Table of Contents
Overview
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- What you need to know
Executive Summary
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- The market
- PCWs use is so great that concerns have been raised over growth
- Companies and brands
- Comparethemarket.com is the most widely used comparison site…
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- Figure 1: Price comparison website usage market share, 2016
- …and the biggest spending advertiser in the sector
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- Figure 2: Above-the-line, online display and direct mail advertising expenditure by price comparison sites, 2011/12-2015/16*
- The consumer
- Motor insurance is the most searched-for policy on PCWs
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- Figure 3: Insurance products researched on price comparison websites, May 2016
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- Figure 4: Insurance products purchased/arranged through a price comparison website, May 2016
- Laptops and desktops are the favoured devices for using PCWs
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- Figure 5: Devices PCW users would feel comfortable using to take various actions, May 2016
- Half of PCW users research and buy on the same site
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- Figure 6: Intended use of price comparison websites, May 2016
- Meerkat Movies is top of the incentives
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- Figure 7: Appeal of incentives of price comparison websites, May 2016
- Consumers are split on receiving contact from comparison sites
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- Figure 8: Attitudes towards price comparison websites, May 2016
- People prefer a choice of rewards, while some worry about level of cover
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- Figure 9: Attitudes towards price comparison sites, May 2016
- What we think
Issues and Insights
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- Non-financial incentives have the biggest appeal, but choice would be even better
- The facts
- The implications
- PCWs must take care to only contact customers when appropriate
- The facts
- The implications
- Confidence in decision making is high, but PCWs need to promote all information evenly
- The facts
- The implications
The Market – What You Need to Know
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- Aggregators are the first stop in shopping for insurance
- PCWs offer support for consumers through Brexit uncertainty
- Potential for smaller, niche comparison sites
Market Drivers
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- Two thirds have researched insurance on a PCW in the last year…
- …but concerns have been raised over growth
- Brexit will bring uncertainty, but PCWs could help
- Markerstudy’s Go Get site to offer aggregator service to Pet Insurance
- Trend for greater competition could see growth in non-insurance aggregator use
- Opportunities for more personalised services on the horizon
Key Players – What You Need to Know
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- Comparethemarket.com is the most widely used comparison site…
- …but most PCW users visit more than one site
- The big four continue to base marketing activity on major characters
- Adspend among PCWs remained high in 2015/16…
- …while Comparethemarket.com was the biggest single advertiser
Market Share
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- Half of PCW users visited Comparethemarket.com in the last year…
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- Figure 10: Price comparison website usage market share, 2016
- …but the majority use a few different sites
- Comparethemarket.com leads among single-site users
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- Figure 11: Repertoire of price comparison websites used to research or purchase/arrange an insurance product, May 2016
- Experience, as well as awareness, is key
Competitive Strategies
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- Comparethemarket.com
- Commercial information
- Recent activity
- MoneySuperMarket.com
- Commercial information
- Recent activity
- Confused.com
- Commercial information
- Recent activity
- GoCompare.com
- Commercial information
- Recent activity
Advertising and Marketing Activity
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- PCWs maintain heavy spend on advertising
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- Figure 12: Above-the-line, online display and direct mail advertising expenditure by price comparison sites, 2011/12-2015/16*
- Comparethemarket.com is the biggest spending financial aggregator
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- Figure 13: Above-the-line, online display and direct mail advertising expenditure by selected financial aggregators, 2014-16*
- Television dominates comparison adspend
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- Figure 14: Above-the-line, online display and direct mail advertising expenditure by price comparison sites, by media type, 2012-16*
- Nielsen Ad Intel coverage
Brand Research
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- What you need to know
- Brand map
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- Figure 15: Attitudes towards and usage of selected price comparison website brands, May 2016
- Key brand metrics
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- Figure 16: Key metrics for selected price comparison website brands, May 2016
- Brand attitudes: PCWs exhibit fairness, trust and good customer service
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- Figure 17: Attitudes, by price comparison website brand, May 2016
- Brand personality: The top advertisers are considered most engaging
