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©B. H. Burke & Co., Inc., 2012, may be reproduced with attribution. 1
Social Media and Online Marketing – What’s the Real Deal?
A short and objective survey of what insurance agencies
are currently doing in the online world
Often when I speak with an agency owner, COO, or marketing manager about social media, I get asked
about the results other agencies are seeing, in particular their return on investment (ROI). (I’m sure for
the most part they’re seeking this information to help them make an informed decision on whether to
invest in these new marketing methods, but I sometimes suspect it may also be a defensive question to
justify not delving into the topic further.) As a result of lacking good solid data to provide an answer, I
decided to put together this survey to learn what industry people were doing in online marketing with
social media. I’m not making any recommendations in this report, just presenting the results for you to
use as you see fit. With that being said, the following three findings were the most eye-opening to me:
� More than 60% of those of you who responded are not measuring the return on investment of
your current marketing efforts! So until you do, why ask about social media’s ROI? (OK, that
was an editorial comment.)
� Close to half of respondents who are not using social media will start to do so within a year.
� Of those who responded, a bit more than 60% do not have a coordinated marketing plan of
any kind.
Our survey received responses from 293 agencies across 41 states and Canada. Just about 60% of
respondents identified themselves as agency principals or management. Another 40% or so said they
worked in IT, marketing, or sales. Throughout the summary that follows, the term nontraditional
marketing encompasses both social media and online marketing.
©B. H. Burke & Co., Inc., 2012, may be reproduce
As you can see below, the three most popular traditional marketing methods (used by approximately
half the respondents) are the Yellow Pages, direct mail, and local newspapers
Respondents’ most-used online marketing method, far and away, is their website.
come Facebook, LinkedIn, and e-mail blasts.
53%
15%
30%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Percentage of Agencies Who Use the
Traditional Marketing Platforms Shown Below
25%17% 6%
0%
20%
40%
60%
80%
100%
Percentage of Agencies that Use the
Nontraditional Marketing Platforms shown Below
©B. H. Burke & Co., Inc., 2012, may be reproduced with attribution.
As you can see below, the three most popular traditional marketing methods (used by approximately
the Yellow Pages, direct mail, and local newspapers.
marketing method, far and away, is their website. After that, in order,
mail blasts.
30%
2%
51%
22%
51%
39%
Percentage of Agencies Who Use the
Traditional Marketing Platforms Shown Below
96%
56%
32%
60%
21% 12%
37%
Percentage of Agencies that Use the
Nontraditional Marketing Platforms shown Below
2
As you can see below, the three most popular traditional marketing methods (used by approximately
After that, in order,
14%10%
60%
5%
Nontraditional Marketing Platforms shown Below
©B. H. Burke & Co., Inc., 2012, may be reproduce
Across all agency sizes, respondents’ Facebook page
Twitter account has 440 followers. Respondents in the
ranges are the most active — with the most Likes, Followers, and Contacts
platforms. Those in the $25MM+ revenue range (which may
much more active in on-line marketing.
showed a greater usage of LinkedIn and Twitter.
they maintain their platforms internally, inc
Of those who responded, about 40% have a
marketing. About 60% do not include nontraditional channels in a coordinated marketing plan.
34%2%
Marketing Efforts in Traditional Channels
27%
12%
Marketing Efforts in Non
©B. H. Burke & Co., Inc., 2012, may be reproduced with attribution.
espondents’ Facebook pages have an average of just over 200
llowers. Respondents in the $2.5MM-$5MM and $5MM-$10MM
with the most Likes, Followers, and Contacts — in the various social
+ revenue range (which may skew toward large regionals
line marketing. Additionally, agencies in the $1MM and lower revenue range
showed a greater usage of LinkedIn and Twitter. Close to the majority of respondents indicated that
they maintain their platforms internally, including the creation of the content they post on them.
Of those who responded, about 40% have a coordinated plan for traditional and/or nontraditional
include nontraditional channels in a coordinated marketing plan.
29%
35%
Marketing Efforts in Traditional Channels
General marketing actions (or ad
hoc) and advertising with a budget.
General marketing actions and
advertising without a budget.
Part of a coordinated marketing
plan with a budget.
Part of a coordinated marketing
plan without a budget.
17%
45%
Marketing Efforts in Non-Traditional Channels
General marketing actions (or ad
hoc) and advertising with a budget.
General marketing actions and
advertising without a budget.
Part of a coordinated marketing
plan with a budget.
Part of a coordinated marketing
plan without a budget.
3
00 Likes; the average
$10MM revenue
in the various social-media
large regionals) were also
Additionally, agencies in the $1MM and lower revenue range
Close to the majority of respondents indicated that
luding the creation of the content they post on them.
nontraditional
include nontraditional channels in a coordinated marketing plan.
Marketing Efforts in Traditional Channels
General marketing actions (or ad-
hoc) and advertising with a budget.
General marketing actions and
advertising without a budget.
Part of a coordinated marketing
plan with a budget.
