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#Post#: 91--------------------------------------------------
The top advertisers in the vertical as a whole
By: payel Roy Date: August 30, 2023, 3:47 am
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Are US carriers -- State Farm, Progressive and Geico -- spending
a combined sum of $110 million in 2011. The keyword landscape
for the car insurance vertical is relatively dense. A vast
majority of searches occur across 10-20 generic terms (ie - “car
insurance,” “auto insurance,” “cheap auto insurance,” “auto
insurance quotes,” etc). This is an important point because it
helps explain the relatively high market CPC of car insurance
keywords versus other verticals. All of the major advertisers
are in the auction for a large majority of searches.
Resulting in higher prices. The top spot for head term searches
can reach CPCs well over $40. The overall average revenue/click
for Google is probably somewhere around $30. Having run run
similar experiments with carrier click listing ads using SEM
traffic, I can confidently assume that the click velocity
(clicks per clicker) is around 1.5. So the Phone Number Data
HTML https://dbtodata.com/phone-number-data/
average revenue per
searcher who clicks is probably somewhere around $45 for Google.
Now, let’s speculate on Google’s potential revenues from
advertisers in a comparison environment. Carriers’ marketing
allowable is approximately $250 per new policy. When structuring
pay-for-performance pricing deep in the funnel (or on a
sold-policy basis), carriers are unlikely to stray from those.
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b/wp-content/uploads/2023/08/image_2023_08_29T07_20_58_965Z-300x
182.png
HTML https://dbtodata.com/phone-number-data/
Fundamentals. In a fluid marketplace higher in the funnel (i.e.
Adwords PPC), they very often are managing to a marginal cost
per policy that far exceeds even $500 (see $40 CPCs). While it
may seem like irrational behavior, there are two reasons they
are able to get away with this: a) They are managing to an
overall average cost per policy, meaning all direct response
marketing channels benefit from “free,” or unattributable sales.
With mega-brands like Geico, this can be a huge factor. b) There
are pressures to meet sales goals at all costs.
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