Direct Seuros Case Study Marh 2011 By Google

8/7/2019 Direct Seuros Case Study Marh 2011 By Google

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Google Confidential and Proprietary 1

Understanding the complete marketing ROI for direct seguros

Marketing Response


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Background

Direct Seguros as part of the

of insurance solutions for the Spanish market. It also has an extensivenetwork of direct insurance businesses in France, Italy, Poland and Portugal.

Established in 1996 as an insurance company

specializing in car insurance, it is now one of

the leading insurance companies in Spain,

marketing its products directly to consumers (no

aggregators/brokers etc).

Direct Seguros has adopted the web channel

completely and now accepts applications via

both online and its call centre.

In 2007, the company extended its insurance

offer to include motorbike insurance among its

core offering.
http://www.directseguros.es/index.html


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Objectives and Methodology

Objectives

Using Direct Seguros internal and proprietary data (October 2007- June 2010) Application data (split by call center, Internet)

Price/rate

Website data and analytics

Direct marketing and TV advertising investment

and data from other sources e.g.: Google search volume

Economic indices

Various econometric models were built to understand the return on

investment of communication media and marketing.

Methodology

Identify the key marketing drivers that generate new applications

Quantify the effectiveness and efficiency of these drivers

This applies to both applications made via the call center as well as those coming from the Internet.

Understand the role played by website traffic along with the media (offline and online) in generating

new applications.


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Background

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19/04/2008

10/05/2008

31/05/2008

21/06/2008

12/07/2008

02/08/2008

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13/09/2008

04/10/2008

25/10/2008

15/11/2008

06/12/2008

27/12/2008

17/01/2009

07/02/2009

28/02/2009

21/03/2009

11/04/2009

02/05/2009

23/05/2009

13/06/2009

04/07/2009

25/07/2009

15/08/2009

05/09/2009

26/09/2009

17/10/2009

07/11/2009

28/11/2009

19/12/2009

09/01/2010

30/01/2010

20/02/2010

13/03/2010

03/04/2010

24/04/2010

15/05/2010

05/06/2010

26/06/2010

Call Center Internet

64%

36% Call CenterInternet

64% of Direct Seguros applications are made offline via the call

center, while 36% are made online.

Direct Seguros accepts applications both online and offline via its call centers.


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Call Centre

What are the drivers of offline call centre applications?


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Google Confidential and Proprietary

13

/10/2007

10

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08

/12/2007

05

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02

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01

/03/2008

29

/03/2008

26

/04/2008

24

/05/2008

21

/06/2008

19

/07/2008

16

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13

/09/2008

11

/10/2008

08

/11/2008

06

/12/2008

03

/01/2009

31

/01/2009

28

/02/2009

28

/03/2009

25

/04/2009

23

/05/2009

20

/06/2009

18

/07/2009

15

/08/2009

12

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10

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07

/11/2009

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/12/2009

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27

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19

/06/2010

6

Base level 63.6%

Price/rate

23.4%

TV advertising1.4%

Holidays and

seasonality 2.1%

Paid Search 1.4%

Direct Marketing

0.6%

7.4% of first call center contacts come as a result of visitingwww.directseguros.es. And paid search increases these contacts by a further

1.4%.

Consumer demand,

economic factors etc.

8.8% of thecontacts of call center

come from online sources

Ca

llCenterContacts Web visits 7.4%

Drivers of offline Call center applications


7/28Google Confidential and Proprietary

The website generates 7.4% of applications. Paid search contributes 1.4% ofapplications

7

The base level

includes the effect of

consumer demand,

motor vehicle sales

seasonality, the

economic situation

etc.

Base level Seasonality Price/rate Direct

Marketing

TV Advertising Paid Search Web traffic

Drivers of offline Call center applications

64% 2%

1.4%

89% of applications are notinfluenced by marketing

Only 11% of applicationsare influenced by marketing.

23%0.6%

7.4%

1.4%

8.8%via online

Of which 8.8%

come fromonline


8/28Google Confidential and Proprietary 8

Website applications

What are the drivers of online applications?



Base level Seasonality External

factors

Direct Mail TV

advertising

Organic

Search

Paid

Search

Direct

web visit

28.3% 1.5%5.5%

3.2% 1.0%

28.2%

25.2%

7.1%

Drivers of online website applications

35% of applications are notcontrolled by marketing

65% of applications areinfluenced by marketing.

