Auto insurance advertising: 3 key benefits of telematics
Henry Kowal, my industry-expert colleague, recently wrote an informative and insightful piece that discusses how the value of telematics goes beyond a participation discount, beyond just pricing. I encourage you to read it.
Henry points out “the industry as a whole isn’t unlocking the full potential of telematics across the insurance value chain… from marketing, to underwriting, and point of sale pricing.”
This is a great jumping off point to dive into the marketing part of what Henry is highlighting, where the Arity Marketing Solutions team has been focusing with advertisers for the past few years. We’re seeing marketers migrate toward using media for targeting risk with telematics data, going beyond reach and frequency goals. We’re also seeing other companies besides Arity offer telematics for advertising, segmentation, and targeting with marketers achieving goals of better customers, higher lifetime value customers, and more profitable customers.
Telematics for advertising
Programmatic advertising and real-time bidding for optimized media effectiveness and efficiency revolutionized the industry when it started roughly 15 years ago, and that continues today as technology evolves. From connected TV (CTV) and video to display, across desktop and mobile, advertisers are gaining more effective exposure for more efficient spend to deliver on chosen KPIs.
Telematics takes programmatic advertising to the next level. It leverages driving behavior data based on how, when, and where you drive to understand risk at the point of impression to convert the highest potential lifetime value customers, not just the highest volume of customers.
Three key benefits
- Better results, efficiently and continuously
- While programmatic advertising will always be about getting more for less, marketers can now have visibility into the potential profitability of every impression before bidding on the impression. While this may increase your CPMs (don’t worry), decrease your reach (it’s OK), and up your cost per bind (stay with me), marketers can have it all with proven increases in the lifetime value of new customers (there it is). This can be determined even before they become a customer – all through the use of telematics data.
- Attribution improvement
- Today’s technology can connect upper funnel with lower funnel channels and tactics, so you can see how the branding impression over here connects with and amplifies the performance impression over there. Beyond digital, one only needs look at the growth in out of home (OOH) aided by advances in measurement and attribution.
- Increase in value
- Advertising is alive and well and getting smarter, with more personalized messaging opportunities to engage the right consumer at the right time. While there will always be ongoing challenges (oversaturation, identity resolution, privacy, etc.), with today’s technology, consumers will benefit wherever they consume content, advertising will continue to increase in value, and brands will find more meaningful connections with their customers wherever they are.
Are you ready to unlock the full value of telematics for advertising? Email me (Paul.Dean@arity.com) and let’s start a conversation!