IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING

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1 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING FEBRUARY 22, CATEGORY UPDATE HEALTH INSURANCE COMPANIES EXPAND SPONSORSHIP COVERAGE Insurers increase use of sponsorship, but industry consolidation may impact future activity. In the six years since the Affordable Care Act became law, health insurance companies as well as nearly every other segment of the healthcare industry have dramatically changed the way they market their goods and services. One of the most significant changes: more focus on the end consumer. With millions of consumers now required to purchase insurance, insurers are increasingly using sponsorship to build preference and encourage healthy lifestyles. The Affordable Care Act has accelerated the trend of moving to more consumer decision-making about healthcare coverage. Most people still get coverage through employers, but consumers are becoming a bigger part of the market, said Christine Paige, senior vice president of marketing and digital services with Kaiser Permanente Foundation ( Kaiser Permanente Partners With The NBA To Promote Health Message, 1/26/15), which partnered with the NBA in early If that wasn t enough, another development could soon make a significant impact in the health insurance category: industry consolidation. In a move that would create the nation s largest healthcare company, Anthem, Inc. in 2015 announced plans to acquire Cigna Corp. The $54 billion acquisition which still needs to pass regulatory approval would knock UnitedHealth Group into second place among the country s largest insurers. Other companies also are joining the consolidation spree. Aetna Inc. last year announced a $37 billion deal to acquire Humana Inc. while Centene Corp. unveiled plans for a $6.8 billion merger with Health Net, Inc. Both deals have been approved by shareholders but have yet to gain approval by antitrust regulators. While it remains to be seen if the deals will past muster and what brands will remain industry consolidation could prompt more interest in national properties as the newly combined companies look to engage consumers across a larger marketing footprint. Source Kaiser Foundation Health Plan, Inc., Tel: 510/ IEG, LLC. ALL RIGHTS RESERVED. 1

2 WHERE HEALTH INSURANCE COMPANIES SPEND MONEY THE MOST ACTIVE HEALTH INSURANCE COMPANIES (BY NUMBER OF DEALS) 2016 IEG, LLC. ALL RIGHTS RESERVED. 2

3 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING FEBRUARY 22, SIDEBAR SPONSORSHIP HOT BUTTONS IN THE INSURANCE CATEGORY What do health insurance companies want to accomplish from sponsorship? How do they activate partnerships? Below, seven hot buttons in the evolving health insurance category. Promote health and wellness. Encouraging consumers to take charge of their health is a primary sponsorship driver for nearly every health insurance company. Case in point: Humana uses its long-running sponsorship of the Taste of Chicago to promote healthy food options under the Humana Healthier Choices banner. Food items that meet calorie, sodium and other nutritional requirements receive a Green Apple sticker on the restaurant s two menu boards. Humana promotes healthy eating and other healthy activities via an on-site consumer engagement area where attendees can receive pedometers and a passport that can be redeemed for prizes in exchange for healthier choice purchases. The program has received significant media coverage across both traditional news outlets and social media, said Neal Heitz, sponsorship coordinator with the City of Chicago s Department of Cultural Affairs and Special Events. Placements have been phenomenal because it s a native story to tell. It resonates well and Humana places a lot of value in that coverage. Humana in 2015 signed its first multiyear partnership with the festival. Reach new audiences. With the Affordable Care Act opening the door to millions of potential customers, insurers are increasingly using sponsorship to build consumer preference. Key audiences include millennials, seniors, Hispanics and other ethnic groups. Millennials play a key role in Kaiser Permanente s NBA partnership. The company uses the tie to promote healthy lifestyles via NBA Fit clinics and reach new audiences through NBA marketing assets. More young adults have access to coverage than ever before. The NBA is a very good partner given its tremendous reach, and particularly effective in reaching young adults, said Christine Paige, Kaiser Foundation senior vice president of marketing and digital services IEG, LLC. ALL RIGHTS RESERVED. 3

