A brand new approach: auto insurers are looking to various channels and a consistent message to brand their companies.

Amazon.com Founder and Chief Executive Officer Jeff Bezos may have said it best when he remarked, "A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well."

Many auto insurers, undaunted by the prospect of difficulty, are pushing beyond a creative campaign and catchy slogan to develop an effective brand. "Insurance companies are finding it necessary to differentiate themselves because insurance is viewed as a commodity, where the only thing that matters is low price through low premiums," said Dave Dolak, a professional certified marketer. "They need to seek ways to communicate the fact that quality insurance coverage means more than just a good rate."

Some insurers are marketing their brand beyond the traditional media into other channels everything from the Internet to celebrity spokespeople. Their message: to show their commitment to customers during times of need, through a consistent message that's putting a face on the company.

Putting It to Work

For Farmers Insurance, that consistency is driving home its promise that "Farmers gets you back where you belong." Jeff Beyer, senior vice president and chief communications officer, said 10 years ago the company took a hard look at its advertising and branding program and set out to "take that proverbial clean sheet of paper and have in-depth discussions with consumers about what they think about insurance and what role we play in their lives." The answer, he said, was the concept of restoring a consumer's world to order when it's disrupted. "We're now taking a lot of creative ways to express that in a consistent manner by reinforcing it time and time again."

Channels used to express a consistent brand message include everything from the traditional media of television, radio, newspaper and billboards to other approaches, such as the Internet and sponsorships. State Farm's branding has capitalized on its sponsorship of numerous events during the past several decades. For the past 15 years, it has sponsored the TV home improvement show This Old House. State Farm also is an official corporate partner of the NCAA and its men's and women's basketball championships and sponsors the State Farm U.S. Snowboarding Cup, State Farm U.S. Figure Skating Championships, State Farm Women's Tip-Off Classic, State Farm LPGA Classic and the State Farm Bayou Classic.

The Internet is a big arsenal for some insurers getting out their message to consumers. As part of a holistic brand campaign in 2005, Nationwide created "30 Ways Life Comes at You Fast," an interactive online campaign that features daily video clips of humorous life events on lifecomesatyoufast.com. Participants in an online contest watched videos and received an additional entry for each clip they identified with the Nationwide logo embedded.

Sometimes a recognizable face is an effective means of pushing a company's brand. Drive Insurance from Progressive recently enlisted the help of Hollywood to create commercials starring several of what David Skove, director of the company's "Drive Insurance from Progressive" brand, calls "stars with a unique sense of their own celebrity" In the commercials, celebrities including John O'Hurley of Seinfeld, Ryan Stiles of The Drew Carey Show, Wendie Malick of Just Shoot Me and John Ratzenberger of Cheers, believe they are getting star treatment because of their celebrity status. They even believe they're receiving a comprehensive low-cost insurance premium from their independent agent because of who they are, only to discover that their agents offer the same "star" treatment to all consumers seeking insurance coverage.

Essential Ingredients

One of the biggest mistakes companies make in branding is believing that creating high visibility, awareness and recognition is the same as building a strong brand, said Dolak. "Just because everyone sees your ad, knows your name and is aware of your existence doesn't necessarily give them a compelling reason to do business with you." Instead, he said, companies should focus on strategic awareness. "A successful corporate brand must offer something unique and promise value. It must also communicate the reasons it's different than and superior to competing brands" he said.

Farmers Insurance says its promise of restoration offers a solution to its customers' problems. "There are lots of things an insurance company can say about itself in terms of price, distribution, ease of doing business, and discounts, but while all those things are important considerations, our promise of restoration is what makes us different and shows consumers what we can offer them," said Beyer.

Regarding State Farm's branding efforts, Mark Gibson, assistant vice president of advertising, said, "We base everything we do strategically on our business plans and operating goals, then plan our media and message around those objectives."

