GEICO Spends a Shocking Amount of Money on Advertising
- GEICO is one of the biggest car insurance companies in the U.S.
- GEICO spent more than $1 billion on advertising
- The size of the insurance company lends to the enormous advertising budget
The Government Employees Insurance Company, better known as GEICO, was established in 1936. Its original purpose was to provide car insurance to employees of the federal government, who were considered less of a risk than other drivers.
Today, GEICO is the second-largest private passenger auto insurance provider in the nation. It offers many types of insurance coverage that encompass the needs of automobile, motorcycle, boat, ATV, and recreational vehicle owners.
The corporate giant spends an enormous amount of money on advertising to promote its extensive line of products. As a result, the talking gecko, who is the company’s animated spokesperson, is recognizable by most Americans.
In 2019, GEICO spent more on advertising than any other auto insurance provider. With a budget that surpassed $1 billion, the company has made it clear that attracting new customers is essential to its continued growth.
GEICO is one of the biggest car insurance companies in the U.S.
Established by Leo and Lillian Goodwin during the Great Depression, GEICO wrote 3,700 insurance policies during its first year of operation. According to Insurance Business America, the company started publicly trading on the stock market in 1948, with financial guru Warren Buffett being one of the first early day investors.
By 1964, GEICO had secured 1 million policyholders, collecting insurance premiums that exceeded $150 million. Thirty years later, Buffet purchased the remaining shares of GEICO stock, and in 1996 the insurance company officially became a wholly-owned subsidiary of Berkshire Hathaway.
Today, GEICO insures more than 28 million vehicles and has more than 17 million active auto policyholders. Led by President and CEO Todd Combs, it is considered one of the fastest-growing car insurance companies in the country.
GEICO employs 40,000 associates and has a 24-hour customer service telephone line that operates 365 days a year. The company receives the highest industry ratings for its claims-paying abilities and financial strength.
GEICO spent more than $1 billion on advertising
In a 2019 study released by Statist, GEICO spent $1.62 billion on advertising that year. The astronomical budget far exceeded the $400 million or less that other car insurance companies invested in ads.
The only other carriers that came close to GEICO’s spending were Progressive with $1.02 billion and State Farm, which spent $627 million in advertising.
Statista also reported, “GEICO was the leading advertiser on TV in the United States in the second week of December 2020.” They explained that $34.39 million was spent on television promotion alone.
The size of the insurance company lends to the enormous advertising budget
According to AdBrands.net, GEICO is in a strong position with $34.9 billion in private passenger auto premiums for 2020. The industry leader holds 13.8% of the market share and has pre-tax estimated earnings of $3.4 billion.
The leading car insurance provider has a strong presence in the media consumed by Americans, with memorable ad campaigns and a gecko with a cockney accent that is unforgettable.
The size of the company allows it to maintain a massive advertising budget, keeping its foothold in the consciousness of television viewers across the nation.
While GEICO might surpass other companies with its constant barrage of media content, it does not necessarily mean they are the best car insurance provider for you and your family.
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