The US insurance industry is turning increasingly
to the internet as a marketing platform and will this year spend
$980 million on online advertising, up 36 percent compared with the
$720 million it spent in 2006, according to internet research
company eMarketer.
This rising trend is expected to continue and by
2011, eMarketer estimates, online advertising spending by insurers
will reach $2.31 billion. At $2.31 billion in 2011, online spending
by insurers would have recorded a CAGR of 26.3 percent. This
contrasts with the 21 percent eMarketer estimates will be recorded
by the overall financial services industry.
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A key factor driving online advertising spending by insurers was
their targeting of the first wave of retiring baby boomers on a
large scale, said Lisa Phillips, an analyst at eMarketer. Another
important factor was the transition of health insurance from a
wholesale to a retail environment as a result of a decline in
employer-sponsored health plans and the introduction of health
savings accounts.
“Insurers are dealing directly with a growing numbers of
individuals purchasing their own health insurance policies,” said
Phillips.
Despite growing use of online advertising by insurers, television
also remains a priority for them. “There are good reasons for
insurers’ continued love of TV; insurance ads on TV move consumers
to act,” said Phillips.
