Geico gives media business to IPG’s Mediabrands

Nearly five months after putting its media account in review and laying off dozens of marketing staffers, Geico has selected IPG shop Mediabrands. The appointment concludes the insurer’s 25-plus year tenure of working with Horizon. Dentsu Media was one of the other finalists in the review according to multiple people close to the situation. Dentsu Media declined to comment.

Geico, which is owned by Berkshire Hathaway, spent more than $1.4 billion on media in 2021, ranking it as the most-advertised brand in the U.S., according to Ad Age’s Datacenter. Rival Progressive is No. 4 and Allstate and Liberty Mutual are No. 9 and No. 10, respectively.

IPG CEO Philippe Krakowsky in a statement called Geico an “iconic brand” and said the agency is excited to have “the opportunity to bring to bear a range of media and precision capabilities on their behalf.” He added, “By incorporating the full breadth of the contemporary, data-infused expertise at IPG Mediabrands, we can support the GEICO team as they go to market with an audience-led approach that will increase the value of each customer interaction and also drive growth.”

This further consolidates the insurance company’s advertising business within IPG given that The Martin Agency currently handles its creative business. The move also gives IPG another major insurance company under its belt as IPG-owned Initiative handles U.S. media duties for Geico rival Liberty Mutual.

This is a significant loss for Horizon which also saw one of its other U.S. clients, Constellation Brands, put its media account in review. t’s unclear if Horizon is defending Constellation, which markets Corona and Modelo in the U.S.The media agency also lost its U.S. business for Burger King, Popeyes, and Tim Hortons in April 2022. Beyond that, Horizon has also won some significant accounts including media duties for Kohl’s, Lionsgate, Slimfast, and Bluetriton.

Geico did not return multiple requests for comment.

The new appointment is one of the first large-scale relationship changes from new Chief Marketing Officer Damon Burrell, who was hired nearly a year ago after working at Estee Lauder, where he led the North American marketing team as CMO. 

Geico, like many of its insurance rivals, is under pressure as inflation and rising costs for claims threaten their marketing strategies and historically large budgets. They’re also having to readjust their channel mix as they court the next generation of customers, a Gen Z consumer who has little experience with insurance. Geico has traditionally enjoyed an identity as the low-cost choice for customers, but that standing has been threatened as it has had to raise rates. The company has also closed offices and laid off employees.