61%driven by

online

The web unsurprisingly

generates the majority ofweb applications



Marketing ROIReturn on media spend



Understanding the effectiveness of marketing spend

4,100

4,200

4,300

4,400

4,500

4,600

4,700

4,800

- 50,000.00 100,000.00 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00

WeeklySales(Units)

Weekly Media Spend

Due to the natural variance in both spend and sales levels over the

analysis period a response curve can be drawn to understand the

Media X



ROI of each media is dependent on the point at which investment is at

on the curve

12

Understanding the effectiveness of marketing spend

4,100

4,200

4,300

4,400

4,500

4,600

4,700

4,800

- 50,000.00 100,000.00 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00

WeeklySales(Units)

Weekly Media Spend

Media X

Lower

investment

high ROIHigher

investment,

same

media, but

lower ROI



Return on Marketing investment

Paid search is the most

cost-effective medium; verysignificantly more costeffective than direct marketing

and TV advertising.

Monetary value of an application and actual returns not shown due to client confidentiality data indexed against total media average ROI 13

Direct Mail TV Branded paid search Generic paid search

55.4

26.76

17.90

The ROI of each media is based upon

the media investment and return .

1.62

1.83

0.47 0.38

Offline ROI (call center)

Online ROI (website)


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Understanding Digital


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Drivers to www.directseguros.es

This is the modeled decomposition ofincremental response (i.e sources of

incremental web traffic) not anobservational referral source analysis .

Base

Seasonality

Affiliates

Organic

Paid

Direct Mail

TV

22%

3%

6%

40%

21%

5%

5%

Search is the primary driver ofincremental web

traffic. Also significant evidence of offline media

driving web traffic


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Google Confidential and Proprietary16

Effect of position in paid search

3rd position

Average paid

position

Online

application

increase %

Call center

applications

increase %

Generic, auto and brand search terms

1.0 2.7% 1.7%

1.7 2.1% 1.3%

3.2 - -Direct Seguros average paid

position

Improving position in paid search, results in a noticeable increase inapplications, both online as well as offline at the call center.


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Drivers of Branded queries

Generic paid search impressions, contribute an incremental 3.2% to totalbranded query volume

Base onlineQueries

81%

Direct

Marketing1%

Seasonality2%

Carregistrations

11%

Tv Advertising2%

Generic paidsearch

impressions3%


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Drivers of incremental AdWords clicks

Significant evidence ofOffline to Online synergies.

6%

2%

% Uplift in Paidsearch clicks

Ad position on pageincreases clicks by

9.6%

Competitor Ads on thepage increase clicks by

1.4%


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Conclusions


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1 The Online to Offline effect is sizeable. 8.8% of offline conversionsoccur due to online activity

2

Paid search is the most cost-effective way to increase insurance

applications: over ten times more efficient than other media

3 Improving position in paid search increases applications online by2.7%, and offline via the call center by 1.7%

4 Considerable TV and search synergy TV incrementally drives 6%of paid search clicks

Summary and conclusions

20


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Post Research Media Spending


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Before research: January-June 2010 After research: July-December 2010

TV 73.0%

RADIO 4.9%PRINT 0.2%

PAID SEARCH

17.0%

MKD 4.9%

TV 81.1%

RADIO 3.0%

PRINT 0.1%

PAID SEARCH

8.9%

MKD 7.0%

Optimal media mix obtained from

econometric models

TV 61.5%

RADIO 10.3%

PRINT 0.9%

PAID SEARCH

20.3%

MKD 6.9%

What they should reallyhave done July-Dec 2010

Direct Seguros Media mix pre/post research

Please note that the Optimal recommended mix does not

take into account natural media constraints and therefore

might not be possible to apply

MKD = Marketing Directo = Direct Marketing


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0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

01/01/2010 01/02/2010 01/03/2010 01/04/2010 01/05/2010 01/06/2010 01/07/2010 01/08/2010 01/09/2010 01/10/2010 01/11/2010 01/12/2010

H1: 362K

H2: 732K

Research

delivery

Direct Seguros Google search spend pre post research

Source: Google Spain


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Direct Seguros pre post research click share (Generic termsonly)

Source: Google Spain

0.05

0.1

0.15

0.2

0.25

0.3

H1: 16.1%

H1: 19.2%

Research

delivery


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Testimonials

Olivier Lamarque Marketing Director Direct Seguros Spain

in qualified lead measurement, we are able to understandhow all of our marketing channels are working. We

understand the relationship between offline and online bothin terms of our media efficiency but also our consumer andtheir preference to shop multichannel. We now know thetrue ROI of each of our media channels and have alreadyoptimised for performance.


