than viewer basis, comparing CPM per overall audience

members versus CPM per $18-$to$-49$ demographic audience

members can help advertisers select appropriate media

vehicles $($that is$,$ appropriate television programs$)$ when

trying to reach this demographic.

$15-14$ Calculate both the overall CPM and the CPM for the

$18-$to$-49$ demographic for each show. Refer to the

$$Selecting Specific Media Vehicles$$ section of

$$Selecting Advertising Media$$ in the chapter to learn

how to do this calculation. Which programs are the

most efficient media buys for advertisers? $($AACSB:

Analytical Reasoning; Reflective Thinking$)15-15$ If

an advertiser wants to reach the $18-$to$-49$

demographic, which programs would you suggest?

Explain. $($AACSB: Communication; Analytical

Reasoning; Reflective Thinking$)$

Company Case Allstate: Bringing

Mayhem to the Auto Insurance

Advertising Wars

In the spring of $1950,$ the teenage daughter of Allstate

general sales manager Davis Ellis was stricken with hepatitis

shortly before she was to graduate from high school. The

worried executive arrived home from work one evening just

as his wife returned from the hospital where their daughter

was admitted. As he met her at the front door, his wife

reported, $$The hospital said not to worry $...$ we$$re in good

hands with the doctor.$$

Later that year, Ellis became part of a team charged with

developing the first major national advertising campaign for

the Allstate Insurance Company. As the team discussed the

message they wanted the brand to convey, Ellis recalled his

wife$$s $$we$$re in good hands$$ remark and how good it made

him feel. The phrase projected security, reassurance, and

responsibility, exactly the traits the team wanted customers

to associate with Allstate. Thus was born the slogan, $$You$$re

in Good Hands with Allstate.$$

By the early $2000$s$,$ a study by Northwestern University

found that the long$-$standing Allstate catchphrase was the

most recognized slogan in the United States. For years,

Allstate held the position as the second$-$largest personal

lines insurer, trailing only State Farm. Shortly thereafter,

Allstate hired actor Dennis Haysbert as the brand$$s

spokesperson. After starring in dozens of Allstate

commercials$$each culminating with the question $$Are you

in good hands?$$Haysbert$$s deep voice became a

comforting familiarity to television viewers. Today, the

$$good hands$$ slogan is the oldest surviving slogan for a

paid campaign.

An Advertising Shakeup

Although Allstate$$s advertising served it well for decades,

the company eventually fell into the same routine as the

rest of the insurance industry. Big auto insurance companies

were spending modestly on sleepy ad campaigns featuring

touchy$-$feely, reassuring messages such as Allstate$$s $$You$$re

in good hands$$ or State Farm$$s $$Like a good neighbor.$$ In an

industry characterized by low budgets and even lower$-$key

ads, no brand$$s marketing stood out.

However, the advertising serenity ended with the first

appearance of the now$-$iconic GEICO Gecko, backed by a big

budget, pitching direct sales and low prices. That single

GEICO ad campaign sparked a frenzy of ad spending and

creativity in the insurance industry that quickly escalated

into a full$-$scale advertising war. Once$-$conservative car

insurance ads became creative showstoppers, as edgy and

creative as ads found in any industry. Here are a few

highlights:

GEICO: GEICO got the auto insurance advertising wars

rolling when it was acquired by billionaire Warren Buffet$$s

Berkshire Hathaway company and given a blank check to

aggressively increase market share. That led to an

onslaught of advertising the likes of which the auto

insurance industry had never seen. A string of creative

GEICO campaigns featured everything from civilized

cavemen to a stack of cash with googly eyes. But it was

the GEICO Gecko that had the biggest impact. With his

signature English accent, the Gecko made GEICO$$s simple

message clear$15$ minutes can save you $15$ percent or

more on car insurance.$$ More than any other industry

spokesperson, the Gecko lent personality and pizzazz to

the previously sleepy insurance industry and its staid

brands. Since the first appearance of the Gecko, GEICO

has continued to drive home its message and entertain

the masses with ads featuring Maxwell the Pig, the GEICO

squirrels, the Hump Day camel, and various parodies.

Progressive: Following GEICO$$s lead, Progressive

created its own perky and endearing personality$$Flo$.$

Progressive created the ever$-$upbeat, ruby$-$lipped sales

clerk to help convince consumers who are already in the

market that they can get an even better price deal from

Progressive. Flo helped put Progressive hot on the heels

of rising GEICO as the fourth$-$largest auto insurer. Flo

assists people when they are ready to shop. The Flo

campaign has carried on like a beloved TV series,

revealing new characters and scenarios each year. And to

avoid the risk of Flo burn$-$out, Pr write a memo and executive summary