Martin Agency Connection

The Martin Agency is very well known for offering what is called “unified advertising.” In 2008, they were the first double winner in Madison Avenues “Walk of Fame” awards. Because of that they are now well established on Madison Avenue and they are a “major fixture in American popular culture” partly due to their Geico Gecko and Caveman ads.

The agency also does consumer forensics, where they get data on consumers and culture, data analytics (the tracking of programs), marketing, branding, creative processes including brain research, they analyze shopping habits, do production, execute campaigns and many other functions. Dr. Lauren Tucker, Director of Consumer Forensics at Martin does not like to think in terms of traditional advertising models. She says they like to combine data with “great ideas, conversations and relationships around our clients’ brands.” Tucker says that along with the data analytics they ensure that a “creative product is grounded in powerful, highly predictive insights that drive our clients’ business.” Therefore, the innovative approach of non-traditional advertising that refuses to be a traditional hierarchy model is perfect for Geico, and it has made both Martin and Geico highly successful in each of their industries.

With Martin the future is going to be dynamic. They continue to hire people who can combine various elements to create new, fresh ideas. No doubt that their extensive use of data collection and creative research methods like the “Mom” research will drive them into even greater success. With the advent of social media many brands are using that approach and they’re also creating viral video campaigns. Darryl Ohrt, an expert on online and social media said that one should look at the best strategy for a product and it may or may not involve online or social media. He noted that “epic campaigns that have achieved viral status …do so because they’ve provided value to an audience. Typically that may be entertainment value…” In my opinion Geico may be an excellent candidate, because the Martin Agency has produced very entertaining ads so far for Geico. The future is full of potential for Geico with China as a new opportunity. Of course they’ll have to consider the culture of China in developing the advertising and marketing there.

Entertainment Marketing

For branding purposes, a company that speaks to customers in a “conversational” way will have an advantage because it seems more human. Geico is a success story because they have used this philosophy. Another factor today is that people want to be entertained, in exchange for listening to the message. This is definitely working for Geico and has made it “stand out in stark contrast” from its competition, according to Jack Neff of Advertising Age Magazine.

Geico’s Chief Marketing Officer Ted Ward and John Adams, the CEO of the Martin Agency, spoke at a conference together and said that Geico has quintupled its market share in car insurance in the last 16 years because they have taken an unconventional approach. They run ads that are funny and interesting but still have the focus on cost savings or ease of use. The companies have a very close relationship and it shows through in their marketing.

Geico was bought out of bankruptcy by Warren Buffet in 1975. “It is a subsidiary of an investment conglomerate controlled by Buffet. After the purchase he approved spending a lot of money on advertising so that the huge amount of exposure would make Geico big, and it worked. Geico increased its market share and produced profits for 15 out of 16 years. Geico spends much more than its competitors.

In 2009 Warren Buffet said they were going to spend $800 million dollars on advertising, whereas in 1995 they spent only $20 million. In response to someone who asked if it was worth it to spend so much on advertising Buffet replied, “We are getting more than our money’s worth for what we spend.” He also stated, “We will spend more and more.”

The success of Geico has been influenced by the recession because people want to save money. “Suddenly saving $100 means something to people,” Buffet said. Buffet, who controls Berkshire Hathaway that owns Geico, is also called Geico’s secret ingredient because of his influence, and Martin had one of their ads mention him.

The branding of Geico has been extremely successful, so much so that Teen Research Unlimited has data showing that Geico ads rank as “the most recalled advertising among teens and women in their 20’s,” according to Neff. However, brands need to go beyond a compelling offer now, as its gotten very competitive in the marketplace, according to Allen P. Anderson of Landor Associates, a brand and corporate identity agency that is part of WPP. And, the marketing vice president of Geico said that with the downturn in the economy their campaign was “right for the environment.”

As the third largest insurance carrier now, Geico has become so big they’re now ready to expand to China. In addition, they employ 3200 people in Stafford, and don’t even have enough parking for their employees, so they have to shuttle people in. That shows what an impact advertising / brand recognition has had Geico. The company has even earned the AAA rating by Standard and Poor’s.