Today, before consumers purchase insurance, they want more information than ever. They want to know all of their options, what it will cost, how long you've been in business and what kind of customer services you offer. In traditional types of advertising, it is difficult to give them that much information.
More and more of today and tomorrow's purchasers of insurance are hooked up to the Internet. International Data Corporation (IDC) reports that 18 million households are now online, and predicts that number will grow to 40 million by the year 2001.
As consumers search online for information about products and services like those you provide, Yellow Pages publishers are making it easier for Internet surfers to find information by providing online Yellow Pages directories. This article will explain why advertisers use these online directories rather than just relying on individual Web sites to advertise their businesses.
Who's online?
My brother is a 42-year-old urban planner. He and his wife just had their first baby. Suddenly, he thinks he may need more insurance than he receives from his employer. Like many others of his baby-boomer generation, he demands lots of information before he makes purchasing decisions. Because he often conducts research online for work, he has decided to do the same to check out his insurance options.
But where does he begin? Since he is used to referring to his print Yellow Pages, he boots up an electronic Yellow Pages service. He specifies his topic of interest and location, and within a few seconds is looking at listings for insurance agents in his area. One particular listing offers him information on low-cost packages, deferred higher-premium plans and payment options. The ad emphasizes the agent's 20 years of serving the community. My brother even has the opportunity to ask questions electronically and schedule an appointment.
Joe Willix, spokesman for GTE's SuperPages®, one electronic Yellow Pages service, says studies show that users tend to have a household income of over $50,000 and a higher than average education level. So the typical person using online Yellow Pages may be your ideal client. Willix also reports that "Insurance" is one of the highest consumer usage categories on SuperPages.
IDC reports that those who have access to the Internet are using it on a regular basis. Sixty percent of the households online are accessing the Net at least once each day. SuperPages records over 153,000 visits per day, with more than two million hits on specific sites.
In a recent study by Find/SVP, a market research group based in New York, Internet users said they were most attracted to the tremendous amount of information available, but they also said they often cannot find what they need. That's where an online Yellow Pages service can help.
"The purpose of our interactive directory service is to link buyers and sellers," said Willix. "Spending money on a Web page without being part of an online directory is like opening a business without hanging up a sign out front. People have to know a lot about you already just to find you. And what good is a Web page if nobody comes? GTE invests a lot of resources in publicizing our SuperPages service with consumers. Our goal is to make the shopping experience as easy and convenient as possible by offering both printed and online directory services together."
Why should you try it?
Insurance agents are some of the biggest purchasers of SuperPages ads today. What convinced them to try online advertising? Here are the advantages they considered:
* Even a small agency with a limited advertising budget can afford to try an online ad. Many options are available, including those that cost as little as $25 a month--less than a couple of classified ad lines in a local newspaper. Many publishers offer discounts for online services if you also advertise in their print Yellow Pages.
* Online ads can include as much information as you want, and they're simple to change. You can provide answers to questions customers frequently ask about specific types of insurance, costs and your experience. And you can easily change the ads to include special promotions.
* Electronic advertising is interactive. You can save your office staff time, and avoid having potential customers get a busy signal or be put on hold. People can e-mail you their questions and you can answer them online.
* Online Yellow Pages ads reinforce your print advertising. Many print Yellow Pages publishers offer you the opportunity to note your online address in your print ad. This lets people know how they can easily access more information if they choose.
* You don't have to be an online expert. The big advantage of contracting with a Yellow Pages publisher to put you online is that you can let the publisher handle your design, programming and maintenance.
* If you already have your own Web site, you might consider an option that links your site to an electronic Yellow Pages service, making it possible for potential clients to find you when they don't even know your name, number or URL.
* Online services offer you a useful communications tool for keeping your clients informed on an on-going basis.
Answers to your concerns
One of the major concerns business owners have about electronic advertising is that because it is so new, most of us have not had time to learn all about it. That's one good reason to contract with a reputable directory publisher rather than trying to create an ad or working with a freelance designer who may have limited experience. Major Yellow Pages publishers have experts on staff who are specifically trained in effective online advertising design. So you don't have to do it all yourself.
Online Yellow Pages ads provide the opportunity for immediate interactive response. Information provided in the ads can easily be changed to reflect special promotions.
