: 39

In partial fulfillment for award of the degree

Of

BACHELOR OF COMMERCE

In

BANKING & INSURANCE

SEMESTER VI (2014-2015)

Under guidance of

Miss. KARISHMA KASARE

SREE NARAYANA GURU COLLEGE OF COMMERCE

Re-accredited by NAAC – Grade “B” (CGPA: 2.73)

P.L Lokhande Marg, Chembur, Mumbai-400089

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CERTIFICATE

This is to certify that Shri / Mr NACHIKET MILIND SHILOTRI Roll No: 45 of Bachelor of Commerce in Banking & Insurance Semester VI (2014-2015) has

successfully completed the project on “Advertising Effectiveness on Consumer Decision Making” under the guidance of Miss KARISHMA

KASARE

_______________________ _______________

Course Co-ordinator Principal

Name & Signature Name & Signature

________________ __________________

Project Guide External Examiner Name & Signature Name & Signature

____________________

College Seal

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DECLARATION

I Nachiket Milind Shilotri the student of bachelor of commerce in Banking & insurance Semester VI (2013-2014) hereby declares that I have completed the project on “Advertising Effectiveness on Consumer Decision Making”

The information submitted is true and original to the best of my knowledge.

Signature of Student

“NACHIKET MILIND SHILOTRI”

ROLL NO: - 39

DATE:

PLACE: MUMBAI3

ACKNOWLEDGEMENT

The project on “Advertising Effectiveness on Consumer Decision Making”

is a result of co-operation, hard work and good wishes of many people. I student of SREE NARAYANA GURU COLLEGE OF COMMERCE, would like to thank the

project guide: Professor “KARISHMA MAM” for her involvement in my project work and timely assessment that provided me inspiration and valued guidance throughout my project.

I also take this opportunity to express my sincere gratitude to the library staff that provided me with the required information.I express my deep gratitude to all my college friends and my family members whose efforts and creativity has helped me in giving the final structure to the project.I am also thankful to all those seen and unseen hands and heads which have been of help in the completion of this project.

Signature of student

(NACHIKET MILIND SHILOTRI)

ROLLO NO: - 39

DATE :

PLACE : Mumbai

4

Sr. No.

Chapter

Page No

1 Various Advertising Strategies in Insurance Industry.

Electronic Media Print Media

2

Role of Advertising in Insurance Industry.

3 IRDA (The Insurance Regulatory and Development Authority)

4 Data Analysis and Interpretation

5 Case study 6 Conclusion 7 Findings 8 Recommendations

9 References

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“Advertising Effectiveness on Consumer Decision Making & Decision Making: Study ofInsurance Industry”

Abstract

This study is aimed at studying the impact of advertising and its various strategies in the insurance industry. This study also focuses on the role of insurance in general and the role of IRDA as a governing body for the insurance sector. The study also involves the overview of various players in the market for this specific sector.

Indian insurance is a flourishing industry, with several national and international players competing and growing at rapid rates. Thanks to reforms and the easing of policy regulations, so is the increasing role of advertising which effects the consumers’ choice.

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The study being descriptive and explainatory in nature, findings have been made through theoretical analysis in order to get an insight into the cause and effect relationship of advertising and consumers’ perception relating to insurance products which ultimately effects the insurance industry on a whole.Thus detailed descriptions of specific issues concerning the consumers’ purchasing behaviour and the effect of advertisement on this particular industry is being studied using a detailed questionnaire to interview the consumers and observe their behavior after which a detailed review is done

Introduction7

Advertising denotes a specific attempt to popularize a specific product or service at a certain cost. It is a method of publicity. It always intentional openly sponsored by the sponsor and involves certain cost and hence is paid for. It is a common form of non- personal communication about an organization and or its products idea service etc. that is transmitted to a target audience through a mass medium.

Advertisements are sometimes spoken of as the nervous system of the business world. As our nervous system is constructed to give us all the possible sensations from objects, so the advertisement which is comparable to the nervous system must awaken in the reader as many different kinds of images as the object itself can excite. Advertising effectiveness means different things to the groups responsible for its different effects. Effective advertising must achieve all four goals, delivering messages to the right audience, thereby creating sales at a profit.

Indian insurance companies offer a comprehensive range of insurance plans, a range that is growing as the economy matures and the wealth of the middle classes increases. Indians are becoming more familiar with the different insurance product ,all because of the increasing involvement of advertising which is being used by different insurance players to influence the consumers and make them more aware about the latest developments and the benefits of insurance.

