Geico Tv Commercials

Insurance Companies Staking Claims

As other industries take big hits during the soft economy insurance companies continue to make large media spends aiming to encourage purchases of homeowner and auto coverage policies.

Nationwide Insurance next month will roll out three new TV spots, a variety of radio and fresh print ads that focus on the concept of customer choice. Nationwide will spend $20 million this year on marketing efforts, said Steve Johnston, vpadvertising and brand management. The Columbus, Ohio-based company spent some $9.6 million on media last year and $4.9 million in 1999, per Competitive Media Reporting.

Progressive, the third biggest spender last year at $87 million, said it will continue to run its four current "Not what you'd expect from an insurance company" TV and radio spots. The company would not comment on upcoming creative.

Progressive and Nationwide are not alone in their continued media buys. "The slowing economy has had some effect, but not nearly as much as, say, in other industries," said Michael Lewis, senior insurance analyst for UBS Warburg, New York. "Expect to see strong ad programs from these companies."

Geico, the biggest spender in 2000, will trim its budget from last year's $242 million total, according to statements from principal investor Warren Buffet. However, that was expected considering the enormous breadth of its spend. "The other companies [Nationwide, State Farm] are more established names," said Lewis. "Progressive and Geico depend on ad media as the method they use to get their brand name across."

Johnston is not intimidated by Geico's open pocketbook. "They make a lot of noise, but we're adding just as many people under coverage as they are," he said.

State Farm Insurance is also forging ahead and is even toying with new tactics. In April the company began targeting consumers 16 to 24 years old. One execution is a personal ad where a single female is looking for a middle-aged, bald guy to give her insurance advice. The ads are running in atypical pubs such as Rolling Stone. Additionally State Farm hired Spike Lee to shoot one of its television commercials. The company spent $107 million on media last year, second only to Geico.

Nationwide's TV buys are more affordable as the company elected to spend its dollars on direct response TV, meaning it purchases less expensive, unsold ad inventory which generally runs during weekday afternoons and late at night. Radio, print, direct and Internet efforts will support. Nationwide Insurance is the fourth largest homeowner's and fifth largest auto insurer in the country.

The new Nationwide ads play off older spots that launched last year and are currently running in six markets. The latest round, per Temerlin McClain, Dallas, is designed to get more specific about the ways Nationwide can help in even the most unusual of occurrences.

"The genesis of the whole campaign is the notion of putting power in the hands of consumers to allow them to do business with us how and when they want to," said Johnston.

The new executions will be running in 25 markets by year's end.

COPYRIGHT 2001 BPI Communications, Inc.
COPYRIGHT 2001 Gale Group

Get Skiing &Snowboarding Packages. - Sponsored Link
Ad - View Package Specials &Book Now!