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Friday, December 9, 2011

Marketing Happenings This Week

State Farm Lowers Auto Rates
Good news to those drivers who have State Farm as their auto insurance provider.  Depending on your location, and make and model of your car, your rates will be going down.  State Farm insures one in every three vehicles in Illinois; rates are expected to decrease on average by 2%.  All decreases are definitely welcomed; this decrease will bring it back to where average rates were in 2007, per Crain’s Chicago.  State Farm’s archrival, Allstate, has increased their rates this year.  Both State Farm and Allstate have seen a decline in clients from online insurance agencies such as Geico and Progressive.  B.M.M.O. Consulting hopes you’re in the number of those getting their rates decreased, and it comes just in time for the holidays!

Who’s Left in the Illinois Lottery Race?
The Illinois Lottery has decided to drop Energy BBDO as their advertising agency.  Fifty local firms competed to become the new ad agency for the Illinois Lottery; there are now five finalists left.  Those agencies are DDB Worldwide Communications Group Inc., Downtown Partners Chicago, DraftFCB, Element 79 Partners and Y & R Chicago.  Lottery Superintendent Michael Jones is happy with the competition for the contract; he was hired last year to improve the Lottery’s performance.  With the new ad agency and new superintendent the Lottery is sure to have a new look.  We will be watching to see who wins the contract.  Good luck to them all.

Digitas Primary Ad Agency for Sprint
Sprint has announced that Digitas will become its primary advertising agency for the Sprint Brand.  This will include managing the brand, strategy, advertising, digital, media and analytics.  Digitas President Tony Weisman will head up this new venture.  The agency will create 300 jobs in Chicago to work on the account.  This is very timely as they just moved into a larger office this past spring.  In case you missed that, if you’re in the advertising or marketing industry, you need to be looking to see if they have a job that fits your career needs.  Leo Burnett will also assist on the Sprint account.  Digitas is a child company of Publicis Groupe.   Publicis also handles T-Mobiles’s advertising; let’s see if we start to see similar campaigns.  We will be watching the ad campaigns of both and doing some comparisons. 

Sun-Times Newspaper, charging for online viewing
This week the Chicago Sun-Times announced that they would begin charging for readers to view their publication online.  After 20 page views within a month you will be charged to continue to view the newspaper online.  For customers who already subscribe to the print paper, they will be charged $1.99 a month for online viewing.  Customers who want digital viewing only will pay $6.99 a month.  A discount will be given to digital viewers who sign up for a year’s subscription.  Other publishers have begun charging for online viewing, so the Sun-Times feel it’s only right if they do also.  Certain parts of the website will remain free, including the homepage, classifieds and advertorial sections.  Chicago Tribune, the largest paper in Chicago, still has free access to its online publication.  Tribune right now believes that it isn’t necessary to start charging for online access yet, but it plans to keep watching to prepare for the day when they do.


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