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Ieg Sponsorship Report Ieg Sponsorship Report the Latest on Sports, Arts, Cause and Entertainment Marketing

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Ieg Sponsorship Report Ieg Sponsorship Report the Latest on Sports, Arts, Cause and Entertainment Marketing IEG SPONSORSHIP REPORT IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING MAY 18, 2015 WWW.IEGSR.COM STRATEGY ESURANCE MOVES INTO THE BIG LEAGUES WITH MAJOR LEAGUE BASEBALL Online insurer partners with pro sports league to increase share of voice in the cluttered insurance marketplace. Esurance is counting on its new partnership with Major League Baseball to drive in new customers. The direct-to-consumer insurer, which has failed to make a profit since being acquired by The Allstate Corp. in 2011, aligned with the pro sports league to build share of voice in the increasingly competitive insurance marketplace. “Insurance is a competitive industry with established companies, and we’re still a challenger brand. Sponsorship is an opportunity to showcase who we are and develop relationships with consumers who may not have had the chance to engage us,” said Chris Lee, Esurance senior manager of brand partnerships. Although Esurance gains national reach from its sponsorship of the USTA US Open, the MLB relationship takes it to another level. “MLB is our anchor moving forward. It gives us the opportunity to talk to millions of fans and present our brand at a level we have not been able to do.” Esurance partnered with the US Open in 2010 to build credibility via an affiliation with an established event and its Blue Chip sponsors. “At the US Open we realized the power and impact of sponsorship. To see Esurance next to American Express on the center court in Arthur Ashe Stadium is a powerful message for a challenger brand.” Looking to access greater scale, Esurance tasked GMR Marketing to scout sponsorship opportunities in the U.S. pro sports space. The company did not have many options with the four major pro sports leagues. Major League Baseball was the only league with the category open. MLB has not worked with an insurance company since State Farm’s departure in 2012. © 2015 IEG, LLC. ALL RIGHTS RESERVED. 1 IEG SPONSORSHIP REPORT The NHL works with Geico, the NBA has a partnership with State Farm, while the NFL works with Nationwide and USAA. “Timing means a lot in sponsorship,” said Lee. While a partnership between a nostalgic pastime and an online insurer may not make sense at first glance, Esurance was drawn to new MLB Commissioner Robert Manfred and his efforts to modernize the game. One of Manfred’s stated goals: enhance the fan experience via new technology. “People may think of baseball as an older sport with an older demographic. We were impressed with what Major League Baseball is doing not just to modernize the game on the field, but how consumers connect with the game.” Esurance is assisting those efforts through title sponsorship of the new all-digital MLB All-Star Game Ballot. Fans can vote for their favorite players on MLB.com and 30 MLB club web sites via computers, smart phones and tablets. “Esurance is a digital company with the tagline ‘Insurance for the modern world.’ The partnership is a good fit with our digital initiatives,” said Noah Garden, MLB executive vice president, business. Esurance is working with MLB, MLB.com and MLB Network on a new social media-centric awards platform to be launched later this year. The insurer is supporting the MLB tie with an endorsement deal with San Francisco Giants first baseman Buster Posey. Esurance is based in San Francisco. Other Esurance sponsorships include the South by Southwest music festival, NBA Golden State Warriors and the NFL San Francisco 49ers. THE BIGGEST SPENDERS IN THE INSURANCE CATEGORY Geico Estimated spend: $70M-$75M Major Deals: Germain Racing, NHL, NBA Washington Wizards State Farm Estimated spend: $60M-$65M Major Deals: NBA, MLB New York Yankees, State Farm Center, Champaign, Ill. Allstate Estimated spend: $40M-$45M Major Deals: NCAA, Allstate Sugar Bowl, MLS Nationwide Estimated spend: $30M-$35M Major Deals: NFL, Hendrick Motorsports Zurich/Farmers Estimated spend: $25M-$30M Major Deals: Hendrick Motorsports; Farmers Insurance Open MetLife Estimated spend: $25M-$30M Major Deals: MetLife Stadium, PGA, Lincoln Center Sources Esurance, Inc. Tel: 415/875-4500 Major League Baseball, Tel: 212/931-7800 © 2015 IEG, LLC. ALL RIGHTS RESERVED. 