Based mostly on spot quantity, GEICO was radio’s thirteenth largest advertiser for the six months of 2022. In response to Media Displays, the insurer aired 546,753 spots on AM/FM radio through the interval.
As reported by Advert Age, GEICO’s employees cuts come after a sequence of challenges – the insurer just lately introduced that it’s going to elevate charges in Illinois by 6% and shut 38 of its places of work in California, halting gross sales of insurance coverage within the state. The choice to put off advertising and marketing employees additionally comes days after different workers introduced their intent to unionize.
Learn extra: GEICO unveils large workplace closures, a whole bunch laid off
It was additionally highlighted that GEICO had simply named Damon Burrell as its chief advertising and marketing officer in April earlier this yr. Burrell joined GEICO from Estee Lauder, the place he additionally served as CMO of the cosmetics firm’s North America enterprise.
Advert Age reached out to GEICO for remark, and the insurer gave clarification that it might supply associates positions in different departments when doable, and that it might offer severance advantages and outplacement companies.
“Like most giant firms, we proceed to evaluate and alter our staffing to answer altering buyer and enterprise priorities,” the insurer mentioned in an announcement, including that it has “not ended relationships with any of our media or advertising and marketing associate businesses.”
eMarketer’s Insider Intelligence experiences that insurers have lengthy relied upon conventional promoting channels equivalent to cable TV spots and radio adverts, however that might quickly change. The market analysis group has forecasted that about 33.1% of the US inhabitants will lower their paid TV twine this yr, which may sign a big shift from linear to digital video. However Insider Intelligence additionally famous that the insurance coverage business’s digital advert spending is slowing down in 2022, in comparison with final yr, although spending this yr nonetheless hit a powerful $12.15 billion.