State Farm Advertising
Tom Dougherty, CEO – Stealing Share
18 September 2019
The new State Farm advertising makes no sense
There is some bad advertising and then there is State Farm advertising with Patrick Mahomes and Aaron Rodgers. The ad makes no sense whatsoever.
“But so it goes with insurance advertising in general, not just State Farm advertising. None of it is persuasive. In fact, a lot if it is off putting.”
And why should it? We have a reptile, an emu, Zoltan and Flo just to name a few in the insurance advertising world. So, I guess State Farm thought it was a good idea to enter the fray of stupidity.
According to State Farm, consumers are supposed to believe that two of the biggest names in the NFL trust their State Farm agent more than their sports agent.
The State Farm advertising portrays the sports agent for Patrick Mahomes and Aaron Rodgers as a blabbering, naive idiot while Aaron Rodgers is all buddy buddy with his State Farm agent.
So, the guy Aaron Rodgers and Patrick Mahomes hire to be responsible for negotiating multi-million dollar contracts and being the watchdog of their careers can barely put two sentences together? If the person who is arguably the most important person in their lives is an idiot, why would anyone trust them in their choice of insurance agent? I mean this is a really, really stupid way to generate preference.
State Farm advertising just par for the course
But so it goes with insurance advertising in general, not just State Farm advertising. None of it is persuasive. In fact, a lot if it is off putting. Many people strongly dislike Flo and her sidekick Jamie. And I have no idea what an aggressive emu and an Australian gecko have to do with anything, let alone insurance.
These companies are spending a ton on advertising. GEICO spends more than a billion dollars a year. And my guess is that, rather than getting consumers to think more about their insurance, all of these ads are designed to get them to try to think less about it. It’s intentional and deliberate.
I wonder how much these advertising budgets cost consumers in insurance premiums? (GEICO says it spends $6 of every $100 of premiums on advertising.)
Insurance is hyper-regulated; so all coverages are basically the same. They are often dictated by the lien holder of whatever it is you are insuring. There also shouldn’t be a lot of difference in rates between two competing insurance companies, just out of good business practice and a free market.
So even when you see inane State Farm advertising, the insurance companies know there isn’t a whole lot of difference between the offers.
Oh sure, people will tell you that they switched and saved money. But that story is not unique to GEICO or Progressive or Liberty Mutual.
As stupid as State Farm advertising is, it unfortunately won’t be the last. The dumber the ad, the less the consumer thinks about insurance.
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