Presentation is loading. Please wait.

Presentation is loading. Please wait.

Insurance Advertising Inside The Numbers Jon Swallen TNS Media Intelligence November 5, 2009.

Similar presentations


Presentation on theme: "Insurance Advertising Inside The Numbers Jon Swallen TNS Media Intelligence November 5, 2009."— Presentation transcript:

1 Insurance Advertising Inside The Numbers Jon Swallen TNS Media Intelligence November 5, 2009

2 My Outline Focus on ad expenditures –Category and key segments –Top advertisers –Dollar volume and media allocations How ad messaging has evolved TV sports advertising

3 TNS Media Intelligence Leading provider of strategic advertising and marketing information to U.S. advertisers, agencies and media properties Competitive intelligence across 18 media segments Monitoring the industry: – 3.1 million unique products; 400,000 companies – $140+ billion in ad expenditures – over 500,000 ad occurrences collected every day

4 Media Coverage Network TV Cable TV Syndication Spot TV Hispanic TV National Newspapers Local Newspapers Hispanic Newspapers Network Radio National Spot Radio Local Radio Internet (display) Outdoor Consumer Magazines B-to-B Magazines Sunday Magazines Local Magazines Hispanic Magazines

5 Handling of 2009 Data Actual spending available through August 2009 2009 growth rates are based on January-August Full year 2009 spending projections made by applying YTD growth rates against 2008 ad dollars –Notated as 2009 (e)

6 Insurance Advertising Trends

7 Benchmarks Source: TNS Media Intelligence

8 Financial Advertising Down 19% YTD Pacing at $11.0 Billion Source: TNS Media Intelligence -18.7% -7.4% -22.5% -39.0% -18.4% $10.99 $4.49 $3.75 $1.72 $1.03 $13.47 $5.52 $4.05 $2.21 $1.69

9 Insurance Ad Spend Growth Rates Slipping +10.8% +0.7% Source: TNS Media Intelligence -7.4%

10 Insurance Advertising Segments AutoPrivate passenger auto; motorcycle; RV, et al HealthMedical; dental; drug; Medicare; disability; et al Other Insurance Products Any other specific insurance product, including life; home; property; business; annuities; et al General Promotion General promotion of an insurer and its product lines, but no clear focus on any specific product

11 Ad Expenditures By Product Segment 2009 Projected Source: TNS Media Intelligence -16.7% -9.6% +0.5% -9.5%

12 Share of Category Ad Spend Source: TNS Media Intelligence 2009 YTD 42.5% 10.1% 21.8% 25.7% 47.0% 7.6% 15.6% 29.8% 2006

13 Top Advertisers – 2008 RankInsurer Ad $ (millions) % Auto % Gen Promo 1Geico622.780%20% 2State Farm403.753%45% 3Allstate357.274%22% 4Progressive293.595%4% 5Nationwide222.569%27% Source: TNS Media Intelligence

14 Top Advertisers – 2008 RankInsurer Ad $ (millions) RankInsurer Ad $ (millions) 1Geico622.76AARP123.1 2State Farm403.77AIG102.3 3Allstate357.28Liberty Mutual100.1 4Progressive293.59Farmers95.8 5Nationwide222.510Esurance94.2 Source: TNS Media Intelligence

15 % Change In Ad Spend: Jan-Aug 2009 Source: TNS Media Intelligence

16 Auto Insurance

17 Background Fragmentation vs. Concentration Short purchase cycle

18 Background Fragmentation vs. Concentration Short purchase cycle A price-driven marketplace Advertisings role: build/maintain awareness and recognition

19 Auto Insurance Advertising Source: TNS Media Intelligence $1,537 $1,712 $1,822 $1,649 +11.3% +6.4% -9.5%

20 Auto Insurance Spending Is Concentrated 2008 (millions) 2009 e (millions) 2008 % Share 2009 e % Share TOTAL$1,822$1,768100.0% Top 6 Advtsrs$1,504$1,25083%76% Remainder$318$51817%24% Source: TNS Media Intelligence

21 2008 Ad Spend Auto Insurance Source: TNS Media Intelligence

22 % Change In Ad Spend: Jan-Aug 2009 Source: TNS Media Intelligence

23 Ad Spend Growth By Mid-Size Auto Insurers $23.8 $43.5 $23.3 Source: TNS Media Intelligence

24 Top Brands Pursue Different Media Mixes % Share Of Ad Spend: Jan-Aug 2009 GeicoProgressiveAllstateState Farm National TV57%69%87%72% Local TV11%10% Internet Display17%18% Radio16% Magazines13% Source: TNS Media Intelligence

25 Ad Messaging Typical message points are price, policy features and customer service Have auto insurers changed their ad message in response to shifting consumer attitudes brought on by the recession? TNS analysis of TV commercial messages –Big Four auto insurers –Jan 2008 thru June 2009 –More than 100 unique commercials analyzed

