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Aug 12

Auto Insurance Marketing, Geico and Progressive

The insurance industry is also seeing a very important dynamic shift with companies like Geico and Progressive which allow users to obtain quotes online.

Senior Leads - AppointmentsThis is causing companies which relied on traditional marketing, to instead appeal directly to consumers through online advertising. On inception, companies like Geico and Progressive had shaken things up, but many traditional advertising companies wrote them off. However, with the changing trends of the industry, companies cannot afford to do that anymore. Organizations that still stick to traditional methods are now experimenting with various kinds of messages, even running multiple campaigns simultaneously. Some insurance companies have added benefits to their policies like roadside assistance or vehicle replacements.

One may wonder how they can afford such expensive advertising campaigns. However, insurance industries have come out of recession with huge profits to help spread their advertising messages. And insurers continue to steal market shares from each other in order to grow. Companies like Geico tried introducing humor into the lives of sleepy and conservative people by coming up with commercials that included cavemen and green lizards. More insurance companies are now gravitating towards character based advertising than before.

However, one must know the limits. Recently Allstate had to retract a supposedly funny press release in which they had linked accidents to zodiac signs. They also had to issue a statement which negated their previous one mentioning that there was no link between the two. Most people only think about insurance when the event occurs. Example; when they have an accident, buy a car, buy a house etc. Insurance companies are aiming to attract people who wouldn’t want to think about insurance. Millions of customers are still shopping every single day because there isn’t much seasonality in the industry. Experts claim that the average customer can name the top 4 brands of auto insurance off the top of his head. In order to make it to that top 4 list, one must advertise all the time. Companies that advertise all the time have a lot of overlap and more companies are growing. Hence, advertising is extremely important.