Ads Use Celebrities to Appeal To Consumers Age 20 to 30.

21st Century Insurance introduced a TV commercial in February featuring an all-star, motley crew made up of a professional wrestler, a centerfold model and a rock legend in its $7 million television and radio advertising campaign aimed at reaching an audience of 20- to 30-year-olds.

The insurer's ads feature model Anna Nicole Smith, former WWF and WCW wrestler Randy "Macho Man" Savage and rock star Alice Cooper.

The ad rolled out in California, the insurer's home state and the largest auto insurance market in the nation. It introduces the company's new slogan, "Working Hard to Make It Easy." "This campaign is different from anything we have done before, We knew it had to be entertaining for the younger set. We want to promote the company's accessibility through its Web site, where consumers can get a policy price quote and purchase coverage," said Ric Hill, vice president of communications.

The ad follows those of other insurers, such as Aflac and Geico, which use humor in advertising. Aflac spent $15.6 million and Geico $39.9 million on national television advertising in the first nine months of 2000, according to Competitive Media Reporting.

21st Century is targeting the younger generation, because many of its long-term customer relationships began when policyholders were in their 20s and 30s. The company reports its annual renewal rate of existing policyholders is 95%. "Our customers tend to have a long-term relations hip with us. So, we're looking to the sons and daughters and a connection to the younger set," Hill said.

The ads feature the celebrities interviewing for positions at 21st Century and spoof their respective personalities and how they are the opposite of qualities looked for in 21st Century employees. To illustrate the company's 24/7 accessibility, an ad plays off Alice Cooper's rocker night-owl lifestyle as not being company material. And 21st Century employees are supposed to be friendly, the opposite of Randy Savage's wrestling persona. Anna Nicole Smith isn't a suitable candidate, because she isn't able to discuss the lawsuits in which she is embroiled: 21st Century employees must be able to communicate openly with their customers.

Because Generation Y-teens to 20-year-olds-- and Generation X-20- and 30-year-olds--are the next huge marketing targets, many insurers are just beginning to court these demographics. According to a recent survey by KPMG, only 17% of 175 senior insurance executives surveyed felt they were prepared to serve the needs of Generation Y.

21st Century primarily markets direct personal auto and personal excess liability policies through distribution channels of direct mail, newspapers, radio and television. It is the fifth-largest personal automobile carrier in California, according to A.M. Best Co. data. 21st Century also writes coverage in Arizona, Nevada, Oregon and Washington. State Farm Group and Farmers Insurance Group are the two largest writers of private-passenger auto coverage in California, with about 27% of the market share, according to A.M. Best.