How Media Works:How Media Works:Advertising and the Purchase FunnelAdvertising and the Purchase Funnel

For Auto and Life InsuranceFor Auto and Life Insurance

How Media Works:How Media Works:Advertising and the Purchase FunnelAdvertising and the Purchase Funnel

For Auto and Life InsuranceFor Auto and Life Insurance

1

A Yankelovich Study for the Television Bureau of Advertising

Study ObjectivesStudy ObjectivesStudy ObjectivesStudy Objectives

Determine the role that TV plays as part of a multi-platform environment for advertising. More specifically, the goals of the research were to understand:

The role of television advertising in driving consumer actions throughout the purchase decision process

How television interacts with other media platforms, including new media such as the Internet

How purchase decisions are made as a result of this interaction, including the role of different media platforms in the purchase cycle 2

Source: TVB/Yankelovich “How Media Works,” April 2009

MethodologyMethodologyMethodologyMethodology

Survey results were obtained via online interviews among 3,002 consumers who had seen a television ad in the past 2 months that made an impression on them.

Interviews took place January 29 to February 10, 2009; Super Bowl Sunday was excluded.

Respondents were first asked in which categories they have seen a television ad in the past two months that made an impression on them.

Each respondent then completed an ad survey for up to three of these categories.

The survey measured the overall impression of each ad, actions taken after seeing the ad, and whether ads for the same product or service were encountered in other media, etc.

The respondents were asked questions on which media most increased awareness and interest, or prompted action across the range of categories studied.

3Source: TVB/Yankelovich “How Media Works,” April 2009

One Quarter of Respondents are In the One Quarter of Respondents are In the MarketMarket

One Quarter of Respondents are In the One Quarter of Respondents are In the MarketMarket

4

“Are you currently considering a purchase in the Automobile or Life Insurance Category?”

(Asked of those who recalled seeing a TV ad for Automobile or Life Insurance in the last 2 months)

Source: TVB/Yankelovich “How Media Works,” April 2009

Yes26.1%

No73.9%

Customer Profile: Customer Profile: Auto and Life Insurance AdvertisingAuto and Life Insurance Advertising

Customer Profile: Customer Profile: Auto and Life Insurance AdvertisingAuto and Life Insurance Advertising

5Source: TVB/Yankelovich “How Media Works,” April 2009

Saw an Ad in This Category that Made an Impression

Currently Considering a

Purchase in this Category

Made a Purchase

in this Category in the

Past Year

Purchased More than 1 year Ago

Male 52.4% 52.5% 56.1% 50.9%

Female 47.6% 47.5% 43.9% 49.1%

18-34 26.3% 36.2% 24.0% 21.2%

18-49 56.1% 70.9% 53.8% 52.7%

25-54 55.0% 70.9% 52.7% 59.0%

55+ 35.6% 20.6% 40.1% 36.0%

Urban 33.1% 35.5% 31.7% 32.0%

Suburban 41.5% 36.2% 37.8% 45.5%

Rural 25.4% 28.4% 30.5% 22.5%

HHI <$30K 21.9% 20.6% 20.6% 21.2%

HHI $30-$70K 45.0% 37.6% 43.9% 49.5%

HHI $70K+ 27.4% 38.3% 31.3% 22.5%

HHI $100K+ 12.8% 19.1% 15.3% 7.2%

Over 40% of All Respondents Have Seen an Auto or Over 40% of All Respondents Have Seen an Auto or Life Insurance Ad That Got Their Attention Life Insurance Ad That Got Their Attention

Over 40% of All Respondents Have Seen an Auto or Over 40% of All Respondents Have Seen an Auto or Life Insurance Ad That Got Their Attention Life Insurance Ad That Got Their Attention

6Source: TVB/Yankelovich “How Media Works,” April 2009

Saw an ad that got your attention:

55%

46%

46%

46%

41%

40%

40%36%

36%

34%

34%

33%

28%

27%

25%

80%Any (NET)

Restaurants

Vehicles or auto dealers

Telecommunications or electronic products

Entertainment activities

Automobile or life insurance

Department stores or discount stores

Food, convenience, or grocery stores / supermarkets

Furniture, mattress, or carpeting / flooring stores

Travel or travel websites

Financial services

Healthcare products or services

Home improvement stores or services

Services

Schools / colleges / learning centers / vocational schools

Commercial websites

Half of Consumers Who Saw TV Ads for Auto or Life Half of Consumers Who Saw TV Ads for Auto or Life Insurance Made a Related Purchase in the Past YearInsurance Made a Related Purchase in the Past YearHalf of Consumers Who Saw TV Ads for Auto or Life Half of Consumers Who Saw TV Ads for Auto or Life Insurance Made a Related Purchase in the Past YearInsurance Made a Related Purchase in the Past Year

7Source: TVB/Yankelovich “How Media Works,” April 2009

Last time made a auto or Life Insurance transaction:

7%

4%

9%

9%

12%

8%

12%

8%

20%

10%

Within the last 2 weeks

3-4 weeks ago

1-2 months ago

3-4 months ago

5-6 months ago

7-11 months ago

1-2 years ago

3-5 years ago

6 or more years ago

I have never purchased in this category Auto/ life insurance

49% of those who recently saw a TV ad

for auto/life insurance have made a

purchase in the past year

Advertisements For Auto or Life Insurance Advertisements For Auto or Life Insurance Largely Make a Positive ImpressionLargely Make a Positive Impression

Advertisements For Auto or Life Insurance Advertisements For Auto or Life Insurance Largely Make a Positive ImpressionLargely Make a Positive Impression

8Source: TVB/Yankelovich “How Media Works,” April 2009

Type of impression made by TV ad for auto/life insurance:

32%

38%

26%

3%

1%

27%

37%

31%

2%

3%

Very positive

Somewhat positive

Neither positive nor negative

Somewhat negative

Very negativeTotalAuto/ life insurance

Over Half of Respondents Find Auto or Life Insurance Over Half of Respondents Find Auto or Life Insurance Ads Ads

to be Attention-Gettingto be Attention-Getting

Over Half of Respondents Find Auto or Life Insurance Over Half of Respondents Find Auto or Life Insurance Ads Ads

to be Attention-Gettingto be Attention-Getting

9Source: TVB/Yankelovich “How Media Works,” April 2009

Ratings of Auto/Life Insurance Television Ads:

Total Auto/Life Insurance

How much did it get your attention?

