Selling Stability in the New Economy

American companies are discovering that consumer anxiety over the economy is forcing them to take a different approach when hawking their wares. In the past, advertising agencies have positioned products by emphasizing a special ingredient or property. Lately, companies have promoted low prices as a pathway of appeal for consumers. But with everyone offering low prices, drastic sales and deep discounts, the question is how to stand out in the crowd?

Geico’s new approach involves the psychological manipulation of its potential customer base in what may be a new wave of advertising strategy. Venerable financier Warren E. Buffet controls Berkshire Hathaway, the company that has owned Geico for more than a decade. Therefore, Geico’s recent ad campaign, run by the Martin Agency, features the well-known investor’s name being used as a symbol of financial stability. By linking Geico’s status with the Buffet empire, the company hopes to portray itself as the one to trust in these uncertain times.

According to Ted Ward, vice president for marketing at Geico, “The strategy for this is driven by the need to emphasize to people that there’s a way to save money without risking anything.” By using their trademark gecko in various situations (getting a tiny suit from an executive, participating in trust exercises) the company hopes to offset the “doom and gloom” aspects of the economy to create ads that are lighthearted but will stand out with the Buffet connection.

I am always fascinated at the strategies ad agencies come up with to appeal to customers (Super Bowl ads are the most creative attempts every year), and this one, in my opinion, could be the beginning of a new trend to promote stability as a selling point for companies--not that it hasn’t been done before, but usually for very conservative, staid companies with very serious ads. This approach pairs a lizard with a symbol of stability, which is very different.

Hard times can make for a wave of creativity as people work to find new ways to make money. I expect to see more ads along these lines by other firms anxious to convey limited risk.

But mostly, I have to say, I am relieved to see that Geico has decided to replace those boringly-awful cavemen ads with something (anything) else! It will be interesting to see if Geico’s business fares better with this new approach.