Life Insurers ‘Like’ Social Media Marketing

Life Insurers ‘Like’ Social Media Marketing

Life Insurers ‘Like’ Social Media Marketing. U.S. Life insurers are expected to budget about $4.2 billion for advertising and marketing in 2017, a 12 percent increase over last year, according to a recent survey. In 2017, on average, budgeted advertising for television and radio is expected to reach $1 billion, up from $866 million in 2016. Direct marketing budgets are also expected to reach $1 billion, up from $942 million in 2016, according to the report. Social media budgets are rising to $381 million from $301 million last year, and for mobile marketing, to $179 million from $151 million, the report said. Over a five-year span ending in 2020, the life insurance industry is expected to boost advertising and marketing budgets 49 percent to $5.6 billion from $3.7 billion in 2016, to encourage sales through seven different distribution channels, Chow’s report found. Investments in Online, Direct Channels The 12 percent year-over-year increase in advertising budgets in 2017 mirrors the growth of new infrastructure investments life insurers are making in direct response television (DRTV), online lead generation and online direct channels. Compared with print and traditional direct mail channels, DRTV, online lead generation and online direct channels are relatively new to life insurance and require new marketing dollars. A small dollar increase in social media ad spending can lead to disproportionate gains compared with spending in other channels, Chow said. Calculating the return on the advertising dollar spent on social media, however, is very difficult.

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A recent survey of life insurers indicated that most want to take advantage of social media as a tool to generate leads.
A recent survey of life insurers indicated that most want to take advantage of social media as a tool to generate leads.

U.S. Life insurers are expected to budget about $4.2 billion for advertising and marketing in 2017, a 12 percent increase over last year, according to a recent survey.

Social media, internet marketing and radio and television notch the largest gains in the survey.

In 2017, on average, budgeted advertising for television and radio is expected to reach $1 billion, up from $866 million in 2016. Direct marketing budgets are also expected to reach $1 billion, up from $942 million in 2016, according to the report.

Internet marketing budgets will reach an estimated $563 million from $490 million last year. Social media budgets are rising to $381 million from $301 million last year, and for mobile marketing, to $179 million from $151 million, the report said.

Only print channel advertising budgets will decline — from $678 million to $667 million, the report found.

“We’re in a digital world,” said Samantha Chow, author of the report titled “Life Insurance: Trends in U.S. Marketing and Advertising Spend,” published earlier this month by the Boston-based consulting firm Aite Group.

The report is based on a June 2016 survey of 18 senior executives at life and annuity companies, and on data provided by 10 life insurers. Chow extrapolated the data to estimate projected advertising and marketing budgets across the life insurance and annuity industry.

The data offer clues as to which distribution channels insurance companies are likely to invest in the most in 2017 and beyond as insurers struggle to keep pace with the proliferation of distribution and sales channels in a rapidly evolving “omnichannel” world.

Over a five-year span ending in 2020, the life insurance industry is expected to boost advertising and marketing budgets 49…

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