Archive for May, 2009
Danica Patrick & Tissot launch on Twitter
May 20th
Danica Patrick is the first person to launch on Twitter in conjunction with, and backed by a sponsor, Tissot watches. Danica Patrick on Twitter: http://twitter.com/danicapatrick
What makes this different, and consequently an exciting time for all parties involved, is that Danica is one of the first motorsport athletes to launch on Twitter in conjunction with a sponsor. Tissot see this and social media as a whole as an opportunity for ongoing sponsorship in a less-invasive way than traditional advertising. They’re trying to connect with consumers through social media and one of their company’s ‘faces’.
Both Danica and Tissot are well aware that they are carving new territory in terms of sponsorships on Twitter and are moving ahead cautiously and figuring it out as they go. Both parties want to execute this new venture within the cultural norms of social media.
Danica officially launched on Sunday, May 17th, but prior to her first tweet she already had 2700 followers, which illustrated the demand for her to communicate and connect with her fans in this relatively new medium. She’s already validated that her account is real by posting a Twitpic in uniform from New York.
Today’s Twitterings from DB
May 12th
- Convergent connections… RT @mashable 12 Inspiring Stories of Successful Social Networkers http://bit.ly/wRiqD (via @tweetmeme) #
Powered by Twitter Tools.
Today’s Twitterings from DB
May 11th
- thinking outside the box? what box?? innovation is now an applied technology… this is what I’m talkin’ about… http://www.domedia.com/ #
Powered by Twitter Tools.
Sports marketing trends – reaching the ‘fan in the stand’
May 9th
Trends in sports marketing are shifting from the ‘traditional’ methods of communicating with a target audience – the trend is to ‘engagement and connection’ via emerging technologies… this is particularly evident in the sports marketing sector with initiatives deployed by the ’savvy’ marketers – and the athletes now tapping into the ‘Tweet Generation’. For a while behind the curve on mobile/cell SMS/Text technology the USA is now right at the bleeding edge utilizing these applications. Tony Ponturo, who for 26 years was the Vice President of global media, sports and entertainment marketing at Anheuser-Busch, Inc. and also President and CEO of Busch Media Group, has made a minority ownership investment in the Leverage Agency and will serve as Chairman.Regarded as one of sports and entertainment marketing’s most influential people, Ponturo led Anheuser-Busch’s development as a sports and entertainment juggernaut during his career with the renowned brewing company.
CNBC’s Sports Business Reporter, Darren Rovell asked Ponturo and Ben Sturner, the CEO of Leverage, to discuss the future of sports marketing. Here are some of the questions and answers.
Rovell: Leverage has negotiated deals with Kraft, Gillette, Nestle and KFC – some of the biggest companies out there – what are these companies looking for?
Sturner: These companies don’t just want signage, they want a robust platform. They require that any deal that is done touches the influencers. That it has interactivity, that it is inclusive, but has the feeling of privilege and that it cuts through the clutter.
Further to our post yesterday about social meda, the experts have no doubt.
Rovell: Over the past month, social media – especially Twitter – has exploded. How do you see the sports world embracing this?
Sturner: Something like Twitter is an amazing tool that everyone should embrace. It allows teams, leagues and athletes to spot trends, to become opinion leaders, to learn real time about how people feel about the fan experience. In the next six months, I expect teams and leagues to start hiring social media experts to allow them to monitor, initiate and integrate what is going on out there. So anyone in college who is looking for a job in sports, this position might be the easiest way in. www.yachtsponsorship.com
Today’s Twitterings from DB
May 8th
- a long day at the track… now just checking out @jasonpeck – sports properties in the UK have to wake up and smell the coffee! #
Powered by Twitter Tools.
Sponsorship… a buyer’s market
May 8th
Global companies are being swamped with sponsorship approaches from sports and arts bodies as the economic downturn transforms the business of sponsorship into a buyer’s market.
Some of the world’s biggest sponsors are cutting back on deals, although none of those contacted by the Financial Times said they were looking to terminate commitments. However, the economic outlook is prompting nervousness among rights owners who are trying to negotiate longer term deals with clients as a way of building in greater funding security to offset expected declines in sponsorship revenues.
Rights holders are gearing up for life without clients from the stricken banking and car sectors and trying to squeeze out more sponsorship dollars from others. “There is a great deal of inventory available and as in any downturn there will be a flight to quality,” said Phil Carling of Octagon, the global marketing company. “It’s a bit more of a buyers’ market,” said Keith Levy, vice-president of marketing at Anheuser-Busch and responsible for the beer company’s US sponsorship deals in baseball, basketball and American football.
