A new targeting method enables marketers to reach drivers based on driving risk
Pop question #1: Which target market group is more valuable to marketers: high-risk or low-risk drivers?
You might think that’s a trick question. With today’s traditional consumer marketing methods, it’s difficult if not impossible for most marketers to reach consumers based on their driving behaviors.
But traditional consumer marketing methods are no longer the only way to target. Arity has introduced a new way for any marketer to reach a specific group based on their driving behaviors: Arity audiences.
Arity Audiences are segments of drivers that marketers can target in ad campaigns across the digital ecosystem. Arity creates these segments by using proprietary risk algorithms based on driving behavior data and insurance claims data to predict the risk of loss. And these groups are not small: Arity is collecting data from nearly 30M drivers.
So back to the question: which group is more valuable? It depends on what you’re marketing. If you’re a consumer auto insurance company, you might want to connect with the lowest-risk drivers who, thanks to their safer driving habits, will likely be your most valuable customers in the long term. But if you’re an auto aftermarket company selling replacement parts or maintenance services, you might be more interested in high-risk drivers who are more likely to need those things more often.
Pop question #2: What impact does marketing to drivers based on risk have on customer lifetime value (LTV)?
Focusing marketing efforts on connecting with drivers based on their level of driving risk is the best way to maximize LTV and profitability for insurance companies.
Arity has conducted extensive research and testing to determine what factors and behaviors contribute to risky driving. Our audience risk levels and driving score are determined by driving behaviors including distracted driving, hard braking, sudden acceleration, and where and when people drive.
Using our proprietary risk algorithms that include over a decade of driving data history matched with insurance claims and losses, we’ve calculated that the lowest-risk tier of drivers have, on average, up to 5x higher customer LTV than average drivers for insurance companies.
The lowest-risk tier of drivers have, on average, up to 5x higher customer LTV than average drivers for insurance companies.
Pop question #3: True or false? Driving risk level is the only way marketers can target customers using Arity Audiences
False. Driving risk is not the only audience segment marketers can target. Arity also offers audiences based on behavior, intent, and commuting habits. Other segments include:
- High, medium, and low mileage drivers
- Short- and long-distance commuters
- Gig drivers
- Coffee shop or fast-food visitors
- Active military duty
It’s like matchmaking heaven for digital marketers with these and so many other driving-related audiences to target. Imagine the targeted campaigns marketers can create for:
- Vehicle maintenance, tire, and oil change shops
- Restaurant, travel, and convenience apps
- Insurance companies looking to broaden their offerings, such as usage-based auto policies.
These kinds of connections — like reaching a high-mileage driver with an oil change service promotion, or a frequent commuter with a coupon for a coffee-to-go – enable marketers to be smarter about how they spend their budgets. And attracting the best customers for a specific business ultimately increases customer lifetime value, retention, and profitability.
Pop question #4: True or False? Consumer privacy is sacrificed to achieve these high levels of targeting and personalization
False! Arity collects and leverages data from a variety of partnerships with consumer mobile apps. The data is anonymized and aggregated and complies with all privacy regulations and industry best practices.
What’s more, personalized ad campaigns mean consumers see ads and promotions that are aligned with their actual needs, rather than based on demographics or proxies like a credit score.
Arity maintains consumer privacy by developing insights based on consumer segments, not data associated with personal information like name, address, or any other information that could be traced back to an individual.
Pop question #5: How much extra work does it take for a marketer to leverage mobility and driving behaviors for targeted campaigns?
There’s no additional work necessary to start targeting Arity Audiences, as long as the marketer is already set up for programmatic advertising. Arity Audiences can be easily activated in a digital campaign just like any other segments would be.
How did you do on the pop quiz?
Since 2016, Arity has been building partnerships with companies that help us gain even more connections that benefit companies, consumers, and marketers. This includes mobile app companies, insurance telematics program developers, marketers and advertisers, and more.
If you’re interested in leveraging Arity’s mobility data and analytics or partnering with us to use data for good, we would love to connect with you, too.