Marketing

Every place, in your face

More ads in more places planned for '07

“State Farm® will be every place, in your face,” declared Pam El, Vice President-Marketing to a roaring crowd of agents this summer. El’s pronouncement came in the midst of one of the most active, creative and successful marketing years in State Farm history. 

In 2006, State Farm spent 25 percent more than in 2005 on advertising aimed at attracting more potential customers. Insurers collectively spent $2 billion last year on advertising, surpassing the beer, entertainment and soft drink industries in total spent. And consumers are paying attention. 

An August 2006 internal study of 30,000 auto insurance shoppers revealed that 8,400 people obtained an auto quote from someone other than their current carrier. The most common reason given by those 8,400 people for why they shopped was that they saw an advertisement from a competitor.  A similar study conducted in 2005 showed that shoppers were most likely to get a rate quote from the insurers who spent the most on advertising.

“When making insurance and financial products decisions, consumers shop for brands that are differentiated and create value,” explained Mark Gibson, Assistant  Vice President – Advertising. “Value is measured by a quality product, efficient service, and easy access obtained at a comparable price.”

A continuing theme throughout State Farm ads is the high level of personal service provided by its agents.  

A “True Stories” campaign has run for over two years and research shows that the message, “Nobody takes care of you like a State Farm agent” is effective, credible and relevant.

“Competitors may have spokespeople or gimmicks, but State Farm has something they can’t compete with … we have State Farm agents,” El told agents gathered at the Company’s 2006 Agency Convention. “State Farm agents are the heart of the business and they are the heart of State Farm advertising.” 

State Farm placed these ads on both network and cable television, in large sports venues and on the Web throughout 2006.  The “True Stories” commercials also aired in Spanish and Chinese.

Agents were also a part of ads that began airing in February during the 2006 Daytona 500. The ads feature prominent NASCAR® drivers – Jeff Burton and Reed Sorenson. State Farm expanded its involvement with NASCAR in 2006 because of a common denominator between both organizations: cars. 

NASCAR fans are among the most “brand loyal” consumers in the United States, with upwards of 70 percent willing to consider buying goods and services from a NASCAR sponsor. NASCAR is also the second highest rated sport on television. 

The most watched sport on television is professional football. In 2006, State Farm teamed with the National Football League® (NFL) as the official insurance sponsor, the first ever presenting sponsor of the NFL Pro Bowl Game, and sponsor of the popular weekly “NFL Matchup Show” on ESPN.  With a broad-based appeal, including 46 percent of viewers being female, the NFL is a platform to help showcase the value State Farm and its agents provide to customers.  

State Farm didn’t stop with NASCAR and the NFL.  The Company also became one of the sponsors of the 2006 World Cup telecast
on the Univision® Network, the favored Spanish language network of Hispanic viewers. 

State Farm also partnered with Julie Stav, a nationally recognized Hispanic radio personality, to reach potential customers. State Farm was the first advertiser on her one-hour radio program and a toll-free number, 888-ELIJASF (Choose State Farm), is announced during Stav’s program, which focuses on financial issues and insurance topics.  

Unavoidable in 2007

State Farm has more innovative and creative marketing ideas on the horizon.  El said the plan is to be “unavoidable in 2007.” 

State Farm will continue to expand its segment marketing fueled by the success of Julie Stav and partnerships like those with the NFL.   
With a 75 percent increase in media spending planned for 2007, State Farm will also amplify its presence in the African- American, Hispanic and Asian markets. The Company will also enhance its presence with the NCAA®, including men’s and women’s basketball tournaments, and at Major League Baseball® venues.

“We know that no competitor can take care of a customer like State Farm,” El said, “Now, State Farm is going to make sure everyone knows it and State Farm competitors don’t forget it.”

Now What?® campaign reaching young adults

State Farm® launched an effort in August to capture the imagination of young adults and bring younger customers to State Farm. The Now What?® campaign uses intrigue and humor to show insurance moments relevant to young adults.

Mass media, online, direct mail, and concert and festival venue marketing are helping promote awareness of a State Farm website, nowwhat.com®. Once at the site, young adults can learn about other insurance moments, get a quote for auto or renters insurance, find a State Farm agent, or link to statefarm.com®.

From August to December 2006, there were over 1.7 million clicks to nowwhat.com and auto policies in force among young adults outpaced overall Companywide policy growth since the campaign’s launch.

Cars helped rev up ’06 production

State Farm® made history in the summer of 2006 by being the first property and casualty insurer to help promote the summer blockbuster, Cars. The Disney/Pixar film captured the attention of consumers and the media, sparking auto growth, increased brand awareness, and agent and employee excitement. 

Results show that during the Cars celebration, the 300,000 vehicles added by State Farm during the second quarter outpaced the rest of the industry and outpaced results from any quarter in 2005 or 2006. 

Advertising Age published findings that showed consumers selected State Farm Cars commercial, “Big Stars,” as one of June’s “ten most liked spots.” 

A national tour of the movie characters called “Road Trip ’06” brought life-sized versions of the movie’s stars to more than 500,000 people at public venues such as shopping malls and outdoor attractions.

A related promotion through statefarm.com® awarded red Ford® Mustangs to 25 winners throughout the country.  Nearly 1.8 million people entered the “State Farm Countdown to Cars giveaway.