Whitepaper Online Video in the Insurance Industry The Importance of Video as a Marketing Tool RG Stephens & Associates Email: Rick@RGStephens.com Phone: 972-578-7895 Web: www.rgstephens.com
The impact of technology and the explosion of video have created a tremendous impact on our society. Even the selling strategies of insurance companies are being altered due to the many digital marketing tactics available out there. Video marketing is rapidly emerging as the tool of choice in advertising insurance products. Not only is it effective, video marketing is also cost-efficient, thus allowing insurance companies a way around the high expenses of advertising. The Internet Insurance companies have taken advantage of technology to be able to market to more clients while investing less time and money. Telemarketing and door-to-door tactics are not expensive but can cost an insurance agent a lot of time and effort because clients can only be contacted one at a time. By building websites and optimizing them through proper page layouts, correct keywords and intelligent conversion pages leads to even more converted clients. In the past five years social media has been used more and more. Almost everyone is on Facebook, Twitter, LinkedIn and Google+. Just like the rest of the population, insurance companies have realized that being active in these communities allows them to not only market their products, but also to interact directly with potential and existing customers. Still, the Internet has yet to be fully tapped by the industry. A 2010 study showed that over the long-run, potential insurance clients spend more time on the Internet than television. 49% of online insurance clients allot more than 20 hours each week on the Internet, against only 36% for television. Yet, the number of online insurance quotes was measly. An opportunity is available here just waiting to be tapped. Page 2
With video soon to make up 90% of traffic, it s important for insurance companies to start thinking about how they can integrate it into their marketing mix with ease and engagement. YouTube, a popular video website is known to be the second largest search engine in the world with more than 120 billion views every month. It has more views than Facebook and Twitter combined and presents a clear opportunity for engaging with customers. This shows that 49% of online insurance clients allot more than 20 hours each week on the Internet, against only 36% for television. Yet, the number of online insurance quotes was measly. The figures show that doing online insurance quotes is still in its infancy. An opportunity is available here just waiting to be tapped. Online Video Marketing is Effective Over 60% of new content uploaded to the Internet is video. There are estimates that 90% of traffic will soon be made up of video. Even mobile platforms will see their traffic dominated by video, with experts saying they will touch around 2/3 of all mobile data. 3 What makes video marketing so effective? For one thing, videos are so much more engaging than reading pages with just text. Videos can also be created with an emotional appeal. Common real-life situations can be presented in such a manner that customers will be able to relate. The YouTube number is mind-boggling and if an insurance company that creates its own channel can tap even just a fraction of that, the increase in its website traffic will be astounding. Uses of Video Marketing Video marketing can be used to effectively market an insurance company by: Showcasing its products Demonstrating the benefits of each product Presenting the company as an industry expert Providing client testimonials Profiling insurance agents / teams Delivering news releases Featuring an actual news story Page 3
Features of an Effective Video The key is simplicity. Videos should not contain an overload of information nor should they be too long because they might overwhelm their viewers. The message should be direct. Videos must show a realistic situation that potential clients may face and can therefore relate to. The product that matches that particular situation can then be integrated into the message, as well as the benefits that it brings. Videos must always climax with a call to action. Numbers to call or the website address must be given towards the end. Links must be used wisely and correctly - Facebook status updates, YouTube captions and tweets must have the proper keywords and links leading to the website. All these tips will prove to be useful in the long run. Search engines always favor websites with relevant links connecting to it. Following this will lead to a higher search engine rank, which will then provide more website traffic and visitors. While search engines are still considered the top source for referred traffic, social media is equally important as Facebook has exhibited the fastest growth for external source of views. 6 Video Optimization Keywords have to be used correctly to maximize the video s effectiveness and search engine ranking. Meta tags (title, description and keywords) must be included strategically to show Google that your video is relevant, that it should appear in appropriate search results and the copy should be compelling to encourage customers to click through to your video. Videos should be uploaded to social profiles like YouTube as well as the company s website to maximize marketing efforts. Videos streamed on the company s website tend to build purchase intent and brand favorability. On the other hand, YouTube and other social channels help with awareness and message association. 5 With video soon to make up 90% of traffic, it s important for insurance companies to start thinking about how they can integrate it into their marketing mix Page 4