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In any activity of life there is a possibility that a desired event may fail to occur and that pecuniary (financial) loss may arise. In adventures by sea the ship may fail to make the port (remember Titanic!); or the cargo may be damaged or lost. In the adventure of life itself, the life may fail and death may occur, causing suffering to dependents. Death comes to all sooner or later, and it is the only truth in this world. The rest as they say is all Maya (illusion). So if death is the only truth, then why do we ignore the implications of the event? Because of the nature of its permanence, and all pervasive; death requires understanding the financial implications on the dependents. Life insurance is therefore the most important of all forms of insurance. Its significance pales the other forms of not just insurance but also all investment instruments. The theory of insurance, in general terms, may be expressed to mean that the good fortune of the many compensates for the misfortune of the few. The consequences of such misfortunes cannot be in many instances borne by the individual, and so the insurance company is prepared to shoulder the burden of these consequences in exchange for an assessed payment for the risk undertaken. Those who avail themselves of this service know that such misfortunes will occur but do not know to whom, and when, and they are willing to make such contributions to a common fund to buy the right to be compensated of misfortunes if they should befall them.

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The insurance company is concerned with any factor that may

affect normal longevity, and once the contract is entered into, and

premiums are regularly paid by the policyholder, the company is

at a risk on a permanent contract which it cannot break.

From the collation of a vast amount of data, an assessment

can be made of the rate of mortality or the likelihood of death

occurring at each age. Numbers can be quoted, but which

individuals will die at each age cannot be stated. Consequently,

all who pay life insurance premiums to the common fund do so

with the same willingness that the fund shall be used to

compensate the estates of those contributors at whatever age in

life they may die, within their respective contract period. This is

the basic theory of life insurance. However increasing emphasis

on investment aspects has tended to overshadow the primary

purpose of protection against premature death.

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Meaning of Insurance

Insurance means a promise of compensation for any

potential future losses. It facilitates financial protection against

by reimbursing losses during crisis. There are different insurance

companies that offer wide range of insurance options and an

insurance purchaser can select as per own convenience and

preference.

Several insurances provide comprehensive coverage with

affordable premiums. Premiums are periodical payment and

different insurers offer diverse premium options. The periodical

insurance premiums are calculated according to the total

insurance amount.

Mainly insurance is used as an effective tool of risk

management as quantified risks of different volumes can be

insured.

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Definition of 'Insurance'

A contract (policy) in which an individual or entity receives

financial protection or reimbursement against losses from an

insurance company. The company pools clients' risks to make

payments more affordable for the insured.

When shopping around for an insurance policy, look for the

best priced package that is right for you - prices can vary from

one insurance company to the next. And make sure you know

what you want. Some individuals, for example, prefer 24-hour

claims service or face-to-face contact with an insurance

representative. Also consider the claims settlement process, the

amount of the deductible and the extent of the replacement

coverage. Insurance companies and the policies they offer are not

all the same, so think about more than just the price.

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History of Insurance Industry

The history of life insurance in India dates back to 1818

when it was conceived as a means to provide for English

Widows. Interestingly in those days a higher premium was

charged for Indian lives than the non-Indian lives as Indian lives

were considered more risky for coverage. The Bombay Mutual

Life Insurance Society started its business in 1870. It was the

first company to charge same premium for both Indian and non-

Indian lives. The Oriental Assurance Company was established

in 1880. The General insurance business in India, on the other

hand, can trace its roots to the Triton (Total) Insurance Company

Limited, the first general insurance company established in the

year 1850 in Calcutta by the British. Till the end of nineteenth

century insurance business was almost entirely in the hands of

overseas companies. Insurance regulation formally began in

India with the passing of the Life Insurance Companies Act of

1912 and the provident fund Act of 1912. Several frauds during

20's and 30's sullied insurance business in India. By 1938 there

were 176 insurance companies. The first comprehensive

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legislation was introduced with the Insurance Act of 1938 that

provided strict State Control over insurance business. The

insurance business grew at a faster pace after independence.

Indian companies strengthened their hold on this business but

despite the growth that was witnessed, insurance remained an

urban phenomenon.

The Government of India in 1956, brought together over

240 private life insurers and provident societies under one

nationalized monopoly corporation and Life Insurance

Corporation (LIC) was born. Nationalization was justified on the

grounds that it would create much needed funds for rapid

industrialization. This was in conformity with the Government's

chosen path of State lead planning and development. The (non-

life) insurance business continued to thrive with the private

sector till 1972. Their operations were restricted to organized

trade and industry in large cities. The general insurance industry

was nationalized in 1972. With this, nearly 107 insurers were

amalgamated and grouped into four companies- National

Insurance Company, New India Assurance Company, Oriental

Insurance Company and United India Insurance Company. These

were subsidiaries of the General Insurance Company (GIC).The 14

general insurance business was nationalized after the

promulgation of General Insurance Business (Nationalizations)

Act, 1972.

