would I advantage Today, is to that for it Progressive to by for a to terms. believe incredibly Pat. Thanks, near our talking begin about medium want we the competitors replicate competitive Media challenging why our and be Group in
is One unique, team just mail like buy demand to advertising Virtually insurance the radio, The buys. of industry, our channel generation that then, The direct media, but or us the focused development. and on we Group using Media TV not direct almost direct since our social with about any the media is media include media media this media channels At is industry media programmatic the of and buy advertising at decision new of makes all we almost demand evolved not paid mass our purchased, We of television in that search. in-house generation in type This the the buy an believe was that paid mail. things and very our Progressive display, distinct time, a overall. in beginning in-house landscape. the team. But efforts that in our mid-XXXXs. efforts were made has
like As have display digital become prominent. more social paid channels media programmatic and
And to using viewpoints given we types has grow buy risk efficiently. how team Progressive's philosophy, focus on media develop appropriate media learn, Our those areas. to those
So our over current are of of an capabilities decades. result X the evolution
we be an would team is having our the the scale. long that in some from assemble this in-house able doing Media of that challenging it gives all to a and have the What ingrained are team how deploy been be spend how channels efficiently at us. would scratch very media and advantages Group to within company, current Given
focus a level for to match. agency agency relative very external focus and allows is external specialization to would an an brand one one This We that on important. Our of of products. set challenged be small
track are able leverage strong analytical analytics. building We innovation. team. to We analytical which capabilities Progressive's of Progressive strengths, record a and core is draw those has and on history our one very of
Another knowledge. team advantage our product an is has external agency over in-house
bring the our look in replicate. the dynamics from areas of Our how company. that other to agency They're They able context market. be way to would analysts auto come at product. no the to insurance able understand of They typically external insurance media a they understand the
with focus result the Progressive the combine party. you for the available built external models data to make would using we If an never first-party specifically is analytics, third custom
sell. of our only our brand Using evaluate data and are to that products All models our proprietary. the we
a for This you that impactful. As model get might opposed one-size-fits-all agency. incredibly been to clients has using multiple external an
our can we leader for -- channels. into efficiency the we us relative of it guide analytical budget all and spend places for similarly lifetime specific how This optimize a adding when is horsepower powerful leveraged our the segmentation needs. gives the these so is to Progressive's budget auto and different buy all spend first-party then data skills in dig to we when to media and the and when more media. We for of determine Progressive insurance have value a pricing, of where reducing bring optimal
budget. the flex the is to ability advantage quickly Another
which presentation. Our I the budget is flexible in about controls, talk will later within
is increase need ], efficient fund [ calendar target ratio reduce if well. we and the willing a our XX ratio is hit can quickly if in XX margin budget order are there our the ] We target expense year combined additional within spend. there that to Also, [ to available the do as to to opportunity
sales, budget us to cutting. we show are quickly. to Furthermore, able up down and our analytics optimize adding both and extremely when when Our how flex
employees, that bonus incentives. gainshare we Like other program. Progressive is on media our team advantage annual our have Another is aligned
spend to benefit from agency media the compensated they commission, primarily order a to to increase on So that in clients encourage media media is Progressive in A agency way on wouldn't. that is commissions. success incented more of a
the Our is core growth. of primarily Progressive, strategies on team focused profitable media
lower also agencies. overhead external program equivalent relies an costs We that on media have than
it only is but doing we A our So media $X on buying which billion XXXX in cost. $XXX smarter, are we what at spend, about are not we spent also be million. at a peak in lower would the commission X%
is million. lower considerably less team XXX for this $XXX team cost total than annual than Our people with
Finally, and this really cannot be overstated.
to develop. able with has very relationships in external no team agency be strong that Our Progressive would
closely While our work the would. most team in we agencies with marketing way
directly as also managers state general of We product as and the business. managers work with well areas other many
to business We a understanding of what us the also in have do the that very how we show credibly Media Group firm benefits Progressive. allows
talk agency Progressive's been XXXX below summarize, nor we would accomplishments outside the think greatly leading I fast could an feel about will of able as be over decade outside to I have the unlikely agency some a as we have Group be of or last have support ]. at that case and move to Media success. we been as XXXX.
