Sponsor (Oct-Dec 1962)

tive of all American industries (far more conservative in marketing and advertising than fire and accident insurance, for instance, and more conservative than banks have been in recent years) . New marketing tools. Any realistic appraisal of the life insurance business scene leads to the inescapable conclusion that the industry must discover and develop new, radically different sales tools and techniques. Alert radio marketing men, studying the life insurance dilem 1) Low income. By far the bulk of all life policies are sold to low income individuals or families. In 82% of policies the income of the insured is under $7,500 per year. 2) Lower age groups. Another surprise for those who have thought of life insurance as primarily sold to "middle aged types": in 68% of policies the age of the insured is under 35. 3) Small policies. Despite the publicity given to "million dollar producers" and salesmen's dreams of huge individual policies, the life One such survey, used by Blair to illustrate this point is the exceedingly thorough "The Boston Market — a Media Audience Image Study" done in 1960 for station WHDH. Commenting on the study (see box, p. 41) , Blair says, "The employment status of the housewives, occupation of the household head, ownership of stocks and bonds, the year model car owned, and families with children, speak for themselves as insurance potential. The insurance potential and the radio audi Who buys life insurance?— a look at the market Income of insured % of policies under $3,000 12 $3,000-$4,999 39 $5,000-$7,499 31 $7,500-$9,999 7 $10,000 & over 11 Age of insured % of policies under 15 23 15-24 25 25-34 25 35-44 17 45 and over 10 Size of policy % of policies under $2,000 35 $2,000-$4,999 13 $5,000-$9,999 21 $10,000-$24,999 25 $25,000 and over These figures, from a study by the Life Insurance Management Assn. (1959), highlight facts about the market for life insurance which are little realized by those outside the business. A preponderance of new life insurance policies (82%) are on individuals with incomes under $7,500. Furthermore, they are in lower age group brackets (73% under 35 years of age), and 79% of policies are under $10,000. Market figures like these raise questions about current insurance media strategy mas, believe that a vast new area of marketing opportunities can be opened up for life insurance companies through the creative use of spot radio. Radio spot at present is little used by life insurance advertisers. But in the opinion of Arthur H. McCoy, exec. v. p. John Blair, it is the one medium which meshes perfectly with the specific marketing problems and needs of the industry. Blair, in the past year, has been developing presentations to major life insurance companies which illustrate and dramatize this point. The life insurance market. According to studies made by the Life Insurance Agency Management Assn., the life insurance market can be defined in very specific terms. insurance business is founded on the small policy holder. Of all policies, 69% are under $10,000, 94% are under $25,000. The radio listening audience. As step one in demonstrating radio's special value to life insurance advertisers, Blair points out how closely radio audience composition meshes with the life insurance market. Radio reaches the lower income ($3,OOO-$7,500) families which account for the bulk of life insurance policy purchases. It is strong among the insurance-buying lower age groups. And survey after survey shows other demographic characteristics that make the listeners faithful to radio the perfect "match" for the insurance potential. ence mesh perfectly." Creative radio spot. Obviously, however, radio's advantages to life insurance advertisers are not limited to this market-media matching. Blair executives, like other top radio marketing men, whose ideas are featured in this sponsor series, believe that spot radio offers advertisers unique creative opportunities which no other medium can match. In telling the spot radio story to life insurance companies Blair stresses both new creative radio buying techniques and new, creative radio copy approaches. Among the creative ideas which Blair has developed for life insurance advertisers are the following: New images needed. Tradition al SPONSOR/ 1 October 1962