Cost Efficiency Helps Geico Keep Prices Down, Get Big Bang For Its ’15-Minute Message’
Posted in: UncategorizedEveryone knows Geico spends a ton on advertising. Just flip on a TV for a few minutes and you are likely to see one of the insurer’s colorful characters — the omnipresent gecko, a talking pig or a camel strutting around on Hump Day.
Yet despite spending $921 million on measured media last year, according to the Ad Age DataCenter, Geico is actually a pretty thrifty company. “We are a no-frills operation,” said Chief Marketing Officer Ted Ward. “We are better off investing in technology than getting new marble floors and doors.”
Geico’s efficiency, which includes smartly using consumer data, is as important to the company’s growth as its massive ad budget. And Geico surged in 2013, posting market-share gains that put it on pace to surpass Allstate as the nation’s second-largest auto insurance company (behind only State Farm) by the end of the year, according to projections from business-data company SNL Financial.