You’ve certainly noticed them. We all have. That lizard with the Aussie accent (or is it an English lilt?), the geeky, pleasant, perky woman in the white overalls, the weeing pig, and the ubiquitous, disheveled Mayhem.
But why? Why are there so many insurance ads on our flat screens? Advertising and insurance insiders say it’s the lizard’s fault starting when Geico made the little green chap a star in 2000. Selling policies directly to consumers, Geico had to find a method to bypass agents in order to succeed. Massive amounts of advertising proved to be that method.
Of course, the traditional insurance companies could not sit idly by as the gecko took huge bites out of their profits. They fought back with their own robust advertising campaigns. Talking about this change in the insurance industry, Drian Steinberg, TV editor at Advertising Age, “Geico is a huge TV spender. It spurred all the others to keep up. You have a number of competitors all trying to get market share.”
The advertising also pushes the need for insurance into the minds of consumers, a place where it otherwise may not enter. Speaking about how effective advertising can be, Lisa Cochran, Allstate’s vice president of marketing, said, “Insurance is not something we wake up in the morning and think about. It’s not fun to buy and it’s a big chunk of your disposable income. So we need to make it as engaging as we can for people.”
This guest post was provided courtesy of Car Loans Maryland, a leading provider of auto loans for MD residents.