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.

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

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

Ron Dennis, the executive chairman of McLaren Automotive, has also withdrawn from the sport in a thinly-veiled attempt to placate the FIA, with whom he has had a difficult relationship. However, the FIA are continuing to investigate the chain of events that led to Hamilton issuing an emotional apology to the world in Sepang three weeks ago.

A source close to one of McLaren’s key sponsors said: “I can say that if a disproportionately large penalty were given to McLaren on April 29 then the sponsor that I am associated with might leave. But the punishment must fit the crime. If there is an irrefutable case of corporate deception then fair enough.

“I think we all know the subtext here; the FIA wanted to oust Ron Dennis. I believe the governing body have allowed this situation to escalate and it is doing no one any good – not McLaren, not the FIA and certainly not the sport. Apart from anything else, it is dissuading other potential sponsors from entering Formula One.”

A two-race suspension similar to the one handed to BAR in 2005 could mean McLaren being ruled out of the Barcelona and Monaco grands prix. Spain is a key market for Banco de Santander, one of McLaren-Mercedes’ major sponsors, while Monaco is the most important race of the season from a sponsor’s perspective. A four-race suspension would include the British Grand Prix at Silverstone on June 21.

If McLaren are found guilty under Article 151c, it would be the second time in three years that they have been found guilty of bringing the sport into disrepute. The last time they were up before the world council, over the Ferrari-Spygate affair in 2007, they were handed a $100 million fine, the largest in sporting history.

If 151c was deemed to have been breached again, clauses in the contracts of the team’s major sponsors, such as Vodafone and Diageo, which owns the Johnnie Walker whisky label, would allow them to walk away from McLaren, leaving one of the sport’s largest teams without full financial backing during a worldwide recession.

It is understood that Vodafone’s 10-year deal with McLaren-Mercedes, signed in 2007 and with an opt-out clause after five years, is worth $800 million. Diageo’s deal is believed to be worth $45 million per year. Exxon Mobil and Banco de Santander are the team’s other major sponsors.

At jeopardy would be more than 1,000 jobs. McLaren Racing comprises roughly 600 employees, while many of the McLaren Group’s other departments, such as marketing and sponsorship acquisition, depend on the F1 operation to survive.

McLaren Automotive, which Dennis is to splinter off from the main McLaren Group, comprises another 500 employees and would also be placed in serious jeopardy if its major advertising platform was wound up.

As the likes of GM struggle to survive, execs at Kia, which is 39% owned by Hyundai, are upbeat about their chances for 2009. “The current economic crisis is a once-in-a-century opportunity for us to expand our presence,” Lee declares. “The focus this year will be gaining bigger market share.” www.businessweek.com

“We view this recession period as an opportunity. For example – we have a big opportunity in Australia because NEC, Philips and others have pulled out. In sports marketing we have the Formula 1 sponsorship that includes Melbourne. Formula 1 pursues technological innovation and stylish design. The image that we are trying to build is a perfect match with what Formula 1 is trying to achieve. Formula 1 suits our image and brand objectives. Our sponsorship renewal with the International Cricket Council will include Australia. The global sponsorship is for all ICC events over the next seven years. Events for this year include the Women’s World Cup Finals, World Cup qualifier and Twenty20 World Cup. Most of our competitors have been cutting, but we’ve been increasing. Research and development and brand building are two of our most important areas and we will not stop.”

TV and internet now far outstrip other media at peak viewing times, and twice as many sports fans watch video via mobile compared with the average mobile user (12% vs. 6%). The ‘Sport and the Shift to Interactive Media’ Reportshows just how much sport affects media consumption.

Over a third (36%) of all European internet users visit sports websites and these sports site users spend over 13 hours online each week, 10% more time than the average European and an increase of 27% since 2004.

Brands need to work out how best to reach and interact with this sports-driven audience as it develops and it is vital that marketers create strategies to take advantage of the media opportunities surrounding key sporting events. sb:mktg has been at the forefront of utilising emerging technology to engage with fans through their ‘brand-to-fan’ initiatives – using SMS and Screenza technologies with brands including NASCAR.com, Manchester United and Texaco.

Watching sports online via video is proving a primary draw. According to EIAA data, nearly 40% of sports site users watch TV, film or video clips online, much more so than the average European internet user (39% vs. 30%). This activity has grown in popularity amongst sports site users by 144% since 2006. ComScore figures also show that from January to December 2007, time spent on sites with video streaming and downloads has increased by 72%, from 53 to 91 minutes. In March 2008 alone, nearly 154 million people visited these sites, an increase of 22% when compared to the same month in 2007. From January to December 2007 an average of 76 million Europeans visited sports sites each month.

EIAA research shows that from 5.30-9pm 73% of sports site users watch television and 68% use the internet, making them by far the most used media during this peak consumption time. The internet is also proving a medium for round-the-clock consumption and with 87% of sports site users having broadband, presenting high-impact opportunities for marketers to target this audience as they look to follow the action in real-time online.

The need for information and updates on the go is highlighted by the fact that 93% of sports site users own a mobile/PDA/Blackberry (83% of Europeans) and are heavy users of mobile internet. Interestingly, they are twice as likely as the average European mobile/PDA/Blackberry user to watch video/film clips via their mobile (12% vs. 6%).

Additionally, almost half (48%) of all sports site users communicate via social networking sites.

Ultimately, sports site users are more engaged and receptive than the average internet user – sports fans have positive attitudes to online advertising with 57% rating internet advertising high on creativity, compared to 51% of all European internet users and 71% of sports site users find that the internet provides them with what they want quickly. Alison Fennah, Executive Director of the EIAA says, “With a definite correlation between the increase of users of sports sites, sports fans are becoming a targeted demographic. Looking at their online habits and activities, sport site users are likely to increasingly move their sports consumption online partly due to its ease of use and accessibility, and but also its real-time availability and technological capabilities. Ultimately this highlights how marketers can target and benefit from this captive and engaged audience online. Marketers must look to tap into this trend and media mindset when creating and developing their advertising campaigns.”

The study involved 7,008 random telephone interviews with over 1,000 respondents in the UK, Germany, France, Spain, Italy and the Nordics respectively and 500 respondents in Belgium and the Netherlands respectively. www.eiaa.net

General Motors Corp., MasterCard Inc. and Anheuser-Busch InBev NV are among the companies that are trimming sports sponsorships to curb costs although sports will still account for 68 percent of the $17 billion North American sponsorship market. GM’s Buick division ended its deal with golfer Tiger Woods one year early and Caterpillar Inc., Sprint Nextel Corp. and Home Depot Inc. were among the companies that have announced at least 72,500 job cuts because of a worldwide recession which impacts on their moral and commercial decisions regarding NASCAR sponsorships for 09. www.bloomberg.com