Advantages of Video Marketing A 2011 study showed how viewers behave when they encounter a link. Those that have rich media content like audio and animation were more likely to be clicked on than simple text links. The number is even bigger when the link is bannered by video content. Customers are also more likely to leave comments when they view an interesting video. Comments and replies update web pages, which is another important characteristic that search engines are looking for. Stagnant sites tend to go down a search engine s ranking, while dynamic ones with regularly updated, fresh content are promoted to the top. Online video marketing is also less expensive, can be viewed anytime and stored on a company s video channel for an unlimited amount of time compare that to the hundreds of thousands needed for a 30-second TV spot. The cost factor means that viewing opportunities of a television ad are limited. This is not helpful as it is proven that consumers are more likely to purchase only after multiple viewings of an ad. The chart shows that rich media links with audio or animation were likely to be clicked on 4.3 times more than standard text links. Videos can drive traffic by 9.3 times more than normal links. Long-term recall is also better if video is added. The same study asked those who did not immediately click on the link provided if they later on visited the website anyway. Again, links that contained rich media were more likely remembered by users compared to normal text links. Those with audio/animation links were 1.7 times more likely to be remembered compared to standard text links, while those with video content got 1.9 times more visits than normal links. 8 The numbers are modest but it still shows that videos have better long-term recall than other media. Over 60% of new content uploaded to the Internet is video. There are estimates that 90% of traffic will soon be made up of video. Page 5
The chart shows that 14.3% of consumers are likely to buy after three viewings of an ad, compared to only 2% after just one viewing. Multiple viewings anytime of the day can be done easily online. Time-wise, it is also cost-effective as they can be viewed 24/7 by any number of people, compared to a telemarketer s effort that is limited by office hours and to only one person at a time. This cost-effectiveness allows insurance companies to produce multiple video testimonials that build trust and authority. These videos can be shared by viewers to other potential clients and even downloaded for offline viewing. Offline viewing can boost viewership by 2.6%. Research shows that those viewing offline watch the videos more intently than those online. 10 A Success Story American Family Insurance produced a video marketing campaign called In Gayle We Trust, a series about an insurance agent. It became a hit and got renewed for two more seasons. The result was a 745% increase in the website traffic in a 3-month period. 11 Telisa Yancy, the Director of Advertising said: We saw fantastic results from our (video) campaign last year indicating that the series and online resources were well-received we will continue to see increased traffic and engagement on our campaign websites, widespread viewership of our series and increased agent interaction. 12 Page 6
Bottom Line Studies show that the successful conversion rate of video marketing is more than double compared to other strategies. In American Family Insurance s case, purchase intent by online visitors jumped by 24%, or 12 times more compared to other online marketing tools. 13 The wider reach, cost-effectiveness and efficiency, unlimited potential of the Internet and higher conversion rates make online video marketing an important tool for insurance companies. It is a great way for customers to get to know the company and its products. If managed properly, it can enhance a website s search engine ranking. Videos are a great way for insurance companies to attract and convert customers. Rich media links with audio or animation are likely to be clicked on 4.3 times more than standard text links. Videos can drive traffic by 9.3 times more than normal links. Video Solutions for Web Service Providers Profiles Engaging and unscripted videos that provide clients with the opportunity to deliver a personal message to potential customers in their own style and tone. Ads Either scripted with a professional voiceover or interview-driven to deliver a positive first impression and drive higher conversion. Testimonials Captures customer experiences through authentic, unscripted interviews that build trust and credibility News Compliments traditional PR methods with videos that are journalistic in tone in order to establish credibility and drive media interest. Page 7
Appendix: Statistical Information Sources 1,2 3 4 5,6,9,10 7,8 11 12,13 Comscore: http://www.comscore.com/press_events/press_releases/2010/11/comscore_releases_2010_u.s._online_property_insurance_report Techcrunch: http://techcrunch.com/2009/06/09/cisco-by-2013-video-will-be-90-percent-of-all-consumer-ip-traffic-and-64-percent-of-mobile/ Alexa: http://www.alexa.com Tubemogul: http://www.tubemogul.com/marketing/tubemogul_video_ad_playbook_jan2012.pdf Emarketer: http://www.emarketer.com/article.aspx?r=1008957 Searchenginewatch: http://searchenginewatch.com/article/2076521/can-you-sell-insurance-on-youtube-study Mediapost: http://www.mediapost.com/publications/article/132367/american-family-renews-entertainment-plan.html?print Page 8 RG Stephens & Associates Email: Rick@RGStephens.com Phone: 972-578-7895 Web: www.rgstephens.com