increasing insurance applications with paid search...source: google/conento/direct seguros, paid...

Increasing Insurance Applications with Paid Search Understanding the Complete Marketing ROI for Direct Seguros Google/Conento/Direct Seguros Spain, February 2011

Source: Google/Conento/Direct Seguros, Paid Search is the Most Cost-Effective Way to Increase Insurance Applications, Spain February 2011 2

Agenda

1 Background, Objectives, and Methodology

2 Call Center

3 Website Applications

4 Marketing ROI

5 Understanding Digital

6 Conclusions

Source: Google/Conento/Direct Seguros, Paid Search is the Most Cost-Effective Way to Increase Insurance Applications, Spain February 2011

Finance: Background, Objectives, & Methodology

3


Background Direct Seguros, as part of the AXA, Europe’s largest insurer, provides a range of insurance solutions for the Spanish market. It also has an extensive network of direct insurance businesses in France, Italy, Poland and Portugal. Established in 1996 as an insurance company specializing in car insurance, it is now one of the leading insurance companies in Spain, marketing its products directly to consumers (no aggregators/brokers etc). Direct Seguros has adopted the web channel completely and now accepts applications via both online and its call centre. In 2007, the company extended its insurance offer to include motorbike insurance among its core offering.

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0715

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0705

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0826

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0808

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0907

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1005

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Call Center Internet

64%

36% Call CenterInternet

64% of Direct Seguros applications are made offline via the call center, while 36% are made online.

Direct Seguros accepts applications both online and offline via its call centers.

Background

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Objectives and Methodology Objectives

•  Using Direct Seguros’ internal and proprietary data (October 2007- June 2010) •  Application data (split by call center, Internet) •  Price/rate •  Website data and analytics

•  Direct marketing and TV advertising investment and data from other sources e.g.: •  Google search volume •  Economic indices

Various econometric models were built to understand the return on investment of communication media and marketing.

Methodology

•  Identify the key marketing drivers that generate new applications •  Quantify the effectiveness and efficiency of these drivers

•  This applies to both applications made via the call center as well as those coming from the Internet. •  Understand the role played by website traffic along with the media (offline and online) in generating new applications.

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Finance: Call Center What are the drivers of offline call centre applications?

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13/10/2007

10/11/2007

08/12/2007

05/01/2008

02/02/2008

01/03/2008

29/03/2008

26/04/2008

24/05/2008

21/06/2008

19/07/2008

16/08/2008

13/09/2008

11/10/2008

08/11/2008

06/12/2008

03/01/2009

31/01/2009

28/02/2009

28/03/2009

25/04/2009

23/05/2009

20/06/2009

18/07/2009

15/08/2009

12/09/2009

10/10/2009

07/11/2009

05/12/2009

02/01/2010

30/01/2010

27/02/2010

27/03/2010

24/04/2010

22/05/2010

19/06/2010

Base level 63.6%

Price/rate 23.4%

TV advertising 1.4%

Holidays and seasonality 2.1%

Paid Search 1.4%

Direct Marketing 0.6%

7.4% of first call center contacts come as a result of visiting www.directseguros.es. And paid search increases these contacts by a further 1.4%.

Consumer demand, economic factors etc.

8.8% of the contacts of call center

come from online sources

Cal

l Cen

ter C

onta

cts Web visits 7.4%

Drivers of offline Call center applications

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The website generates 7.4% of applications. Paid search contributes 1.4% of applications

The base level includes the effect of consumer demand, motor vehicle sales

seasonality, the economic situation

etc.

Base level Seasonality Price/rate Direct Marketing

TV Advertising Paid Search Web traffic

Drivers of offline Call center applications

64% 2%

1.4%

89% of applications are not influenced by marketing

Only 11% of applications are influenced by marketing.

23% 0.6%

7.4% 1.4%

8.8% via online

Of which 8.8% come from online

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Finance: Website Applications What are the drivers of online applications?

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Base level Seasonality External factors

Direct Mail TV advertising

Organic Search

Paid Search

Direct web visit

28.3% 1.5% 5.5% 3.2% 1.0%

28.2%

25.2%

7.1%

Drivers of online website applications

35% of applications are not controlled by marketing

65% of applications are influenced by marketing.

61% driven by online

The web unsurprisingly generates the majority of web applications

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Finance: Marketing ROI Return on media spend

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4,100

4,200

4,300

4,400

4,500

4,600

4,700

4,800

- 50,000.00 100,000.00 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00

Wee

kly

Sale

s (U

nits

)

Weekly Media Spend €

Understanding the effectiveness of marketing spend

Due to the natural variance in both spend and sales levels over the analysis period a response curve can be drawn to understand the response or ‘elasticity’ of each marketing driver.

Media X

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4,100

4,200

4,300

4,400

4,500

4,600

4,700

4,800

- 50,000.00 100,000.00 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00

Wee

kly

Sale

s (U

nits

)

Weekly Media Spend €

ROI of each media is dependent on the point at which investment is at on the curve

Understanding the effectiveness of marketing spend

Media X

Lower investment high ROI

Higher investment,

same media, but lower ROI

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Return on Marketing investment Paid search is the most cost-

effective medium; very significantly more cost

effective than direct marketing and TV advertising.

Monetary value of an application and actual returns not shown due to client confidentiality – data indexed against total media average ROI

Direct Mail TV Branded paid search Generic paid search

55.4

26.76

17.90

The ROI of each media is based upon the media investment and return .

1.62 1.83

0.47 0.38

Offline ROI (call center)

Online ROI (website)

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Finance: Understanding Digital

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Drivers to www.directseguros.es

This is the modeled decomposition of incremental response (i.e sources of

incremental web traffic) – not an observational referral source analysis .

Base

Seasonality

Affiliates

Organic

Paid

Direct Mail

TV

22%

3%

6%

40%

21%

5%

5%

Search is the primary driver of incremental web traffic. Also significant evidence of offline media driving web traffic

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Effect of position in paid search

3rd position

Average paid position

Online application increase %

Call center applications increase %

Generic, auto and brand search terms

1.0 2.7% 1.7%

1.7 2.1% 1.3%

3.2 - - Direct Seguros average paid position

Improving position in paid search, results in a noticeable increase in applications, both online as well as offline at the call center.

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Drivers of Branded queries

Generic paid search impressions, contribute an incremental 3.2% to total branded query volume

Base online Queries

81%

Direct Marketing

1%

Seasonality 2%

Car registrations

11%

Tv Advertising 2%

Generic paid search

impressions 3%

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Drivers of incremental AdWords clicks

Significant evidence of Offline to Online synergies.

6%

2%

% Uplift in Paid search clicks

Ad position on page increases clicks by 9.6%

Competitor Ads on the page increase clicks by

1.4%

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Finance: Conclusions

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1 The Online to Offline effect is sizeable. 8.8% of offline conversions occur due to online activity

2 Paid search is the most cost-effective way to increase insurance applications: over ten times more efficient than other media

3 Improving position in paid search increases applications online by 2.7%, and offline via the call center by 1.7%

4 Considerable TV and search synergy – TV incrementally drives 6% of paid search clicks

Conclusions

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increasing insurance applications with paid search...source: google/conento/direct seguros, paid...

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