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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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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
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
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
Why are they popular?
How can you feature?
Banners
Text Link
Sponsorship
Button
XML Feed Placements (Home, Motor)
Why do we use aggregators?
VolumeBrandMedia
MixAccount-ability
Control
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!
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
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
Aggregators can form an integral part of your Media Mix
AggregatorDirect Online Marketing:
Search
Online BrandingDisplay Advertising
OfflineMarketing:
Affiliates
Search Engine Optimisation
‘Natural traffic’
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
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
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.
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.
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?
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
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?
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%
Any Questions?
www.cheeze.com