4 Support CSR initiatives. Kaiser Permanente this year expanded NBA activation beyond NBA Fit clinics with the inaugural Total Health Forum. The company hosted the forum as the culminating event of NBA Fit Week 2016 (presented by Kaiser Permanente). The forum included NBA and Kaiser Permanente executives, current and former NBA players and health experts with the goal of advancing individual and community health. Participants included NBA Commissioner Adam Silver, Kaiser Permanente chairman and CEO Bernard Tyson and Hall of Famers Bob Lanier and Dikembe Mutombo. The event took place Jan. 28 at the Ronald Reagan Building and International Trade Center in Washington, D.C. Kaiser Permanente also is working with the NBA to promote its clinical expertise via participation in the league s orthopedic research project with GE Healthcare. This is new territory we re exploring on how to collaborate to make sure players, fans and the community are healthier, said Kerry Tatlock, NBA senior vice president, global marketing partnerships. Promote senior plans. Humana leverages its sponsorship of Pigeon Forge, Tenn. s Dollywood to promote its Medicare Advantage products. The company activates the sponsorship in late summer and early fall to build awareness and preference prior to the Oct. 15-Dec. 7 Medicaid Annual Election period, a time when seniors can sign up, change or opt out of health plans. The partnership has expanded to other Herschend Family Entertainment properties over the past eight years including Silver Dollar City, Stone Mountain Park and the Harlem Globetrotters. Strengthen business relations. Humana sponsors Dollywood in part to build relations with Herschend Family Entertainment, a corporate client. The company provides medical and dental insurance to HFE employees. In similar fashion, Cigna sponsors Cigna Sunday Streets Houston to support the City of Houston. The program offers city residents the opportunity to cycle, walk, run and socialize on a closed street on one Sunday a month. Promote rewards programs. Health insurers frequently use sponsorship to promote programs that encourage and reward consumers for healthy living. UnitedHealth Group this year is sponsoring the Rally Health pro cycling team on behalf of its rewards program. The insurer previously sponsored the team on behalf of its Optum business-to-business insurance brand. Rally Health which uses premium discounts and other incentives to encourage healthy lifestyles is spreading its message via team appearances at health fests, workout videos on YouTube and other marketing platforms. Rally Health also is cross-promoting the sponsorship at health events hosted by Kevin Hart, the company s first fitness ambassador. Rally sponsored the comedian s 2015 tour, around which it ran a sweeps dangling tickets to Hart s shows. Engage employees. Like other categories, health insurance companies frequently use sponsorship as an employee engagement platform. Aetna provides 80 employees for the Hartford Marathon Foundation s FitKids in School, a program designed to encourage a healthy, active lifestyle for middle school students IEG, LLC. ALL RIGHTS RESERVED. 4

5 As a health insurance company minded to the importance of employee wellness, Aetna does a great job getting engaged in their sponsorship, and they re very proactive about incorporating health and fitness opportunities for employees, said Beth Shluger, race director of the Eversource Hartford Marathon and CEO of the Hartford Marathon Foundation. Sources Kaiser Foundation Health Plan, Inc., Tel: 510/ City of Chicago, Dept. of Cultural Affairs and Special Events, Tel: 312/ National Basketball Association, Tel: 212/ Hartford Marathon Foundation, Tel: 860/ IEG, LLC. ALL RIGHTS RESERVED. 5

6 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING FEBRUARY 22, SPONSOR PROFILE HOW CIGNA TAKES SPONSORSHIP TO HEART Insurer expands portfolio despite uncertainty over pending acquisition. While the outcome of Anthem Inc. s proposed $47 billion acquisition remains unclear, one thing is for certain: Cigna Corp. is taking sponsorship to heart. The health insurance company in 2015 expanded its longrunning presenting sponsorship of the Walt Disney World Marathon Weekend with a similar tie to the Disneyland Half Marathon Weekend. Next month, Cigna will expand the Disney partnership via proprietary fun runs for clients and brokers. The company will host the first run March 19 at the Phoenix Zoo with additional events to follow in New York City and other markets. Cigna uses sponsorship to support its Together, All the Way global brand campaign and its mission of helping consumers improve their health and well-being, with a focus on preventative care. This category is shifting due to the Affordable Care Act and other factors. What is necessary now is to make sure customers and the community are aware of not just who you are, but what you stand for and what you do, said Stephen Cassell, Cigna global branding officer. We re trying to create some clarity for consumers and help them navigate this very complex system. While Cigna focuses on running as a global marketing platform (Cigna Round the Bays in New Zealand, etc.), it has not ruled out additional sponsorships. The company was reportedly negotiating a partnership with the NFL in 2015 prior to news of Anthem s proposed multi-billion dollar acquisition. We re always looking for opportunities where there is a fit with bringing our wellness message alive at the national and international level and where we can connect back to the communities that we work with, said Cassell, declining to comment about the aborted NFL deal. More Focus On Pre- And- Post Event Activation As part of its sponsorship push Cigna is placing more focus on activation programs that amplify its message before, during and after events IEG, LLC. ALL RIGHTS RESERVED. 6