2 IEG SPONSORSHIP REPORT IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING MAY 18, 2015 WWW.IEGSR.COM ACTIVATION HOW FARMERS BREAKS THROUGH THE MARKETING CLUTTER As players in one of sponsorship’s most active categories, insurance companies face a major challenge breaking through the marketing clutter. Nowhere is that more evident than in NASCAR, a sport where hundreds of sponsors battle it out every week to have their messages heard. Farmers Insurance has overcome that challenge by updating a popular souvenir at NASCAR races: driver hero cards. The company is activating is partnership with Hendrick Motorsports and driver Kasey Kahne with hero cards that support its Thank America’s Teachers (www. ThankAmericasTeachers.com) corporate citizen program. Moving beyond the standard images of drivers and their cars, Kahne’s cards feature original artwork by high school students. “Every team gives out hero cards, and they’re all very similar. We asked ourselves how we could reimagine the norm and tie in our educational initiatives,” said Jared Melzer, Farmers’ senior manager of sponsorship. To support the program, Farmers partnered with Paseo Academy of Fine and Performing Arts, a public high school in Kansas City, Mo. Eighty-five percent of the students’ families fall below the poverty line. The students are producing a collection of hero cards based on various racing and lifestyle themes, with Farmers and Kahne choosing the winners. Farmers has created three cards and will create three more before the end of the season. Kahne visited Paseo Academy prior to the May 9 race at Kansas Speedway to talk to students about the importance of education, following dreams and hard work. Farmers treated teachers from the school to a VIP experience at the race. In addition to the hero cards, Farmers produces 75 limited-edition prints with each piece of artwork. The company distributes autographed prints via weekly contests on the Farmers Racing Facebook page. © 2015 IEG, LLC. ALL RIGHTS RESERVED. 3 IEG SPONSORSHIP REPORT Farmers sells the posters in its internal store, with all profits going to Paseo. It also has provided the school with a scanner, drawing tablets and cameras and provided students with gift cards that can be used for educational purposes. Farmers posts the artwork on a dedicated Tumblr page. The program has gained media coverage on Fox Sports 1, SirusXM and the Motorsports Radio Network, among other outlets. Farmers last year leveraged Kahne in support of the “Thank a Million Teachers” campaign. The company promoted the program on the No. 5 Hendrick Motorsports car during a May race in celebration of National Teachers Appreciation Week. The program paid off: awareness of the campaign was 16 percent higher among NASCAR fans than non-fans, while brand opinion and consideration also saw a lift. Source Farmers Group, Inc., Tel: 323/932-3200 © 2015 IEG, LLC. ALL RIGHTS RESERVED. 4 IEG SPONSORSHIP REPORT IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING MAY 18, 2015 WWW.IEGSR.COM CATEGORY UPDATE SPONSORSHIP HOT BUTTONS: INSURANCE Insurance companies increase use of sponsorship to gain a point of differentiation in an increasingly competitive category. No one gets excited thinking about insurance. And that’s what makes sponsorship so appealing to insurance companies. “Insurance is a low involvement category. People tend not to think about it until they have to. Sports is a conduit to tapping into fan passion and staying relevant,” said Brad Barnett, Nationwide associate vice president of national media and sports marketing. In addition to driving familiarity and consideration, insurance companies use sponsorship to accomplish the following objectives: WHERE INSURANCE COMPANIES SPEND MONEY Support brand positioning. Whether it’s protecting ENTERTAINMENT someone’s dreams (American Family Insurance), 9% protecting what matters most (Nationwide) or supporting CAUSE the needs of consumers in today’s modern world 9% (Esurance), insurance companies use sponsorship to 6% FESTIVALS support brand positioning. SPORTS 72% ARTS 3% American Family supports it’s “Dreams Made Real” campaign with on-site creative that promotes its OTHER 2% partnership with Kathy Ireland. “Kathy Ireland has tremendous appeal not only for what © 2015 IEG, LLC. All rights reserved. she did as a model, but the financial empire she created around her furniture line. American Family is all about inspiring dreams, and she has a great story to share,” said Tom Pietras, American Family Insurance event marketing manager. American Family has expanded its involvement with endurance sports (Peachtree Classic, BolderBoulder, etc.) to support consumers’ dreams of running a marathon or getting into shape, he added. © 2015 IEG, LLC. ALL RIGHTS RESERVED. 5 IEG SPONSORSHIP REPORT Engage agents. Insurance companies use sponsorship to engage agents and help support their business. That ranges from using tickets and hospitality for internal sales promotions to sharing sponsorship assets with agents. “With every sponsorship we have we look for angles that can help agents be more relevant in the local market,” said Nationwide’s Barnett. “Agents are the lifeblood of our company. Helping them be relevant is a big deal.” Acquire leads. Insurance companies frequently activate sponsorship with sweepstakes and other promotional activity for follow-up marketing. “Our primary focus for events is lead generation,” said Peitras. American Family has evolved its sweepstake prizes from gift cards and other run-of-the-mill items to “can’t buy” experiences. For example, the company activates home and garden shows with a sweepstakes that dangles the chance to win a home makeover from Kathy Ireland. “We don’t want to give away things that you can simply put in an envelope and mail.
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