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Objectives

• To understand and measure the impact of advertising in the insurance market.

• To measure the effectiveness of advertisement/promotional activities for a particular product class and corporate

Advertising

• To create awareness about the relevance of advertisement to the industry.

• To understand and measure the affect of advertising in brand building ,brand call and finally the choice of plan while

buying it.

Literature Review16

The insurance industry thrives on financial marketing organizations selling/marketing products to agencies...and agencies selling/marketing products to agents, who in turn sell to these products to consumers.

Broad advertising is typically done at the consumer level. However, at the end of the day insurance companies must attract agents to sell the products.

Matin Khan-“Consumer Behaviour and Advertising Management”,2006

The author deals with the consumer behavior as far as the advertising is concerned. The book deals with the usual aspects of consumer behavior like culture ,social class, lifestyle and psychographic segmentation etc. The author also discusses outlet selection, consumerism, customer delight ,e-consumer behavior and changing consumer behavior in the Indian Context.

Further value addition has been done by discussing ethical and social issues in advertising, management of an advertising agency and role of advertising in national development with the help of various Indian examples and case studies.

Flemming Hansen, Sverre Riis Christensen- “Emotions, Advertising and Consumer Choice

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Emotions, Advertising and Consumer Choice focuses on recent neurological or psychological insights originating from brain scanning or neurological experiments on basic emotional processes in the brain and their role in controlling human behavior. These insights are translated by the authors to cover the behavior of ordinary individuals in every-day life. The book looks at these developments in the light of traditional cognitive theories of consumer choice and it discusses the implications for advertising and other communication testing. The book offers a first-time through review of contemporary thinking in the field of consumer behavior and an exhaustive amount of empirical evidence to support the authors' notion of an emerging paradigm of emotionally-based consumer choice where mental brand equity becomes a central phenomenon.

S. Ramesh Kumar- “Consumer Behaviour and Branding: Concepts, Readings and Cases-The Indian Context”,Pearson Education.

India is one of the emerging markets that pose a unique set of challenges to marketers.The importance of the context and the usefulness of concepts in the Indian context is the core proposition. The diversity of a mix of factors such as cultural

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aspects,lifestyles, demographics and unbranded offerings make consumer behaviour a fascinating study. The autor focuses on the behavioural principles of marketing and its application to branding in the Indian context.

Research Methodology

Research methodology is a strategy that guides a research in providing answers to research questions and for this, research survey is being done. “Accuracy of the study depends on the systematic application of the method”. The researcher has to decide the method to be used that helps him to get a desired direction in a systematic way. This studying the following manner.

Research Design:

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A research design is a framework or blueprint for conducting the marketing research project. It specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve marketing research problem. Conclusive research is designed to assist the decision maker in determining evaluating and given situation

Being the study descriptive in nature, it will go through theoretical data collection, and its analysis of a survey questionnaire.

Source of Data: This study is mainly based on primary data which has also been gathered from different persons in the age group 0f 25-40 and required secondary data is collected from various newspapers, journals, magazines and websites for the purpose of getting insights into the insurance industry.

Research Method: Study is based on sampling not the census method which limits its universality.

METHODOLOGY ADOPTED

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Sample Techniques

The sampling techniques used in this project are probability sampling techniques and the methods used in cluster sampling. Random Sampling is used as a part of the survey to make it easier. Questionnaires were used to conduct the survey. Various Pie Charts were used to depict the analysis.

Sampling Unit

The respondents who were asked to fill out questionnaires are the sampling units. These comprise of employees of MNCs, Govt. Employees, and Self Employed, housewives, students etc.

Sample size

The sample size was restricted to only 50 between age group of 25-40, which comprised of mainly peoples from different regions of the city.

Sampling Area

The area of the research was Mumbai (Tilaknagar)

DATA COLLECTION

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Structured Questionnaire

In this collection data, structured questionnaire is used as a tool by asking a set of standardized questions to know the effect of Insurance Advertisement and behavior of the people for their response

Interview

The next step involved in collecting information requires discussion with people. Thus valuable information was gathered through informal friendly talks with the people.

VARIOUS ADVERTISING STRATEGIES IN THE ISURANCE INDUSTRY

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Study of promotional strategy of various insurance companies shows that they cover you at every step in life.

Over the last few months, advertising has been advertising in outdoor ,television and press. Building image and creating a differential identity in the most creative and compelling manner is what the advertising is doing as far as the insurance industry is concerned.The creative execution heightened the emotional connect with the brand.

For the same purpose ,various insurance companies are using different advertising strategies which can make their products and services reach to the masses.

