See AI-powered insurer Lemonade’s first brand campaign

Founded in 2015, Lemonade was all about artificial intelligence well before a lot of other companies. The startup uses AI to power its offerings, which include a chatbot and specialized risk-assessment model. Now, the New York-based company is trying to become a well-known name in the insurance category with its first brand campaign as it competes with much larger rivals such as Progressive, State Farm and Geico. Last year, the company, which went public three years ago, hired Liron Smadja as head of brand marketing. He had been at freelance marketplace Fiverr, which shares a co-founder, Shai Wininger, with Lemonade. The company provides renters, car, pet, life and homeowners insurance in bundled opportunities. “Being a tech startup, most of the marketing goes to growth, growth, growth,” said Smadja, noting that his hire, and this new campaign, mark a step toward “becoming that household brand.” Check out the latest Ad Age events and award programs The campaign, which begins airing today, positions Lemonade as a smarter, more modern option to traditional insurers. Each of the three 30-second spots tackles a different pain point—one focuses on the ease and customer service of Lemonade's insurance, another tackles its speed in filing a claim while the third highlights the brand’s jargon-free rhetoric. “It’s 2023,” said Smadja. “We think insurance companies should act like it’s 2023, starting with the customer experience.” The campaign is also targeting Lemonade’s younger audience of Gen Zers and Millennials ranging from 20 to 41 years old. Part of that targeting includes showcasing creative that is atypical from other insurers, which usually include a nuclear family unit of parents and children, Smadja said. Lemonade’s work speaks to “DINKWADs” or dual income, no kids, with a dog—a trending acronym on TikTok. Spots will air in 30-second and shorter versions on connected TV and digital channels including YouTube. The campaign will also include direct mail and email marketing. The new push marks Lemonade’s first time working with an outside agency, Gus, a creative strategy company based in New York. The insurer’s in-house team and Gus worked on the creative, while Lemonade’s internal media department handled media duties. “We are up against brands with massive budgets and so any way to stand out is to have our creative cut straight through,” said Smadja. “We were looking for agencies that think different and try to make a lot of noise without being too loud.” After a successful IPO three years ago, Lemonade is now up against the same industry pressures affecting its competition. Rising costs for claims, climate change and younger customers doubting the need for insurance are challenging the category. In the first quarter of this year, Lemonade exceeded analyst expectations by reporting revenue of $95.2 million, a 115% uptick over the year-earlier period; however, the brand is not profitable and reported a net loss of $65.8 million, less than the $74.8 million lost in the year-earlier period.

See AI-powered insurer Lemonade’s first brand campaign

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