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12-09-2005, 08:41 AM
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#1
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,022
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How Not to Advertise
For the past couple of months, Allstate has run a weekly ad in the business section of the local paper. They are holding a contest called the "Allstate Stock Market Challenge", pitting teams of students at local schools against each other and Allstate agents in picking stocks. There are two school team categories, grades 4-8 and grades 9-12. Each team and Allstate agent starts with $100,000 to invest and the weekly ad publishes the top three winning school teams in each category, the top Allstate agent and their respective total equity amount.
The contest has gone on for 8 weeks and the six top school teams have made more money than the best performing Allstate agent every week. The worst of the school teams has twice the return of the best Allstate agent and the best has more than six times the return. In simple terms, kids in middle school are better at picking stocks than Allstate agents.
I do not understand why Allstate sponsors this contest and advertises the lack of market expertise of their agents. Do they think this will encourage someone to turn to Allstate for their insurance needs? What am I missing here?
__________________
Numbers is hard
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12-09-2005, 08:51 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,610
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Re: How Not to Advertise
The kids that are winning must be getting help from their USAA and State Farm parents
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12-09-2005, 09:46 AM
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#3
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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Re: How Not to Advertise
Quote:
Originally Posted by REWahoo!
I do not understand why Allstate sponsors this contest and advertises the lack of market expertise of their agents.* Do they think this will encourage someone to turn to Allstate for their insurance needs?* What am I missing here?
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There's no such thing as bad publicity!
[sarcasm] While it can be humiliating for less-experienced agents to be outperformed by a bunch of kids, Allstate prides themselves on their long-term investment philosophy. If you think that irresponsible students are the only stock-pickers who can turn in these impressive results, let Allstate show you the returns on their private accounts. Allstate can't share these returns with the general public because so many people would retire rich that they'd all quit their jobs and the economy would collapse. But for you (and a small monthly fee) they're willing to make an exception and show you how their active management will beat the benchmark every time. By the way have you considered an equity-indexed investment that gives you a guaranteed check for the rest of your life? And after the inevitable occurs, have you considered how your grieving uneducated unskilled family will support themselves while being protected from gold-digging scam artists without having to work in sweatshops for the rest of their lives?[/sarcasm]
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12-09-2005, 09:59 AM
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#4
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Recycles dryer sheets
Join Date: Jul 2005
Posts: 113
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Re: How Not to Advertise
do you happen to have a link to this contest?
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12-09-2005, 10:13 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Feb 2003
Location: Nomadic in the Rockies
Posts: 2,720
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Re: How Not to Advertise
Quote:
Originally Posted by boutros
do you happen to have a link to this contest?
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Googled for it:
http://www.chron.com/cie/contests_smg.html
Looks like you may have to sign up to see, but I'm not sure.
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12-09-2005, 10:57 AM
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#6
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Full time employment: Posting here.
Join Date: Oct 2002
Posts: 717
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Re: How Not to Advertise
I think this is a case where the agents actually believe the crap they tout.* They must have talked their even stupider bosses into sponsering the contest.* I doubt if Allstate will* repeat the contest.* *I've always been amazed at salesmen who keep a straight face when they are selling you crap.* The good liars are impressive . . . the others come by the skill naturally.* * * * *
__________________
Random Reinforcement is Highly Addictive.
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12-09-2005, 11:02 AM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,022
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Re: How Not to Advertise
BMJ, the link you provided was to the Houston Chronicle, while I was referring to the San Antonio Express-News. I could not find a link to the SA contest, but it's comforting to know that the Allstate agents in Houston are also no better at picking stocks than Houston middle schoolers.
Annuity anyone? :P
__________________
Numbers is hard
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12-09-2005, 04:29 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,005
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Re: How Not to Advertise
To be fair to the insurance salesman, there is only one of him and potentially hundreds of student teams. We're seeing the ins. salesman's returns, and only the best student returns from hundreds of teams.
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