Scottish Widows to hike portfolio spend to £15m

LONDON - Scottish Widows is dramatically increasing its promotional spend next year in a drive to retain customers and promote the brand.

The insurance and pensions firm plans to invest £15m in 2007. Over the past 12 months, the Lloyds TSB-owned brand spent just £2m on advertising, according to Nielsen Media Research.

Mike Hoban, the company's director of customer and brand marketing, said it plans to remind existing customers of the breadth of the Scottish Widows offering.

The company is also launching its first TV ad campaign for two years next month. Created by Leo Burnett, which won the account at the end of 2004, the ads build on the 'Preparation is everything' strapline and introduces model Hayley Hunt as the brand's third widow.

Scottish Widows has also relaunched its website this month to make it easier to navigate. This follows a £1m online campaign that ran in March.

Hoban, who joined Scottish Widows last September, set himself the task of transforming the company from 'the thorn in Lloyds TSB's side to the rose in the crown', and has subsequently made substantial changes to its agency roster.

Earlier this year, he moved the firm's planning account out of Naked and into Zed (Marketing, 12 April). He has also appointed Partners Andrew Aldridge to handle customer acquisition and retention (Marketing, 14 June).

Most recently, he added WWAV Rapp Collins and reappointed Team Spirit to Scottish Widows' direct marketing roster (Marketing, 21 June).

Last month, Scottish Widows posted record half-year profits, up 26% to £13.5m.

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