Insurers are increasing their exposure in the athletic arena, with two providers this week announcing agreements that will give them a higher profile in the worlds of soccer and televised wrestling.
Farmers Insurance announced that it has partnered with the Los Angeles Galaxy and the Home Depot Center in an agreement that will promote the carrier’s brand on and off the pitch. And wrestling promotion TNA Entertainment said it has struck a deal with Direct Auto Insurance that will make that provider its exclusive presenting sponsor for all live events.
TNA said the deal with Direct Auto’s parent company, Direct General Corp.—which provides coverage and
free auto insurance quotes in 12 states—will run through July 2012, while Farmers’ partnership is good for two years.
The agreements are the latest example of insurers looking to sports entertainment as a forum for advertising.
Providers spent $528 million on television ads during sporting events in 2010, a 30 percent increase over the previous year, according to statistics from the Nielsen Co.
Insurers were the fifth-ranked industry in terms of TV advertising dollars spent, behind telecommunications companies, automakers and other businesses.
State Farm, which has sponsorship arrangements with organizations including the National Football League, spent more than $129 million on sports advertisements last year, according to Nielsen.
Insurance regulators advise consumers to be cautious in regard to advertising claims about auto coverage savings when switching from one provider to the next. They recommend that motorists shop around to find the policy that best fits their needs.
The Farmers agreement gives the provider the right to call itself the “official insurance partner of the LA Galaxy” and “official founding partner” of the Home Depot Center, among other naming rights.
Farmers officials said it also allows them to continue reaching out to children through the sport. The company already sponsors soccer clinics that it says teach kids the skills to succeed in soccer and in life.
Farmers said it would contribute $10,000 toward a program—run by charitable foundations associated with the Galaxy and the center—that educates kids about the importance of staying fit and healthy.
Direct Auto’s agreement means the provider will be incorporated into all promotional and advertising materials supporting TNA wrestling events, including TV and radio spots.
“The TNA sponsorship gives us tremendous brand exposure to a passionate, loyal fan base that can truly benefit from the products and services that we offer,” Peter Tahinos, Direct Auto’s senior vice president of marketing, said in a news release.