Some insurers are breaking through the brand clutter by using humor. "Consumers told us that what most financial services companies lack is a pulse or personality and they would like to see the human side of these companies," said Kathy Ricord, executive vice president and chief marketing officer for Nationwide. Humor is an important element in Nationwide's marketing materials, and its "Life Comes at You Fast" multimedia campaign conveys that the company is there for policyholders when unexpected things happen. In one spot, '90s musician MC Hammer performs his hit "U Can't Touch This" in front of his mansion and high-end sports cars, only to be interrupted by the caption "15 minutes later." The ad then flashes to his financial downfall as his cars are being repossessed and his home is being foreclosed.

In addition to catchy slogans, colorful designs and humorous interactions, companies need to practice what they preach, said Susan Linder, president of the business planning and marketing consulting firm Linder Associates. "When a company has created a brand, along with the style and image, they probably have developed three to five keywords that embody the brand. People with direct contact with customers, such as agents and customer service representatives, need to reinforce those key words in everything they say and do," she said.

If a company says it's easy to deal with--it needs to be easy to deal with, Linder said. Not only does a company need to make sure its forms are easy to complete, for instance, it also needs to ensure that consumers calling into the company can easily reach someone to answer their question and that agents are easily accessible to clients.

Bringing Agents on Board

In 2004, Progressive created its "Drive Insurance from Progressive" brand, complete with its own logo, Web site and ads, incorporating its existing emphasis on the advantages of working with an independent agent." Our idea was a branding effort that would work in conjunction with what we already offered well--competitive rates, claims service and technology--to help grow our business together," said Skove. Progressive agents co-brand themselves through Drive signs, Yellow Pages ads, Internet listings and other marketing materials.

The Independent Insurance Agents & Brokers of America also is spotlighting agents through branding. In 2001, the Big "I" and several agency companies launched Trusted Choice, a national consumer brand, to educate consumers about the benefits of using independent insurance agents and brokers, including choice of companies, customized policies and advocacy support. Today, more than 5,400 independent agencies and brokerage firms throughout the United States and 32 leading agency-system companies are participating in the agency brand program. The Trusted Choice brand is promoted through a combination of national, state and local agency advertising; company partner branding; public relations activities; member agency marketing; and Internet communications.

Passing the Test?

Many branding experts think insurers are creating effective brands, but they believe there's still room to grow.

Companies have to realize they can't always be everything to everyone, said Laura Ries, president of Ries & Ries consulting and branding firm. "A lot of financial services companies and insurers are emphasizing online extension and are diluting the brand so much that it no longer has any meaning and are trying to bring the brand into too many categories." While some companies are focusing on becoming "one-stop shops," they're losing sight of the things they do best. The result: Customers end up turning to a specialist for their product and service needs. "Short-term servicing customers leads to long-term branding disaster," Ries said.

What can companies do to create an effective brand? "Companies need to take a look at the channel they think is most important to them and how their brand is actualized in that channel," Linder said. "If, for example, you believe the Web is the most important channel for you now, you take it, say here is what my brand stands for, and look at everything happening within that channel," she said. "You then see if it is or isn't brand, and if not, you search for the strategic possibilities of fixing it."

Key Points

* Auto insurers are turning to traditional media and other approaches, such as the Internet, celebrity spokespeople and sponsorships, to brand their companies.

* A consistent message is key to branding success.

* Some companies are incorporating independent agents into the brand.

A Legend in Its Time

Geico's popular icon has shown his versatility over the past six years. Not only has he frolicked with a beautiful young lady in a meadow, he has belted out "Kung Fu Fighting" while donning a shower cap, and competed with the out-of-work Taco Bell Chihuahua in an interview for a company spokesperson position.

These scenarios have become so ingrained in many television viewers' minds that the Geico gecko was voted one of America's favorite icons as part of 2005 Advertising Week activities in New York.

The computer-generated gecko was introduced in 1999 by the Martin Agency in Richmond, Va., as a way to add humor to the not-always-so humorous business of car insurance. The often mispronounced company name became "gecko" and the green icon was born. "When our advertising agency presented us with the concept of a gecko standing at a podium telling the public that he is a 'gecko, not to be confused with Geico,' we thought the play on words was great" said Ted Ward, Geico vice president of marketing.

