CHICAGO -(Dow Jones)- In 2006, auto insurer Geico, a unit of Berkshire Hathaway Inc. (BRKA, BRKB) and the fourth-largest auto insurer, outspent its larger rivals for advertising and spread its money around to more venues, while larger insurers stuck more closely to traditional advertising outlets, according to a study of media spending.

The familiar Geico cavemen and gecko were visible to the widest range of viewers last year of any insurance brand, in contrast to State Farm Mutual Automobile Insurance Co. and Allstate Corp. (ALL), which concentrated their ad spending more in national television advertising, according to media researcher TNS Media Intelligence, a unit of researcher TNS Group.

According to the study, auto-insurance advertising spending will be nearly triple 2003's total, to an expected $1.7 billion in 2007. The top four advertisers, Geico, Allstate, Progressive Corp. (PGR) and State Farm, will account for about 73% of the total auto-insurance advertising spending this year. State Farm and Allstate also offer homeowners insurance and other financial products, while Geico and Progressive focus mostly on auto and other vehicle coverage.

Geico spent $497 million in 2006, Progressive spent $257 million, Allstate spent $234 million and State Farm spent $152 million, TNS Media Intelligence said. In his annual letter to shareholders, Warren Buffet, Berkshire Hathaway's chairman, put Geico's 2006 ad spending even higher, at $631 million.

The majority of advertising spending for the auto insurers was spent on television advertising, but there were some differences. Allstate spent the largest percentage of its ad budget on national television, while Geico had the most diversified mix, with more money spent on spot TV and radio than the others, with its spot market allocations very concentrated in the top 10 to 15 metropolitan areas. Progressive's spot broadcast advertising was more widely distributed, the study said.

State Farm has boosted its Internet display share to 14% last year, from 1% in 2003.

TNS Media Intelligence predicts that auto insurance ad spending will slow from its current 30% annual growth rates, and that ad spending will "evolve" to broaden its distribution more widely to venues other than national television, which is still the preferred medium.

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By Lavonne Kuykendall

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