Why are there so many insurance ads?

0740716db20fbdb3af0c2271c81688ec

There’s “Mayhem” guy for Allstate Insurance and the Geico Gecko, and the “Like a Good Neighbor, State Farm is there,” jingle, the overly enthusiastic Progressive saleslady and the equally perky “Nationwide is on your side” guy. But wait, then there’s also Denis Haysbert for Allstate Insurance, the Rod Serling Geico guy, The Messenger guy from Progressive and Dale Earnhardt Jr. for Nationwide insurance.

Overkill? Some of us think so, but there’s a reason for such an oversaturation of insurance advertising, according to Ricardo de la Blanca, the CEO of global marketing agency DLB Group.
  
“Warren Buffett is a person that really understands the power of marketing and he was always pushing the company to do more with marketing,” he says of the billionaire owner of Geico insurance. “They moved from the number three slot to the number two slot, with State Farm being number one. When a number three in a competition moves so far and so fast, everybody starts trying to fight for this piece of the market.”
   
Four years after Mr. Buffett took over at Geico, the Gecko ad campaign was launched in 2000. Two years later, the company has 5 million policy holders. In 2004, Geico launched the Caveman campaign and in 2007, the company had 8 million policy holders. Today, the company boasts over 10 million policy makers. It seems as though competing insurance companies are rushing to catch up with their only multi-spokesman campaigns. But it’s also the nature of the product that that dictates a need for so many different ad campaigns.
   
“One unique thing about insurance marketing is that there are so many different demographics that can be targeted,” says financial planner and founder of CarInsuranceComparison.com Joel Ohman.
“Anyone age 16 and up that drives a car is usually in the market for at least car insurance. This is one reason why car insurance companies especially have so many different ad campaigns so that they can reach many different demographics and age groups.”

Right from the source

We asked Allstate’s spokesperson Jaclyn Darrohn if the “Mayhem” and “Truth about Insurance” campaigns were a reaction to Geico’s multiple campaigns. This is what she had to say, “The launch of the ‘Mayhem’ and ‘Truth About Insurance’ campaigns were not developed as a reaction to what our competitors are doing rather a strategic shift to reinforce the value message to consumers.”
Darrohn added a few comments about their ad campaign strategy.

“The insurance category is increasingly competitive and Allstate strives to market to current and prospective customers in relevant ways that highlight how and why the “Good Hands” can protect you, your loved ones, your life and your livelihood.”


News
Entertainment
Sports
Lifestyle
National

Rapper affiliate of Wu-Tang Clan 'cuts off own…

Rapper Andre Johnson, who has performed with New York outfit the Wu-Tang Clan, is in a critical condition after reportedly cutting off his own penis…

National

Cleavage complaint: Disneyland staffer orders curvy mom to…

A curvy mom-of-three says she filed a formal complaint after staff at Disneyland Resort in California ordered her to cover up her boobs. Melissa Behnken,…

International

Canadian charged in 'Heartbleed' attack on tax agency

OTTAWA (Reuters) - Canadian police have arrested a 19-year-old man and charged him in connection with exploiting the "Heartbleed" bug to steal taxpayer data from…

National

Every dog has his day in court, in…

(Reuters) - Call him juror K-9.A computer glitch is likely to blame for a summons that called a German Shepherd to report for jury duty,…

Television

‘Survivor: Cagayan’ recap: Episode 8

Sure, it's called Survivor. But this season should really be called 'The Tony Show.'

Television

Jim Rash talks 'The Writer's Room' and amazing…

For Jim Rash, as the fifth season of "Community" comes to a close, the second season of "The Writer's Room" begins.

Going Out

Tasty chicken and waffles in NYC

Try some soul food goodness around the city.

Television

'Dexter' star Jennifer Carpenter moves into producing role

The actress who played the title character's sister in "Dexter" is teaming up with producer George Stelzner to adapt Erika Hayasaki's book "The Death Class:…

NBA

Knicks wrap up season with win over Raptors

The Knicks wrapped up their season as it began — undermanned — but that still didn’t deter them from ending it the right way.

MLB

Adam Warren closes out doubleheader sweep for Yankees

Adam Warren navigated a tricky ninth inning earn the Yankees a 2-0 victory over the Cubs.

NHL

Marc Staal healthy, eager to contribute to Rangers…

Marc Staal remembers the feeling of helplessness watching his teammates compete for hockey’s ultimate prize and being unable to contribute.

NFL

2014 NFL Mock Draft: Updated, new April version

2014 NFL Mock Draft: Updated, new April version

Wellbeing

This Week in Health: chocolate may prevent obesity…

Can chocolate prevent obesity and diabetes? Location of study: U.S. Study subjects: Mice Results: The positive health benefits of chocolate have been studied increasingly more…

Wellbeing

This Week in Health News: breastfed infants trying…

Are breastfed infants trying to prevent mom from having another baby? Theory: The act of breastfeeding not only brings mom and baby closer together –…

Wellbeing

Unexplained infertility may be caused by lack of…

Researchers have identified a protein on the egg's surface that interacts with another protein on the surface of sperm, allowing the two cells to join.

Tech

5 surprising facts about Google Glass

Your sex life could get more interesting.