Insurers' Full Throttle Sponsorships Still Going Into 2009

 

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5 January 2009 Monday 10:01 AM EST

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Insurers' Full Throttle Sponsorships Still Going Into 2009

Lori Chords

Oldwick, N.J.



Although some parts of the insurance industry felt the pinch of the current economic downturn, carriers sponsorships seem to remain unscathed.

The economy is not taking a toll on the Aflac sponsorships, including its relationship with NASCAR driver Carl Edwards and the sponsorship of the Ford Fusion No. 99.

Al Johnson, Vice President of Marketing Services, said the company does not currently have plans to reduce or cancel any of its sponsors. In fact, he said that the Columbus, Georgia to the company plans to increase its Aflac Iron Girl National 10 to 11 and to continue to sponsor its Aflac All-American High School Baseball Game in the third quarter of 2009.

Nationwide sponsorship are not modified because of the financial recession, "said John Aman, Associate Vice President of Strategy sponsorships. "We remain committed to the sponsorship we have and to use them as a means of exhibition" On Your Side 'service.

"The unique thing about sponsorship is that they are something that people are passionate and a place for us to continue to engage our fans," he said. "Each year we look at all of our sponsorships to see which ones work well and why, which ones are not performing where we want and how to improve them, and those to follow its course and should not be renewed. "

He said that plans to continue its sponsorship of the 2009 NASCAR Nationwide Series, media personality Tavis Smiley State of the Union Black multicity tour, and the Nationwide Tour, and many others.

It is also expanding its scope by becoming a sponsor of the Central Intercollegiate Athletic Association and a key partner to sponsor a new triple-A baseball park in Columbus, Ohio.

State Farm is also not to make changes to its sponsorship, "said spokesman Dick Luedke. The company is the sponsor of events such as the State Farm Classic, the State Farm Bayou Classic and the State Farm Tip-Off Classic.

It is as usual for Liberty Mutual Insurance Co., including the sponsorship of the Liberty Mutual Legends of Golf. The contract with the company through the 2010 PGA, said Steve Sullivan, Senior Vice President of Communications.

He said Liberty Mutual also continue these sponsorships as Epcot's "Where's the Fire" interactive education on fire safety and Exhibition Boston Pops concert and fireworks spectacular fireworks on July 4.

What companies are a bit different, however, the approach is the way they look sponsorships. "We need to work smarter and harder, and ensure that everything we do from a marketing gives us the best return on investment," said Johnson.

Some experts say the sponsorship of the economy takes a toll on sponsorships. "Historically, the first thing that companies reduce their overall budget is in their marketing spending, including sponsorships," said Ryan Kurek, CEO and founder of Leverage Sports Agency. But this depends largely on the type of industry and enterprise, he added.

For example, General Motors Corp., which recently called for a federal bailout, announced recently that it was not to renew its sponsorship agreement with the Pittsburgh Pirates, which expired at the end of last season.

Motorsports sponsorships will probably be the hardest hit. "The sport where the teams are close to 70% to 80% dependent on corporate sponsors, feel the greatest impact if the economy does not improve and people to strengthen their spending," said Kurek.

Primary sponsors of NASCAR often spend about $ 10 million to 20 million, while associate sponsors spend anywhere from $ 250,000 to $ 1 million.

Kurek said sports like baseball and basketball, where revenue is generated from television contracts and people filling the stands will be less affected.

But with hard times is an opportunity, "he says. "People need insurance, which is an opportunity for the industry to create more Mindshare in its consumer base. Sport is an excellent way to reach them. "

"There is no doubt that companies are retrenching and looking at their 2009 goals and objectives and how they can achieve their objectives in the most cost-effective and efficient," said Jim Biegalski, Vice President / consulting agency Marketing Marketing Arm.

(By Lori Chords, senior editor, Best's Review: Lori.Chordas @ ambest.com)

6 January 2009

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