• by Karl Greenberg , July 2, 2007

State Farm has signed a multi-year deal to be the "Official Insurance Company of Major League Baseball." The deal initially centers on State Farm sponsorship of ESPN's "State Farm Home Run Derby" and the "State Farm Mascot Home Run Derby" at Major League Baseball All-Star Week.

The Home Run Derby, which MLB says is the highest-rated sports event on its network, involves eight of MLB's harder hitters vying against each other in three elimination rounds. The State Farm-sponsored derbies will be broadcast live on ESPN, ESPN Deportes and ESPN Radio on July 9 from San Francisco's AT&T Park.

State Farm is also sponsoring the DHL All-Star FanFest outside of AT&T Park, where the company will have its mobile marketing unit on hand at the baseball theme park that is part of MLB All-Star Week. At the event, State Farm will sponsor the State Farm Home Run Derby attraction and the State Farm Mascot Home Run Derby.

Mark Gibson, the assistant VP of advertising at the Bloomington, Ill.-based company, says that while this marks the first time State Farm has been a category sponsor of MLB, the insurance giant has been involved with post-season baseball broadcasts on Fox, World Series games and playoffs since 2003. He says that in 2005 the company inked deals with 24 major league teams, giving State Farm signage in ball parks in those markets. This year, per Gibson, the company is expanding its signage deal to include sponsorship and advertising on local radio network sponsorships of games.

He says that while the Home Run Derby is a centerpiece of the deal, "because the telecast draws a huge audience and fan interaction and support, it's by no means the only part of our relationship. We have ongoing commitment to sponsorship of broadcasts on ESPN and Fox."

New "home run"-themed advertising via DDB, Chicago, will break during broadcast of the State Farm Home Run Derby, per Gibson. "It will feature very personal reflections upon 'home run' moments."

Baseball, he says, is an attractive destination for marketing dollars for a lot of reasons, not least of which is the length of the season, which begins and ends in October, prime time for people shopping for auto insurance.

"The demographic of baseball also fits with many of the markets we are attempting to target and the fan base for baseball - the millions who go to games, the millions more who watch games on TV -- make for a perfect match for us," he says, adding that State Farm is also heavily invested in sponsorship of NFL and is an official sponsor of NCAA sports as well.

"It's a continuation of our overall strategy of being in high-profile events," he says. "Sports play a major role for us because they are big-ticket, high-profile and ownable options, with the added value of sponsorship opportunities and signage."

State Farm is also running parallel ad efforts - separate from sports - on broadcast and cable and via the Web. "We have a heavy online presence," says Gibson.

The deal with MLB was mediated by Dallas-based The Marketing Arm and Optimum Sports Management, and Tribal DDB handles State Farm's online work.

Gibson says State Farm has a large presence on MLB.com as well. "It's a critical site for active fans and draws millions of visitors on a monthly basis - the online environment has become a huge extension for baseball fans.

"Being on MLB.com helps us keep in touch with fans who are mobile, who are involved with fantasy baseball, who are seeking stats and information on things like player movement between teams. It's a great place for us to be. We are involved with high-profile opportunities. We want to surround the consumer at all touch points, whether they are listening to radio or online."