How much does GEICO spend on advertising?
GEICO has an advertising budget that is considerably larger than most car insurance companies are. In fact, the company has shared the fact that its direct to consumer style of sale is what allows it to hire a minimal numbers of agents throughout the country, thereby freeing up funds for advertising. In 2007, GEICO spent over $751 million in advertising, on print, radio and television ads primarily.
GEICO Advertising Stands Out
GEICO has been extremely successful with its advertising campaigns over the years. In fact, one of the hallmarks of any good advertising campaign is how recognizable it is with consumers. If the public can identify the advertiser by its ads, then the ads are doing their job.
One of the absolute best ad campaigns by any insurance company is that featuring Martin the Gecko. As soon as most adults see the gecko with the British accent, they know he is the official GEICO spokesperson. The caveman ads are another memorable series of ads created by GEICO that most people will recognize. Even the Rhetorical Questions ad campaign was another hit for GEICO.
Using the same characters, especially unusual ones like a talking gecko and a caveman in today’s world, is a very effective way of creating memorable ads. Even its very ordinary commercials, such as those with actual clients depicting how GEICO helped them, are very effective, mainly because they are done in series and their standard features are included in the ad like their tagline.
An aspect that stands out when it comes to GEICO advertising is the repeated use of its tagline “15 minutes could save you 15% or more on car insurance.” Because it is repeated in practically all print, TV, internet, and radio ads, it has become synonymous with GEICO. Again, because consumers can largely identify GEICO as the company in question when they hear that tagline, it is indeed a success.
GEICO Advertising is All about Creativity
Ads for GEICO are big on creativity. In addition to the fun, creative series of the talking gecko and caveman ads, other unusual GEICO ads stand out. In fact most people would agree that GEICO offers the most entertaining ads in the insurance industry overall.
Several funny ads have been created about unusual ways to save money with the conclusion being to use GEICO instead. The insurance company has also featured a variety of highly unlikely accidents that would require good car insurance, such as a shooting star hitting a car. GEICO has even used a variety of parodies in its advertising campaigns, including ads, which seem to have absolutely nothing to do with insurance until the very end.
How do GEICO car insurance rates compare to other insurers?
Choosing an insurance company based on advertising alone is simply not a good move. While GEICO does spend a lot of money on advertising, it is not indicative of how good or bad they are as an actual insurance company. Therefore, you need to do a little more investigation into the company itself before opting to buy insurance from them.
According to the J.D. Power and Associates annual customer satisfaction study, GEICO ranks well in terms of customer satisfaction. While its ratings are three power circles out of a possible five, which means about average customer satisfaction, in reality it is at the top of this ratings level with only six insurance companies in the country outperforming it. In fact, when it came to pricing and policy offerings, GEICO received four power circles, ranking it better than most. This study is done annually on actual car insurance customers and questions them on five factors: price, claims, interaction, billing and payment, and policy offerings.
In terms of financial strength, GEICO rates up there amongst the best. The independent insurance rating firm A.M. Best gave GEICO an A++ rating for financial strength and deems it to have a stable outlook for the future. These ratings are very desirable for anyone looking for an insurer to meet their needs.
GEICO’s combination of fun advertising and great ratings when compared to other companies definitely make it a top choice for many consumers when it comes to car insurance. In fact, many consumers are surprised to find that a company that has such a recognizable name is actually a good, solid choice in insurance coverage. Take ease in your choice of GEICO for your next car insurance policy. They truly offer a great combination of business and fun in a progressive setting.
Start shopping around today for car insurance from a variety of insurers. Even though GEICO is a solid choice it only makes sense to research different quotes from top insurers serving your area before you make your decision. Compare and contrast the offerings, price, and reputation of all the quotes you get before making your choice of the company to meet your car insurance needs.