19.6%

15.4%

18.9%

15.6%

12.2%

9.0%

3.6%

2.8%

1.3%

1.5%

19.0%

18.0%

19.0%

12.0%

10.0%

11.0%

4.0%

2.0%

2.0%

2.0%

10 -Completely

9

8

7

6

5

4

3

2

1 - Not at all

54% total

56% Insurance

42% total

34% Insurance

How relevant was it?

53% total

47% Insurance

How informative was it?

After Viewing TV Ads for Insurance, Respondents Are Likely After Viewing TV Ads for Insurance, Respondents Are Likely to Research and Discuss Ad Information, and Consider to Research and Discuss Ad Information, and Consider

PurchasePurchase

After Viewing TV Ads for Insurance, Respondents Are Likely After Viewing TV Ads for Insurance, Respondents Are Likely to Research and Discuss Ad Information, and Consider to Research and Discuss Ad Information, and Consider

PurchasePurchase

10Source: TVB/Yankelovich “How Media Works,” April 2009

Actions Taken After Seeing TV Commercial for Auto/Life Insurance

 Auto/LifeInsurance

Any (Net) 35%

Remembered you had seen the product or service advertised before 12%

Talked with others about the advertisement 11%

Went online to learn more about the product or service advertised 11%

Considered purchasing the product or service 10%

Contacted the company in the advertisement 4%

Tried to find the advertisement on the Web 3%

Purchased the product or service online 3%

Purchased the product or service in a store 2%

Visited a store or location to learn more about the product or service 2%

Looked in a newspaper or magazine to learn more about the product or service

2%

Sent someone an Email about the product or service 2%

Sent someone a Web-site link about the product or service 2%

Other action 4%

Did nothing 65%

Respondents More Likely to Recall Respondents More Likely to Recall Auto and Life Insurance Ads on RadioAuto and Life Insurance Ads on RadioRespondents More Likely to Recall Respondents More Likely to Recall

Auto and Life Insurance Ads on RadioAuto and Life Insurance Ads on Radio

11Source: TVB/Yankelovich “How Media Works,” April 2009

Saw ad for same product or service in a media other than TV:

  TotalAuto/LifeInsurance

Index to Total

Any (Net) 46% 36% 78

On the Internet 20% 17% 85

In a newspaper 18% 9% 50

On the radio 12% 15% 125

In a magazine 11% 12% 109

In an Email offer 8% 9% 113

On a billboard or other outside sign 7% 8% 114

Other media 3% 2% 67

Did not see, hear, or read in any other media 35% 40% 114

Not sure 19% 24% 126

Auto/Life InsuranceAuto/Life InsuranceAdvertising Impact at Various Stages ofAdvertising Impact at Various Stages of

the Consumer Purchase Funnelthe Consumer Purchase Funnel

Auto/Life InsuranceAuto/Life InsuranceAdvertising Impact at Various Stages ofAdvertising Impact at Various Stages of

the Consumer Purchase Funnelthe Consumer Purchase Funnel

12

80%75%

67%61% 59%

53%

20%25%

33%39% 41%

47%

78%

65%55%

46% 48%43%

22%

35%

45%54% 52%

57%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Media Influence (Any)-All Cat. No Media Influence-All Cat.Media Influence (Any)-Auto-Life Insurance No Media Influence-Auto-Life Insurance

Awareness Interest Consider Want to Visit Make Purchase Purchase Store/Website Purchase

Source: TVB/Yankelovich “How Media Works,” April 2009

Auto/Life InsuranceAuto/Life Insurance Media Impact at Various Stages of the Media Impact at Various Stages of the

Consumer Purchase FunnelConsumer Purchase Funnel

Auto/Life InsuranceAuto/Life Insurance Media Impact at Various Stages of the Media Impact at Various Stages of the

Consumer Purchase FunnelConsumer Purchase Funnel

13Source: TVB/Yankelovich “How Media Works,” April 2009

Media cited by less than 3% of respondents were incorporated into the total for “other.”

46% 45%30% 26% 27% 23%

12% 10%

11%10% 9%

9%

5%4%

4%5%

4%

14%

10%

10% 7%

22%32%

45%54% 52% 57%

7%

9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Awareness Interest Consider Purchase Want to Purchase Visit Store/ Website Make Purchase

Television Internet Magazine Email Other No Media Influence

ConclusionsConclusionsConclusionsConclusions Insurance is a need-driven category; 25% of

consumers are in the market at any given time. Television ads are more likely than the average

commercial to be recalled by consumers. It appears that more people are conducting life

and auto insurance transactions than claim to be in the market. This creates a strong marketing opportunity.

Marketers can reach people at the Awareness phase of the purchase funnel to capture customers as the need for a category purchase arises.

At 46%, television advertising is the primary category driver in the Awareness stage of the purchase funnel. 14

Source: TVB/Yankelovich “How Media Works,” April 2009