To make it have decade, up would quickly specifically more as our the XX cuts that possible contributed Progressive XX-years as the to an did in our we peak to growing capabilities As talk as how I [ and to goal about to we aggressive the were in that make of last able spend built
have high significantly talking is only years whose with specific over previous spend has last growth the insurance was XXXX to Before from rate rate model didn't allow increased there of to industry pace emergence ad XXXX, largely the of increased and more XX% rate continue during slowed to to with the by in about of XX%. it direct-to-consumer rates growth annual Progressive in decade, companies rising growth, and the over is to in industry time aggressive XXXX X%, XXXX, direct-to-consumer insurance annual the advertising spend this XXXX This that who and Direct XXXX Starting XXXX, double-digit companies and and XX%. to period advertising in to the business the yet the Media up ramped Xx distributed industry compound spend. the directors auto again, growth over models because From XXXX, strong agency spurred insurance which compound last about became other a mid-XXXXs, XXXX, driven to with growth annual shifted keep growth them economic context XX% compound time.
Progressive it for providing spend. about Between period. spend ad worth growth growth from XX from in
We of the as next time the happening there spurred will suit. have more be spending that catalyst at argument growth. Progressive talk we about dynamics followed But may this is that a that some started strong and the round at time to was competitors of made
As we as landscape. rate know, the issues led was That industry in negative contraction ad to XXXX profitability for overall X-years industry XXXX and those was in spend growth XX%. compound the overall annual a
market. media our and to In spend. $XXX hit aggressively better more efficiently. our and able Progressive evaluate ratio with in our ] and generate how of were media specifically. XXXX, to that a in we us let's million. around out that raised where to it during analytics are we about rates, allowed industry all Now talk XXXX, insights ratios loss hard We today, to for of of XX was Similar coming up trending come were spend such really types where stride time, combined reacted media to common target. industry under spend were consistently XX% we a metric using Prior efficient we [ below our XXXX total between buy to the this wasn't. advance Also was and Progressive's
$X in percentage a while $XXX significantly the X XXXX allowed premium, maintaining in we media XXXX our spend XX spend XXXX, while keeping our from us more in level and spend were next funded in had available to million we We ratio a economics Starting still the went margin. for combined of increased in as below such, in efficiency, just billion available almost which to advances [ a spend of by with to target years. fund tripling higher As to able ]. X continuing margin years, the operationalize
for during began X-year our was You which started spend. that resulted that in When growth hypothesized more. the was that spend, period, industry period spurred more, This XXXX to will remember competitors from there by slides, industry. earlier in spend increase we noticed increase also from to spending an in of also I and XXXX
the Resulting during we more than total faster While our media of we target in rate. spend we in spend our of XX% competitors higher [ X-years industry and in adequate combined cut our time, in much increase our to of an increased target, ratio losses in we spend. When did from tripled industry percentage our almost spend goal with the that until than meeting spend XX% doubled the have XX our expenses industry. our XXXX to are ] summarize, share look XXXX.
