Advertising for Insurance: The System That Beats Cold Calling
Advertising for insurance isn't about running ads. It's about building trust before asking for a meeting.
Most agents waste money on ads that don't convert. They run generic messages to cold audiences. They get clicks but no appointments. They spend $5,000 to generate 50 leads that close at 5%.
Top agents use a different system. They run branded video ads. Prospects watch 10-15 videos before booking. They know who you are. They trust what you say. They're ready to buy before the first call.
This system converts at 25-40%. It costs $150-500 per closed client. It beats cold calling by 10x.
Here's how it works.
What Is Advertising for Insurance?
Advertising for insurance is using paid media (Facebook, Google, YouTube) to attract prospects who watch your branded videos before booking appointments. Unlike cold calling or buying shared leads, branded advertising builds trust first. Prospects see your face. They hear your voice. They learn your process. By the time they book, they're pre-sold.
Traditional advertising targets cold audiences. You run generic ads. You get clicks. You make calls. You close 2-5% of leads.
Branded advertising targets warm audiences. You run video ads showing your face. Prospects watch multiple videos. They book appointments. You close 25-40% of leads.
The difference is trust. Cold prospects don't know you. Warm prospects have watched your videos. They trust you before the first call.
The difference between cold advertising and branded advertising is trust.
Why Most Insurance Advertising Fails
Most agents run ads that don't convert. Here's why.
Problem 1: Generic Messages
Agents run ads like "Get a free quote" or "Save money on insurance." These messages don't build trust. They don't differentiate you from competitors. They attract price shoppers who leave when they find a cheaper option.
The Fix: Use specific messages that show your expertise. "I help families with $500K+ in assets protect their wealth with permanent life insurance." This targets the right audience and positions you as an expert.
Problem 2: Cold Audiences
Agents target broad audiences like "ages 30-65" or "interested in insurance." These audiences don't know you. They haven't seen your content. They're not ready to buy.
The Fix: Target warm audiences who have watched your videos. Use Facebook's retargeting to show ads to people who watched 50% or more of your video. These prospects are 5-10x more likely to book.
Problem 3: No Follow-Up System
Agents run ads, get leads, then call once. If the prospect doesn't answer, they move on. This wastes 90% of ad spend.
The Fix: Build an automated follow-up system. Capture email addresses on landing pages. Send automated sequences. Follow up for 30-60 days. Most sales happen after the 5th touchpoint.
Problem 4: Wrong Metrics
Agents track clicks and impressions. They celebrate 10,000 views. But views don't pay bills. Appointments do.
The Fix: Track cost per appointment and cost per closed client. A $5 click that leads to a $500 client is profitable. A $0.50 click that leads to nothing is a waste.
The Branded Lead Advertising System
Top agents use a system that builds trust before asking for a meeting. Here's how it works.
Step 1: Create Video Ads
Record 10-15 short videos (30-60 seconds each) that answer common questions:
- "How much life insurance do I need?"
- "What's the difference between term and permanent?"
- "When should I buy life insurance?"
- "How does the underwriting process work?"
Show your face. Speak directly to the camera. Be authentic. Don't use stock footage or animations. Prospects need to see you.
Video ads build trust because prospects see your face and hear your voice.
Step 2: Run Facebook and Instagram Ads
Upload your videos to Facebook Ads Manager. Target audiences based on:
- Age (30-65 for life insurance)
- Income ($50K+ household income)
- Interests (financial planning, retirement, investing)
- Life events (recently married, new parents, job change)
Set a daily budget of $50-200. Let Facebook optimize for video views and engagement. Don't optimize for clicks yet. You're building awareness first.
Step 3: Retarget Engaged Viewers
After 7-14 days, create a retargeting campaign. Target people who:
- Watched 50% or more of your video
- Engaged with your ad (liked, commented, shared)
- Visited your website
Show these warm prospects a different video. Ask them to book a call. Offer a free consultation. These prospects are 5-10x more likely to convert.
Step 4: Capture Contact Information
Create a landing page that offers value in exchange for contact info:
- "Download our free guide: How Much Life Insurance Do You Need?"
- "Get a free policy review checklist"
- "Schedule a free consultation"
Use simple forms. Ask for name, email, and phone. Don't ask for 20 fields. You'll lose prospects.
Step 5: Automate Follow-Up
Set up email sequences that deliver value:
- Day 1: Send the free guide they requested
- Day 3: Share a case study of a similar client
- Day 7: Offer a free consultation
- Day 14: Share another educational video
- Day 21: Send a final invitation to book
Most sales happen after the 5th touchpoint. Don't give up after one email.
Advertising Compliance for Insurance
All insurance advertising must comply with state regulations. Here's what you need to know.