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- Figure 18: Brand personality – Macro image, May 2016
- MoneySuperMarket.com is most reliable, while Comparethemarket.com is more progressive
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- Figure 19: Brand personality – Micro image, May 2016
- Brand analysis
- Comparethemarket.com is the most trusted and different brand
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- Figure 20: User profile of Comparethemarket.com, May 2016
- MoneySuperMarket.com is seen as a reliable and engaging brand
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- Figure 21: User profile of MoneySuperMarket.com, May 2016
- Uswitch.com isn’t seen to offer anything different, but is highly recommended
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- Figure 22: User profile of Uswitch.com, May 2016
- Confused.com is accessible and fair, but is low on differentiation
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- Figure 23: User profile of Confused.com, May 2016
- GoCompare.com embodies the average comparison site
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- Figure 24: User profile of GoCompare.com, May 2016
The Consumer – What You Need to Know
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- Motor insurance is the most searched-for policy on PCWs
- Laptops and desktops are the favoured devices for using PCWs
- Half of PCW users research and buy on the same site
- Incentives not linked to financial services are most appealing
- Consumers are split on receiving contact from comparison sites
- People prefer a choice of rewards, while some worry about level of cover
Insurance Product Research and Purchase Activity
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- Two fifths researched motor insurance on a PCW
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- Figure 25: Insurance products researched on price comparison websites, May 2016
- Most PCW researchers went on to make a purchase on the site
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- Figure 26: Insurance products purchased/arranged through a price comparison website, May 2016
- Consumers are most likely to complete purchases for easily-understood products
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- Figure 27: Conversion ratio, by insurance product, May 2016
- One in seven researched four or more products
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- Figure 28: Repertoire of insurance products researched and purchased on price comparison websites, May 2016
Preferred Devices for Researching and Purchasing Through Price Comparison Websites
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- Consumers are much more likely to research and buy on computers than mobile devices…
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- Figure 29: Devices PCW users would feel comfortable using to take various actions, May 2016
- …but young consumers are bucking this trend
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- Figure 30: Devices PCW users would feel comfortable using to research products on a price comparison website, by age, May 2016
- Use of apps is limited in new business
- 17% don’t feel comfortable contacting a PCW digitally
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- Figure 31: Devices PCW users would feel comfortable using to take various actions, May 2016
Intended Use of Price Comparison Websites
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- Half of PCW users intended to complete a purchase on the site
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- Figure 32: Intended use of price comparison websites, May 2016
- Mobile device users are most likely to intend to buy
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- Figure 33: Intended use of price comparison websites, by devices consumers would feel comfortable using to research products on a price comparison website, May 2016
Price Comparison Website Incentives
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- Meerkat Movies is top of the incentives
- Engaging people with non-financial incentives
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- Figure 34: Appeal of incentives of price comparison websites, May 2016
- Cross-selling is a tough ask
- But ultimately the usefulness of PCWs is incentive in itself
Attitudes towards Price Comparison Website Contact
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- Consumers are split on allowing PCWs to contact them…
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- Figure 35: Attitudes towards price comparison websites, May 2016
- …but some groups are more receptive than others
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- Figure 36: Agreement with the statement “I would be happy to be contacted about other financial products offered by price comparison sites”, by age, May 2016
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- Figure 37: Attitudes towards price comparison sites – CHAID – Tree output, May 2016
- PCWs are moving beyond being seen as the speedy option
Attitudes towards Price Comparison Websites
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- Choice is the incentive that people really want
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- Figure 38: Attitudes towards price comparison sites, May 2016
- Some still doubt decisions made solely on PCWs…
- …and a significant minority prefer brands not on PCWs
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – CHAID Analysis
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- Methodology
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- Figure 39: Attitudes to price comparison sites – CHAID – Tree output, May 2015
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- Figure 40: Attitudes to price comparison sites – CHAID – Table output, May 2015
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