How auto insurance marketers can leverage private marketplaces to reach their best customers using driving behavior data

How can private marketplaces help auto insurance carriers reach people based on how, when, and where they drive?

This blog is the second in a series that will discuss how marketers can leverage private marketplaces and audience targeting to reach their best customers. Read the first and the third post.

In our last blog post, we described how privacy changes across the digital landscape are prompting smart marketers to shift focus to premium environments that don’t rely on cookies and MAIDs – but still enable audience segmentation and targeting – to spend their advertising dollars. Private marketplaces (PMPs) are a type of walled garden that fit this bill, as they offer high-quality inventory, unique data, and methods to enable marketers to do audience segmentation and targeting.

This article focuses on how auto insurance carriers can leverage the Arity Marketing Platform to attract more of the best customers.

Reach the most valuable customers

Auto insurers looking to stay competitive must spend marketing dollars to reach the best customers for their business. But it’s tricky: how can you know up front which drivers will help increase your average customer lifetime value (LTV)? One extremely effective way is to run ad campaigns that target audiences with driving behavior data to reach people based on how, when, and where they drive.

The Arity Marketing Platform is the only way an insurance carrier can actually leverage driving behavior data to make a decision about whether to display an ad to a particular group of customers, and how much money to spend on that audience.

For example, if an auto insurance carrier is looking to increase the overall profitability of their book of business, they can decide to target lower-risk drivers who are most likely to become their best customers. But if a carrier is simply looking to bind as many new customers as possible, they can target all types of drivers – maybe spending a little more to reach the low-risk drivers and a little less to reach the higher-risk drivers.

Customize creative with driving behavior

Not only can driving data be used to decide whether to spend money to display an ad, but also to determine what creative to show. For example, a carrier can choose to display ad creative to the lowest-risk drivers that congratulates them on their excellent driving, and even promotes a discount in the creative. Higher-risk drivers might see different ad creative that encourages them to drive more safely to earn better insurance premium rates.

Drive profitability using driving behavior data

The lowest risk drivers on the road have a higher LTV than average – and can be up to 5x more profitable – and if they bind, they’ll become a carrier’s most profitable customers. For auto insurers looking to increase average customer lifetime value, layering driving data into advertising campaigns enables them to spend more money to target and convert the lowest risk drivers, and avoid targeting the higher risk, lower-LTV drivers, resulting in more profit in the long-term.

Connect with customers who are primed for driving information

Another benefit of the Arity Marketing Platform is that the ad placements are adjacent to contextually relevant driving content: things like fuel efficiency, safe driving, and weather-related driving conditions. App users who see these ads are already thinking about their driving behaviors, making them more likely to click.

Pay-per-mile programs

Auto insurance pay-per-mile programs are typically targeted at low mileage drivers as a way to save customers money. Using the Arity Marketing Platform, a carrier can focus marketing spend on the mileage thresholds for consumers they want to bring into their program. Furthermore, if a pay-per-mile program has factors to rate drivers based on driving risk in addition to mileage, you can further segment marketing spend to attract the desired risk profile.

In summary, spending money in a contextual, driving-related private marketplace and targeting drivers based on their driving behaviors like risk and mileage is a proven way to build a book of business with increased profitability, and can only be done with the Arity Marketing Platform.

Our next post will cover how the Arity Marketing Platform can help Retail and QSR marketers find their best customers using Predictive Point of Interest (POI) data.  Stay tuned, and learn more about the Arity Marketing Platform.

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Arity is a mobility data and analytics company. We provide data-driven solutions to companies invested in transportation, enabling them to deliver mobility services that are smarter, safer, and more economical.