According to Sports Marketing Surveys, the car and banking sectors were the leading industries of sports sponsorship, which was responsible for 79 per cent of all sponsorship last year. Between them, they signed off 253 of the 713 reported deals last year.
British Airways, a London 2012 Olympics sponsor, said it had always attracted interest from rights holders. “But increasingly so, we have noticed that third parties are looking to work with us more and more,” said Luisa Fernandez, global sponsorship manager. Calls are coming in daily to the Emirates Airlines, which sponsors football, rugby and cricket tournaments and teams. “They used to come but not at this frequency,” said Boutros Boutros, of Emirates. “We went after most of our properties but now they are coming to us.”
IEG, a sponsorship advisory arm of the advertising group WPP, expects sponsorship spending by North American companies to increase by only 3.2 per cent, following three years of double-digit growth. Globally, it will rise 3.9 per cent to $44.8bn, IEG believes.
BT, official sponsor of the London 2012 Olympics, said of the sponsorship climate that “clearly in worsening economic times, some change is inevitable”, and would be partly driven by upcoming sponsorship opportunities. “For companies like BT, this can be an appropriate time to negotiate new long-term deals cost-effectively,” BT said. Last month, it announced a four-year deal to sponsor the Paralympic World Cup.
Germany-based rivals Adidas and Puma are not cutting back. Adidas has said it aims to spend about 13 per cent of its net revenues each year on marketing, spending €1.2bn ($1.5bn) last year. Puma spends about 15 per cent on marketing. AIG, the bailed-out US insurer, will not renew its shirt sponsorship of Manchester United while Hyundai has taken up advertising spots for the Oscars that were abandoned by General Motors.
Nortel’s financial woes threaten the telecommunications group’s sponsorship of next year’s Winter Olympics in Vancouver and the London 2012 Olympics. Its restructuring after seeking bankruptcy protection last month “does involve us taking a hard look at our sponsorships and, in some cases, decide to no longer invest in certain programmes as a sponsor”, said Nortel. But its Olympic commitments remained unchanged, it added.
Several companies made it clear they were sticking to their guns. Tsingtao said its main long-term sponsorship, with US basketball, was “not really affected by the financial crisis. It is going well”. Itau, the Brazilian bank, which spends $15m a year on the national football team, concluded that its merger plans with Unibanco meant it made sense to continue the marketing programme. The next two to three months will see fewer sponsorship announcements and activity, according to Karen Earl, chairman of the European Sponsorship Association. “People genuinely don’t quite know how things are going to pan out,” she said. www.ft.com
Today’s Twitterings from DB
May 7th
- Sitting with @dmfreedom talking about how the guys in the US get ’social media’ for sport and in the UK it’s like herding cats. #
Powered by Twitter Tools.
Smaller sponsors finding ‘new economy’ in today’s NASCAR
May 6th
Green and yellow die cast stock cars wrapped in the Sun-Drop logo line his shelves reminding him of a period when small, locally-owned companies could afford to sponsor a car in NASCAR’s premier series and the partnerships were forged through friendship.
“Dale used to buy around 10 cases of Sun-Drop a week and he became friends with John King and his family, a local bottler in Concord, N.C. That’s how it all started,” said Falls, president of Choice USA Beverage, Inc. who today bottles the citrus soda for the Southern regions of South Carolina, North Carolina and Tennessee.
Dale Earnhardt and Sun-Drop had a five-year endorsement agreement that was terminated when Coca-Cola came into the sport.What began as a small agreement between Earnhardt and the local Sun-Drop bottler in Concord grew into a five-year personal endorsement agreement and associate sponsorship of Earnhardt’s No. 3 car making Sun-Drop one of the first major beverage sponsors in the sport. Although the company’s tenure that began in the early 1990s would not survive.
Since then, NASCAR’s sponsorship game has evolved tremendously and today’s economic landscape and recession is forcing smaller companies looking for viable fits to find new and innovative strategies.
“We couldn’t compete with Coke when they arrived,” Falls explained. “Dale [Earnhardt] got pressure to join the Coca-Cola racing family and he was never allowed to renew that five-year contract. We were left out of the sport because we couldn’t afford to compete with Coke and Pepsi’s resources and the money they were willing to spend.” Through the years, Sun-Drop and its regional bottlers would be approached with new opportunities to rejoin the sport, but none of the sponsor pitches were affordable or worth the expense.
