Radio & Insurance

From a recent email:

Insurance Companies Opt for Radio Ads

With the economy in duress, consumers are increasingly looking for a security blanket. That's led to a booming insurance business.

The insurance category grew 18 percent through the first three quarters of 2007 according to the RAB -- with the biggest gains in the South and East. Nationwide Insurance director of brand advertising Jeff Myer says Radio is key because of its reach -- specifically the ability to run frequent ads and appeal to consumers while they're listening to Radio in their vehicles.

Myer tells Inside Radio it definitely made sense to choose Radio for Nationwide's recent "Say 500" campaign for auto insurance. Many of the "Say 500" spots ran during drive-time, and Nationwide believes the overall campaign has "helped out its call volume."

Nationwide increased its Radio spending 187 percent in the first three quarters of 2008 compared to the previous year. Myer says, "Radio is our way to reach our targeted audience and keep us top-of-mind." And the overall insurance category boost is influencing how much Nationwide bud­gets for Radio.

Myer says, "We gauge what our competitors have spent and will spend going forward." Geico held on to the top slot with a 6 percent increase in ad budgets according to the RAB, while Allstate's ad spending jumped 51 percent and State Farm pumped 113 percent more into Radio.

RAB figures show insurance has become network Radio's third-biggest ad category (behind Retail and Automotive/Automotive Accessories & Equipment), increasing 31 percent.

(Source: Inside Radio, 01/26/09)

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