Small Business Resources, Business Advice and Forms from AllBusiness.com
 

GEICO DIRECT AUTO INSURANCE.

Campaign Name: The Sensible Alternative: TV Campaign

Product/Service: GEICO Automobile Insurance

Agency: The Martin Agency, Richmond, VA.

Diamond Echo Award

GEICO's key distinction in the auto insurance industry is its method of conducting business-- direct

sales over the phone. In order to acquire new customers GEICO launched a television campaign to overcome consumers' reluctance to buy or switch auto insurance coverage, without the aide of a sales agent.

The company wanted to communicate five important tenets about its insurance: a 15 minute rate quote; 15 percent savings; complete 24-hour service; eliminating the middleman and 48-hour claims handling.

A combination of national cable TV, spot TV and national and local radio was used to reach the target audience of adults 24-64 years old. The majority of TV ads consisted of a combination of two 15 second spots which were to fill a single 30 second unit. This was done to allow is to vary messages by market, place emphasis on the key offer (15 minute rate quote and 15 percent savings), and ensure that the phone number/call to action would appear twice within the 30 second unit.

Each ad not only used a strong call to action but a sense of humor to convey the sales message. For example:

Open on a man sitting at a table reading a newspaper. He has a cup of coffee in his left hand. Man casually checks his watch. Accidentally pours coffee in his lap. Continues reading the paper.

Voice over: Paying too much for car insurance isn't any smarter.

Cut to GEICO phone number.

Ending: GE/CO. A 15-minute call could save you 15 percent or more on car insurance.

This series of humorous ads ran for the 12 months of 1998. Telephone inquiries that year exceeded 1997 phone levels by 44 percent. This made 1998 the most successful year in GEICO's 62-year history, for the fifth year running. Inquiries for each of the past four years have increased an average of 40 percent. New business (policies) for the year were also up 44 percent from 1997 and 106 percent versus the planned 1998 objectives.

GEICO reports that the cost per response was $23. The cost of this particular campaign is proprietary, but the total cost for all production/media for 1998 was approximately $30 million.

In addition, make sure to read these articles:

  • Everyone Into Geico's 'Car Pool'
  • Special effects and droll humor star in The Martin Agency's new television commercials for Geico Direct.
  • America Online Launches New Branding Campaign;...
  • DULLES, Va. -- AOL Introduces First Logo Redesign in More than a Decade "Want a better Internet?" That's the question America Online will be asking ......
  • News Wire
  • CHICAGO--Kellogg is extending its campaign extolling the nutritional virtues of cereal. Print ads and TV spots from lead agency Leo Burnett in Chicago are tagged, ......
  • Re-engineering for Sustainable...
  • L.M. Camarinha-Matos (ed.) Chapman & Hall, 1997 In celebration of a new season, it is sometimes fun to give a party. A gracious host would ......
  • Where is Toxiphobia Leading Us?
  • In 1986, we published this editorial written by Robert Coombes, then president/CEO of Crown City Plating (El Monte, CA). Currently, Mr. Coombes is CEO of ......
  • Sicknote pressure could backfire on business
  • Calls by GPs to relieve them of the pressure of writing out 'sicknotes' for patients will backfire on businesses unless a sensible alternative is provided, ......
  • GMROI
  • My first experience in the jewelry industry was a raucous ArtCarved sales conference under the guise of checking out the conference center for a Lenox ......
  • Axa, Martin Agency in Talks
  • Client says no decision has been reached ......
  • BANK OF NEW ZEALAND.
  • Campaign Name: Bank of New Zealand "Fence Post" Campaign Product/Service: Rural Financial Services Agency: Aim Direct Limited, Auckland, New Zealand. Gold Mailbox Award The market ......
  • Ellis Advances To Brand Advocate At Martin Agency
  • The Martin Agency has promoted media veteran Karen Ellis to director of brand outreach, a new position.
  • Martin Agency Opens S.F. Office
  • Seeks to Tap West Coast Sensibility for ......
  • Martin Agency Goes West Again
  • Looks Beyond Serving Schwab From New San Francisco ......
  • Martin Agency Hires Coughter In Senior Role
  • Peter Coughter, a one-time competitor of The Martin Agency in Richmond, Va., when he was at the helm of crosstown rival Siddall, Matus & Coughter, ......
  • Martin Agency Showcases Worldly-Wise UPS
  • Brown goes global in recent television spots for United Parcel Service from The Martin Agency. Two 30-second spots feature UPS drivers delivering packages to offices ......
  • BREAKFAST BOWL: LOW CARB, HIGH CAL
  • Carl's Jr.'s new Low Carb Breakfast Bowl, promoted as a sensible alternative for patrons on a diet, contains 900 calories, the company revealed.