Advertising, Insurance

Advertising And Car Insurance Companies: Is There A Connection?

When it comes to advertising, many businesses (small and large) choose to take part in this popular form of marketing. Why wouldn’t they? After all, how else is a business supposed to get its product information out to the masses? Today, there are many different forms of advertising i.e. social media (Facebook and Twitter), television commercials, radio spots, print ads, and more. Because car insurance companies are a fast-growing business (everyone who drives legally has to have some sort of coverage), it’s only fitting that the different insurance corporations would participate is this specific form of communication.

Advertising By The NumbersThough there are numerous ways to advertise, it seems that television commercials are still extremely popular amongst car insurance companies. Though car insurance companies are noted as being a one hundred and sixty-one billion dollar industry, these groups still pay through the teeth to get their product known. For example, it’s known that Farmers Insurance struck a deal in 2011 that has them coughing up seven hundred million dollars over a thirty-year time span to have their names plastered on an NFL stadium in Los Angeles.

Back in 2005, Geico reportedly spent five hundred and two million dollars on advertising expenses. It’s noted that while local TV advertising can be cheaper, companies could actually spend millions just by having their thirty-second ad run during the Super Bowl.In 2009, an estimated total amount of four billion dollars was spent from different insurance companies on advertising. This amount is nearly double of what was spent in the year 2000.Sometimes It’s All About The Gimmicks It should come as no surprise that many car insurance companies are now using gimmicks to help get their products across to the masses. For example, Progressive Insurance has a mascot, if you will, known as ‘Flo.’ Flo has caused the Progressive Facebook page to reach over two and a half million fans.

Car Insurance

Geico has a talking gecko stating coverage facts, while AllState as their own character, as well, a man known as ‘Mayhem.’ These different characters, whether seen on the TV, computer, or heard on the radio, have been known to help increase revenue throughout the different insurance companies.Other tricks insurance companies may pursue to get more customers include, but are not limited to: splashy campaigns, partnering with celebrities, and having rock stars or bands present in their commercials.

Does The Advertising and Gimmicks Actually Work?It’s noted that while customers may shop around and search other companies for different quotes (usually via the Internet) that seldom actually make the switch. Therefore, advertising may peak a customer’s interest, but usually it all comes down to car insurance rates and once a driver picks an insurance company, they stick with said company.Today, advertising is a leading factor as to whether a business will be successful or not. Though advertising can be quite expensive, it’s interesting to know that there are types of advertising that are also cheap, and in some cases, free i.e. Facebook and Twitter. It’s quite obvious that car insurance companies rely very heavily on the task of advertising to retrieve revenue. And while, these coverage companies may earn a lot, they also put a lot of their income back into the business via advertising.

This is a guest post by Lisa Peters, a freelance writer on business-related topics. In her writing, she focuses on creative marketing and industry-specific case studies.When it comes to advertising, many businesses (small and large) choose to take part in this popular form of marketing. Why wouldn’t they? After all, how else is a business supposed to get its product information out to the masses? Today, there are many different forms of advertising i.e. social media (Facebook and Twitter), television commercials, radio spots, print ads, and more. Because car insurance companies are a fast-growing business (everyone who drives legally has to have some sort of coverage), it’s only fitting that the different insurance corporations would participate is this specific form of communication.Advertising By The NumbersThough there are numerous ways to advertise, it seems that television commercials are still extremely popular amongst car insurance companies. Though car insurance companies are noted as being a one hundred and sixty-one billion dollar industry, these groups still pay through the teeth to get their product known. For example, it’s known that Farmers Insurance struck a deal in 2011 that has them coughing up seven hundred million dollars over a thirty-year time span to have their names plastered on an NFL stadium in Los Angeles.

Back in 2005, Geico reportedly spent five hundred and two million dollars on advertising expenses. It’s noted that while local TV advertising can be cheaper, companies could actually spend millions just by having their thirty-second ad run during the Super Bowl.In 2009, an estimated total amount of four billion dollars was spent from different insurance companies on advertising. This amount is nearly double of what was spent in the year 2000.Sometimes It’s All About The Gimmicks It should come as no surprise that many car insurance companies are now using gimmicks to help get their products across to the masses. For example, Progressive Insurance has a mascot, if you will, known as ‘Flo.’ Flo has caused the Progressive Facebook page to reach over two and a half million fans. Geico has a talking gecko stating coverage facts, while AllState as their own character, as well, a man known as ‘Mayhem.’ These different characters, whether seen on the TV, computer, or heard on the radio, have been known to help increase revenue throughout the different insurance companies.

Other tricks insurance companies may pursue to get more customers include, but are not limited to: splashy campaigns, partnering with celebrities, and having rock stars or bands present in their commercials.Does The Advertising and Gimmicks Actually Work?It’s noted that while customers may shop around and search other companies for different quotes (usually via the Internet) that seldom actually make the switch. Therefore, advertising may peak a customer’s interest, but usually it all comes down to car insurance rates and once a driver picks an insurance company, they stick with said company.Today, advertising is a leading factor as to whether a business will be successful or not. Though advertising can be quite expensive, it’s interesting to know that there are types of advertising that are also cheap, and in some cases, free i.e. Facebook and Twitter. It’s quite obvious that car insurance companies rely very heavily on the task of advertising to retrieve revenue. And while, these coverage companies may earn a lot, they also put a lot of their income back into the business via advertising.

This is a guest post by Lisa Peters, a freelance writer on business-related topics. In her writing, she focuses on creative marketing and industry-specific case studies.