Discussion
With rising insurance costs year on year, and uninsured drivers being blamed in part for this! Should Go Compare rub our noses in how much profit they are obvoiously making, when they launch what seems to be a new advert every couple of weeks on prime time tele. Is anyone else getting wound up by these stupid ads or is it just me?
Edited by neilbauer on Sunday 17th July 18:42
neilbauer said:
Is anyone else getting wound up by these stupid ads or is it just me?
It's not just you. I'll never visit their website for the simple annoyance factor of their advertising. However, most people demonstrably do not show this inclination. Annoyingly, I guess it works for them - so there'll be more to come...neilbauer said:
I hope no one would go to the mentioned company as a result of this thread! My point is more could they not cut back on the averts and reduce our premiums! Silly question really, but it makes you think how much profit they make!!
THEY ARE A BUSINESS IN BUSINESS TO MAKE MONEY.You want them to cut back on advertising and make less money and then, on top of that, reduce your premiums? I'm sure if the CFO is reading this thread they'll be suggesting this in the next board meeting!
neilbauer said:
I hope no one would go to the mentioned company as a result of this thread! My point is more could they not cut back on the averts and reduce our premiums! Silly question really, but it makes you think how much profit they make!!
You think Go Compare advertising makes your car insurance more expensive?Really?
Wow!
neilbauer said:
My point is more could they not cut back on the averts and reduce our premiums! Silly question really, but it makes you think how much profit they make!!
Not really as without the advertising budget being spent at the level they're at, they would have X amount fewer customers, which may well tip the balance to making a loss as they'd be losing market share. That and I didn't think insurance companies made money on the profit between premiums taken and claims paid out, instead they make their profits on what they do with the "common pool" in the financial markets over the period of all the policies currently held running.
ETA: In light of MX5Tom's post, not that the above paragraph is relevant to a broker rather than an insurer in their own right. D'oh.
Edited by Zwoelf on Sunday 17th July 19:39
neilbauer said:
I hope no one would go to the mentioned company as a result of this thread! My point is more could they not cut back on the averts and reduce our premiums! Silly question really, but it makes you think how much profit they make!!
You realise it's not the comparison site that controls the premiums?.If anything they have reduced premiums as insurers spend alot less on TV advertising etc since comparison sites came about.
I just think making excuses as to why premiums keep rising is a cop out as they are obviously still making a huge profit! They are not just advertising, they are making a new advert every other week ( or so it seems ) I understand you have to advertise to keep gaining new customers, but do you need to chuck money down the toilet buy making so many new stupid ads?
neilbauer said:
I understand you have to advertise to keep gaining new customers, but do you need to chuck money down the toilet buy making so many new stupid ads?
How would you bring in business to a company that relies on referring the public to third parties without using TV advertising as part of a campaign then?Alan Sugar has a job for you if you come up with the $1,000,000 answer.
neilbauer said:
I just think making excuses as to why premiums keep rising is a cop out as they are obviously still making a huge profit! They are not just advertising, they are making a new advert every other week ( or so it seems ) I understand you have to advertise to keep gaining new customers, but do you need to chuck money down the toilet buy making so many new stupid ads?
But which is better, one comparison site making lots of adverts or 20 different insurers making lots of adverts?.mx5tom said:
Out of interest, does anyone know how much of a cut they get out of the average insurance premium bought through their site? I assume that's how they make their money, anyways.
Have a look at the likes of quidco.com who give the commission from sales back to the end user. Some of them can be up to £100. No idea what kind of commission the comparison sites get though.neilbauer said:
I just think making excuses as to why premiums keep rising is a cop out as they are obviously still making a huge profit! They are not just advertising, they are making a new advert every other week ( or so it seems ) I understand you have to advertise to keep gaining new customers, but do you need to chuck money down the toilet buy making so many new stupid ads?
As has been said by Zollar, GoCompare is a comparison site so they wont have a direct influence on the insurance premiums in the same way that uswitch dont have any influence on the cost of electric and gas. Their advertising is obviously working though as people are remembering and discussing their adverts as you have proved by starting this thread. If they had one simple advert, say their web address on a clear background with a voiceover saying "Go to gocompare.com to compare car insurance quotes", that would be throwing money down to the toilet as no one would remember it.
They spent £28 million on advertising last year by the way and made a profit of £12 million.
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