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.

But perhaps it’s not that advertising is failing but that brand experiences (both on and offline) are really what are capturing the imagination of today’s consumer.

For example, 65% of U.S. consumers report a digital experience changing their perception about a brand (either positively or negatively) and 97% of that group report that the same experience ultimately influenced whether or not they went on to purchase a product from that brand. In a nutshell, experience matters. A lot.

Of course, brands that were “born digital” intuitively know this. Google and Amazon are pioneering experiential brands. That’s why Amazon continues to pour money into improving its customer service rather than run traditional advertising or marketing campaigns. As Amazon CEO Jeff Bezos has said, “We are not great advertisers. So we start with customers, figure out what they want, and figure out how to get it to them.” Zappos built its brand the same way, as has Facebook.

But what about more traditionally-minded marketers who weren’t born digital? Can they succeed in an experience-driven world? The answer is “yes” and here are some of the best:

Red Bull: Red Bull basically pioneered the experiential category. Not only did the brand rise to prominence by sponsoring alternative athletes and lifestyles, it went further by creating its own events, like Red Bull’s Flugtag and even its own sports like Red Bull’s Crashed Ice, which takes over old Quebec with a mix of hockey and motorcross. Even the brand’s website has morphed into a blog, much like today’s most popular publishers.

Camper: Most think of Camper as purely a comfortable yet stylish shoe brand. But the Spanish company is much more and pursues a brand ethos that’s both traditional, cultural and fashion forward simultaneously. Proof: Casa Camper, stylish (but laid back) hotels in Barcelona and Berlin that embodies the brand’s essence. Ditto for Camper Together which taps up and coming artists to create one-of-a-kind boutiques.

Guinness: Guinness may be old but it’s acting like a much, much younger marketer. The company has embraced experiential branding both literally and figuratively with its “It’s Alive Inside” positioning. For its anniversary, Guinness offered up Remarkable Experiences, including a trip into space. It also released a pub-finder iPhone application with a social media twist. More impressively, the brand created the Guinness Storehouse, a seven-story building that functions as both museum and pub, that has now become one of Ireland’s top tourist attractions. And, more recently, Guinness even wired up its rugby team with RFID tags (including balls and players) to capture a whole range of statistics about how fast, powerfully and effectively the game is played.

UNIQLO: Few companies have so used digital like Uniqlo to both build a brand and breakthrough to new consumers — and on a truly global scale. The Japanese retailer surprises and delights consumers at every turn, whether through innovative iPhone applications, calendars, e-commerce, stylebooks and microsites. Uniqlo’s experiential efforts not only express the brand, but reach new consumers who may live thousands of miles away from the nearest retail location.

Virgin America: Virgin America has gone further than most, ensuring that the experience is the marketing — and advertising in many cases. The brand targeted tech-savvy consumers early on with its Red system entertainment console and in-flight WiFi. It showed off its dramatic interiors in promotions with Diggnation and YouTube celebrities; became an early adopter of Twitter for customer service; and reinforced its brand values through its simple booking engine on VirginAmerica.com. And now, for the holidays, Virgin America is partnering with Google to offer free WiFi for travelers.

Nike: Nike, of course, has been moving in this experiential direction for a few years. ‘We’re not in the business of keeping the media companies alive,” Nike’s Trevor Edwards told the New York Times in 2007. ”We’re in the business of connecting with consumers.” And so they have. The company continually earns kudos for consumer experience breakthroughs like Nike+, its online running community; the Human Race, a global running event; and more recently the Livestrong Chalkbot which enabled users to submit a text message that would be painted (digitally) on the route of the Tour de France.

Experiences, it would seem, are the new advertising. Experiences reach and engage customers in new and more meaningful ways, they promote “trial” over simply messaging and — quite frankly — experiences are much more suited to our digital era when everything is just a click away. Our challenge now, as marketers, is to make sure that our products and brands can actually live up to the experiences that we advertise. Garrick Schmitt asks “Is advertising dying?”  It’s certainly fashionable to say so and it has a direct impact on how marketers apply the ‘experience’ to sports, sponsorship and entertainment properties.

