How Media Works: Advertising and the Purchase Funnel For Auto and Life Insurance 1 A Yankelovich Study for the Television Bureau of Advertising

Study Objectives Determine the role that TV plays as part of a multi-platform environment for advertising. More specifically, the goals of the research were to understand: The role of television advertising in driving consumer actions throughout the purchase decision process How television interacts with other media platforms, including new media such as the Internet How purchase decisions are made as a result of this interaction, including the role of different media platforms in the purchase cycle 2 Source: TVB/Yankelovich “How Media Works,” April 2009

MethodologyMethodology Survey results were obtained via online interviews among 3,002 consumers who had seen a television ad in the past 2 months that made an impression on them. Interviews took place January 29 to February 10, 2009; Super Bowl Sunday was excluded. Respondents were first asked in which categories they have seen a television ad in the past two months that made an impression on them. Each respondent then completed an ad survey for up to three of these categories. The survey measured the overall impression of each ad, actions taken after seeing the ad, and whether ads for the same product or service were encountered in other media, etc. The respondents were asked questions on which media most increased awareness and interest, or prompted action across the range of categories studied. 3 Source: TVB/Yankelovich “How Media Works,” April 2009

One Quarter of Respondents are In the Market 4 “Are you currently considering a purchase in the Automobile or Life Insurance Category?” (Asked of those who recalled seeing a TV ad for Automobile or Life Insurance in the last 2 months) Source: TVB/Yankelovich “How Media Works,” April 2009

Customer Profile: Auto and Life Insurance Advertising 5 Source: TVB/Yankelovich “How Media Works,” April 2009 Saw an Ad in This Category that Made an Impression Currently Considering a Purchase in this Category Made a Purchase in this Category in the Past Year Purchased More than 1 year Ago Male 52.4%52.5%56.1%50.9% Female 47.6%47.5%43.9%49.1% %36.2%24.0%21.2% %70.9%53.8%52.7% %70.9%52.7%59.0% %20.6%40.1%36.0% Urban 33.1%35.5%31.7%32.0% Suburban 41.5%36.2%37.8%45.5% Rural 25.4%28.4%30.5%22.5% HHI <$30K 21.9%20.6% 21.2% HHI $30-$70K 45.0%37.6%43.9%49.5% HHI $70K+ 27.4%38.3%31.3%22.5% HHI $100K+ 12.8%19.1%15.3%7.2%

Over 40% of All Respondents Have Seen an Auto or Life Insurance Ad That Got Their Attention 6 Source: TVB/Yankelovich “How Media Works,” April 2009 Saw an ad that got your attention:

Half of Consumers Who Saw TV Ads for Auto or Life Insurance Made a Related Purchase in the Past Year 7 Source: TVB/Yankelovich “How Media Works,” April 2009 Last time made a auto or Life Insurance transaction: 49% of those who recently saw a TV ad for auto/life insurance have made a purchase in the past year

Advertisements For Auto or Life Insurance Largely Make a Positive Impression 8 Source: TVB/Yankelovich “How Media Works,” April 2009 Type of impression made by TV ad for auto/life insurance:

Over Half of Respondents Find Auto or Life Insurance Ads to be Attention-Getting 9 Source: TVB/Yankelovich “How Media Works,” April 2009 Ratings of Auto/Life Insurance Television Ads: Total Auto/Life Insurance How much did it get your attention? 54% total 56% Insurance 42% total 34% Insurance How relevant was it? 53% total 47% Insurance How informative was it?

After Viewing TV Ads for Insurance, Respondents Are Likely to Research and Discuss Ad Information, and Consider Purchase 10 Source: TVB/Yankelovich “How Media Works,” April 2009 Actions Taken After Seeing TV Commercial for Auto/Life Insurance Auto/Life Insurance Any (Net)35% Remembered you had seen the product or service advertised before12% Talked with others about the advertisement11% Went online to learn more about the product or service advertised11% Considered purchasing the product or service10% Contacted the company in the advertisement4% Tried to find the advertisement on the Web3% Purchased the product or service online3% Purchased the product or service in a store2% Visited a store or location to learn more about the product or service2% Looked in a newspaper or magazine to learn more about the product or service 2% Sent someone an about the product or service2% Sent someone a Web-site link about the product or service2% Other action4% Did nothing65%

Respondents More Likely to Recall Auto and Life Insurance Ads on Radio 11 Source: TVB/Yankelovich “How Media Works,” April 2009 Saw ad for same product or service in a media other than TV: Total Auto/Life Insurance Index to Total Any (Net)46%36%78 On the Internet20%17%85 In a newspaper18%9%50 On the radio12%15%125 In a magazine11%12%109 In an offer8%9%113 On a billboard or other outside sign7%8%114 Other media3%2%67 Did not see, hear, or read in any other media35%40%114 Not sure19%24%126

Auto/Life Insurance Advertising Impact at Various Stages of the Consumer Purchase Funnel 12 AwarenessInterestConsider Want toVisit Make Purchase Purchase Store/Website Purchase Source: TVB/Yankelovich “How Media Works,” April 2009

Auto/Life Insurance Media Impact at Various Stages of the Consumer Purchase Funnel 13 Source: TVB/Yankelovich “How Media Works,” April 2009 Media cited by less than 3% of respondents were incorporated into the total for “other.”

ConclusionsConclusions Insurance is a need-driven category; 25% of consumers are in the market at any given time. Television ads are more likely than the average commercial to be recalled by consumers. It appears that more people are conducting life and auto insurance transactions than claim to be in the market. This creates a strong marketing opportunity. Marketers can reach people at the Awareness phase of the purchase funnel to capture customers as the need for a category purchase arises. At 46%, television advertising is the primary category driver in the Awareness stage of the purchase funnel. 14 Source: TVB/Yankelovich “How Media Works,” April 2009