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Online car insurance purchase

behaviour

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Online car insurance purchase behaviour is changing.  The natural search term “car insurance” is very important if you are involved in selling car insurance.  This term also is one of the most expensive terms that you can bid for on Paid Search with Google in the UK.  According to Hitwise data it now makes up 17% of all car insurance searches.  Although this may appear to be a high percentage of car insurance searches this term shows a 36% decline over the last five years.  This change in behaviour is interesting because the total amount of car insurance being purchase online has increased steadily over the last five years.  So in theory this search term should have increased or at least held steady but not declined. There are several reasons for this change in behaviour but the primary reason is advertising.  If you ever want living proof that advertising works and particularly TV advertising then this is as a good an example as any.  In the last five years the UK has seen extensive marketing by a growing number of aggregator websites (comparison websites) that focus on car insurance.  In the last three years the number of aggregators that are spending on TV advertising has grown from two to total of nine and the money being spent isn’t small.  Two websites are spending approximately £25M in 2009 with the other seven spending close to £10M each.  At one point four aggregators were putting out 1,500 TV spots per day.  As a consequence consumers are being primed to to use the search term “compare car insurance.”  The result is a steady decline in the use of the term “car insurance” and a nearly threefold increase in the use of “compare car insurance.”  In fact, the Paid Search term “compare” is so expensive and so generic that part of the brief for Comparethemarket’s advertising agency was to come up with a strategy that overcame this situation.  Concentrating on the “market” aspect of the client’s name led to the brilliantly executed “meerkat” idea.  A search term that could be bought using Google Adwords for a fraction of the money for “compare car insurance.” December 2009
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Online car insurance

purchase behaviour

Online car insurance purchase behaviour is changing.  The natural search term “car insurance” is very important if you are involved in selling car insurance.  This term also is one of the most expensive terms that you can bid for on Paid Search with Google in the UK.  According to Hitwise data it now makes up 17% of all car insurance searches.  Although this may appear to be a high percentage of car insurance searches this term shows a 36% decline over the last five years.  This change in behaviour is interesting because the total amount of car insurance being purchase online has increased steadily over the last five years.  So in theory this search term should have increased or at least held steady but not declined. There are several reasons for this change in behaviour but the primary reason is advertising.  If you ever want living proof that advertising works and particularly TV advertising then this is as a good an example as any.  In the last five years the UK has seen extensive marketing by a growing number of aggregator websites (comparison websites) that focus on car insurance.  In the last three years the number of aggregators that are spending on TV advertising has grown from two to total of nine and the money being spent isn’t small.  Two websites are spending approximately £25M in 2009 with the other seven spending close to £10M each.  At one point four aggregators were putting out 1,500 TV spots per day.  As a consequence consumers are being primed to to use the search term “compare car insurance.”  The result is a steady decline in the use of the term “car insurance” and a nearly threefold increase in the use of “compare car insurance.”  In fact, the Paid Search term “compare” is so expensive and so generic that part of the brief for Comparethemarket’s advertising agency was to come up with a strategy that overcame this situation.  Concentrating on the “market” aspect of the client’s name led to the brilliantly executed “meerkat” idea.  A search term that could be bought using Google Adwords for a fraction of the money for “compare car insurance.” December 2009
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