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

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

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

It is this identification that professional and amateur leagues in general, and teams in particular, play on (or prey upon). Wakefield points out that a dedicated sports fan has “an enduring involvement with the sport and situational involvement with the event.” A fanatical soccer fan, for example, will have “an ongoing interest or concern with the sport on a day-to-day basis.” That same fan, if dedicated to a particular team, will also watch or attend games, check scores online, follow the team’s star players and buy team merchandise. This is the kind of brand involvement some product brands can only dream about.
Identifying with a particular team brand is a strong fan motivator. “Highly identified fans are likely to Bask In Reflected Glory [BIRG] by doing such things as wearing team-identifying apparel after a team win, describing team wins in terms of what ‘we’ did, and, in general, seeking to enhance their public image by connecting with positive aspects of the team,” Wakefield writes. “The result of BIRGing is enhancing self-esteem in the highly identified fan.” According to Wakefield, the more identified a fan becomes, the higher the level of his or her team involvement.

Incredibly, Wakefield writes, “identification with a sports team seems to shield against the potential consequences of death…evidence suggests that one’s identification and involvement with a sports team in some ways makes the highly identified fan feel immortal.” Now that’s the ultimate in brand loyalty.

There is a hierarchy of sports brand fanaticism. Some fans of a particular sport might identify with a league or association, such as the International Soccer League, the NBA (National Basketball Association) or NASCAR (National Association for Stock Car Auto Racing). Others might identify with different sports under the same umbrella brand, such as the Olympics or the NCAA (National Collegiate Athletic Association). Or fans might be intent on supporting a single team brand, often because of school or hometown affiliation. And then there are the multisport fanatics, supporting several sports, leagues or teams at once. Typically, each of these leagues or teams positions itself as a distinct brand with its own logo, merchandise and marketing program.

This presents a big branding challenge: There are so many sports brands in existence that sports fans in general may be spread thin. In their book, The Elusive Fan, authors Irving Rein, Philip Kotler and Ben Shields say competition among sports brands for market share is increasingly intense because of fragmentation. They believe there are six distinct sports sectors vying for fans’ attention: older sports (such as European soccer and Major League Baseball), reemerging older sports (such as cricket, rugby and golf), school sports (high schools, youth development teams and the like), new sports (extreme sports and paintball, for example), declining older sports (such as boxing and horse racing) and sporting goods (including team merchandise and sports equipment).

That means each sports team needs a multifaceted branding strategy to keep fans loyal. Traditionally, teams hitch their stars to star athletes. But now these brands, say Rein, Kotler and Shields, “must also broaden their star power mix to include facilities, food, teams, places, events, and individuals, such as owners, who have not been a part of the storyline. Star power needs to be redefined to connect with more fans, maximize all the attributes that a sports product has to offer, and ensure a constant flow of sports branding material to convert into star status.”

The authors point to Manchester United as an example of a team that “has been transformed into a highly profitable company and an identifiable global brand.” Manchester United became a megabrand due to developing the best talent, careful attention to managing and growing the business, and an aggressive distribution strategy. Today its arsenal includes branded restaurants, stores, a cable television network, a stadium, the use of new media and unorthodox ways to expand into new markets, such as a marketing partnership with the New York Yankees.

Sports leagues and teams continue to attract and retain sports fans, as well as commercial sponsors, but for the first time in a long time, the sports world is feeling a money pinch. In fact, a recent study indicates that over half of companies surveyed “plan to cut 2009 sponsorship spending, including sponsorship in the sports world, while almost as many are seeking to get out of current deals…” (”Over half of firms to cut sponsorship spend – study,” Reuters, March 10, 2009).

That may be why sports brands are beginning to look for new and novel ways to generate revenue from their fans. For example, the storied New York Yankees, MLB’s most valuable team, just opened a new Yankee Stadium this season. Soon afterward, the Yankees organization announced it would market its own grass: Yankees Sod. “It may cost a few thousand dollars to cover a large backyard, but the sod comes with a certificate of authenticity from Major League Baseball, complete with the counterfeit-proof hologram, declaring it to be the official grass of the New York Yankees” (”Yankees Grass Is Now a Brand,” The New York Times, March 22, 2009).

Barry Silverstein is a freelance writer/marketing consultant and co-author of the McGraw-Hill book, The Breakaway Brand.

www.brandchannel.com