Sponsorship
Experiential? Sure but make it relevant for the fans in sports marketing and branding programs
May 28th
Sports sponsorships have become more than getting a brand on television and/or radio or on a sign in the stadium. We’ve been saying this for a while now at SB and our sister agency BULLET – brands have to connect with their audiences emotionally… and it has to be authentic to have any relevance or lasting credibility.
So, sponsors expect more …and so do the fans. The sport becomes the conduit and the touch-point for sure – but – it (the communication) has to sustained, honest and consistent.
“Fans and the community largely have been often left out of this conversation. That’s the revolution that’s taking place,” said Jack Sichterman, founder of Great Big Circle marketing firm of New York; speaking at the recent Sport & Society in America conference.
We reckon Jack’s got it just about right but the sponsors want more now too – it’s all about the experience. The stadium, arena, track, circuit or venue and the sports and entertainment that takes place there is only a part of the interaction – this is the age of brand communications that people feel, they sense if a brand fits for them (the audience) and if it reflects where they’re at in their lives. It’s controversial but there aren’t many marketing folks who have a handle on this new era of brand communications – never mind the venue marketeers and sponsors – many of which still think putting a sign up and slapping a sticker on a race car generates some sort of measurable visibility or awareness! Sponsors still think that teams and athletes can generate sales and prospects – HOW? It’s down to the activation – the team or asset/property is the mechanism or catalyst – not the deliverer. Sponsors are going to have to wake up to the fact that ROI is replaced by ROO.
And now it’s not just the traditional press, TV and radio – Everyone is having to figure out what to do with social media channels such as Facebook, Twitter and YouTube. Now it’s getting really interesting because you can’t hide behind a billboard and hope the eyeballs ‘get it’. This is a one-to-one relationship and your brand’s reputation is at stake – the power and lasting effects of social media and the way it integrates into your marketing mix is now the third helix of modern marketing and branding — maybe sports marketeers will come to the fore on this one and lead the way.
The www.trofeoabarth500gb.com series website is a good case study in how to deliver content and energize the brand for fans while communicating essential information. Blog, SMS text, interactivity, downloads and keeping the brand front-of-mind without selling at the audience… the audience will make up their own mind; all the marketeers have to do is make their experience memorable and real.
PwC predicts recovery for sports industry
May 27th
PwC predicts recovery for sports industry – A PriceWaterhouseCoopers report has said the global sports industry will rise in value from $114 billion this year to $133 billion by 2013, an annual growth rate of 3.8 per cent. The World Cup and Olympics clearly having an impact and additional benefits being felt by the support industries such as hospitality, sports marketing, sponsorship and travel… The United Nations World Tourism Organization’s secretary-general Taleb Rifai this week insisted sporting events such as FIFA World Cup 2010 and the London Olympics 2012 can act as catalysts to revive the ailing global travel and tourism industry. The inaugural World Sport Destination Expo takes place July 5-9, 2010, in Johannesburg, South Africa. Sion Rapson, Global Business Director, explained: “The sports tourism industry is a US$600 billion-a-year market and it has become obvious to all involved that there is a need for people within that industry to be able to meet in a business-centric environment to discuss the best way forward.”
Sporting events are becoming evermore important for Countries and Regions to trigger tourism and stimulate localised enterprise and entrepreneurship – this is evident in Oman with their Oman Sailing program and the move by Vietnam to host the World Match Racing Tour.
The fans don’t follow F1… they follow the Brands and Atheletes
Nov 18th
Formula One television audiences in Spain and Italy fell drastically this year, reflecting disappointing performances by Spanish driver Fernando Alonso and Italian car manufacturer Ferrari, which suffered its worst season in 16 years.
According to the latest sports viewing survey from TV Sports Markets and Eurodata TV Worldwide, the big falls in Spain and Italy were partly counterbalanced by a significant lift in UK audiences. Viewership in the other two top European markets, France and Germany, remained broadly stable.
Audiences in Spain dropped 29 per cent on 2008, with Alonso’s worst-ever season coinciding with coverage shifting from what was the country’s leading commercial broadcaster, Telecinco, to smaller rival La Sexta. La Sexta’s live coverage averaged just under three million viewers per race and drew an audience share of 31 per cent.
Audiences for Italian public-service broadcaster Rai fell 21 per cent against 2008, when Ferrari won the championship, averaging 5.6 million viewers per race. Further analysis shows, perhaps surprisingly, that almost 40 per cent of the audience was female. Just under 50 per cent of the audience was aged over 55.
In the UK, Jenson Button’s championship season provided a perfect start for public-service broadcaster the BBC, which took over the rights at the start of this year after commercial rival ITV opted to concentrate its limited resources on Champions League football. Audiences were 16 per cent on ITV’s audiences last year and the highest since the BBC last had the rights in 1996.
In France, audiences for commercial broadcaster TF1 rose less than one per cent to 3.1 million. Some 33 per cent of the audience were women, slightly lower than the gender split for Champions League football, where women accounted for 35 per cent of TF1’s average audience last season. Forty-nine per cent of the Formula One audience in France is over 50 years of age, the same proportion for the Champions League. In Germany, RTL averaged 5.2 million viewers per race, with the penultimate race of the season in Brazil attracting the season-high of 7.2 million viewers and a 28-per-cent audience share.
