After getting married and having their first child, a young couple decides it’s time to get a larger vehicle. A sales professional gets a promotion that means she’ll be spending a lot more time driving to client meetings. Following a rent increase and watching the rising price of groceries, a senior starts looking for a way to reduce monthly expenses.
Any of these life events could spark a search for better auto insurance, which means providers have to make sure consumers are aware of who they are and how they can help. And that’s just scratching the surface: while 26% of consumers search for auto insurance annually and 22% do so every few years, 32% rarely think about their provider or their coverage. That represents a lot of untapped potential business growth.
Macroeconomic factors like the difficulty for younger generations to buy a home and higher inflation can also spur the search for better rates. In fact, the latter half of 2024 saw shopping for auto insurance soar 19%, and 38% of consumers who went looking for auto insurance switched providers.
The business case for doubling down on digital marketing
That said, the competition to stand out and position yourself as an insurer of choice is becoming fiercer than ever. Overall, the insurance industry’s digital advertising spend will rise from 30.0% in 2024 to 32.2% in 2025, making it the only financial service sector to increase investment.
The focus on digital makes sense given that mobile devices have made it fast and easy to look up auto insurance firms and compare rates. While other marketing channels may be important for brand-building, 53% of first-time auto insurance buyers start their relationship with providers digitally. Perhaps more significantly, digital channels rank highest among 42% of those who switch insurance companies.
In-app advertising for auto insurance providers: How it works
Nine-in-10 Americans own a smartphone today, but in most cases making phone calls takes a back seat to other activities. On a global level consumers spend an average of five hours a day using mobile apps, making it one of the most viable channels to connect with existing clients and prospects.
Mobile game developers were among the first to realize that the best way to get noticed among app users is by advertising within other apps. Display ads, interstitials and rewarded videos are just some of the creative options available for brands that want to help consumers discover the products and services they offer.
Within three years, in-app advertising is forecast to make up 44% of direct mobile game spending. It’s a worthwhile and strategic investment because it allows companies in sectors like auto insurance to meet customers where they are and drive high click-through rates (CTR).
LifeStreet’s tips for auto insurers to maximize in-app ad ROI
Like any other digital marketing channel, your use of in-app advertising should reflect your current business realities while taking advantage of your ad partner’s capabilities.
1. Allocate your market budget based on finding ideal customers
Slashing your ad spend may seem like a necessary evil, but before making a deep cut make sure your remaining budget works like a highly fuel-efficient car.
You probably have some sense of who your most valuable customers are today. Rather than advertising to reach anyone in the world, work with LifeStreet to identify audiences that share similar traits and behaviors as your most valuable customers.
Your first-party data is a foundation for developing custom models, which can be enhanced by contextually-powered lookalike audiences. This means you’re running in-app ads that bring value to the bottom line vs. wasting your budget.
2. Use data to spot leads who are ready to hit the accelerator
The more granular you can get with targeting, the more likely you’ll connect with consumers who are actively in the market for auto insurance.
LifeStreet helps clients do this with analytics capabilities that can infer everything from age and gender to marital status and parental status. Localized advertising can also become easier through targeting zip codes or IP addresses.
High intent equals high conversion. Think of these leads as moving into the fast lane on the customer journey.
3. Choose a partner with extra horsepower under the hood
Creating more attractive policy options and services should be your company’s primary focus, not wrestling with the intricacies of buying in-app ads.
Companies in other sectors choose LifeStreet because our Nero platform streamlines this process. With advanced programmatic technology, real-time data optimization capabilities and automation tools, you gain ad buying efficiency and a relief from high customer acquisition costs.
4. Develop creative with conversion in mind
Effective storytelling is a critical skill, especially in an area like auto insurance where customers need to understand the value of coverage and all the relevant details.
Advertising isn’t just about capturing attention but sustaining it and enticing your audience to take the next step. Beyond learning more about their coverage options, you want them to become paying customers, and that only happens with a strong creative strategy.
LifeStreet approaches this by conducting extensive research such as analyzing social media comments and developing personas. This is followed by ideation, creating and – most importantly – testing. It’s not just about matching specs but evaluating the performance of ad creative, validating hypotheses and making changes based on what you learn.
Winning with in-app ads in the auto insurance sector
Ultimately, consumers want an auto insurance provider that will be there for them when they need it. This doesn’t just include the moment they experience a collision. It can happen far earlier, when they’re trying to put more thought into balancing spending with the right level of coverage.
The quest for better auto insurance can also happen alongside a slew of other activities, all of which can involve mobile apps. It might occur to them when they’re checking balances in their banking app, using a travel app to plan a vacation or even when they see a comment from a friend on a social media app.
Consumers have always been a moving target for auto insurance providers. That’s why you have to be everywhere at once, and mobile apps are the perfect onramps to do it.
Connect with our team to see how LifeStreet can help you reach high-intent consumers at the right moment. Get started now!