Today’s column is written by Steve Yi, CEO at MediaAlpha.
Cold feet, rate comparisons and digital noise are all common distractions that might stop a customer from doing business with a specific insurer. But that customer could still be a good fit for a competitor.
That may sound like bad news, but it really could be a benefit for all players. These days, an insurance company can turn into its own publisher and sell ad inventory to the competition at various points in the insurance-buying process, generating a secondary source of revenue.
You can call it the ultimate piece of the click-revenue pie.
There are sound reasons for insurers to engage in this process. On the sell side, a company might realize that it can’t offer competitive rates for a special type of coverage, or perhaps a national brand can’t underwrite in certain states. In either case, the insurance company can act as a publisher itself, selling ad space to competitors and allowing potential customers to click on a competitor’s display ad. The best-case scenario here would be to see those customers eventually come back to where they started, giving insurance companies a revenue double-dip from both co-opetition and conversion.