07 Jul Is the ground shifting?
Many of CounterShot’s publishers have relied on auto insurance as their “go to” product for the past number of years. It’s been the bread and butter of their business where they’ve counted on it for most of their income. Before auto insurance, it was a host of other markets like mortgage refi, auto finance, debt relief or something else. However in the past number of months it seems the ground has started to shift under publishers in this market.
You can see this in the declining number of conversions (i.e, Conversion Rate /CR), price per lead (RPL) and spike in tech issues / quality software that eliminate what appear to be many serviceable leads. When you try to talk to someone about this, first it’s hard to reach them and then the answers they give are “mushy” or vague. What’s going on?
It’s rapidly becoming a buyer’s market in auto insurance and these are signs of buyers consolidating, becoming larger and looking to be more profitable and pay for their acquisitions. This is true for carriers and aggregators both. Where there were once many buyers, today it’s a much smaller number and these keep buying their competition. At the same time more publishers continue jumping into the auto insurance marketplace. It’s a self-defeating cycle. Pixels are fired less and less and sophisticated software allows the buyer to determine his acquisition costs per lead regardless of what is advertised as the price per lead.
It would probably amaze everyone to see what their RPL actually is for the “good” leads they generate. It’s far less than anyone wants to think about. This trend will likely get worst and probably never better. Even a very long term view of the market sees more software driving cars and insurance adapting accordingly—probably dropping in price. Maybe even demand for cars declining as private transportation gets “disrupted” by innovation.
What should a publisher do in the interim? Some things come to mind:
- Be aware of what’s happening and start looking for ways to diversify
- Be as smart with your data as possible…….. See if there are other ways it can be used.
- Keep costs low and squeeze out every $ possible. Be wary of investment in expanding in this vertical.
Most importantly, realize this may be a sea change that’s taking place. It’s time to start re-imagining a NEW FUTURE with more diversity in markets and not as dependent on auto insurance!