Caveman Mentality: Geico’s Sports Spend Increases Examined

From The Sports Business Daily.com  July 29th, 2009

Geico has “generated a nearly ubiquitous presence at sporting events,” and the company has “more than doubled its advertising during sporting events on television even as others have cut back,”

according to Tim Lemke of the WASHINGTON TIMES. Few companies in recent years have been “bolder in raising their profile through sports sponsorships.” Geico VP/Marketing Ted Ward: “It’s a good way for us to maintain a regular, constant appearance of our brand name. In many cases, we have much more substantial relationships than just a sign on a wall or a board.” Lemke notes Geico’s “flood-the-zone strategy has led to partnerships with every major professional sports league, and the company also boasts deals with professional tennis players and golfers.” Geico sponsors the Capitals’ “opening night as well as all overtime periods and shootouts,” was a founding sponsor of the Nationals and sponsors the “popular Presidents Race during the fourth inning of games.” Geico’s ad strategy is the “result of coordination among” sports marketing consultant Drew Mills, N.Y.-based Horizon Media and Richmond-based the Martin Agency, which is the “creative force behind most of the ad campaigns.” The company declined to discuss its sports spend, but Nielsen estimated that Geico spent $90M on TV advertising during sporting events in ’08, up from $44M in ’07. TNS Media Intelligence said that “such spending rose” from $67M to $126M. Both firms reported that Geico is “now one of the top 20 sports advertisers in the country, trailing only traditional sports advertisers such as beer manufacturers, major automakers and communications firms”.