Sources: TV Sports Markets, Eurodata TV Worldwide, Mediametrie – BARB – AGF/GfK Fernsehforschung – AUDITEL – TNS Audiencia de Medios – ALL RIGHTS RESERVED
Toyota finally quits F1
Nov 4th
Toyota has confirmed that it is pulling out of Formula 1 - The world’s largest car manufacturer will concentrate on its core business. The team failed to win any of the 139 races it entered after making its F1 debut in 2002 but was fifth in the 2009 constructors’ championship… this despite having one of the biggest budgets in the premier class. Toyota’s withdrawal leaves the sport with no Japanese team after Honda left F1 at the start of the 2009 season. They become the third manufacturer to quit the sport in the last 11 months after BMW announced it was leaving in July. Honda were of course replaced by BrawnGP, who went on to win this year’s drivers’ championship with Jenson Button and the constructors’ championship… again congratulations to all the team in Brackley, UK – an amazing ‘fairy tale’ happy ending.
Maybe this is ‘back to the future’ for F1 – more independent teams and less ‘manufacturers’ – with Lotus (where Trulli may be headed??), Manor, USGP and Campos racing to make the 2010 grid… who will be next to join the fray? Maybe F1 is beginning a new era.
MotoGP Champ Valentino Rossi gears up for motocross
Nov 4th
Valentino Rossi will put his leg over a Motocross bike in a little less than two weeks time. The nine time World Road Racing Champion will line up alongside many of his MotoGP friends to raise money for sick kids.
Rossi is organising the event to raise money for a children’s hospital which treats leukemia sufferers in the Italian city of Pésaro. On Sunday 15th November Rossi will be one of the riders taking part in a special motocross event to give a financial boost to the hospital, with Andrea Dovizioso, Loris Capirossi, Marco Simoncelli, Mattia Pasini and former 500cc World Champion Kevin Schwantz also all booked in to attend.
The organisers are hoping for a big turn-out from fans to support the event, which will take place in Cavallara, a 40km drive from Pésaro.
2009 Dirt Bike Show at Stoneleigh Park
Nov 4th
If you’re into motocross then there’s only one place to be, that’s the 10th anniversary Dirt Bike Show at Stoneleigh Park from November 5-8th
Korea and Canada on FIA’s F1 2010 calendar
Sep 22nd
Formula One racing’s governing body, the FIA, has released the calendar for the 2010 world championship. The addition of the Korean Grand Prix, and a return to Canada (subject to race contract), will make for a 19-round season – two more than in 2009. The Bahrain Grand Prix will kick off proceedings on March 14, followed by the Australian race two weeks later. The Malaysian and Chinese races will take place in April, with the Sepang event getting underway an hour earlier than this year, with a revised start time of 1600 hours local time.
In May, the championship heads to Europe for rounds in Spain, Monaco and Turkey, before the teams make their way to Canada for the first time since 2008, subject to the completion of contractual negotiations with Formula One Management. If these are not completed, then the Turkish Grand Prix will be moved to June 6.
Following the completion of the European season, the teams will fly out to Asia in late September for back-to-back races in Singapore and Japan, followed by the inaugural Korean Grand Prix. Abu Dhabi will be the penultimate round, with the championship finale returning to its familiar home of Brazil in mid November.
2010 FIA Formula One World Championship calendar
14 March – Bahrain
28 March – Australia
4 April – Malaysia
18 April – China
9 May – Spain
23 May – Monaco
30 May – Turkey
13 June – Canada*
27 June – Europe (Valencia)
11 July – Great Britain
25 July – Germany
1 August – Hungary
29 August – Belgium
12 September – Italy
26 September – Singapore
3 October – Japan
17 October – Korea
31 October – Abu Dhabi
14 November – Brazil
*Subject to the completion of contract negotiations with Formula One Management. If these are not completed then the Turkish Grand Prix will be moved to 6 June.
Note: The race in Australia will start at 1700 local time, in Malaysia at 1600 local time, in Singapore at 2000 local time, and in Abu Dhabi at 1700 local time.
F1 – what goes around comes around!
Sep 16th
Team Lotus will be back in Formula One next season – and the Norfolk man draughted in is Mike Gascoyne, ex Toyota, Jordan and Tyrrell designer. Malaysian entrepreneur and new team principal Tony Fernandes is involved in the project – something which brought with it backing from the Malaysian government and a consortium of investors from the country.”It is different from what Lotus was, obviously, as the company is now owned by Proton and this is very much a Malaysian backed initiative. But that backing is exciting and great for Formula One, and to tie that in with the heritage of Lotus has a very nice synergy.” said Gascoyne.
Lotus F1 will initially be set up in the RTN centre at Hingham, a 50,000 square foot facility most recently used by Bentley for its Le Mans programme. Works will eventually move to Lotus’ new operations base at Malaysia’s Sepang circuit. Sponsorship announcements are anticipated and driver line-up is due to be revealed next month.
