Top Insurance Commercials on TV

Since much of the past discussion has followed the advertising of America’s most recognized insurance brands.  Let’s talk a look at PropertyCasualty360.com’s TOP INSURANCE COMMERCIALS ON TV:

State Farm: State of Unrest

Progressive: Pants on Fire

AXA: Experienced Drivers

Nationwide: World’s Greatest Spokesperson

State Farm: State of Regret

Travelers: Dog

Farmers: University of Farmers

Geico: Little Piggy

Allstate: Mayhem

I have to agree…  The Allstate Meyhem commercial are the best. 

Eh Different Approach

Taking a page from AIG’s “Thank You America” campaign, the following videos are Canadian example of marketing effort that attempts to building their brands by conjuring feelings of caring, peace of mind and security.  Both video use real-life example of customers who have been affected by disasters.   

Much of the marketing examples discussed in this journal appear to focus on entertaining customers in order to improve awareness and increase the depth of recognition so that in the moment of need, consumers will recall the brand it the funny commercial and seek further information.  Aviva and Intact appear to make an effort to move beyond salience, by describing performance of their products and encouraging emotional feelings of empathy for the individuals.  Although these images and the corresponding messages are powerful, at the moment of purchase, will consumers remember the relived customer or will they revert to the simple recall of the talking lizard or superstar quarterback?

Dollars well spent!?!

In a recently released report from consulting group McKinsey, they claim that over the past 10 years, the marketing spend by U.S. personal-lines insurers rose from $1.7 billion to $5.9 billion in 2011. (1)

“The auto insurance industry in the United States is one of the most aggressive in terms of marketing spend, but it may not be having the desired impact,” (2)

The problem is that these investments ware only targeting a small portion of the target market, about 30%.  This is also troubling because, this segment is historically the most price sensitive and the least loyal.  “…some carriers are spending heavily for broad brand recognition and have little to show for it."  The report suggest that more than half of the marketing dollars spent on auto insurance in the past decade came from carriers that didn’t gain share.

Does anyone benefit from all this spending???  The McKinsey report, indicates that only largest companies are actually creating value.  The 5 largest insurers in the US are recognizable to consumers and these brands maintain a high degree of depth.  This is an obvious advantage for the larger insurers when consumers decide to shop for insurance. These brands are sought after.

So how can a smaller insure compete?  The report suggest that smaller insurance companies avoid competing with large marketing budgets and focus their efforts on selective positioning opportunities. 

“We strongly believe that there are other needs out in the marketplace that are not being addressed and that is a bigger opportunity for insurers,” (1) 

Insurance branding... Lipstick on a pig?

"If you apply (brand strategy) to all situations, whether it's business decisions or marketing, and make all decisions based on brand, your message will come out consistent." Of course, that would mean having corporate policy that's transparent and authentic--something that's in short supply in financial services. The irony, of course, is that the insurer/client relationship is all about trust, "but they refuse to make it part of the brand because they themselves don't believe it," Laura Mazzuca Toops, quoting brand strategist Tony Wessling

In Laura's January 16th article "Toops Scoops: The Big Disconnect:  Allstate and AIG's latest advertising snafus raise the question: Does insurance understand--or care--about the disconnect between what they do and what they say?" PropertyCasualty360.com, she uses a couple of recent ironic example of instances when American insurers' action and ads do not support their own brand promises.

"Allstate commercial just happened to feature a real-life New Jersey couple that is very displeased with Allstate’s $10,000 settlement offering for their home, which was totaled by Sandy."

"AIG's announcement that they might sue the federal government because they’re not happy with the terms of the bailout they were handed"

Laura uses Wessling's comments to highlight the lack of a complete brand strategy and the industries misunderstanding of social media.  Through Wessling's comments she blames senior management for neglecting brand, instead focusing only on "the numbers... even though brand awareness will ultimately drive more profits to the bottom line"

"If these companies aren't at all conscious about the way their message is coming out in such an offensive way, it's because they don’t have a comprehensive brand strategy...  If you apply (brand strategy) to all situations, whether it's business decisions or marketing, and make all decisions based on brand, your message will come out consistent." - Wessling