ELECTRONIC MEDIA

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Television advertising / Music in advertising The TV commercial is generally considered the most effective mass-market advertising format, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events. The annual Super Bowl football game in the United States is known as the most prominent advertising event on television. The average cost of a single thirty- second TV spot during this game has reached US$3 million (as of 2009). The majority of television commercials features a song or jingle that listeners soon relate to the product. Virtual advertisements may be inserted into regular television programming through computer graphics. It is typically inserted into otherwise blank backdrops or used to replace local billboards that are not relevant to the remote broadcast audience. More controversially, virtual billboards may be inserted into the background where none exist in real-life. This technique is especially used in televised sporting events. Virtual product placement is also possible.

Infomercials

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An infomercial is a long-format television commercial, typically five minutes or longer. The word "infomercial" combining the words "information" & "commercial". The main objective in an infomercial is to create an impulse purchase, so that the consumer sees the presentation and then immediately buys the product through the advertised toll-free telephone number or website. Infomercials describe, display, and often demonstrate products and their features, and commonly have testimonials from consumers and industry professionals.

Radio advertising

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Radio advertising is a form of advertising via the medium of radio. Radio advertisements are broadcast as radio waves to the air from a transmitter to an antenna and a thus to a station or network in exchange for airing the commercials. While radio has the limitation of being restricted to sound, proponents of radio advertising often cite this as an advantage. Radio is an expanding medium that can be found not only on air, but also online. According to Arbitron, radio has approximately

241.6 million weekly listeners, or more than 93 percent of the U.S. population.

Online advertising

Online advertising is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers. Online ads are delivered by an ad server. Examples of online advertising include contextual ads that appear on search, banner ads, in text ads, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including e-mail spam..

Press advertising

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Press advertising describes advertising in a printed medium such as a newspaper, magazine, or trade journal. This encompasses everything from media with a very broad readership base, such as a major national newspaper or magazine, to more narrowly targeted media such as local newspapers and trade journals on very specialized topics. A form of press advertising is classified advertising, which allows private individuals or companies to purchase a small, narrowly targeted ad for a low fee advertising a product or service. Another form of press advertising is the Display Ad,

Celebrity branding

This type of advertising focuses upon using celebrity power, fame, money, popularity to gain recognition for their products and promote specific stores or products. Celebrities are often television or print adverts to advertise specific or general products. Amitabh Bachchan has been the brand ambassadorof ICICI Pru.

PRINT MEDIA27

Mobile billboard advertising

Mobile billboards are generally vehicle mounted billboards or digital screens. These can be on dedicated vehicles built solely for carrying advertisements along routes preselected by clients, they can also be specially equipped cargo trucks or, in some cases, large banners strewn from planes. The billboards are often lighted; some being backlit, and others employing spotlights. Some billboard displays are static, while others change; for example, continuously or periodically rotating among a set of advertisements. Mobile displays are used for various situations in metropolitan areas throughout the world, including: Target advertising, One-day, and long-term campaigns, Conventions, Sporting events, Store openings and similar promotional events, and Big advertisements from smaller companies. In-store advertising

In-store advertising is any advertisement placed in a retail store. It includes placement of a product in visible locations in a store, such as at eye level, at the ends of aisles and near checkout counters (aka POP—Point Of Purchase display), eye-

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catching displays promoting a specific product, and advertisements in such places as shopping carts and in-store video displays.

Coffee cup advertising

Coffee cup advertising is any advertisement placed upon a coffee cup that is distributed out of an office, café, or drive-through coffee shop. This form of advertising was first popularized in Australia, and has begun growing in popularity in the United States, India, and parts of the Middle East.

ROLE OF ADVERTISING IN INSURANCE INDUSTRY

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It is an informative or persuasive message carried by a non personal medium & paid for by an identified sponsor whose organization or product is identified in some way. It is an impersonal and one way communication about a product or organization that is paid by a marketer

Advertising is a form of communication used to persuade an audience (viewers, readers or listeners) to take some action with respect to products, ideas, or services.

Corporate advertising can tell a story about a company as a whole, large organizations may need to use corporate ads to simplify their image in the minds of key constituents and to show what unifies the company, despite the geographical spread and variety of its awareness and give the brand a larger-than-life image.

Advertising effectiveness means different things to the groups responsible for its different effects. To the writer or artist, effective advertising is that which communicates the desired

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message. To the media buyer, effective advertising is that which reaches prospective buyers a sufficient number of times. To the advertising or marketing manager, effective advertising is that which, together with other marketing forces, sells his brand or product. To the general manager, effective advertising produces a return on his firm’s expenditure

Throughout the range of modern businesses, advertising can play an essential role in the success or failure of a given enterprise. The ability to reach audiences, convey messages, and create an overall image for an individual or business are powerful tools, and some companies may even spend most of their budgets on advertising efforts in an attempt to use these tools to their fullest advantage. In the insurance industry, a great deal of an agent or firm's success depends on the skill with which prospects are approached and handled, and the very best insurance agents in operation know that the creation of positive impressions and the establishment of credibility are essential ingredients for success. On their own time, agents must use various methods to achieve these goals of making the right impression and maintaining trust throughout the sales and consultation process.