But a recent cold call from a marketer at JD Motorsports, a small-tier Nationwide Series team, has changed all that. Sun-Drop is making a return to the sport in nostalgic fashion this summer and is becoming one of NASCAR’s growing examples of how smaller companies are creating unique, outside-the-box ways of either maintaining what sponsorship presence they have or creating new ones to increase their brand exposure in an affordable manner.
NASCAR teams cognizant of the economy and shrinking sports marketing budgets are starting to look to these smaller companies for support knowing that the larger companies have either left the sport entirely or can no longer afford to write multi-million dollar checks to cover a team’s entire season.
“The door is opening now and teams are willing to talk to companies like us and work with the smaller players in light of the economy,” said Scott Hunt, CEO of Hunt Brothers Pizza, who recently purchased six primary races from Richard Petty Motorsports to sponsor the No. 44 car.
“We’ve been cooking pizzas inside the garage area and feeding the teams. A.J. [Allmendinger] has handed out free T-shirts and our brand recognition has increased. Last year at our first race in Talladega everyone asked ‘who are you?’ That was not the case this year.” SCOTT HUNT, Hunt. Bros. Pizza”If the pricing was what it was three or four years ago, we couldn’t have done it,” Hunt added. “It’s made everyone a little more humble.”
To be more efficient with its sponsorship budget, State Water Heaters revamped their strategy and approach. The company chose to put their resources into a hospitality program created by a Charlotte, N.C.-based marketing agency where driver Ward Burton acts as a trackside tour guide of sorts. Instead of sponsoring a low-level team with a car that gets little television exposure, State Water Heaters decided to employ Burton as the company’s race day representative to entertain the company’s guests and most important customers.
Teams and companies are learning to reinvent the sponsorship sale so that both sides are happy. Value for the sponsor can have several different meanings in today’s NASCAR. Hunt said he discussed sponsorship options with several different Cup Series teams in order to increase brand awareness for his growing pizza company located in rural areas and convenient stores.
His first foray into the sport was brief and came in 2008 with Haas Automation. The company sat out at the beginning of the 2009 season to see what the economy was going to do. While the economy didn’t really improve much, the sponsorship opportunities and hood space among NASCAR teams did.
The pizza chain decided to go with Richard Petty Motorsports and its new driver A.J. Allmendinger, because the team was willing to accommodate the company’s goals.
It could afford to buy six races, but not the costly activation programs required to further reach NASCAR’s loyal fans. Therefore, the Petty team helped Hunt with a greater credentialing system that allowed Hunt’s larger distributors and potential clients to attend the Cup races.
Meanwhile, Hunt and Allmendinger have used low-budget grassroots activation methods to get the pizza into the mouths of many. “We’ve been cooking pizzas inside the garage area and feeding the teams,” Hunt said. “A.J. has handed out free T-shirts and our brand recognition has increased. Last year at our first race in Talladega everyone asked ‘who are you?’ That was not the case this year.”
Some economists and marketers note longtime and wealthy sponsors are still pulling out of NASCAR, but there are still a percentage of companies who are spending and even increasing their sponsorship budgets.
Kyle Busch helped push sales for NOS Energy drink through a case-by-case sales incentive program and a $5,000 personal services agreement that started in 2007.
Through NASCAR exposure and Busch’s success on the track, the partnership has grown into a $4 to $5 million Nationwide Series sponsorship agreement this season, according to his Motorsports Management team.
At the end of the day, companies know how valuable the loyal NASCAR fan base can be to their bottom dollar.
In Gaffney, S.C., this week, employees at the Sun-Drop bottling company are celebrating their return to the sport with JD Motorsports and are hoping to grow with young driver Danny O’Quinn Jr. in the Nationwide Series No. 01 car this season. And the sponsorship agreement with Sun-Drop, which begins at Lowe’s Motor Speedway with a paint scheme similar to what Dale Earnhardt Jr. ran on a Late Model car in Myrtle Beach, S.C., also came to be with a cold call and a face-to-face meeting at the bottling company.
“I told them if you want someone in the top 10, that’s not us. But we will qualify for every race and we will get your apparel and merchandise program off the ground and into the stores. They just couldn’t find a home where they didn’t have to spend millions of dollars,” Priscaro said. “We are just honored Sun-Drop chose us, chose our team to make their return to NASCAR racing.”
Everyone is leery of the economy and tightening their budgets, but when teams and companies look outside of traditional practices and markets, lucrative partnerships are formed. www.nascar.com
