Basketball seems to have been very good for State Farm’s consumer perception over the past month.
The main reason appears to be tied in to the power of sponsorships, both backing out and stepping in. With the former, it’s taking “a pause” as an L.A. Clippers sponsor since the controversy around owner Donald Sterling’s racist comments surfaced in the media, and for the latter, being the title sponsor of the forthcoming annual NBA Draft.
After State Farm “paused” their L.A. Clippers sponsorship when the recording of owner Donald Sterling’s racist comments broke on April 25th, the insurance company saw three of their key consumer perception metrics rise significantly for the next 30 days: Buzz ("If you've heard anything about the brand in the last two weeks, through advertising, news or word of mouth, was it positive or negative?"), Word Of Mouth ("Which of the following brands have you talked about with friends and family in the past two weeks -- whether in person, online or through social media?"), and Purchase Consideration ("When you are in the market next to purchase items in this particular category, from which of the following brands would you consider purchasing?”).
Of particular importance is the last score, Purchase Consideration, which is directly tied in with potential sales and revenue. Since the beginning of the month, the percentage of consumers who would consider buying State Farm when they are in the market for insurance rose from 20% to 25%.
Equally notable is that State Farm’s scores in each of these three metrics – Buzz, Word Of Mouth, and Purchase Consideration – is the company’s highest in 2014 so far. Currently, State Farm leads the consumer insurance category on all three metrics, ahead of Allstate, Farmers, GEICO, Liberty Mutual and Nationwide.
Perhaps also contributing to State Farm’s across the board ascent is its sponsorship of the forthcoming NBA Draft, which takes place on June 26, 2014. Much of the online discussion regarding the draft has mentioned that it is “presented by State Farm.”
YouGov BrandIndex measured Allstate, Farmers Insurance Group, GEICO, Liberty Mutual, Nationwide and State Farm. All respondents in the research are adults age 18 and over.