Insurance companies appear to be taking a page from the food marketers’ handbook. A recent report in Youth Markets Alert describes how insurance companies are expanding their efforts to reach the youngest consumers: kids and teens.  One company, American Family Insurance, is sponsoring the “Clifford the Big Red Dog Be Big” campaign while State Farm has underwritten the Nickelodeon’s “Go Diego, Go Live! Tour.”

These investments are all about educating young consumers on the value of insurance while influencing them with brand messages.  According to Carole Walker of the Rocky Mountain Insurance Information Association, the teen demographic is very important to auto insurance firms. At the time when many teens begin to drive, families may start looking around for a  new carrier. Cost is often a motivating factor as  a teen driver can add 50% to auto premiums. “Teens really trigger shopping among parents,” says Walker.

Recognizing the influence that teens and younger children may have on the parental decision-making process, insurance carriers are putting more money and effort in youth-specific marketing programs. These include:

• 2010 Aflac All-American High School Baseball Classic – sponsorship includes signage and uniforms.
• TV ads promoting a partnership between Geico and Disney is tied to the animated film The Princess and the Frog.
• Kids 15 and under, of South Asian descent, can compete for a $5,000 scholarship in the 2010 MetLife South Asian Spelling Bee.
• Smoke Detectives is State Farm’s game micro-site targeting younger consumers while educating them on the topic of fire safety.

Many of these programs are examples of creative marketing solutions applied to the continuing challenge of getting consumer attention. As new technology becomes available, marketers can develop and deploy new campaigns to effectively promote their brands.

[Source: Insurance Companies Use Education, Mascots, And Live Events To Reach Youth At Every Life Stage. Youth Market Alert. EPMCOM.com. March 2010]

As online media formats continue their steady march toward market dominance, consider the latest release from Outsell. According to the research concern, spending on digital marketing will overtake spending on traditional print media in 2010. Outsell includes categories such as search, webinars, business events in the total figure it calls digital marketing: $119.6 billion. This compares to traditional print spending in venues such as newspaper and magazine ads which Outsell predicts will total $115 billion in 2010. This game changer comes as Outsell forecasts a 1.2% increase in the total U.S. marketing and advertising market in 2010 – to $368 billion.

Outsell’s Vice President and Lead Analyst says “Advertisers are directing dollars toward the channels which generate the most qualified leads and most effective branding. As they emerge from the recession, they need more accountability, and they’re spreading their spending over a widening set of option.”

Based on Outsell’s projections, online spending would comprise 32.5% of spending while print would come in at 31.3%. It’s a small difference but a significant step and underscores the rapid adoption rate of online marketing techniques.

[Source: Outsell Forecasts Advertising/Marketing Spending to Grow, But Only 1.2 Percent. Outsell. 8 March 2010. Web. 10 March 2010]

In 2009, e-commerce non-travel spending essentially remained flat at $129.8 billion according to comScore.  The research shop indicates that 2010 should be a better year for e-retailers. This sentiment is echoed by Forrester Research which put forth its own numbers in a recent release. Forrester pinpoints 2009 e-commerce spending at $155.2 billion and predicts steady growth of 7% annually through 2012. At that point, Forrester analysts see growth increasing by 8% between 2013 and 2014, at which point  online retail sales will ring up at over $249 billion.

Based on numbers provided in their press release, Forrester analysts are expecting e-commerce sales to increase as a percent of total retail sales.  In 2009, e-commerce comprised 6% of retail activity. By 2014, they expect this number to reach 8%.  These figures all assume a steady growth rate in retail sales and this kind of assumption  might be risky considering the continued levels of high unemployment across the U.S.

However, Forrester Research Vice President and Principal Analyst Sucharita Mulpuru is looking for retail growth to come from the e-commerce sector, especially as consumers begin to explore the wonders of mobile online shopping.  Analysts also point to the high customer satisfaction rate (82%) with Web shopping channels when compared to rates for purchases researched online and then purchased in a store (61%). In addition, consumers are expected to continue buying products that have a well-established e-commerce presence and currently represent about 44% of total online sales – computer equipment, apparel, and consumer electronics.

While one can debate the specific numbers when it comes to measuring and projecting e-commerce volumes  4 years from now, the trend is clear. Retailers must establish an e-commerce presence and use online marketing strategies to ensure future growth.
[Sources: The 2009 U.S. Digital Year in Review. comScore. February 2010. Web. 9 March 2010; Forrester Forecast: Double-Digit Growth For Online Retail In The US And Western Europe. Forrester.com. 8 March 2010. Web]

As part of a general trend in new fiscal conservatism, consumers are paying more attention to smaller community banks and engaging with independent advisors to obtain guidance. This trend has come about as consumers seek more control over their financial destiny and hesitate to work with banks or other financial companies that have been deemed ‘too big to fail.’  The most recent Charles Schwab’s Independent Advisor Outlook Study offers a portrait of consumer sentiment and upcoming investment advisor strategies.

In general, independent advisors are recommending that consumers save up to 9% of their income. This strategy will help them achieve their stated goals of:

• Saving money 59%
• Paying down debt 62%

In addition, consumers are seeking specific advice on the following topics:

• Financial planning 56%
• Tax planning/accounting services 38%
• Education on investments/financial matters 38%

Independent advisors believe the following sectors will drive growth in the next 6 months:

• Information technology 44%
• Health care 42%
• Energy 37%
• Consumer staples 24%
• Financials 23%

Look for more independent advisors to be marketing services such as financial education and investment opportunities in exchange traded funds (ETFs) that are heavily weighted in growth sectors such as information technology and health care.

[Source: Independent Advisor Outlook Study. Charles Schwab Corporation. 2 March 2010 Web. 9 March 2010.]