GEICO was established in 1936 to provide auto insurance to government employees. It is now the fourth largest auto insurer with over 13 million insured vehicles and $24.4 billion in assets. GEICO's immense success is attributed to its massive television and radio advertising campaign that took an unconventional approach. Rather than informative ads, GEICO used humorous 15-second ads played back-to-back for greater exposure and memorability of their toll-free number and website. This emotional appeal approach differentiated GEICO and made it appear fun and easy to work with compared to its more serious competitors.

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2. GEICO, a government employment auto insurance company, was established in 1936 by Leo Goodwin and his wife to provide auto insurance to government employees and their families. Company Background

3. GEICO now insures more than 13 million vehicles and holds an asset of over $24.4 billion. It is the fourth largest auto insurance company and has policyholders which rank over 8 million. Current Information

4. The reason for GEICO’s immense success can be attributed to its massive television and radio direct response advertising campaign. Secret of Success

5. It also took a turn from the cliché informative and serious approach usually taken by other insurance companies and taking an advertising approach that tapped into the emotions of the audience. GEICO’s approach was a very light-hearted, humorous and personalized. Contd..

6. This in return enabled GEICO to be perceived by the consumers as a fun, approachable, and easy to deal with insurance company. The approach made it easy for consumers to differentiate GEICO from the rest of the competing companies. Contd..

7. At the time of the start of GEICO advertisements, typically direct marketing standard TV media buy included 60 second and 120 second spots. GEICO instead took another smart approach by running its 15 second ads back to back in a 30 second media buy. 30-second Media Buy

8. Allowed GEICO to customize its messages for individual market needs. The messages broadcast through the ads differed from area to area to specifically satisfy the needs of every market. Allowed GEICO to place more emphasis on the direct marketing aspect of their ads, such as being able to provide the toll free number and website, which would not have been able to appear in an individual 15 second spot. The long exposure of the advertisement helped customers better remember the number and address, which in return provided high consumer response. GEICO advertisement’s approach also gave them a distinct image differentiating them from any other insurance company competing against them. How this was beneficial?

9. Using a rational approach would be the typical or cliché approach to take when dealing with a product like an insurance company. The GEICO advertisements would not be as impactful or memorable if they had used the strategy used by all the other insurance companies. The fact that they did not follow the trend of a rational strategy is what differentiated them from the rest and created a unique position in the minds of the consumers. The use of an emotional appeal has been successful for GEICO, since it is an instant attention grabber which the audience cannot ignore. Emotional VS Rational Appeal

10. Martin the Gecko The smart gecko with the British accent acts as a spokesperson for GEICO. His cheerful and humorous nature instantly grabs audience attention and becomes popular among them. The gecko is a key element in GEICO’s success.