Part of a coordinated marketing
plan without a budget.
Traditional Channels
General marketing actions (or ad-
hoc) and advertising with a budget.
General marketing actions and
advertising without a budget.
Part of a coordinated marketing
plan with a budget.
Part of a coordinated marketing
plan without a budget.
©B. H. Burke & Co., Inc., 2012, may be reproduce
Almost 70% of the agency respondents
media plan, either as a part of an overall marketing plan or as a stand
agencies did say they have a documented social media plan in
The percentage of respondents who allow unlimited use of social media during the workday is just about
equal to the percentage who do not allow it at all
group taking the step of blocking access to
Almost 50% of respondents who do not currently use social media plan to begin doing so within a year
and a total two-thirds will eventually do so.
34%30%
0%
10%
20%
30%
40%
Yes, without
limitation
Yes, for defined
segments of
employees (e.g.,
producers)
Do You Allow the Use of Social Media
27%
22%
If You Do Not Use Social Media, Do You Plan to Start?
©B. H. Burke & Co., Inc., 2012, may be reproduced with attribution.
0% of the agency respondents indicated that they do not have a formal or documented social
media plan, either as a part of an overall marketing plan or as a stand-alone document. 3
say they have a documented social media plan in place.
The percentage of respondents who allow unlimited use of social media during the workday is just about
not allow it at all (each approximately 35%), with about half this latter
group taking the step of blocking access to social media sites.
50% of respondents who do not currently use social media plan to begin doing so within a year
thirds will eventually do so.
30%
14%
35%
Yes, for defined
segments of
employees (e.g.,
producers)
Yes, but only
during specific
hours (e.g.,
lunchtime)
No We block access to
these types of
Do You Allow the Use of Social Media
During Working Hours?
31%
20%
If You Do Not Use Social Media, Do You Plan to Start?No, probably not.
Yes, at some point over the
next six months.
Yes, within a year.
Yes, but more than a year
from now.
4
indicated that they do not have a formal or documented social
alone document. 32% of the
The percentage of respondents who allow unlimited use of social media during the workday is just about
, with about half this latter
50% of respondents who do not currently use social media plan to begin doing so within a year
16%
We block access to
these types of
sites
If You Do Not Use Social Media, Do You Plan to Start?No, probably not.
Yes, at some point over the
Yes, within a year.
Yes, but more than a year
©B. H. Burke & Co., Inc., 2012, may be reproduce
Among those respondents who use social media in their daily operations, Facebook and LinkedIn
favorites by far, with Twitter coming in a distant third.
online marketing methods.
Nearly every respondent reported having a website,
under half use LinkedIn, and approximately a third use Twitter, a website blog, and Google Places.
In addition, 13% indicated that they use some sort of locat
third-party sales or marketing platform (not their primary management system).
28%
57%
0%
10%
20%
30%
40%
50%
60%
We do not
use social
media.
Apart from Marketing, Do You Use Social Media
in Your Daily Operations? If So, Which Platform(s)?
95%
33%
16%0%
20%
40%
60%
80%
100%
Website Blog - On
your
website
Blog -
on your
website
Ax
is T
itle
Which of the Following Platforms
©B. H. Burke & Co., Inc., 2012, may be reproduced with attribution.
Among those respondents who use social media in their daily operations, Facebook and LinkedIn
favorites by far, with Twitter coming in a distant third. Just over a quarter of respondents do not use
ent reported having a website, close to two thirds have a Facebook page, just
under half use LinkedIn, and approximately a third use Twitter, a website blog, and Google Places.
% indicated that they use some sort of location-based platform, and about 23
party sales or marketing platform (not their primary management system).
57%52%
27%
6%
Facebook LinkedIn Twitter Foursquare Google +
Apart from Marketing, Do You Use Social Media
in Your Daily Operations? If So, Which Platform(s)?
16%
65%
18%
46%
34%
7%
- Not
on your
website
Page
Custom
Page /
Tabs
Company
Profile
account
Multiple
accounts
Which of the Following Platforms
Are Used at Your Agency?
5
Among those respondents who use social media in their daily operations, Facebook and LinkedIn are the
Just over a quarter of respondents do not use
two thirds have a Facebook page, just
under half use LinkedIn, and approximately a third use Twitter, a website blog, and Google Places.
rm, and about 23% use a
11% 11%
Google + YouTube
Apart from Marketing, Do You Use Social Media
in Your Daily Operations? If So, Which Platform(s)?
7%
32%
19%
Multiple
accounts
Places
profile
YouTube
account /
channel
©B. H. Burke & Co., Inc., 2012, may be reproduce
In both traditional and nontraditional marketing, respondents said that
Recognition” were their primary goals
Well more than half the respondents do not measure the results of their marketing, whether traditional
or nontraditional. Of those who do
and use of a spreadsheet or similar document was fairly even.
said that they do not measure the return on inv
“We measure it (ROI) by growth, but also in the quality of client we
referrals we are generating. Our mar
87
%
86
%
80
%
81
%
0%
20%
40%
60%
80%
100%
New Leads Brand
Recognition
Agencies' Marketing Goals
7%
15%
18%3%
Do You Measure the Results of Traditional Marketing?
