Does Facebook advertising work for insurance agencies?
Should insurance agents use Facebook? If so, how?
What should your ads say? Can you actually get clients this way?
There are many questions. Not so many answers.
Facebook Ads Strategy for Insurance Agencies
First of all, advertising for insurance has certain restrictions with online advertising. You need to be in compliance of the regulations in your state and understand what you can do online.
Promoting your insurance agency on Facebook should consist of making new connections and attracting new clients. It should be more about the great business and good people you are than about selling insurance. It should be about helping people with useful tips and genuinely helpful information.
As stated in this article on the National Association of Insurance Commissioners (NAIC) website, most insurance companies using social media are not actually selling insurance online. From the article: “While most insurance companies are not using social media to overtly sell their products and services, they are using it to provide customer service by building and maintaining relationships with consumers. The goal of developing these relationships is the creation of market presence and product branding, which, in turn should generate new customers.”
This is the idea of social media. Make connections, communicate, and build relationships. Use social media the way it’s intended to be used. Introducing advertising into it makes it a little challenging to do that. But it can be done.
Rather than producing advertisements that try to sell your products and services, produce advertisements that give answers to important topics about insurance. There are many important things people don’t know, but want to know, about insurance.
- What to look out for when buying insurance
- How much insurance to you need?
- What’s the difference between term and whole life insurance?
- Does my existing auto insurance cover me when renting a car?
Look at Facebook advertising as a way to connect and build relationships. Then look within those relationships for customers.
Facebook Ad Targeting for Insurance Agents
So you’ve got some good ads to use on Facebook. But who do you target with these ads? Obviously you want to target people who are potential customers. This would exclude certain ages. Maybe those under 21. If you’re advertising to a large audience you might try targeting people of a certain income level or those who own homes. You can get very detailed with targeting in Facebook advertising. But if you live in a small town and don’t cover a large area don’t narrow down your audience too much.
Match Your Ad to Your Target Audience
This is a strategy that very few people use. But it can be very powerful.
I know people don’t use it because I rarely see it. It’s also a little more work. But I think the main reason it’s not used much is because people just don’t think of it when running ads on Facebook.
Here’s how it goes…
Target subsets of people or situations and use a specific headline and message calling out those people and situations.
For example, make an ad that shows only to males between 20-29 years old. Your ad would say something like “For males in their 20’s …”.
You can do this with locations too.
For example: While showing your ads only to people in Springfield your Ad says: “If you live in Springfield and …”. Like this:
You could also target subsets of people based on interests then talk about that interest in your ad. For example, target people interested in hunting and use an ad that has a picture and subject about hunting or the outdoors. Like this:
People may wonder how you know what they are interested in. You don’t know but Facebook knows. If they catch on that your ads match them so well they’ll hopefully have a positive response. The ad will definitely resonate with them.
You can target people who are married and your Ad can say something relevant to their situation. For example “Insurance that married couples should consider”. That’s very relevant and would resonate very well with married couples. They would notice it among the chaos of the Facebook newsfeed because it matches them so well. Here’s the targeting option for relationship status of married in Facebook:
You can target people who are home owners and your Ad image and headline can be specifically about home owners.
Get even more specific by combining two or three of these variables. For example “Married couples in their 20’s who own a home”. Here’s the Facebook targeting settings for that:
In fact you could run 5 different ads all with different age groups. Like this: “Married couples in their 30’s who own a home”, “Married couples in their 40’s who own a home”, “Married couples in their 50’s who own a home”, etc. Each of these Ads would be showing only to the corresponding audience to match the targeting options.
The more relevant your Ad is to the person who sees it the better chance it has of catching attention and getting a response.
Your Facebook Ad gets a Response. What happens next?
They see your Ad on Facebook and they’re interested. You’ve got their attention. Now what?
You take them to the next step.
It’s good to give a little bit of helpful, interesting information immediately in the Ad. Then prompt them with a call to action like a button to click to read more. The next step can either be read more, get more useful information, or even get something sent to them like a free guide, a free book, or a way to contact you.
You could offer a free guide about important things to know about house insurance or car insurance. Just give them something free and useful. This creates good will and starts building a connection. A relationship. That’s what it’s all about. You start with small steps and keep moving.
Ideally you want to get and maintain a connection with them. If they’re interested you don’t want to lose them. You want to either get them to call you, get their email address in return for something you offer, or even just get them to click to your website or engage with your ad by clicking like or commenting or sharing it.
If you have the Facebook pixel tracking code set up on your website you can show ads to people who have visited your website. If you don’t have the pixel set up you can still use the Facebook retargeting functionality of Facebook engagement to show future ads to people who have engaged with your Facebook page, posts, or ads.
This article focuses on one way to use Facebook for Insurance Agencies. There’s more to know about Facebook advertising. If you boost posts you should read this: Reach more people when boosting a post