DALLAS-Following an informal review of undisclosed shops, Ornelas & Associates here was selected as the first Hispanic advertising agency for Progressive Insurance.
The Cleveland-based provider of automobile and specialty insurance tapped Ornelas & Associates to develop a Latino marketing program for various regions of the U.S. The agency will roll out its initial work in three test markets: San Antonio, Houston and Miami. If successful, the program will be expanded to other markets across the country.
Billings were not disclosed, but sources said Progressive will spend in excess of $1 million in the initial phase. Broadcast work promoting the client's 24-hour-a-day service and rapid claim response is expected to break in the next month.
Ornelas is likely to apply direct-response techniques similar to those it has used for client GTE Corp.
Victor Ornelas, agency president and chief executive officer, said Progressive executives contacted him after getting a referral from a general-market shop familiar with his work.
"We are excited to be working with a company like Progressive. Superior auto insurance products and services are important to the Latino community and we'll help get the word out," Ornelas said.
Glenn Renwick, consumer marketing process leader for Progressive, could not be reached but said in a statement: "A cornerstone of our success is our consumer response strategy. It is imperative that we effectively communicate our combination of price and service to the Latino market and we're looking to Ornelas & Associates to help us do that."
Progressive is the seventh-largest provider of auto insurance in the U.S., serving more than 2.5 million customers. Progressive Insurance's parent company, Progressive Corp., owns 60 operating subsidiaries and has one mutual insurance company affiliate.