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But this requires personal attention, and can only be delivered to a limited number of prospects at any given time. Insurance industry advertising, then, addresses the need for creating positive impressions and establishing credibility in the absence of the actual agent.

If this seems like a challenging feat, that's because it by all measures, it is. Trust and credibility are privileges typically won through a great deal of face time and the consistent demonstration of dependability and good intentions, and such traits can be especially difficult to portray from a distance. Thankfully, accomplish this task through creating various impressions and ideas that either overtly or discreetly suggest the good qualities of an agent or firm, without the need for personal attention.

Insurance industry advertising accomplishes the task of reaching out to those prospective clients who would otherwise be left to

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approach insurance agents and brokers on their own, unprompted. Able to present solutions to those who may have no other method of arriving at a sound answer for their insurance questions, such advertising serves as the broad public face of a given agent or firm, and is the first point of contact that will be established between a client and the agency from which a policy or package is purchased.

Far from being a simple gimmick to increase sales, thought such an objective can certainly be present in some campaigns, insurance industry advertising has its roots in the establishment of a relationship between clients and companies, setting the stage for future interactions and aiding the course of contract development.

This function isn't only an essential one; it's also able, in many cases, to help catalyze the process of selling insurance. While agents and firms without extensive advertising –or any advertising at all-- must often rely on performing each step of the trust-building process manually, truly excellent insurance advertising campaigns can make this process move much more quickly, allowing for a higher volume of more successful sales. Great insurance industry advertising has a great deal to do with establishing an image and distributing it to prospective clients, but it is also a way to streamline insurance sales itself, providing

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a compounded benefit that makes working in the modern market without considerable advertising efforts somewhat difficult.

Embracing the necessity of advertising, and following through with the creation of quality, carefully-prepared campaigns, is a great way for modern insurance agents and companies to expand their business and take advantage of the powerful possibilities in forming and conveying wisdom of retaining insurance.

IRDA(The Insurance Regulatory and

Development Authority)34

The IRDA Act, 1999 was passed as per the major recommendation of the Malhotra Committee report (1994) which recommended establishment of an independent regulatory authority for insurance sector in India. Later, it was incorporated as a statutory body in April, 2000. The IRDA Act, 1999 also allows private players to enter the insurance sector in India besides a maximum foreign equity of 26 per cent in a private insurance company having operations in India. The FDI limit in insurance sector was raised to 49% in July 2013. It serves as an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith. IRDA role is to protect rights of policy holders & they provide registration certification to life insurance companies & responsible for renewal, modification, cancellation & suspension of this registered certificate.

Role of the Insurance Regulatory and Development Authority (IRDA)

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The Insurance Regulatory and Development Authority (IRDA) was constituted to regulate and develop insurance business in India. As a key part of its role, it is responsible to protect the rights of policyholders. In order to create awareness about IRDA, it's role, duties and responsibilities are stated here under:

IRDA provides a certificate of registration to a life insurance company. IRDA is responsible for the renewal, modification, withdrawal, suspension or cancellation of this certificate of registration.

IRDA frames regulations on protection of policyholders' interests thus offering policyholders the right to voice their complaints against insurers or insurance companies. The IRDA has set up the grievance redressal cell to take up the complaints of the policyholder.

It specifies the requisite qualifications, code of conduct and practical training for intermediaries or insurance intermediaries and agents.

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It specifies the code of conduct for surveyors and loss assessor,also promoting efficiency in the conduct of insurance businesses.

It promotes and regulates activities of professional organisations connected with life insurance,it also levies fees and other charges to carry out the purposes of the IRDA Act.

It can call for information from, undertake the inspection of, conduct enquiries and investigations including the auditing of insurers, intermediaries, insurance intermediaries and other organisations connected with the business of life insurance.

It specifies the form and manner in which books of account should be maintained and statements of accounts should be rendered by insurers and other insurance intermediaries.

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It regulates the investment of funds by insurance companies. The IRDA also regulates the maintenance of margins of solvency. It adjudicates disputes between insurers and intermediaries or insurance intermediaries.

It specifies the percentage of premium income of the insurer to finance schemes for the promotion and regulation of certain specified professional organizations. It specifies the percentage of life insurance business to be undertaken by an insurer in the rural or social sector and it exercises any other powers as may be prescribed.

Data Analysis and Interpretation

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Q1.Which media you mostly use for information about Insurance?