©B. H. Burke & Co., Inc., 2012, may be reproduced with attribution.
In both traditional and nontraditional marketing, respondents said that “New Leads” and “Brand
primary goals, with “Relationship Building” cited third.
ore than half the respondents do not measure the results of their marketing, whether traditional
do track it, use of a sales-management or agency-management system
a spreadsheet or similar document was fairly even. And although 64% of the respondents
return on investment of their marketing, one respondent stated:
“We measure it (ROI) by growth, but also in the quality of client we are getting, what type of call
referrals we are generating. Our marketing is for branding purposes; we use our sales force to sell
55
%
67
%
58
% 77
%
61
%
50
%
Recognition
Organizational
Image
Relationship
Building
Improved
Prospecting
Improving
service /
adding a new
service
channel
Agencies' Marketing Goals
Traditional Non
57%
3%
Do You Measure the Results of Traditional Marketing?
No.
Yes, and we input them into a marketing
or sales management system.
Yes, and we input them into our agency
management system.
Yes, and we put them into a manual
spreadsheet/document.
Yes, OTHER.
6
“New Leads” and “Brand
ore than half the respondents do not measure the results of their marketing, whether traditional
management system
% of the respondents
one respondent stated:
are getting, what type of call-ins and
we use our sales force to sell
50
%
19
%
Improving
service /
adding a new
service
channel
Research
Non-Traditional
Do You Measure the Results of Traditional Marketing?
Yes, and we input them into a marketing
or sales management system.
Yes, and we input them into our agency
Yes, and we put them into a manual
spreadsheet/document.
©B. H. Burke & Co., Inc., 2012, may be reproduce
For respondents who use social media, Twitter and Facebook are the most frequently updated sites,
LinkedIn and Google Places Profiles, the least. About 65% of the respondents said they updated their
Facebook Pages at least weekly (Note: this result does contain all respondents, not just agencies
9%
10%
15%6%
Do You Measure the Results of Non
64%
16%0%
20%
40%
60%
80%
We do not
measure it.
By the number of
leads that are
quoted.
How Do You Measure the ROI of Your Marketing?
©B. H. Burke & Co., Inc., 2012, may be reproduced with attribution.
For respondents who use social media, Twitter and Facebook are the most frequently updated sites,
Google Places Profiles, the least. About 65% of the respondents said they updated their
(Note: this result does contain all respondents, not just agencies
60%
Do You Measure the Results of Non-Traditional Marketing?
No.
Yes, and we input them into a marketing
or sales management system.
Yes, and we input them into our agency
management system.
Yes, and we put them into a manual
spreadsheet/document.
Yes, OTHER.
16% 18% 12%
By the number of
leads that are
quoted.
By the number of
leads that are
sold/issued.
By the amount of
agency revenue.
By the number of
followers on the
various platforms.
How Do You Measure the ROI of Your Marketing?
7
For respondents who use social media, Twitter and Facebook are the most frequently updated sites,
Google Places Profiles, the least. About 65% of the respondents said they updated their
(Note: this result does contain all respondents, not just agencies.)
Traditional Marketing?
Yes, and we input them into a marketing
or sales management system.
Yes, and we input them into our agency
Yes, and we put them into a manual
spreadsheet/document.
12%
By the number of
fans, likes,
followers on the
various platforms.
How Do You Measure the ROI of Your Marketing?
©B. H. Burke & Co., Inc., 2012, may be reproduced with attribution. 8
We also looked at the survey responses to learn how much new business can be attributed to social-
media platforms. Because not all respondents provided answers and those who did may have only
provided estimates or may not have had access to hard data while they were taking the survey, this
section of our findings cannot be relied on for complete accuracy. With that caveat notwithstanding,
these facts stood out:
Respondents with annual revenue in the $500,000-$1MM range reported that an appreciable
percentage of their monthly new-business commission could be tied to online efforts, with their
website, Facebook, and Google AdWords making up the largest portion of this business.
Respondents with annual revenues in the $10MM-$25MM range reported that about 7% of their
monthly new-business commission was attributable to their website. Respondents in all other revenue
groupings reported that from approximately 1% to 2.4% of monthly new-business revenue was a result
of their online marketing.
(Note: This last section was not updated for agency-only respondents.)
♦ ♦ ♦
I hope this survey has shed some light on how the almost 300 insurance agencies across 41 states and
Canada are using online marketing and social media and that the results assist you in making strategic
decisions about the use of these platforms in growing your firm’s client base and online presence. If you
have any further questions on these results, please do not hesitate to contact us via email
This survey was created, evaluated, and the report written by Jason Hoeppner, CIC, an independent
agency consultant at B. H. Burke & Co., Inc. of Westbrook, CT. You can learn more about us at
http://www.bhbco.com.