State Farm drops agency of record, spotlighting ad agency challenges - Business Insider

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State Farm becomes the latest marketer to drop the classic ad agency of record model after cutting its marketing budget by 15%

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The Bloomington, Illinois-based company, America's largest insurance provider and one of the country's top 50 advertisers, chose The Marketing Arm, an agency owned by holding group Omnicom, to lead its creative campaigns moving into 2020. It's a loss for State Farm's longtime agency of record DDB, also part of the Omnicom network.

DDB, the agency behind "Like a Good Neighbor," will stay on State Farm's roster but still lose a good bit of work The Marketing Arm has had State Farm as a client for around a decade, but the new role is a significant change since past work focused on areas like music festival sponsorships, contracts with individual artists, and TV or film integrations.This shift marks another strike against the classic agency of record model

 

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