42%

36%

14%

8%

Sales

Television

Newspaper

Internet

Radio

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Q2. Have you seen any Insurance Product Advertisement?

96%

4%

Yes

NO

40

Q3. On Which channel you saw Insurance advertisements mostly?

14%

26%

4%

56%

Zee tv

Sony

Star

News channel

41

Q4. Can u recall the content of advertisement of any insurance company?

94%

6%

Yes

No

42

Q5. Does advertisement of any product leaves a lasting impact on your mind?

80%

20%

Yes No

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Q6. Which Insurance Company would you prefer the most?

36%

14%

34%

16%

LIC

HDFC Standard Life Insurance

ICICI Prudential Life Insurance

Reliance Life Insurance

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Q 7. Does advertising effect ultimately your decision making regarding the insurance

86%

14%

Yes

No

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CASE STUDY

National Online College

Finds new, high value student inquiries through targeted display advertising, increases enrollment rate by 32%

Customer Description

An innovative online college with a national footprint, offering degree programs to working adults.

Challenge

With a mandate to grow enrollments, the online marketing team needed to expand beyond its successful organic and paid search efforts. Historically they had relied on third party pay-per-lead affiliates to generate new inquiries.

While the cost per inquiry from affiliates was promising, subsequent poor enrollment rates were driving up their cost per enrollment to unacceptable levels. The team was wasting too much of their budget pursuing people unlikely to ever enroll. With constrained budgets, an untargeted advertising strategy was not an option.

Moreover, the marketing team’s “bottom-funnel” approach was already capitalizing on existing market demand through SEM,

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The Challenge Generate new, high value student enrollments through targeted display advertising

SEO and behavioral targeting techniques. What they needed was a cost-effective way to increase enrollments by creating new demand from high value prospects whom they weren’t reaching through their existing strategies.

Solution

The marketing team partnered with TruSignal to develop a tar- geted display advertising program for prospecting; one that would work synergistically with their existing conversion cam- paigns to reach and connect with high quality prospects earlier in the consideration cycle. First, TruSignal built a custom audience of people who “looked like” current, successful students. In an offline

process, TruSignal combined a sample of the college’s past inquiry and enrollment data (first party data) with its own third party data. Using predictive modeling techniques, TruSignal identified 142 predictive factors from 11 different datasets that defined a high value prospect for the college. Applying this new formula to the entire U.S. population, TruSignal matched an audience of 10 million “lookalikes”— online adults who most closely shared these same characteristics, and were more likely to apply and subsequently enroll in their programs. Now, the campaign was ready to launch.

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The Solution

A custom-built online audience of “lookalikes” based upon a sample of currently enrolled students

4% 3%

32%

13%12%

8%

7%

6%

6% 5%4%

Financial Information

Public Records

Financial Transaction

Demographics

Purchase History

Geography

Hobbies n Interest

Census

Property Records

Household composition

Business Information

Nuts & Bolts

Because our client did not have a media agency, TruSignal managed the campaign using a Demand Side Platform (DSP) partner, which enabled real- time bidding on exchange-based display ad inven- tory. The campaign reached millions of prospects across thousands of different web sites, leveraging available low-cost ad inventory.

In order to maximize results, TruSignal employed the DSP platform’s response-optimization tools throughout the campaign. TruSignal used these tools to determine which patterns of geography, ad copy and creatives, day parting, ad

48

exchanges and publishers would elicit the highest response rates from this pre-screened, high potential audience.

Campaign performance was measured in two ways, on both a last-click and view-through basis. Last- click conversions tracked users who were shown and clicked directly on the ad. View-through attribution tracked users who saw the ad and subsequently went straight to the branded website or conducted branded keyword searches. View-through attribu- tion allowed a seven day conversion window.

Additionally, TruSignal implemented a closed-loop conversion tracking process that anonymously tracked inquiries throughout the conversion funnel — from impressions to clicks, clicks to appli- cants, and applicants to enrollments. This more holistic approach to measurement provided a complete picture and understanding of the true results of the prospecting campaign.

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Results

The high quality of the inquiries from the campaign was obvious. By targeting only those high value prospects most likely to enroll, the campaign produced new student in quiries who enrolled 32% more often, compared high value prospects and subsequently drove them to convert

through the existing conversion campaigns to average. Moreover, the cost per enrollment was 21% below the target. Interestingly, only one in every seven inquiries from the campaign came from people who directly clicked on the ad. Because of the closed-loop reporting, the college tracked that six times as many people fol- lowed up after seeing the ad by going directly to the URL or typing the college’s name into a search engine.

As you can see in the graph to the right, over 40% of the view-through conversions occurred within 24 hours of the last targeted banner impression. Within a seven day view-through window, more than 80% of inquiry conversions came through.

