Tuesday, January 31, 2017

Life Insurers "Like" Social Media Marketing

Below is a link to an interesting article that talks about how U.S. life insurance companies are heavily utilizing social media and digital digital to go after market share.

It comes as no surprise that traditional print advertising is estimated to decline for the life insurance industry (as well as companies across most other industry segments). By contrast, these same companies are increasing their ad budgets for 2017 in the areas of social media and internet marketing.

I found the commentary on ROI to be quite interesting.  With traditional direct mail campaigns, insurers use simple bar codes to help simply link ad dollars spent per mailer to actual sales (and in effect dictate future increases/decreased in marketing spend). In contrast, calculating the same ROI on social media dollars is much more difficult because of the challenge in tracking a customer’s life cycle in terms of where it began and how it resulted in an eventual sale. The article states how Insurers are going to have to "learn the hard way – through trial and error – what promotional strategies work." Thinking a step further, I could also see Insurers expanding their employer base to include marketing professionals outside the more traditional hires (i.e. FP&A analysts that track direct mail spend vs revenue) with an expertise in enhancing online ad effectiveness.


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