What You Can't Say
- False claims: "We guarantee the lowest rates" (unless you can prove it)
- Misleading statistics: Using outdated or inaccurate data
- Guarantees: "You'll be approved" (underwriting isn't guaranteed)
- Government affiliation: Implying you're endorsed by the government
What You Must Include
- Your name and license number (in some states)
- The insurer's name (if advertising specific products)
- Clear disclaimers for any claims or guarantees
- Contact information (phone, email, address)
How to Stay Compliant
- Use pre-approved templates from your carrier
- Submit ads for review before running them
- Work with compliance teams at your agency or carrier
- Keep records of all ads for 5 years (required in most states)
Most violations happen when agents create ads without checking compliance first. Don't assume your ad is compliant. Verify it.
Measuring Advertising Success
Stop tracking vanity metrics. Track metrics that matter.
Cost Per Appointment (CPA)
Divide your monthly ad spend by the number of appointments booked. Target: $50-150 per appointment.
Example: $3,000 ad spend ÷ 30 appointments = $100 CPA
Cost Per Closed Client (CPCC)
Divide your monthly ad spend by the number of clients who bought. Target: $150-500 per closed client.
Example: $3,000 ad spend ÷ 10 closed clients = $300 CPCC
Close Rate
Divide closed clients by total appointments. Target: 25-40% for branded leads, 5-15% for cold leads.
Example: 10 closed clients ÷ 30 appointments = 33% close rate
Return on Ad Spend (ROAS)
Divide revenue from ad-generated clients by ad spend. Target: 5-10x ROAS.
Example: $50,000 revenue ÷ $3,000 ad spend = 16.7x ROAS
If your CPA is above $200 or your close rate is below 20%, your ads aren't working. Fix your messaging, targeting, or follow-up system.
Advertising Budget for Insurance Agents
Stop asking "How much should I spend?" Start asking "What's my cost per client?"
The Math
Traditional advertising:
- $5,000 monthly ad spend
- 50 cold leads generated
- 5% close rate = 2.5 clients
- Cost per client: $2,000
Branded lead advertising:
- $3,000 monthly ad spend
- 20 branded leads generated
- 40% close rate = 8 clients
- Cost per client: $375
Branded leads cost less per client because they convert better. You spend less money to get more clients.
Starting Budget
If you're new to advertising, start with $1,000-2,000 monthly. Test different messages and audiences. Scale what works.
If you're established, spend $3,000-5,000 monthly. This generates 15-30 appointments per month. At a 30% close rate, that's 5-9 clients monthly.
When to Increase Budget
Increase your budget when:
- Your CPA is below $100
- Your close rate is above 30%
- You're closing 5+ clients monthly
- You have capacity for more appointments
Don't increase budget if your CPA is above $200 or your close rate is below 20%. Fix your system first.
Common Advertising Mistakes
Avoid these mistakes that waste money.
Mistake 1: Optimizing for Clicks
Clicks don't pay bills. Appointments do. Don't celebrate 1,000 clicks if none book appointments.
The Fix: Optimize for appointments or video views. Use Facebook's conversion campaigns. Track appointments, not clicks.
Mistake 2: Changing Ads Too Often
Agents see low results and change ads every week. This prevents Facebook from learning what works.
The Fix: Let ads run for 7-14 days. Give Facebook time to optimize. Only change ads if they're losing money after 14 days.
Mistake 3: Targeting Too Broad
Agents target "ages 25-65, all interests." This wastes money on people who won't buy.
The Fix: Target specific audiences. "Ages 35-55, income $75K+, interested in financial planning." Start narrow. Expand if needed.
Mistake 4: No Landing Page
Agents send ad traffic to their homepage. Homepages don't convert. They're designed for browsing, not booking.
The Fix: Create dedicated landing pages for each ad campaign. Ask for one thing: email address or phone number. Remove navigation. Focus on conversion.
Mistake 5: Ignoring Retargeting
Agents only show ads to new audiences. They ignore people who already engaged. This wastes 80% of potential sales.
The Fix: Retarget everyone who watched your video or visited your website. These prospects are 5-10x more likely to convert.
Next Steps
Advertising for insurance works when you build trust before asking for a meeting. Most agents skip this step. They run generic ads to cold audiences. They get clicks but no appointments.
Top agents use branded video ads. Prospects watch multiple videos. They know who you are. They trust what you say. They book appointments. You close 25-40% of leads.
If you want to learn this system, we teach it in our Generate Leads course. You'll learn how to create video ads, set up Facebook campaigns, and build automated follow-up systems.
If you want to skip the learning curve, we can generate branded leads for you. Prospects watch your videos before booking. They're pre-sold. You close more deals.
Either way, stop wasting money on ads that don't convert. Start building trust before asking for a meeting.