You need to spend money to make money. At least that’s the conventional wisdom. But of course it all downs to the bottom line contribution and how effective they are in luring potential clients.
Geico Corp., the auto insurer whose advertising shows up on billboards, the Internet and many television shows, spent $993.8 million for marketing in 2011, according to data compiled by SNL Financial LC. That is the most in a single year by any car insurer, and is up 10% from the $902.7 million the company spent in 2010.
Television ads are at the heart of many of the carriers’ media campaigns, though Internet advertising also is extensive, analysts said. Geico’s Gecko campaign competes with State Farm’s good-neighbor pitch, and Allstate’s series of “Mayhem” ads, among many other familiar campaigns.
- Geico Spends Nearly $1 Billion on Ads as Car Insurers Battle (blogs.wsj.com)
- GEICO Annual Underwriting Profits Cut in Half – Auto Insurance News (news.onlineautoinsurance.com)
- Is Berkshires’ Geico Advertising Campaign Paying Off? (valuewalk.com)
- Report: GEICO Leads Others in Insurance Advertising Dollars (news.onlineautoinsurance.com)
- GEICO Leads Industry in Advertising Spending (pamil-visions.net)