Why Do So Many Insurance Companies Sponsor Stadiums?
Car insurance companies are among the top players in the advertising industry. GEICO alone spends more than $1 billion a year. Most Americans are familiar with its spokesperson: a talking gecko.
Flo from Progressive, Jake from State Farm, and the talking AFLAC duck are all designed to increase consumer engagement. Memorable jingles, catchy phrases, and zany characters give insurance companies an advantage in a competitive industry.
Insurance companies have massive advertising budgets to ensure their name sticks with potential customers. Most people will compare quotes online from different companies when shopping for car insurance. The companies that advertise the most hope to be among those considered.
Advertising opportunities are abundant in today’s world of mass media consumption. Insurance companies promote their products through a lot of different sources like TV, radio, print, and social media. For an insurance company, sponsoring a stadium or arena filled with millions of people is one of the greatest opportunities for brand promotion.
Metlife stadium in New Jersey is home to both the Giants and Jets | Twenty20
The stadium name helps you remember the brand
Insurance is a trillion-dollar industry that sells an intangible product that almost everyone needs. It’s legally required to have car insurance in most states.
Likewise, team sports in America is a multi-billion dollar venture. According to Chron, out of 122 professional sports teams in the NFL, NBA, MLB, and NHL, there’s been “85 play in stadiums that have sold naming rights to corporations.”
Insurance companies clamor at the chance to have their name prominently displayed on the outside of a stadium—with good reason. MetLife Stadium in New Jersey’s Meadowlands is a shining example of corporate name recognition.
Adweek reported that in 2011, “the insurance company elected to go all in, signing a 25-year naming-rights deal, brokered by Wasserman Media Group, reportedly worth $425 million.” There isn’t a Jets or Giants football fan that doesn’t know the name of the insurance company branded across the billion-dollar stadium.
The Content Strategist said, “it pays to be the first brand they think of, and insurance companies have plenty of money to spend on that privilege.”
Consistent promotion for the car insurance company
A big advantage of sponsoring a stadium is being able to have countless opportunities to promote the company. When a professional sporting team hosts a playoff competition in a stadium named after a corporation, it leads to increased recognition of the company name.
The cost to air a Super Bowl TV commercial is astronomical. However, it doesn’t cost the sponsor anything for the broadcast to keep mentioning the stadium name. Brand awareness is increased through signage, ticketing, and name recognition. Every time a sporting event is broadcasted, the stadium name is mentioned several times by commentators. Shots of the arena are also regularly shown to the audience.
Creating an emotional connection with fans is a priority when companies decide to sponsor a stadium. Companies want to be associated with the teams that their consumers know and love. As a result, consumers are bombarded with images of the stadium name around every turn.
A loyal fan is more likely to remember the branding for their team’s home stadium. This can help the car insurance company appear more trustworthy, and lead to more loyal customers. Sponsoring a stadium offers consistent advertising.