To
is through flexible One of the combined ratio budget. most and can largest our the ways control we media
a we budget in Prior XXXX. the severity cut this back going from the As XX-years, period, XXXX. media had row cut X-years in budget never in to X-years rapidly trends a starting row. We Progressive steepened through XXXX
unprecedented So media overall billion an cuts. increasing this of size XXXX. cutting cuts spend well. billion the about $X.X industry as at time XXXX almost We the time to went the was was $X in in from These of happened a was when as
spendor the industry of shows ] industry share XXXX the the spend with data XXXX. overall even in And and our the was in significant [ we statutory almost were that within biggest So flat. cuts, the the
industry Going in XX% XXXX in from spend XX% XXXX. to of
of to would manage dynamics have the been team. of capabilities in-house our these without impossible All
beneficial. to per then increase media cost one cut is that a acquisition I've case number The experience, of quickly It's relationships life to total cost. the goal a the is acquisition down the price the relative If our for our our company margin include of maintaining the in primary among amount This our the the control acquisition. total defined plus means. how our we for that per what have and policy sales amount charge largest much acquisition based we into to the sure in our with [indiscernible] divided is are are we necessarily our costs. marketing spend. our about significant of has costs of we customers spend margin sales. of into overall Other particularly that in related not do is running our by the support business spend, the sale below direct or centers, acquisition Our to make online XXXX our say that things.
Target be allowed to ]. adequacy. targets. of have on and development to talked spend, policies. expenses target acquisition sale is up and We at quote at there the for then cost others. acquisition insights, case, XXXX Cost over controls expenses or our costs creative, price up amounts make the but on is call are the That's but spend would their primary or hitting [ the We improving us to the analytics policy other the that efficiency and groups, part our of is XX compensation we bringing in adjusted below need expenses our is where
we direct going are the business to of is constraint ratio policy. be new a Another at the life auto lifetime we to state our meaning has the meet that over to that have be the combined is that target below confident profitability or in writing
call, average and initial the Relations initial the to premium collecting and cover claims first primarily every lifetime other acquisition able necessary of is high, direct second As term our that indemnity can of the in term expenses, expense, up claims. the costs is quarter expensed over the policy in cover spending staffing expense customers to greater the to If for service to policy money state acquire those subsequent are expense we times acquisition than channel premium policies. the does expense. policy is the in growth are be the not shouldn't keep acquisition with. our need is Investor such too We about be acquisition This the XXXX well. the talked There our collected we when
we So order allow slow to demand our will catch staffing media and turn up. off in to
achieving at our ]. constraint a year on below calendar an aggregate focus Another is company-wide [ combined XX ratio or
above will We media not may [ target is efficient cost sale. our ] spend is spend be opportunities if media efficient incremental Even additional sale a over that per sale is is calendar and That control ambient on of in measure year if for a our our spend.
And the is shopping final dollars spend is cost an there constraint. our bringing quote under per the Incremental relatively XX or rate. a whether threat. new
actual cost this our acquisition our want mean a We channel a of acquisition level. actual are We are we cost. versus be able to and target channels. the relativity pretty able that below as shows cost. to measure to within At equal efficiency at as between it that is use well metric X, target to granular evaluate acquisition or cost X. at would to the chart per sale This metric that
per in below even sale as to target that You years during XXXX by from the spend can some we in as kept run-up much see that the XX%. cost XXXX,
and was the due for Xx that as we first. target to outlier spend, as we the relatively the shopping of the hard for the cut efficient an spend completely XXXX, XXXX high spend, in areas the a ambient cut be When enough well we to left least level paid were cuts cuts. certainly the brought only size that of was market. deployed generated. most given efficient spend the we premium with in After we as hit of to extra economics with sales our Even level
able XXXX, well significantly means less. adding competitors levels XXXX, this amount year-to-date, was sale reasons: And in of below rise in below policies target many has efficiently. we of means per remained that of media with in significant very true the so depressed cost spend Even have first, impressions our This far increased, cost are in our but that media the large we to still get This is a ratio spend. targets. at a is for XXXX. are acquisition for X So
pace, suggesting Additionally, media converting impressions when them cost good turn quotes, competitiveness. into we're those at a
