Marketing experts estimate that Hershey would have to
spend "tens of millions of dollars to get the positive
publicity" it received from investment banker Lance
Alstodt's 35-yard field goal for $1M at the NFL Pro Bowl in
Honolulu last week, according to Thomas Heath in the
WASHINGTON POST. "Such contests" are "booming" these days
as pro sports teams and leagues "try to find new ways to
make money and their sponsors try to reap a bigger bang for
their advertising buck." Big contest sponsors, such as
Gillette and Hershey, "are implementing a playoff system"
which increases "the likelihood of getting a winner -- and
the publicity bonanza that comes with it." But "by ensuring
a capable entrant," Hershey also "boosted its costs." In
"adjusting its selection process," experts estimate Hershey
"increased its insurance premium and total cost" for the
event by up to 25% over '96. The cost this year "was
estimated at about $100,000, according to industry figures."
Once a company has a sponsorship, "it most often" turns to
insurers, such as Hershey did with Dallas-based SCA
Promotions, "to assume the risk." Instead of giving Alstodt
a $1M check, Hershey bought a $100,000 insurance premium and
now SCA will pay out the reward in annual increments over
20-30 years (WASHINGTON POST, 2/10).
