Cutting back on advertising is a surefire way to lose market share in the auto insurance industry.

People only think of auto insurance in two situations:

→ After an accident claim is poorly handled
→ When they receive a significantly higher bill for the next 6-month period

In both cases, drivers start looking for alternative providers.

And what brand are they going to turn to? The one they recognize.

Take GEICO for example.

GEICO’s preference dropped by 15% over the last two years. Why?

Two Reasons:

1️⃣ : GEICO cut back on their media spend, resulting in a loss of share of mind. Meanwhile, State Farm introduced ‘Jake from State Farm’ in 2020 and became the main beneficiary.

2️⃣ : GEICO had the largest rate hikes among all insurance companies. The promise of “15 minutes can save you 15%” no longer holds, as all brands now claim similar price advantages.

→ It’s possible to manage higher fees if you over-invest in building mental availability, but not when cutting back on it.

GEICO’s experience is a cautionary tale for any brand considering scaling back on advertising.

Want to keep your brand top of mind? Consistent and effective advertising is key.