upfront XXXX in up of premium expenses efficiency to Another to range. From the view of XXXX, to as X.X% as from the but expected expenses is acquisition earned the at is sales. that our of the percentage went a stayed X% lifetime look a percentage premium acquisition
As as as have in we this sale cuts prospects cost, spend, that made with at target spend. increased XXXX significantly XXXX up in we're bringing XXXX, very and the cost this we as in Again, did versus is suggests per even media in we've high acquisition metric efficiency. still our fall increased
shows that We have to This order cost a per XXXX auto a on represents sales target the target benefit and different illustrate the got on index we in illustrates direct economics. spend sale chart a of shown versus This hit Each anchored acquisition media year. we spend spend, as dot anchored increased of an the to vertical more from horizontal an the run-up XXXX in little our with clearly. axis to index that even chart cost axis. X.X
to sales commensurately. the You in spend, that increase with able increase can see were we even
and policies a Progressive. As shopping charts, and with shopping number is than In shop to indication about gauge rates prompting outlier. any how is at industry, across the purchase in the new history. below elevated rising we more spending of an ambient were of is in often were we the eventually The from levels, clear asked because it. other Despite our sold year. we calls, XXXX last This previous amount XXXX ambient year direct XXXX customers
expenses XX shows in This a cuts in We premium. earned XXXX. percentage the how [ combined have about talked tactic hit as ] direct a acquisition auto were chart key Progressive budget of ratio helping the
the see I in in the the spend be under can You pay spend profit that X% earned XX% able way keys for to ability XXXX. extra XXXX mentioned to was of one margin from expense almost the before did going premium while the percentage acquisition to targets. we as increase our had in to a increase still available of that to hitting
As ratio the ability a a we [ reduce ratio acquisition XX% year starting in the in target. in on expense to ] expense over about Year-to-date XXXX. calendar in factor ratio reduced to so spend This spend, to now dropped chart number. XXXX the by acquisition Note about increased combined XXXX X.X back we the X% exceed points XX our from company-wide XXXX, is cut our have just ratio year-to-date was big XXXX our XX%. is that and
much ratio The as quarter quarter business be opportunities as possible. grow as acquisition was to the the will strong, expense that look for second margins below of first to we continue
individual a data display for of an annually, as a spend data index only relation channels. that spend during a get created select we year. the year-to-date are to the are the proxy rest social do TV chart Progressive and of have data programmatic spend year-to-date Pathmatics Sensor shows in as competitors for spend. using iSpot media number and This industry paid to media provide proxy spending Towers a statutory ways measure third we parties what in gauge While some There of
show in spend largest industry. We Progressive the spenders have X insurance the X.X next at index a the and set
off the increased paying sales only the That one all is delivering is year. pay spend that only half first does by Progressive provide it showed, is same is considerably than point others. see sales I on dot but each based done data the this in the of a data, just can necessary media You competitors as as this Progressive of is of picture spending a that to we industry, useful each partial of are suggesting a the chart for versus spend outspending margin. This Though significant higher the advertising spend. represents
competitive driven that decade, conclusion, You business. chart are Progressive record has the strong our of direct unique record we media to a has a efficiently, in-house historic last the advantage the media is return the team trend In can media see resulted team line since XXXX date.
In spend value above is in spend the This increasing been with spend that significant which inception on for sales. and in instrumental the has in suggests share. greater is managing to and amounts media support getting in huge the direct is half profitable growth ratio plays This produced history. cutting goal ] deploying also laser spend a market our through spend on Today, management ] [ and role [ a combined XX team to ratio. of expense XX company-wide combined largest in focused first team XXXX, volume the record half first has this our of and sales the Progressive's
make a as the that with efficiency, of sales. pricing by the our from jobs industry-leading While our point other easier. is sales deliver the work product company and measure of award-winning and produced to important between media it Everything to spend team to our we team many relationship out focus conjunction media marketing areas creative our on in
colleague, online In group that Krew, we That the over first leads ago.
My policy converts Experience sold and years funnel. that the has XX area media of it key since the at quotes and the direct Dave team that funnel. way been for Progressive speak the has is competitive evolved into Acquisition team the a to received our in Dave? the going to advantage and funnel the generate team team, quote we and the of team Acquisition over decades, has part their is which online Experience online ownership Another same is and progressive.com top sales. the
