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The Rise of Aggregators What are the implications? Jamie Riddell Director [email protected]

How the rise of financial services aggregators will affect the insurance industry

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A look at how the rise of online price comparison sites for the financial services industry could impact the UK insurance industry.

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Page 1: How the rise of financial services aggregators will affect the insurance industry

The Rise of AggregatorsWhat are the implications?

Jamie RiddellDirector

[email protected]

Page 2: How the rise of financial services aggregators will affect the insurance industry

Introduction: Cheeze particulars…

• Part of Digital Marketing Group plc

• Offices in London & Ipswich

• Turnover of £14 million in 2007

• 35 employees

• IPA, DMA & SEMPO Accredited

Page 3: How the rise of financial services aggregators will affect the insurance industry

A brief history of online aggregators

• Moneysupermarket is one of the oldest aggregators online and launched “.com” in 1999

• Travelsupermarket was launched in 2004

• Increased presence, investment and development since 2006

• Heavy TV advertising pushing ‘convenience’, ‘speed’ and ‘one-stop-shop’

• Proprietary technology has advanced and XML schema’s are being rolled out across all sectors

Page 4: How the rise of financial services aggregators will affect the insurance industry

Aggregator Traffic

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08

Month

(00

0)

Un

iqu

e A

ud

ien

ce

ComparetheMarket.com Confused.com FT.com Gocompare.com MoneySupermarket.com Times Online

Page 5: How the rise of financial services aggregators will affect the insurance industry

Why are they popular?

Page 6: How the rise of financial services aggregators will affect the insurance industry

How can you feature?

Banners

Text Link

Sponsorship

Button

Page 7: How the rise of financial services aggregators will affect the insurance industry

XML Feed Placements (Home, Motor)

Page 8: How the rise of financial services aggregators will affect the insurance industry

Why do we use aggregators?

VolumeBrandMedia

MixAccount-ability

Control

Page 9: How the rise of financial services aggregators will affect the insurance industry

Volume = mass market access

2,772,000 U/A

Source: Neilsen Netratings September 2008

726,000 U/A

978,000 U/A

312,000 U/A

Be ‘bigger’ than you are

Take advantage of their advertising

Gain access to ‘pre qualified’ audience

Benefit from repeat visitors

Cross sell!

Page 10: How the rise of financial services aggregators will affect the insurance industry

Aggregators allow you to build your brand

Source: Neilsen Netratings September 2008

Take advantage of ‘walled garden’ product areas

Chose which products are shown

Chose where you are shown

Appear in their TV campaigns

‘Out-shout’ your competition

Begin a relationshipthrough CRM

Page 11: How the rise of financial services aggregators will affect the insurance industry

Aggregators are accountable

Accountability

Reporting packages offered to suit budget & brief

Integrate aggregator tracking within your

current online campaigns

Better understand length and path of customer journey

Data supplied direct to you/your Call centre

Third party adserving accepted

Track through to purchaseTrack through to ROI

Data not opinion

Page 12: How the rise of financial services aggregators will affect the insurance industry

Aggregators can form an integral part of your Media Mix

AggregatorDirect Online Marketing:

Search

Online BrandingDisplay Advertising

OfflineMarketing:

Affiliates

Search Engine Optimisation

‘Natural traffic’

Page 13: How the rise of financial services aggregators will affect the insurance industry

Aggregators offer control over pricing

Chose the aggregator(s) you want to use Pricing models:

•CPA•CPC•Tenancy•CPM•Sponsorship

Negotiate six month/ 1 year deals

Page 14: How the rise of financial services aggregators will affect the insurance industry

Implications

Positive Negative

There is a “partner benefit” from the mass brand awareness of aggregators

Sustain your Paid & Natural search

Are you paying for the same customer twice? (common theory) -Aggregator -Conversion through PPC

But, do the maths! Positive ROI

Page 15: How the rise of financial services aggregators will affect the insurance industry

Implications

Positive Negative

Aggregator deals are negotiable

Fix your CPA deal and manage your PPC campaigns/costs

Your position on an aggregator site may not reflect what your feel is your brand position in the marketplace.

Page 16: How the rise of financial services aggregators will affect the insurance industry

Implications

Positive Negative

Your presence on an aggregator site could help boost your brand credibility

Price competition means service & value offer play a small part in the decision making process.

Page 17: How the rise of financial services aggregators will affect the insurance industry

What does this mean for insurers?

However:

• Risk of over-dependency

• Their contractual terms can be aggressive

• Their IT requirements can be expensive & demanding

• Aggregator sales team service levels are (generally) poor

Who can afford to miss out on 2.7m unique users?

Page 18: How the rise of financial services aggregators will affect the insurance industry

Implications

• Benefits currently outweigh drawbacks

• Commercial and Personal products can all benefit from an aggregator presence

• We need to understand them to use them properly

• We need to be prepared for them to ‘disappear’, are you over-reliant on them for sales?

• They must be part of a mixed media schedule

Page 19: How the rise of financial services aggregators will affect the insurance industry

The Future

• Online sales will continue to grow – whether direct or via paid advertising

• Aggregators spend a significant amount to attract their customers, & if this spend declines, will their traffic follow?

• Use their success to develop your own site – customers want an easy quote process & a good price !

Growth Service 5 Star Rating

New Aggregators?

Plateau for MSM?

Page 20: How the rise of financial services aggregators will affect the insurance industry

Source: PricewaterhouseCoopers / Internet Advertising Bureau, The Advertising Association / WARC: WARC estimate for directories.

Online drives the whole market

-3.2%

4.0% 4.6%

9.9%

-0.3%

2.3% 2.8%

-6.5%

38%Year on year growth for 2007

Total advertising market growth = 4.3%

Page 21: How the rise of financial services aggregators will affect the insurance industry

Any Questions?

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