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Appendix


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13/10/2007

03/11/2007

24/11/2007

15/12/2007

05/01/2008

26/01/2008

16/02/2008

08/03/2008

29/03/2008

19/04/2008

10/05/2008

31/05/2008

21/06/2008

12/07/2008

02/08/2008

23/08/2008

13/09/2008

04/10/2008

25/10/2008

15/11/2008

06/12/2008

27/12/2008

17/01/2009

07/02/2009

28/02/2009

21/03/2009

11/04/2009

02/05/2009

23/05/2009

13/06/2009

04/07/2009

25/07/2009

15/08/2009

05/09/2009

26/09/2009

17/10/2009

07/11/2009

28/11/2009

19/12/2009

09/01/2010

30/01/2010

20/02/2010

13/03/2010

03/04/2010

24/04/2010

15/05/2010

05/06/2010

26/06/2010

Modelo Ajustado Cli ck s_Pai d_search

13/10/2

007

03/11/2

007

24/11/2

007

15/12/2

007

05/01/2

008

26/01/2

008

16/02/2

008

08/03/2

008

29/03/2

008

19/04/2

008

10/05/2

008

31/05/2

008

21/06/2

008

12/07/2

008

02/08/2

008

23/08/2

008

13/09/2

008

04/10/2

008

25/10/2

008

15/11/2

008

06/12/2

008

27/12/2

008

17/01/2

009

07/02/2

009

28/02/2

009

21/03/2

009

11/04/2

009

02/05/2

009

23/05/2

009

13/06/2

009

04/07/2

009

25/07/2

009

15/08/2

009

05/09/2

009

26/09/2

009

17/10/2

009

07/11/2

009

28/11/2

009

19/12/2

009

09/01/2

010

30/01/2

010

20/02/2

010

13/03/2

010

03/04/2

010

24/04/2

010

15/05/2

010

05/06/2

010

26/06/2

010

Modelo Ajustado Primeros Contactos Internet OT

13

/10/2007

10

/11/2007

08

/12/2007

05

/01/2008

02

/02/2008

01

/03/2008

29

/03/2008

26

/04/2008

24

/05/2008

21

/06/2008

19

/07/2008

16

/08/2008

13

/09/2008

11

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08

/11/2008

06

/12/2008

03

/01/2009

31

/01/2009

28

/02/2009

28

/03/2009

25

/04/2009

23

/05/2009

20

/06/2009

18

/07/2009

15

/08/2009

12

/09/2009

10

/10/2009

07

/11/2009

05

/12/2009

02

/01/2010

30

/01/2010

27

/02/2010

27

/03/2010

24

/04/2010

22

/05/2010

19

/06/2010

Modelo Ajustado visitas

13/10/20

07

10/11/20

07

08/12/20

07

05/01/20

08

02/02/20

08

01/03/20

08

29/03/20

08

26/04/20

08

24/05/20

08

21/06/20

08

19/07/20

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16/08/20

08

13/09/20

08

11/10/20

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08/11/20

08

06/12/20

08

03/01/20

09

31/01/20

09

28/02/20

09

28/03/20

09

25/04/20

09

23/05/20

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20/06/20

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18/07/20

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15/08/20

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12/09/20

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10/10/20

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07/11/20

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05/12/20

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02/01/20

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30/01/20

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27/02/20

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27/03/20

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24/04/20

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22/05/20

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19/06/20

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Modelo Ajustado Primeros Contactos Call Center OT

27

Models and settings

93.4%

94.2% 92%

82%

Interconnections between Direct Seguros


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Call center(Contacts)

Online(Contacts)

TV advertising +

Direct marketing

Web traffic

SEM

(Paid search)

Online

search

Online World Offline World

Base level, price,

seasonality

registrations

Interconnections between Direct Seguros

business drivers

Drop in car

sales, crisis

call center

+ Driver

- Driver

Caption

Direct Seuros Case Study Marh 2011 By Google

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