In initial commercials, pesky phone callers confused the gecko's telephone listing with the Geico Car Insurance Co. In subsequent spots, the gecko transformed into an integral part of the company.

Since 1999, more than two dozen TV spots have been created featuring the gecko and tag line: "Fifteen minutes could save you 15% or more on car insurance." And now the gecko is moving onto the big screen. In November, the company announced the winners of its "Golden Gecko" competition. Individuals were invited to submit 15-second movie trailers starring the gecko, and winners were selected by the public via the Internet.

In the world of advertising, the insurance industry traditionally has had a low profile, said William Pitt, senior advisor with HawkPartners, a Boston-based marketing consultancy. "Clearly, Aflac and Geico are exceptions to that rule by developing brand personality." However, each brand has a unique personality. The Geico lizard's is one of "canniness," he said.

The consistency of Geico's ads has added to its branding success. "Most of Geico's competitors haven't zeroed in on the communication process or a product that works and delivered it with the consistency that Geico has," said Jack Sims, a business and branding expert who has helped grow businesses and brands of such companies as General Foods, Burger King and Colgate Palmolive.

In addition, the ads are fun, said Sims. "What makes Geico so good is that the ads entertain, deliver a message and satisfy a need."

But he said the company will need to continue modifying the gecko. "They've identified the need and are selling customers what they want--quality insurance at a cheaper price. Now they need to translate the gecko into different ways to keep it fresh and entertaining," Sims said.</p>

<pre> The Gecko Phenomenon 1999 The year the gecko was introduced by the Martin Agency. Where did the gecko Because Geico was often mis- come from? pronounced gecko, Geico adopted the green creature as

its spokescreature. Favorite Competing against the Energizer Advertising Bunny and Doublemint Twins, Icon of the gecko was voted one of 2005

America's favorite advertising icons in 2005. Gecko Geico's online store offers hundreds Paraphernalia

of gecko items for sale, including gecko-festooned baby blankets. Gecko Fan Club

Geico's V.I.G. (very important gecko) has his own fan club. Members sign up online and receive info on upcoming

gecko events, contests and promotions. Geico The gecko's image appears on Racing

the vehicles of the Geico-sponsored Biagi Brothers NASCAR team, NHRA's Pro Stock Motor cycle racer Karen Stoffer and

AMA Superbike rider C.R. Gittere. Gecko Blog

Geico's Web site posts the gecko's blog where fans can read the latest musings of the

famous spokescreature. Tech Stuff

Tapping into the interests of tech-savvy 20- and 30-some- things, Gecko screensavers, wall

paper and IM buddy icons can

be downloaded at geico.com. Film Star Geico sponsored a competition inviting fans to create a 15-second

movie trailer featuring the

Gecko. Via online voting, the public chose "Fury of the Gecko," in which the small, green creature battles the rich and greedy

High Rates. The film can be seen

at goldengecko.com. </pre> <p>Specific Appeal

Branding is not just about how to brand a company--it's also about who is being targeted. State Farm's mass audience reach is targeting specific sectors, including multicultural demographics, young adults and women. "Young adults, for instance, are key to reach out to at an early age, because we understand the lifetime value of building a strong relationship with these consumers," said Mark Gibson, assistant vice president of advertising. Because young consumers have different media consumption habits, State Farm is relying on text messaging, the Internet and experimental marketing to convey its branding message to them.

State Farm also is marketing its brand to women. For several decades, the company has sponsored women's athletic events, including the Ladies Professional Golf Association Tour and the U.S. Figure Skating Championship. The company recently partnered with O, The Oprah Magazine for television talk show host Oprah Winfrey's "Live Your Best Life Tour" program, in which she visited several U.S. cities to share her message of women's journeys of personal growth.