By measuring the time lag between the last cam- paign impression and the view-through conversion event and tracking

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The Results

INQUIRIES:

32% higher enrollment rate

21% under budget

each inquiry back to their “last click” source, the marketing team measured that 74% of the inquiries generated were incremental to the existing conversion efforts. The TruSignal prospecting campaign created new demand from

Bottom Line

By targeting an online audience of current student “lookalikes” TruSignal generated 32% higher qual- ity inquiries and reduced the cost per enrollment by 21%. Moving beyond last-click metrics and fac- toring in view-through attribution enabled the marketers to quantify the full impact of the TruSignal prospecting campaign. With TruSignal’s help, the college created new student demand and accelerated their already successful search and re- targeting strategies

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Leading Life Insurance Broker

Firm reaches new high value customers through targeted

display advertising

Customer Description

A leading broker of term life insurance with a keen focus on ROI has successfully grown by leveraging several marketing channels, including print, TV broadcast, radio, SEO and SEM. These strategies were all working well, but they wanted to accelerate growth, and recognized the need to expand online.

The Challenge

The company experimented with online display advertising by running campaigns through various ad networks and trying

different types of contextual and demographic targeting. On average, the leads generated through display did not convert well and the lifetime value of new customers was sub-par. The quality of the display traffic was nowhere near the quality of their search

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THE CHALLENGE

Generate consistent results and acceptable ROI from display advertising campaign

The Solution

Identified 8 million online consumers with the same attributes as current high value customers.

results. The company was convinced there is an audience of great prospects out there, but they needed a more precise way to target them.

The Solution

The client asked TruSignal to build a custom audience targeting strategy to reach online consumers with the same profile as their current, highest value customers. TruSignal combined a sample of the client’s high value customer data (first party data) with its own 40 offline consumer data sources (third

party data). TruSignal’s patented modeling engine identified more than 100 predictive factors that defined a high value prospect for the advertiser. The final “lookalike” audience model identified more than 8 million online consumers who are more likely to become customers and generate above average profitability, i.e the client’s ideal audience.

Next, TruSignal executed the audience targeting campaign using real-time bidding (RTB) exchange media where we could optimize the bidding strategies as the campaign progressed. The campaign ran for 60 days and generated millions of impressions.

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THE RESULT

LEADS:

Converted at 2X average

SUDTOMER SPEND:

60% greater value per new customer

CAMPAIGN ROI:

186%

The campaign utilized three different ad sizes, three creative concepts, and a proven landing page.

Performance was measured on leads generated through last- click attribution, a unique tracking phone number assigned to the campaign, and by view-through attribution from search and organic traffic. In addition, TruSignal implemented closed loop conversion tracking to measure complete attribution from impression all the way to insurance policy conversion and premium value -- allowing the advertiser the ultimate KPI reporting from start to finish.

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Results

Initially, the results seemed unimpressive. Click-thru rates (CTR) were 25% lower than industry averages. However, the value of TruSignal’s audience targeting solution became evident, once the sales team began to book new customer business. The agents converted leads from the campaign at DOUBLE the overall company average. Moreover, the lifetime value (LTV) of these new customers were 60% greater than

average (based on initial policy premium amounts). With the increase in conversion rates and LTV amounts, the company realized a 186% ROI from the campaign.

Accelerating Search Success

The display campaign also accelerated the company’s success in search. High value prospects who were exposed to the display ads were later converting via existing search channels. In fact, for every 1 direct customer acquired from the display campaign, there were 6 additional customers exposed to the campaign who converted through search (as measured by a 7-day view-through conversion window).

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Bottom Line

By focusing their display dollars on only high value prospects, the advertiser was able to eliminate more than 80% of wasted

impressions compared to other “upper funnel” display campaign approaches. TruSignal’s custom audience targeting opened up a new display channel with 186% ROI and improved LTV metrics from existing search campaigns

by 60%.

100% Increase

60% Increase

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0-conversion rate Average conversion amount

CONCLUSION

There has been a tectonic shift in advertising the insurance companies. Insurance can help them against such calamities. People bought the idea and started buying insurance If we see the recent ads they are talking about how “SBI Life” can help smoothen your old-age life or how “ICICI Prudential” can help you in receiving pensions etc. This sounds more logical. Each ad speaks about how their firms offers can help you instead of telling how insurance as a whole can help you.

The study shows that advertisement is very much important for any business. A huge amount is paid by companies against advertisement. There are many ways available to give advertisement on which this amount is paid this are TV, Newspaper, Radio, Internet etc. At the initial phase of a company it is important that they give emphasis on corporate advertising because it helps in brand recall.

Giving advertisement in any type of media is not the only medium, there are many other ways also like social service, by way of educating people.