7 Cigna in January unveiled three activation programs at the Walt Disney World Marathon, all of which were fueled by social media. The programs included three photo ops including a green screen where attendees could have their photo taken running in various locations around the world. The initiative paid off: Cigna posted a 70 percent increase in the number of engagements over the previous year. Cigna also unveiled two other enhancements at the Jan event including participation by three TV celebrities (Laura Flores, Aaron Diaz and Uza Aduda) and a mobile wellness van where attendees could have their blood pressure and other health metrics checked. Getting people to understand that it only takes 10 minutes to know their numbers is the first step in getting people into a wellness state of mind. Source Cigna Corp., Tel: 860/ IEG, LLC. ALL RIGHTS RESERVED. 7

8 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING FEBRUARY 22, CATEGORY UPDATE ABBOTT INJECTS NEW LIFE INTO SNACK BAR CATEGORY Healthcare company jumps into fast-growing nutritional snack bar category. Abbott Laboratories, Inc. s new line of Curate snack foods could inject new sponsorship activity in the snack bar category. Abbott launched Curate to tap into the growing number of adults seeking healthy snacking options. The line features six snack bars made with quinoa, elderberry and other healthy-for-you ingredients. The timing of the launch bodes well for Abbott. Sales in the nutritional snack bar category rose nearly 9 percent to $2.8 billion in the year-ended Jan. 24, 2016, according to IRI, a Chicago-based market research firm. The increase exceeds the 4.8 percent increase in the overall snack bar/granola bar category. While Abbott sponsors one of the largest global platforms in endurance sports the Abbott World Marathon Majors it remains to be seen if the company will leverage the partnership on behalf of Curate. Several AWMM events already have sponsors in the snack bar category, many of which have category exclusivity. WHO DOES WHAT: SNACK BARS Sales at U.S. supermarkets, drugstores, mass market retailers, gasoline/c-stores, military commissaries and select club and dollar stores in the year-ending Jan. 24, 2016, per IRI, a Chicago-based market research firm (@iriworldwide) IEG, LLC. ALL RIGHTS RESERVED. 8

9 ABOUT IEG AND ESP PROPERTIES IEG has shaped and defined sponsorship over three decades. It is the globally recognized source for industry insights, trends, training and events via sponsorship.com, its annual conference, online publications, trend reports, surveys and webinars. IEG is part of ESP Properties, a WPP company. As a commercial and creative advisor for rightsholders, ESP Properties helps organizations unlock greater value from their audiences and brand partnerships. Our consulting team assesses and advises how to grow the value of rightsholders commercial programs. We do this through a full range of services across data, digital and content development to better understand audiences and create more relevant ways to engage with them. This provides brand partners with new ways to connect with communities of fans and followers, growing the potential value of commercial partnerships. Our sales team provides partnership strategy and sales representation to the world s most active sponsors, within and beyond the WPP network of brand clients. Through WPP we have extensive contacts and deep insights into what it takes to create successful partnerships. INSIGHTS EVALUATION GUIDANCE IEG LEADS THE WAY IN SPONSORSHIP ANALYSIS, INSIGHT, VALUATION & MEASUREMENT WWW. SPONSORSHIP.COM For more information about IEG and the sponsorshp industry, please visit or call IEG, LLC. ALL RIGHTS RESERVED. 9