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Geico's Heavy Spending Leads To Big Gains

  • Ad Age, Wednesday, June 27, 2007 12:33 PM

Geico, the auto insurer that has increased its ad spending a whopping 75% since 2004, ranks No. 1 in new-customer acquisition and is the only top insurance brand to achieve double-digit growth during the past four years -- 13.1%, according to A.M. Best's Aggregates & Averages.

Despite being the No. 4 player based on market share in the category, Geico ranks No. 1 in new-customer acquisition at 5.8%, followed by Progressive at 4.4%, State Farm at 4.2% and Allstate at 4.2%, according to a J.D. Power and Associates 2007 Insurance Shopping Study.

The study also notes Geico's fast climb up the brand-awareness ladder since 2001, when it topped at 82%. After spending an estimated $2 billion in advertising since then, 91% of shoppers say they have seen or heard at least one Geico message in the past 12 months, compared with State Farm (80%) and Allstate (78%).

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