Lotus F1, based in Norfolk joins Manor Motorsport, based in Buckinghamshire, as two of the four new teams in Formula One in 2010 boosting the motorsport industry in the UK. The other teams are from the USA, Team US F1, and Campos from Spain – more good news is the return of Cosworth as an engine supplier. BMW Sauber also has a new owner having been sold to Swiss-based Qadbak Investments.
It seems the auto manufacturers are pulling out gradually as teams – leaving more independant teams to fill the F1 grid… isn’t this how it used to be?? What goes around comes around!
Motorsport sponsorship declines in 09… tell us something we didn’t know!
Sep 3rd
One For The Record Books: Motorsports Sponsorship To Decline In ‘09… but its how the spend is spent that will make all the difference. Sponsorship is entering a new age… just because the fans have octane in their veins doesn’t necessarily mean it’s relevant any longer.
North American-based companies will spend an estimated $3.3 billion to sponsor motorsports teams, tracks and sanctioning bodies this year, a nearly six percent decline from the $3.5 billion spent in ‘08, according to the IEG Sponsorship Report.
The projected decline is a first since IEG SR began tracking motorsports spending in 1985. As automakers and other sponsors look for ways to reduce spending, the big-ticket prices associated with major racing sponsorships have become harder to justify, and many companies have backed away from previous levels of commitment.
The projected spending amount reflects both reductions in spending and elimination of programs from previous sponsors such as Domino’s Pizza, Kodak and others, but also some new sponsor dollars that have served to prevent the decline from being even more severe.
Looking at some of the positive activity: Search engine Ask.com this year will launch a multi-faceted NASCAR program that includes a tie to the sanctioning body and title of a Hall of Fame Racing Sprint Cup Series entry driven by Bobby Labonte. In addition, Mars North America signed a multiyear extension with NASCAR spanning four categories: chocolate, chocolate bar, cheese-filled snack and pet food.
www.sponsorship.com
Sponsorship Spending To Rise 2.2 Percent in 2009
Aug 28th
Sponsorship spending by North American companies is expected to grow 2.2 percent in ‘09 to $16.97 billion, according to IEG Sponsorship Report, the world’s leading authority on sponsorship.Chicago (Advertiser Talk) 26-Aug-2009 – Sponsorship spending by North American companies is expected to grow 2.2 percent in ‘09 to $16.97 billion, according to IEG Sponsorship Report, the world’s leading authority on sponsorship.
The forecast is the smallest annual growth rate in the forecast’s 24-year history. Spending in ‘08 was up 11.4 percent over ‘07, just shy of IEG SR’s projection a year ago of 12.6 percent growth.
The sports sector is expected to be the biggest victim of the recession given sponsors’ willingness to bail out of big-ticket sports deals. IEG SR expects corporate spending on sports properties to total $11.6 billion, up 1.8 percent from ‘08.
“The economy has forced many companies to keep a tighter hold on their purse springs, and big-ticket pro sports properties will take the biggest hit,” said William Chipps, IEG Sponsorship Report’s senior editor.
Projected dollar amounts for non-sports categories are entertainment tours and attractions: $1.66 billion, up 1.9 percent from $1.63 billion in ‘08; causes, $1.57 billion, up 3.1 percent from $1.52 billion; arts: $848 million, up 2.5 percent from $827 million; festivals, fairs and annual events: $786 million, up 4.4 percent from $753 million; and associations and membership organizations: $503 million, up 4.4 percent from $482 million.
As a result, sports’ share of overall North American sponsorship spending will dip a percentage point to 68 percent, while festivals, fairs and annual events increases its share from four to five percent.
While corporate spending is expected to slow considerably in the year ahead, sponsorship is expected to once again outpace traditional media buys. North American media spending is expected to decrease 3.2 percent in ‘09, according to the worldwide media and marketing forecast produced by GroupM, the global media investment management operation of WPP Group plc.
International Outlook Rosier, But Slowdown Will Occur Just as the economic crisis has taken its major toll in the U.S. with a ripple effect elsewhere in the world, the impact of the downturn on sponsorship will be felt around the globe but not yet to the same degree as on the home front.
The absence of the Beijing Olympic Games and the unprecedented spending surrounding that event also will contribute to slower growth in ‘09, although the Asia Pacific region will remain the fastest growing.
Overall, including North American spending, ‘09 global sponsorship expenditures should reach $44.8 billion, a 3.9 percent increase over the $43.1 billion spent in ‘08, a number slightly below IEG SR’s projection of $43.5 billion.
Subtracting U.S. and Canadian activity, spending by the rest of the world is expected to reach $27.8 billion, up 4.9 percent from $26.5 billion in ‘08.
Europe will remain the region whose companies spend the most on sponsorship after North America. IEG SR expects European firms to spend $12.2 billion in ‘09, up 4.3 percent from $11.7 billion in ‘08. Asia Pacific companies should increase spending 7.4 percent from $9.5 billion to $10.2 billion.
Companies based in Central and South America should see 2.9 percent growth from $3.4 billion to $3.5 billion, while companies from all other regions are expected to grow expenditures 2.6 percent from $1.9 billion to $1.94 billion.
www.sponsorship.com