Trends to Watch Insurance

The impact of insurance carriers' pull-back on advertising

1 min read

Jan 30, 2023 8:13:23 AM

Shopping Trends So Far…
An early insight from the 2023 U.S. Insurance Shopping Study Wave 3 results.

What has been the impact of the pull-back on advertising by carriers across the U.S.?

As we published the data for Wave 3 of the 2023 U.S. Insurance Shopping Study on January 12, we took a look at how the strategy of pulling back on advertising spend was impacting customers. Commensurate with decreased ad spend, both unaided and aided aware rates are down for the majority of carriers.

Brand Level Results

Results revealed aided awareness decreased by over 5 percentage points for Travelers, American Family, The Hartford, and Mercury.

National General and State Farm were the only carriers in the study that saw an increase in aided awareness.

Key Takeaway

While a pull-back in ad spend and a decrease in aided awareness are a clear cause and effect linkage, the question now is whether that decrease in awareness is occurring with the right audience. With shopping increasing, insurers should have a line of sight into the attributes that make up an ideal customer for their brand, and it is critical to ensure that any decrease in awareness, quoting, and purchasing isn’t hitting that target market.

Follow the Trend

Will this decrease in aided awareness continue through Wave 4 of the 2023 U.S. Insurance Shopping Study? Study subscribers will find out when the full results publish on April 25.

In the meantime, subscribers already have access to the answers to other key business questions currently being analyzed in the study, including:

How have the reasons that customers say they are shopping changed?
How has quoting been impacted in YTD 2023 and which brands are seeing the biggest drop in quote rate?
How is book of business being impacted by macroeconomic trends?

If you’re not yet a subscriber, contact us today. And make sure you’re on our mailing list to receive the press release that will accompany the final wave of data for this study in April.

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"Insurers should have a line of sight into the attributes that make up an ideal customer for their brand, and it is critical to ensure that any decrease in awareness, quoting, and purchasing isn’t hitting that target market."