State Farm Releases App, Alters Marketing Strategy

State Farm Insurance released an iPhone app for its Steer Clear program. New drivers under 25 who pass the Steer Clear online driving test are given up to a 15% discount on auto insurance. The test is available online, but the new app features a built-in stopwatch to time the 20 practice drives.

In conjunction with Apple iAd—Apple’s ad service, which is set to launch July 1—the insurer aims to support app developers who exhibit “interesting and relevant” ideas. The app is part of a marketing strategy to support new talent. State Farm took a similar approach with Chicago-bred indie rock outfit OK GO, funding the band’s video “This Too Shall Pass,” and Mexican band Los Felinos de la Noche, which the company said “better enabled them to reach the Hispanic community.”

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