26 GEKKO CAVEMEN CONTINUITY KASH CELEBRITY STORYTELLER COMPLEMENTARY

27 % Of Total TV Ad Spend In Qtr Campaign:StorytellerKash Message Customer ServiceCost Savings Q1 0841%--- Q2 0825%--- Q3 0821%--- Q4 0811%15% Q1 09---88% Q2 09---73% Source: TNS Media Intelligence

28 Safe Driver Bonus Accident Forgiveness Coverage Checkup Switch and Save

29 % Of Total TV Ad Spend Within The Quarter Message Accident Forgiveness Coverage Checkup Safe Driver Bonus Switch & Save Q1 0830%---45%--- Q2 0831%6%50%--- Q3 0814%50%28%--- Q4 0822%53%14%--- Q1 093%5%8%72% Q2 096%---7%86% Source: TNS Media Intelligence

30 % Of Total TV Ad Spend In Qtr Message Service & Savings SavingsTeen Driving Q1 0858%26%--- Q2 0827%62%4% Q3 0834%62%4% Q4 0811%60%23% Q1 09---44%43% Q2 09---32%61% Source: TNS Media Intelligence

31 % Of Total TV Ad Spend In Qtr Message Service & Savings SavingsTeen Driving Q1 0858%26%--- Q2 0827%62%4% Q3 0834%62%4% Q4 0811%60%23% Q1 09---44%43% Q2 09---32%61% Source: TNS Media Intelligence

32 Recap Spending growth has (temporarily) abated Fierce competition among the large national brands –Puts pressure on other advertisers to increase ad spend National TV still the cornerstone of media campaigns Ad messaging has moved toward price savings as consumers have become more value-conscious

33 Health Insurance

34 Definitions Health Insurance includes these products: –Medical –Dental –Prescription drug –Medicare supplement –Long-term care –Disability

35 Background Highly competitive industry –5,000+ companies Markets –Employer-sponsored plans –Individual policies Advertising primarily targeted to the individual market

36 Health Insurance Advertising Source: TNS Media Intelligence -1.2% -6.5% -9.6%

37 Health Insurance Advertising Spend By Product Line Source: TNS Media Intelligence 51% -24.8% +4.5% -9.9%

38 Ad Spending Is Fragmented 2008 (millions) 2009 e (millions) 2008 % Share 2009 e % Share TOTAL$730$659100.0% Top 3 Advtsrs$217$20130%31% Remainder$513$45870%69% Source: TNS Media Intelligence 600+ Advertisers in 2008

39 Network TV: 70-75% of spend Sports: Nearly 40% of the TV budget 8 new TV spots this year New tag line – Under our wing Small business campaign

40 Network TV: 70-75% of spend Sports: Nearly 40% of the TV budget 8 new TV spots this year New tag line – Under our wing Small business campaign TV budget shift to network –Able to clear :60 DR spots 25-30% of budget outside of TV Targeting their core market

41 Recap Three consecutive years of spending declines Smaller-sized budgets and fragmented spending Medicare supplement plans accounting

42 TV Sports

43 Background TV Sports – a $10.5 billion ad marketplace and growing –$600 million from insurance advertisers Desirable programming and quality audiences Top insurance advertisers use a diversity of approaches –Commercial spots –Sponsored segments in TV broadcasts –Corporate sponsorships with leagues

44 Growth Rates Source: TNS Media Intelligence

45 TV Budget Allocation To Sports Sept 08 – Aug 09 Prgsve Geico Allstate St Farm MetLife N-wide Liberty Hartford Aflac Travelers Source: TNS Media Intelligence

46 Pick Your Field Auto RacingGolfPro Football College Basketball College Football AflacMet LifeGeicoHartfordAflac Nationwide State Farm Allstate TravelersLiberty

47 College Pigskin All Sports Advertisers 9% of Sports Budgets Insurance Advertisers 16% of Sports Budgets Source: TNS Media Intelligence

48 Tennessee vs. Alabama October 24, 2009 3:00-7:00pm EDT CBS Television Network An Example

49 Commercial Spots Auto Allstate (3) Geico (4) Progressive (1) Travelers (1) Life (Investments) John Hancock (3) NY Life (1) TIAA-Cref (4) Disability Aflac (3)

50 TIAA Cref – PreGame Show

51 Aflac – Trivia Question

52 New York Life - Hologram

53 Geico – Halftime Report

54 John Hancock – Game Update

55 Geico – Game Recap

56 Isnt This A Lot Of Competitive Clutter? Even For A 4 Hour Telecast?

57 Wrap Up

58 Insurance category spend pacing at $3.75 billion, down 7.4% from 08 –Nearly one-half spent on auto GEICO, Allstate, State Farm & Progressive maintain a spending advantage An even greater emphasis on cost savings in auto insurance ads Making full use of TV sports programming to reach consumers

59 Insurance Advertising A Look Into The Numbers Jon Swallen TNS Media Intelligence November 5, 2009


Download ppt "Insurance Advertising Inside The Numbers Jon Swallen TNS Media Intelligence November 5, 2009."

Similar presentations


Ads by Google