The sluggish economy hasn’t dampened State Farm’s sponsorship spending plans, nor its zest for college basketball. The Bloomington, Ill.-based insurer is spending 10 percent to 15 percent more in college basketball this year, part of a roughly 10 percent overall jump in sports spending.
An announcement that it is renewing its official NCAA corporate partnership is imminent, and in the past year State Farm has increased its activation across new properties and new media.
State Farm’s mobile fan attraction goes from
football in the fall (shown above during a stop
at UCLA) to basketball in the winter.
For the men’s and women’s NCAA Final Fours this season, State Farm will reprise its branded seat-cushion giveaway; it will have an interactive display section at the NCAA’s Hoop City entertainment area featuring basketball games, driving simulators and other attractions; and it will sponsor autograph sessions with the National Association of Basketball Coaches and Women’s Basketball Coaches Association State Farm Coaches’ All-America Basketball Teams.
Already an Omnicom client, State Farm added the services of Omnicom’s The Marketing Arm last year, and the agency’s research is proving the efficacy of NCAA properties in reaching “the youthful market,” as John Althoff, State Farm’s collegiate sports sponsorship coordinator, puts it — meaning college-educated young people on the cusp of buying cars, homes and all the insurance that adult life requires.
Plans are shown for State Farm seat
cushions to be given away at this year’s
Final Four.
State Farm has grown in all directions. It surprised even itself by agreeing to tear up a deal with two years remaining with the Missouri Valley Conference to sign a long-term contract through 2011-12 last fall that added an extensive in-venue sign presence, includes rotating or static courtside and “profile” signs behind baskets, and Web site real estate with all of the conference’s schools.
“Our trend is visible signage opportunities,” Althoff said.
Including the 10 Missouri Valley schools, the deal brought State Farm’s collegiate roster to roughly 100 institutions.
In the past year State Farm has done deals with the NABC and WBCA for title sponsorship of their All-America teams, plus title sponsorship of the NABC’s Player of the Year to go with the WBCA’s Wade Trophy for female player of the year.
| Turnkey Sports Poll |
| The following are results of the Turnkey Sports Poll taken in January. The survey covered more than 800 senior-level sports industry executives spanning professional and college sports. |
 Which NCAA sponsor does the best job of activating around “March Madness” (the NCAA men’s basketball tournament)? |
 |
| Coca-Cola | 21.99% |
| Pontiac | 20.75% |
| AT&T | 15.35% |
| State Farm | 12.03% |
| Enterprise | 1.66% |
| The Hartford | 1.66% |
| Lowe’s | 1.66% |
| Other | 1.66% |
| DiGiorno | 1.24% |
| No response/Not sure | 21.99% |
| Source: Turnkey Sports & Entertainment in conjunction with SportsBusiness Journal. Turnkey Intelligence specializes in research, measurement and lead generation for agencies, brands and properties. Visit www.turnkeyse.com. |
And with a presenting sponsorship of ESPN’s “College GameDay” programming, plenty of radio and television spots, in-arena promotions and more, State Farm aims to be wherever fans are, starting with the drive to the game and through their last TV or Internet stint at night.
“You may see or hear our name eight to 10 times in a few-hour window,” Althoff said.
Further broadening its exposure, last year State Farm signed deals with coaching icons Mike Krzyzewski and Pat Summitt for use of name and likeness, and for ad appearances. Althoff said no more individual coach deals are planned, “but we never say never.”
What’s on the other end of the marketing spectrum from a deal with a famous coach? Brand placement in a video game. State Farm appears in rotating signs and in postgame “shows” that are baked into the games and hosted by the characters of Greg Gumbel and Clark Kellogg, with features by Dick Vitale.
State Farm has deals with 2K Sports for its College Hoops 2K8 game and with EA Sports for its NCAA March Madness 08 game. The company likes this kind of exposure so much, it will be in Major League Baseball 2K8 this year, as well.
College hoops isn’t the only sector benefiting from State Farm’s push in sports. In a little more than a year, the company has become an official partner of the NFL and MLB. Earlier this month State Farm signed a deal with the NBA’s LeBron James and with NBA rights holder Turner making the company the on-air presenting sponsor during the All-Star broadcast on TNT. State Farm officials will not reveal overall or individual terms from its sports deals.
Althoff said the strategy helps the company reach a large number of women, Hispanics and Asian-Americans; it supplements local agents’ sponsorship in youth sports; and it gives State Farm exclusive use of marks for some of the top sports properties available.
What isn’t State Farm bullish about these days? Figure skating. It’s skewing older, and the ratings numbers have been off, Althoff said. “Because we’re a ‘good neighbor,’ when we drop something we have to make sure there’s a good reason.”
Noah Liberman is a writer in Chicago.
