Farmers Insurance Puts US Creative and Media in Review (In The News)

Farmers Insurance Puts US Creative and Media In Review (In The News)

Farmers Insurance is reviewing its long standing US creative and media accounts, as reported by Brian Bonilla in Ad Age. The article outlines the pitch process, the agencies believed to be involved, and how the move fits into a recovering but highly competitive US insurance market.

The piece also highlights the sharp rise in Farmers’ media investment and the broader surge in insurance category ad spend. It sets out the market pressures facing the brand, from inflation and claims costs to regulatory complexity in California, and how those dynamics are now translating into a fresh look at agency partnerships.

One notable detail is that the reviews are being run with external support. For ID Comms, this is another significant brief in a category where disciplined, insight led media thinking can make a real commercial difference to how brands show up and grow.

You can read this full article on Ad Age here: https://adage.com/agencies/accounts-in-review/aa-farmers-insurance-us-creative-media/

Farmers Insurance review: what CMOs should note

The Farmers Insurance review is a high profile example of an advertiser resetting both creative and media support after a long incumbency. At its core, the Farmers Insurance media and creative review reflects shifting category dynamics, a doubling of the brand’s US media investment and a desire for sharper performance in a stabilizing but still pressured market.

For senior marketers, the most important signal is that even long trusted agency relationships are now being stress tested against new growth expectations. After more than 15 years with RPA, Farmers is running separate processes for creative and media, inviting specialist players such as Horizon Media, Havas and Publicis’ Zenith into the conversation.

The timing is not accidental. Farmers’ US measured media spend jumped from 31 million dollars in 2024 to 68 million dollars in 2025, according to MediaRadar, putting real weight behind any decision to rebalance agencies, models and fees. When investment scales that quickly, governance, transparency and capability all move up the CMO agenda.

The insurance category is also coming out of a turbulent period, with Mintel data showing a 23% increase in insurance ad spend in 2025 alone. Farmers is operating in a top ten competitive set where Progressive is typically the leading spender, so it cannot afford to stand still creatively or in media.

Key facts from the Farmers Insurance media and creative pitch

From an advertiser’s perspective, the mechanics of this review are as instructive as the headline. Farmers has split the process into two distinct tracks: one for media and one for creative, each with its own invited agency list and evaluation. That separation gives the brand flexibility on talent and commercial structures, while keeping strategy tightly aligned.

On the media side, pitches are believed to include Horizon Media, Havas and Zenith. While the invited creative shops were not confirmed at press time, the shift alone is notable given RPA’s longstanding role and its association with the famous "We are Farmers" campaign and J.K. Simmons fronted work.

Scale is another key element. With 68 million dollars in US measured media in 2025, even small percentage gains in effectiveness translate into meaningful business outcomes. A 5% improvement in working media efficiency, for example, could reallocate more than 3 million dollars back into audience reach or data led optimization.

The context inside Farmers also matters. The company recently hired Ivan Lavazza as head of media after 15 years at State Farm, including performance marketing leadership. A senior media owner with that background typically brings fresh expectations around data, addressability and accountability to every agency conversation.

Why insurers are ramping up media investment

The Farmers review sits within a broader insurance market reset. During COVID, when roads were quieter, major motor insurers enjoyed unusually low claims frequency and relatively strong margins. As mobility returned, claims spiked and inflation pushed up the cost of repairs, parts and used vehicles, eroding profitability across the sector.

Mintel’s Kendall Gadie notes that these twin pressures, combined with the rising value of used cars, have complicated claims and payouts. At the same time, insurers face regulatory scrutiny in key states such as California, where Farmers has its headquarters and largest market, and where catastrophe risk and homeowner cover make pricing more sensitive.

Against that backdrop, insurers have been leaning harder on marketing to grow share and restore momentum. Category ad spend increased by 23% in 2025, with brands vying for attention in a field where Progressive is usually the top spender and others must punch above their weight.

For CMOs, the message is clear: in a noisy market with similar products and price points, differentiated creative platforms and high quality media execution are non negotiable. Decisions about which partners help you navigate that complexity are now strategic board level issues, not just marketing procurement exercises.

The role of ID Comms in the Farmers Insurance review

According to Ad Age reporting, the Farmers Insurance reviews are being conducted with support from ID Comms.  For CMOs and procurement leaders, the use of an independent consultancy signals an intent to run a structured, fair and data informed process. It also indicates that Farmers wants a rigorous view of both agency capabilities and the future fit of its operating model, rather than a purely cost driven exercise.

In complex categories like insurance, a disciplined pitch framework can significantly reduce risk. For example, aligning on clear evaluation criteria, transparent remuneration models and testable media scenarios in advance will give Farmers a more confident basis for decision making than a traditional credential beauty parade.

This is the sort of environment where an external coach can help balance stakeholder expectations across marketing, procurement, finance and legal. It ensures that the outcome is not simply a new agency logo, but a better, more future ready way of working together.

What CMOs, procurement and media leads can learn

The Farmers review offers several practical lessons for marketers considering their own agency relationships. First, it shows the value of revisiting long running partnerships when the business, the category or the scale of investment changes. A 15 year tenure is a sign of success, but it can also mask unseen capability gaps or process friction.

Second, running creative and media as separate but coordinated reviews allows advertisers to choose the best in class partner for each discipline, while still insisting on tight integration around strategy, data and measurement. For a top ten insurer, that can mean pairing a performance focused media shop with a creative agency that excels at long term brand building.

Third, the review underlines the importance of bringing in the right internal leadership. With a new head of media who has deep performance marketing experience, Farmers is well placed to interrogate agency promises against actual delivery, particularly around addressable TV, retail media and advanced analytics.

For media and procurement teams, these details matter because they set the tone for how contracts, KPIs and incentives will be structured for the next multi year cycle.

How to approach your own media and creative review

For CMOs, procurement directors and global heads of media watching this story, the natural question is what to do next inside your own organisation. The first step is to clarify whether you need a pitch at all, or whether a reset of scope, model and ways of working with your incumbent could deliver similar benefits with less disruption.

If a review is justified, borrow from cases like Farmers by building a clear fact base: current and projected media investment, performance benchmarks, fee structures and capability requirements. A brand that knows, for example, that its category peers have grown spend by more than 20% in a year will frame very different expectations for agencies.

Next, design the process with future needs in mind. That might include media data access standards, cross market governance, or specific capabilities in areas such as connected TV and first party data activation. The more specific you are, the easier it becomes to distinguish true strategic partners from good presentations.

Finally, treat the review as an opportunity to coach your own organization, not just the agencies. Align marketing, procurement and finance on what a successful outcome looks like, how decisions will be made and what governance will apply. That is how you convert a newsworthy review into durable competitive advantage in the market.