Despite rising direct marketing and online advertising costs, fourth quarter revenues increased 15% and totaled $3.9 million, up from $3.4 million in the third quarter at InsWeb Corp., an online insurance agency, based in Gold River, CA. The firm reported $4.1 million in revenues in the fourth quarter of 2003.
Online advertising and direct marketing costs per customer increased an average of 120% from $1.34 to $2.95 between fiscal 2003 and 2004. InsWeb reported spending $2.4 million on direct marketing representing 63% of its revenues in the fourth quarter ending Dec. 31. For direct marketing alone, InsWeb spent $3.31 for each of the 740,000 online responses generated, which involved filling out an insurance application.
The agency offers personal lines of insurance, including auto, term life, health, homeowners, renters and condominium policies.
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