Shareholders need to give credit to Tom Wilson who with a smaller ad budget per customer metrix has caught up with Geico.
"""Allstate was in a regular cycle of peaks and valley from 2008 through the end of September 2011, depending on their spending activity, going as high as 19 and as low as 15. Since October 2011, Allstate has risen to its current 21, the highest it has been since the beginning of 2008, and putting them at a virtual tie with Geico."""
""" Taking a page from the Geico playbook, Allstate introduced their gritty ironic “Mayhem” character, which appears to have helped propel the brand to its highest perception point with consumers in more than four years."""
If Allstate shareholders want to give Mr. Wilson another two years to fix a problem he spent the last five years creating, that's their business. But I think they're looking at the wrong numbers. The figure that catches my eye is the 2.4 percent decline in Allstate's core auto business in the first quarter. That was the fourth-straight quarterly drop, and a steeper decline than the previous three.
“Everyone else is growing,” notes analyst Meyer Shields of Stifel Nicolaus & Co. in St. Louis.
This shows that Allstate's auto business, which accounts for just over half total revenue, is getting worse, not better. Until that changes, I'd hold off on the high-fives.
Humor Works in 30 second spots as entertainment and give credit to recently departed VP Mark LeNeve; but when you fail to attain an increase in sales with humorous advertising, it is after all just humor.