How to invest your marketing budget the smartest way, to keep up with competitors with larger media budgets?
Case Study
Prediction based advertising for travel insurance provider
Services
SEO Optimization, Content strategy
Client
Europ Assistance Belgium
Year
2018
Background
Challenge
In the market that’s dominated by seasonality trends, the lion’s share of travel insurance providers focuses their marketing efforts on the summer period only. Knowing that we have a media budget that’s much smaller than the competitors, we need to be smarter about when to spend it. We’re investing a large part of our budget into Google Search and the higher the competition, the more we are going to pay for our clicks and thus for our derived revenue.
We also know that consumers often can’t distinguish the messages of different travel insurers and advertising during the busiest period, where there is too much noise from competitors can result in our message getting lost. Or worse, being attributed to a competitor.
Methodology
We want to spend our budget when there is market volume, but when there is little competition. We know that market trends are heavily connected to holiday periods and we know that most people purchase their travel insurance only 1 to 2 weeks before going on a holiday. With 10 years of historical sales data we could make accurate predictions of weekly sales trends. A combination of this data and the search volume measured in Google Search gave us a clear overview of the market opportunities.
We added the competitor spendings to this analysis to see where the market opportunity is high and the competitors are not spending their marketing budgets.
Results
We’re tracking : ROAS (return on ad spend), revenue and conversion probability
We now have a clear overview of the market and the opportunities. We know where there are gaps and where we can spend our marketing budget to get the highest return on ad spend. We still are investing less than the competitors, but we’re investing in a much smarter way. We shifted away from one big offline marketing campaign in summer to adopting an ‘always on’ methodology where we follow the market trends and the sales volume.
With the implementation of prediction based advertising, we will increase our overall ROAS with 32,25% YoY.
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