Insurance company harnesses data to attract a younger demographic

The Challenge:

Insurance companies face a unique subset of challenges when marketing their services, as the target customer is shifting to the younger generation of insurance seekers and impressions are difficult to convert to a long-term commitment. The insurance company was facing a rise in acquisition costs of 26% over five months and a decreasing CVR. There was a disproportionate amount of spend on marketing materials that were not generating a worthy return on investment into their advertising.

Alison Approach:

The insurance company’s creatives consist largely of animated videos on graphic backgrounds containing informative text and cartoon characters. Despite the content being highly consistent across all creatives, there were vast disparities in KPI performance of different advertisements. 

Alison deduced that the creative type, format, and length were the determining factors in a video’s success. While 63% of the account’s spend was allocated towards longer video ads on Facebook, these creatives performed very poorly compared to shorter videos on TikTok, which showed 4.5 times higher CTR and 53% greater ROAS.

In addition to the insights from their own materials, Alison’s analysis of competitors’ creatives opened doors for updating their advertising strategy with real client testimonials.

The platform provided these key insights

• Creative Type: Video (+53% Facebook avg ROAS)
• Creative Length: 17, 23, 25 sec (+42% acc avg ROAS)
• Creative Format: 9:16 (+8% acc avg ROAS)
• Background Pattern: Polka Dots (-16% acc avg ROAS)
• Character Type: Cartoon Male (-7% acc avg ROAS)

Further Insights

• Successful competitor tags they have not yet tried: Character Type: Real Male & Female  (78% of competitor impressions)
• Successful Competitor tags they have not yet tried: Voiceover: Female voice (100% of competitor impressions)

Results:

The insurance company scaled back Facebook spend and shifted to a new TikTok video campaign which showed a 31% increase from the previous account average ROAS and a revived standing among a younger demographic.

Collaboration with Alison yielded three major results

1. The younger generation of insurance seekers is highly active on newer social media platforms, and Alison highlighted the necessity of shifting budget allocation from Facebook to their TikTok account.
2. Using Alison’s competitive insights to strengthen creatives allows for a competitive advantage, an understanding of a feature’s performance without trial and error, and new ideas for advertisements that the insurance company may not have originally considered.
3. Fine-tuning creatives to meet high-performance feature guidelines such as a Creative Length of 17, 23, or 25 seconds and Creative Format of 9:16.

With Alison’s input, the insurance company is able to advertise a challenging product, establish themselves as an approachable service for young adults, and gain a dynamic edge on their competition.