Advertising works. There's no question about that. As part one of this series indicated, advertising can help independent insurance agents boost awareness and recognition of their agency, increase perceived quality levels, generate leads and improve sales.
But you can't simply place an ad in the local paper and expect to reap instant benefits. Advertising is a science. To get the most out of it you have to put together a well-thought-out campaign that suits your business objectives.
The media campaign
The most effective agent advertising campaigns incorporate several different media. Some combine a series of newspaper ads that run for several weeks with a cable television commercial. Others feature highly targeted trade magazine ads in conjunction with direct mail, or awareness-generating billboard advertisements that complement local radio spots.
While you can use many different combinations to maximize your exposure and effectiveness, your choices will be influenced by the target audience you want to reach. Some magazines are read by executives, others by housewives. Teenagers tune in to certain television shows; their parents watch others. Knowing who reads, watches or listens to what--or working with someone who can tell you--is essential.
Regardless of your choice, you'll need to advertise frequently to get the maximum results, since it's been proven time and again that it takes numerous repetitions of the same ad to make an impression on an audience.
If your budget is tempting you to run a newspaper ad sporadically so you also can afford to advertise on the radio a few times, determine which medium will do a better job of reaching your prospects and go with it exclusively. The increased frequency in your chosen medium will be much more effective than keeping both at severely reduced frequency.
To help determine which direction is best for your campaign, consider the following synopses of the major media advertising options.
Newspapers
Daily and weekly local newspapers are the most commonly used advertising vehicles for independent insurance agents--and for good reason.
For starters, newspapers reach a large number of readers, and the ads that appear in them can be fairly easy to produce. What's more, when shopping for a specific item, many people start by scanning the local paper for new products and services available from local resources.
For example, say you're advertising a new product that combines homeowners and auto in a single policy--and does so at a discount. You've got a good chance of getting a call from people who see your ad and are looking for a more efficient, convenient way to insure their possessions.
Newspaper ads also can be quite effective at raising awareness of your agency in your marketing territory.
A consistent advertising presence can make your name more familiar to readers, so when they are in need of insurance, your agency's name will be one they recognize. And that familiarity can breed the comfort and trust it takes to make the sale.
A wide range of people with greatly varying demographic characteristics read local papers, which makes them a good choice if you are looking to reach a broad audience or selling a product that's bought by the general public. On the other hand, if you're marketing a product that appeals to a very targeted audience, newspapers aren't the best place for your ads to run.
Magazines
City magazines, chamber of commerce publications, state business journals, association magazines, trade publications and regional editions of national consumer magazines can all be viable advertising options for today's independent insurance agent.
Since magazines tend to appeal to specific audiences, one of the most significant advertising advantages they offer is the ability to hit highly targeted audiences. If you are looking to reach contracting or construction firms, for example, ads in state and local construction association magazines can put you in front of a large percentage of your audience.
Another advantage of magazine advertising is that certain publications enable you to reach affluent readers who, for the most part, are hard to access by other media. This is particularly true with regional editions of national business, consumer and news magazines. What's more, there's a good chance your magazine ads will be seen more than once by each reader, since many peruse their favorite magazines several times per issue.
One factor to keep in mind with magazine advertising is that monthly publications often need to receive your ads well in advance of the publication date. This long lead time can make it difficult to present timely offers or late-breaking information via a magazine ad. So if you have something to say that's particularly time-sensitive, magazines aren't the best option.
Radio
Radio is another favorite of independent agents. In fact, many agents have been very successful bringing new business in the door by running local-market radio campaigns.
Radio is a cost-effective advertising vehicle, and it gives you the freedom to choose the specific time of day you want your ads to run. As a result, with radio you can target particular listeners more precisely.
While radio can be effective for awareness/image advertising, it works extremely well when you are advertising a specific product, have a clear message and give listeners an immediate reason to get in touch with you.
The negatives associated with radio advertising include fragmented audiences (the overall radio audience is split among many stations) and the lack of a visual element.
Television
If there's a glamour advertising medium, it's television. There's a certain prestige associated with running TV ads-- as if you've entered the big leagues.
Perhaps this association comes from the costs involved. Although it's possible to produce TV ads with the help of your local cable operation without breaking the bank, all things considered, it's the most expensive medium for advertisers. Yet considering the advantages TV advertising offers, it may be worth the extra dollars required.
Television has the potential to deliver the most memorable message of all the media. It enables you to communicate with both sight and sound--an advantage no other medium can offer. What's more, TV allows for the widest range of creative approaches, giving you the flexibility to express your message in any number of ways. Plus, with the ever-increasing number of cable channels, pinpointing an audience with a demographic profile that matches that of your target audience is becoming more and more feasible.
Outdoor
Outdoor ads--from giant roadside billboards and transit-stop posters to ads that appear on the sides of buses--can be a cost-effective way to raise awareness of your agency. They have a low cost-per-thousand people reached, convey your message boldly and are capable of generating especially strong message recall.
Since your outdoor ads will become a part of the community for as long as they are posted there, they can be an effective way to reach people who live or work in a particular area. For example, placing a billboard ad near a development that's under construction can be a great way to introduce a homeowners policy to the future members of the community.
Outdoor ads, however, aren't a good choice if you need to deliver a long or complex message. Although the ads themselves may be big, your message must be short and easily read, since drivers and passengers in cars have from six to eight seconds to read a billboard, and pedestrians have about the same time--or less--to read the side of a passing bus.
It works
Of all the advertising options at your disposal, each has its pros and cons. When you're putting together an advertising campaign, consider your options carefully and consult with an experienced advertising agency if you can. It's the best way to get your ads out there and your phones ringing. *
The author
Kimberly
Paterson has been providing marketing and communications services for independent agents and insurance companies for more than 20 years. In that time, she has worked with agents and brokers in all facets of marketing, from developing communications programs and research initiatives to designing advertising campaigns and promotional materials. Her Red Bank, New Jersey, marketing communications firm, Creative Insurance Marketing Company, combines marketing and research/analysis with creative advertising services exclusively for the insurance industry.She can be reached at cimco@compuserve.com.
©COPYRIGHT: The Rough Notes Magazine, 1999