The branding message of "Drive Insurance from Progressive" is being conveyed to sports enthusiasts via commercials aired during National Football League and NCAA football games and on the sports channel ESPN. The company also is targeting specialized audiences through cable networks including HGTV, Discovery, Fox News and A&E. "Those networks tend to track very well with adults aged 25 to 54," said David Skove, director of the "Drive Insurance from Progressive" brand.

Farmers Insurance's geographic footprint reaches into many states with large Hispanic markets, said Jeff Beyer, senior vice president and chief communications officer. In addition to using advertising to target the Hispanic market, Farmers is sponsoring local community events. The company also recently sponsored a project to bring a 90-minute documentary on the Hispanic heritage and its contributions to American society, which originally aired on HBO, into U.S. classrooms.

In a Favorable Light

New York state Attorney General Eliot Spitzer's investigation of some insurers tarnished the industry's brand. Now some companies are trying to change that.

A recent report, "The Insurance Integrity Crisis: Re establishing the Brand," by Celent LLC examines the ways companies are revamping their brands in light of recent events. Donald Light, a senior analyst with Celent and author of the report, said the industry has developed three responses to the integrity crisis by taking what he calls a flight, fight or hunker down approach to re-establishing brand.

Companies taking a "flight" approach have opted not to respond to the brand damage caused by the accusations, but rather to "conduct business as usual," said Light.

Other companies have responded directly to the accusations by either contesting them or admitting wrongdoing and taking measures to rectify the situation. Marsh--the world's largest insurance broker, accused by Spitzer of rigging bids on insurance coverage--took a "fight" approach to re-establishing its brand. Soon after the accusations, the company ran an ad featuring an open letter in which Chief Executive Officer Michael Cherkasky admitted "certain of our people acted improperly" and "we deeply regret their actions." The company then ran a series of press releases and ads "aimed at creating a somewhat modified Marsh brand: diverse, client focused, competent and a source of pride to its employees," the Celent report said.

Several other companies took what Light classifies as the "hunker down" response. Instead of addressing the specific accusations, they pointed to the social and economic value of their companies. An example: Ace Group ran an ad showing two women walking off a soccer field with the message, "Some say they could get injured. Some say they could be champions. We say play." This kind of ad showed the economic function of insurance in a positive light, Light said.

Now the three major hurricanes--Katrina, Wilma and Rita--that devastated the U.S. Gulf Coast in Fall 2005 pose new threats to an industry that's already working to re-establish its brand. "Companies like Allstate and State Farm did a good job conveying the message about the events and how they're here to help those in need," said Light. Now companies have the opportunity to take that a step further, he said. "The industry is talking about insured losses and how they will pay claims, but there's a brand story here and it's a moment of truth of a magnitude we've never had before."

Learn More

Farmers Insurance Group A.M. Best Company # 00032 Distribution: Exclusive agents, independent agents

Geico General Insurance Co. A.M. Best Company # 01852 Distribution; Direct

Nationwide Group A.M. Best Company # 05987 Distribution: independent contractors

Progressive Insurance Group A.M. Best Company # 02407 (Progressive Casualty Insurance Co.) Distribution: Independent agents, direct

State Farm Group A.M. Best Company # 00088 Distribution: Exclusive agencies

For ratings and other financial strength information about these companies, visit www.cambest.com.

What Are Auto Insurers Spending on Ads?

Company             Jan.-Sept. '04   Jan.-Sept. '05   % Change

Geico                $226 Million     $297 Million       31.3%
Farmers             $14.4 Million    $31.3 Million      117.0%
State Farm           $202 Million     $252 Million       24.6%
Progressive          $149 Million     $196 Million       31.7%
Nationwide Mutual     $42 Million      $57 Million       35.7%
  Insurance Co.

Includes the following media: network TV, spot TV, Hispanic
network TV, cable TV, syndication, magazines, Sunday magazines,
local magazines, Hispanic magazines, business-to-business magazines,
national newspapers, newspapers, Hispanic newspapers, network radio,
national spot radio, local radio and U.S. Internet.

Source: TNS Media Intelligence