Insurers Turn Up Volume Of Radio Advertising.

Insurers are increasing their radio advertising and featuring direct-response incentives, such as toll-free numbers and Web-site addresses, according to radio industry marketing firms.

The insurance and real estate industries combined increased radio advertising 21.7% in 1999 t9 $134.6 million in national and regional networks, according to Competitive Media Reporting. Total radio advertising spending increased 14.2% in 1999 to $17.2 billion, said Bob Coen of McCann-Erickson Worldwide.

Three insurers--Allstate, Geico and State Farm--ranked among the top 40 radio advertisers on national and regional networks, according to Competitive Media Reporting's LNA/MediaWatch Service. The service tracks spending on radio ads placed through representative companies and excludes advertising placed directly with stations.

Allstate spent $30 million in radio advertising in 1999, including $6.8 million for network and $23.2 million for regional advertising. Geico spent $29 million, with $12 million for network and $17 million for regional. State Farm spent $9.9 million on radio advertising in 1999, placing $6.4 million in networks and $3.5 million in regional advertising.

Overall, Geico, the No. 6 writer of private-passenger auto insurance, spent $ 170.9 million on advertising in 1999, up 121.6% from 1998, according to Competitive Media Reporting. The majority, or $124.6 million, was spent on TV advertising.

From January through November of 1999, Allstate spent $103.5 million on all of its advertising, up from $77.8 million in 1998. State Farm spent $91.9 million for the same period, up from $68 million in 1998.

Allstate uses radio to extend the reach and frequency of its advertising plans, said Sharon Cooper, Allstate's director of media relations. Allstate advertises on the radio nationally and in 22 local markets that have the greatest opportunity for growth, she said.

Allstate's radio advertising ranges from image ads that focus on the personal commitment of Allstate agents and employees, local spots that promote insurance discounts and savings available to customers in a specific area and new advertisements for its "Good Hands Network."

Currently, Allstate is in the midst of rolling out its Good Hands Network, which seeks to blend the use of the Internet and call centers with Allstate's agent force. A recent Credit Suisse report on Allstate says management expects about 20% of sales in five years to be from the Internet or through call centers.

The radio ads for the Good Hands Network begin 30 to 45 days after the program is rolled out in a state. The Good Hands Network has debuted in Oregon, Colorado and Louisiana. Allstate plans to extend the network to 12 more states this year and the remainder in 2001.

A survey by Response Marketing Group, Burlington, Vt., found that 60% of radio ads sponsored by insurers contain a toll-free number, with 94% using the 800 prefix and 83% using vanity numbers, which are numbers that translate into words for easy recall. Only 16% of radio ads sponsored by insurers contain a Web address.

"After seeing an ad, consumers may be ready to learn more or to buy immediately," Sandra Murray, president of Response Marketing said in a statement. "Without a direct-response mechanism, they have no way of acting on their impulse."