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In the market it can easily be realized that the Television audience had a huge impact of these ads. Although the most popular medium of information gathering has emerged as the arena of media war. But yes the old players news paper and radio are still on their high trying to dominate in the market. Internet being in its youth phase is rapidly reaching in the elite class

The survey clearly determines that people are aware of insurance advertisements as most of them have seen Insurance advertisements which could provide them with ample knowledge about the products provided by the insurance companies.

Apart from entertainment channels like Zee T.V , Sony etc where family soaps are having the highest TRPs contribute mainly for in FMCG sector. Though they show a bit of Insurance Ads too. In the emerging economy of INDIA News and business channels have risen surprisingly and contributing in the promotion of insurance sector.

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Maximum number of people could recall the content of the advertisement of of the insurances company which again signifies that the content of any advertisement have a lasting impact on the consumer’s mind which can determine his buying behavior with respect to the policy. Thus the content has to be realistic and authentic.

Insurance is considered to be sold by push strategy only, and we are witnessing alternative financial Instruments available in the market giving tough competition. The first thing before buying an Insurance Product in the competetive market comes in the mind, is the BRAND. It really plays a tremendous role for a product to be bought. It seems clearly in the survey

As per the survey the most preferred insurance company among the policy buyers in public sector is none other than LIC but the private players are also not far behind and when it comes to the private sector, ICICI Prudential Life Insurance is the most favoured among the consumers followed by Reliance Life Insurance and HDFC Standard Life Insurance

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It can be interpreted from the survey that effective advertising has a great impact on the decion making process of the consumers for which the advertising has to be effective so as to leave a lasting impact on the consumers’ mind and help them make correct decisions.

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FINDINGS

Brand building advertising is synonymous with product advertising and is commonly seen in traditional mass media, including TV, radio, magazine, and newspaper which is depicted from the analysis.

Brand building advertisements tend to be product/service- (or retailer-) oriented with the purpose to establish a positive image and creating demand for a product or service that leads to eventual purchase.

The communication route is typically one- to-many and is designed to reach a mass audience by using a tactic of capturing the attention of users.

Majority of public use television for entertainment or information gathering newspaper. Radio is seems to be outdated in urban areas. But after revolution in mobile technology and satellite radio it again starts growing.

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This survey question shows that how much brand awareness is important.Majority of the public goes behind brand name. That’s why corporate advertising plays a vital role in growing stage. It is also found that Insurance companies like to give their ads in News/Business channel.It may be because of Insurance is related to finance and Insurance is mainly taken as a tax saving instruments.

During survey a collection of various insurance companies ad were also shown to the respondent..They liked some very much.Some of them even got emotional because it touches their heart. But when it is asked that how many of them now would like to purchase insurance policies then instead of raising hands deep silence come as an answer.It shows that Liking an advertisement does not always guarantee the sale of an insurance policy.. Only few of them actually buy after seeing ad especially in case of

Insurance.

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RECOMMENDATIONS

The recommendations are as follows:

An intense AIDA model needs to be adopted the AIDA model (Awareness, Internet, Desire, and Action).

To create the awareness regarding Product through

1. Print & Electronic Media Advertisement should be done (As we can see intense adcampaign of HDFC Standard Life and Bajaj Allianz.)

2.After the initial promotional campaign the relative advantage of an Insurance Company should be highlighted over their competitors

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3.Hoardings at prime areas should be used.

Creating offers like lucky draws for the users of Internet and giving free gifts to the customer may encourage them.

The insurance sector has largely stuck to images of happy families, carefree couples and cute babies. We have to use a different route to break the clutter, and humor and endorsement of celebrities is some of the routes available to us.

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REFERENCES

Arens, William. F,-The Mc Graw- hill/Irwin series in marketing: “Contemporary advertising”

Ronald,LaneW.(2008):“Kleppner’s Advertising Procedures,Tata Mc Graw Hill Education”

Mackay, Adrian (1999): “Fundamentals of Advertising”

Tyagi, C.L, Kumar, Arun(2004): “Advertising Management”

Cathrine, Jansson-Boyd (2010): “Consumer Psychology”

Malani,Anup and Freeman ,Lee &

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Brena:”Advertisements Impact the Physiological Efficacy of a Branded Drug”

Baker ,Stephen (1983): “Systematic

Approach to Advertising Creativity”

North, Douglass C., (1993) “The New Institutional Economics and Development”, Essay

Khan ,Matin A(2006) :“Consumer Behaviour and Advertising Management”

Kumar ,S. Ramesh -:“Consumer Behaviour and Branding: Concepts, Readings and Cases-The Indian Context”,Pearson Education.

ONLINE RESOURCES

www.sebi.gov.in www.rbi.org.in www.irda.gov.in

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