Another concern is that you are adding a new expense to your advertising budget. One way to control the expense is to ask your print Yellow Pages publisher if any special discounts are available if you advertise with the same publisher online. Several publishers offer good package deals. And take a close look at the advertising you are already doing to make sure you are getting the return you should. If you do try online advertising, keep track of your new business and from where it comes, so you can evaluate your advertising expenditures.
Also of concern is whether people will actually use this fairly new type of service to find insurance. Statistics show that Internet use is booming, and people are using it to look for goods and services. And since you may not have much competition online yet, this is a good time to get started. Also, the Yellow Pages publisher you use should reference your online ad in your print ad and should heavily promote the online Yellow Pages service to consumers.
A final concern is that most insurance agents target local clients and are not interested in receiving calls from people out of state. It is possible to target the online advertisement, and many people who use online Yellow Pages are actually looking for products or services in their specific geographic areas.
Online Yellow Page options
Different publishers will offer you a variety of options. Here's an example of the options offered by GTE:
* Basic Listing--includes your business name, address, phone and fax number and a map to your location listed under one Yellow Pages category. It is free of charge. SuperPages contains over 11 million nationwide listings.
* Fact File--this information is accessible via hyperlink from your Basic Listing and can include information such as your business hours, services and products you offer, and payment methods you accept, which helps match your services to their needs. This costs $25 per month.
* Display Advertisement--a "full-page" display ad above your Fact File giving you space for additional information and a graphic display. The cost is $35 per month, which includes the Fact File, with a one-time setup fee of $210.
* SuperSitesm--a Web site providing up to three pages of text, graphics and hyperlink. Cost is $95 per month and includes an electronic display ad to help drive traffic to the SuperSite.
* Custom Web Site--a professionally designed, custom-built Web site of unlimited size. Provides more information than a SuperSite. Cost is based on functionality and graphic design.
* Banner Advertisement--billboard-type ads that appear across the top of Web pages. The Banner ad is also linked to your business's home page or Web site. The cost is based on how specific you want to be in targeting your audience.
(Prices are accurate at time of printing but are subject to change.)
How to do it
First, spend some time surfing to see what and how other businesses, especially insurance agencies, advertise online. You can access GTE's SuperPages at http://superpages.GTE.net.
Next, ask yourself whether an online Yellow Pages ad will help you communicate with potential customers. If you think it will, set some objectives for your advertising. For example, you can target a new geographic area, and/or provide yourself with a new way to promote a specific type of coverage.
Work with your Yellow Pages publisher on the design of the ad itself. The experts on staff should be able to design the ad for you. Brad Sims, who designs online advertisements, recommends keeping these tips in mind:
* Use the tools available to give your ad the maximum impact. Four-color art attracts attention. Animation is effective, especially in banner ads. Be big, bold and creative.
* Design with time in mind. People will wait for a limited time for your entire ad to show up on the screen. If it is too complex, and it takes too long to appear, you lose people.
* Design for impact. Ignore the confinements of print. You do not have to be constricted by borders and size. Yours is the only ad on the screen.
* Look at other sites on the online directories. See what type of ideas and designs you like.
* Keep your print Yellow Pages ad in mind. Although you don't have the same constraints, you do want people to recognize you if they've seen your name in print. You should consider using the same logo or similar art.
* Remember you can easily change your information or update it. Keep it interesting and informative. Make sure you get your money's worth.
Whether it's in print or electronic, you should expect your Yellow Pages advertising to pay its own way. But the only way you'll know for sure is to do an evaluation. When you buy an online Yellow Page ad, ask the sales rep whether the publisher offers any tracking services. Providers of online ads may offer you a response report that shows the number of times someone clicks on your information.
If your are doing your own tracking, make it easy and convenient. For example, you could have a special telephone number which you advertise only in your Yellow Pages ad. Another alternative is to keep a simple questionnaire by your telephone. Ask your staff to check off where people found the name of your agency or your telephone number, and whether they've ever used your services before.
Follow up and note what services they purchase, and how much they spend. After collecting this information, you can figure the number of customers your ad brings in and the average amount of money they spend. Multiply those two together, and you'll know how much revenue was generated by your ad. Figure what percentage of the revenue is profit, subtract the cost of the ad, and you'll see the return on your advertising investment. *
The author
Harriet Meyers is a freelance writer based in Columbia, Maryland.
©COPYRIGHT: The Rough Notes Magazine, 1998