Would it surprise you that the insurance industry spends over $10 billion annually on advertising? Of course not! When tuning into any major cultural event, like the Super Bowl or Oscars, it would be hard not to catch a glimpse of at least one insurance ad. But does this eye watering amount lead consumers to love insurance companies?
If you’re USAA, the insurance provider specifically catering to American military veterans and their families, the answer is yes. For the other top spenders in the category who spent upwards of ~250% more on total advertising than USAA in 2022, not as much.Even as the top spenders reduced their ad budgets in 2023, the overall trend remains consistent.
You’re wondering how that math works out, aren’t you? To really dig into the numbers, you’ll have to get in touch with us for access to MarketCast Brand Tracking+, our next-gen brand research solution that helps brands build Fandom. But let’s take a sneak peek at the topic on hand.
Spend ≠ Fandom
Understanding Brand Fandom is at our core, and years of research has shown that fandom creates stronger consumer relationships that drive commercial outcomes (even for insurance providers). MarketCast’s Fandom Model (part of our Brand Tracking+ research solution) reveals multiple ways for brands and marketers to turn consumers into fans by tapping into our three Fandom pillars: Presence, Distinction, and Relevance.
When it comes to brand Presence, Geico, Progressive, and State Farm are the brands most frequently encountered, e.g., seen, heard, or read about, and generate the most interest from consumers according to our research. They are amongst the top spenders on advertising, too. USAA, on the other hand, spends the least and is, therefore, the least-seen advertiser among the big insurance providers, however, it still outperforms the rest of the pack for overall Brand Fandom.
Building Buzz with Comedy and Celebrities
The highest performing insurance ads, as measured by MarketCast, feature comedic themes and celebrity spokespeople. Allstate’s Mayhem character, played by actor Dean Winters, and State Farm’s “Like a Good Neighbaaa,” campaign starring Arnold Schwarzenegger and Danny Devito, shatter MarketCast’s norms for brand and message recall and overall ad likeability. Progressive also does well in MarketCast’s Presence category thanks to its generous media spend and long-running campaigns staring its iconic characters, Flo and Jamie.
By contrast, USAA tapped NFL star Rob Gronkowski to appear in a series of light-hearted ads explaining how the company’s products are exclusively available to veterans and their families. While the Gronk ads score well overall, and especially for message linkage, the brand’s veteran testimonials really connect with audiences, including on social platforms.
Trust Factor
Our brand Distinction category gauges how unique, differentiated, and attractive a brand is to consumers. Reliability and authenticity also play a key role in how Distinction manifests itself in real life to consumers.
Trust and insurance don’t always go hand-in-hand. In fact, it’s the hardest brand category to build Fandom in according to our researchers. With its longstanding heritage and brand slogan that reinforces consumer experiences and expectations, Allstate, along with USAA, is perceived as one of the most authentic and reliable brands in the ultra-competitive insurance marketplace.
What’s Relevant to Brand Fans?
It’s one thing to be seen, heard, talked about, or recognized for something in particular, but it’s another to be Relevant to your consumer’s lives. This particular research category is straightforward and key to unlocking Fandom for brands. Are you making your customers feel valued? Do they feel proud to be associated with your brand? Are you providing best-in-class customer service?
USAA outperformed all other providers here (by a long-shot). The brand’s unique focus on supporting veterans and their families ensures it’s perceived as being more than just another insurance provider. Rather USAA is intertwined in their lives and is deeply associated with military veteran pride.
Finally, it’s important to mention MarketCast conducted this research at a time when several top insurance brands, and big advertising spenders, are making decisions to suspend service in regions affected by wild fires and extreme weather. Such decisions may impact consumer perceptions about them.
How does your Brand Fandom measure up? MarketCast is using its Brand Tracking+ solution, and its unique Fandom model, to study a wide range of brands across categories, from Insurance and Banking to QSR, Automotive, and Entertainment. Contact us to learn more.
