Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
Auto Insurance InsightsOpportunities in an evolving industry
MICROSOFT ADVERTISING
Microsoft Advertising. Intelligent connections.
Alan Zou, Analytical Lead
Australia’s steady automotive market
The Internetand the smart consumer
Generate urgency in the face of rising premiums
Optimize demographic targeting
Key trends and actions
Steady growth in motor vehicles
Average annual growth in registered motor vehicles nationally from 18.8m in 2017 to 19.5m in 2019
Source: ABS, Motor Vehicle Census 2017, 2018, 2019
1.8%
Source: Cars Guide Link: https://www.carsguide.com.au/car-advice/australian-car-market-car-sales-statistics-and-figures-70982
• New cars demonstrate steady growth over last 10 years
• Australia is 7th highest country cars per capita (775 motor vehicles per 1000 people)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Yearly new car sales in Australia
Cars Sold (m) Linear (Cars Sold (m))
Australia boasts high market penetration
Source: IBISWORLD. Car insurance in Australia 2019
The Internet is empowering consumersIncreased accessibility to the internet and presence of online aggregators provide consumers:
- Larger pool of options- Better price visibility- More informed decisions
Source: Bain & Company, Customers know what they want. IBISWorld, Car Insurance in Australia 2019.
Consumers today want simple, easy to use, readily accessible experiences.
A steady industry reduction in:- physical locations- employment numbers indicates that insurers are cutting physical costs to focus on their online presence.
6500
6600
6700
6800
6900
7000
7100
7200
400
450
500
550
600
650
700
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Industry physical locations and employment numbers
Location Employment
Auto insurance search is steadily moving online
Comprehensive Car
Insurance
(+comprehensive)
Auto insurance related
searches are growing YoY+11%
Car Insurance
(+car insurance)
+14%Comparison terms
(+compare/+comparison/
+best/+cheapest/+top)
+6%
Budget Cover
(+budget/+no
frills/+basic)
+13%
Source: Microsoft internal data, search volume, Jan 2018 – Oct 2018, Jan 2019 – Oct 2019, Australia, all devices.
Source: Microsoft Internal Data Jan 18 –Jan 19, Australia, all devices.
Computers, internet, and online aggregators provide:• Larger pool of options• More price visibility• Faster customer
service
Shifting consumer behavior promotes increased investments from operators in online experience, whi
0
50
100
150
Jan-18 Jul-18 Jan-19 Jul-19
Search volume Click volume
CY2018 CY2019
Jan 18 Searches
Action: Increase budgets to take advantage of an industry evolving within the online space
Online focus shown by +9.2% YOY click growth
Auto insurance currently discounted
Premiums have experienced slow growth, but pressures are rising
100
105
110
115
120
125
130
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Motor insurance premiums and wage price indices (WPI)
Wage Price Index Avg Premium Index
Source: Insurance Council of Australia & Australian Bureau of Statistics for WPI Sep YOY Trends
Steep premium growth over recent 5 years signals this will soon change.
Action: Generate urgency to your customer with the right ad copy!
Premiums have shown slow growth, but not for long!
Refine your audienceLeverage Microsoft Advertising’s demographic targeting to maximisespend
Source: Microsoft internal data, CY 2019 for Auto Insurance queries.
78.7%
21.3%
Auto Insurance Clicks (%) CY19
35+ 18-34
The 35-65 age groups comprise over three quarters (78.7%) of clicks in 2019.
Young drivers lean towards basic car insurance due to low income/vehicle value, and price discrimination.
Go Do’s:- Apply bid adjustments to increase ad exposure for age groups:
35-49, 50-64, 65+
- Bid boost no frills/budget policies to millennial age groups: 18-24, 25-34
Boost the right policies to the right age groups
Source: Microsoft internal data, CY 2019 for Auto Insurance queries.
Denser focus on NSW in auto insurance relative to finance verticals.
NSW, VIC, QLD and WA comprise over 90% of all click volume within auto insurance.
Go Do’s:- Apply appropriate bid adjustments to
increase ad exposure for NSW, VIC, QLD and WA.
35%
22%19%
10%13%
45%
21%18%
6%10%
New South Wales Victoria Queensland Western Australia Others
% of grand total clicks 2019
All Up Finance Auto Insurance
Take advantage of dense click volume in NSW
.
The auto insurance industry is evolving within the online and search landscape, creating ample opportunities for you to reach your consumers.
Create brand awareness and establish your presence with developed campaigns to capture and retain your consumers.
Age groups and corresponding behaviours are well-defined, auto insurance in general receives more attention from the older generation, whereas younger users display a focus towards cheaper policies.
Apply bid adjustments and age targeting to capitalize on these differences.
Auto insurance search volume is focused across some of the states, particularly in NSW
Apply geolocation targeting to focus your budget in states where clicks are denser.
Microsoft Advertising Auto Insurance cheat sheet
advertising.microsoft.com