Sports Sponsorship: Sports Sponsorship: Perspectives, Motives, Perspectives, Motives,
ObjectivesObjectives
What is Sports Sponsorship?What is Sports Sponsorship?
Def.: SponsorshipDef.: SponsorshipWhen a company pays a cash and/or inWhen a company pays a cash and/or in--kind fee to a property kind fee to a property in return for access to the exploitable commercial potential in return for access to the exploitable commercial potential associated with that propertyassociated with that property
Part of Marketing Part of Marketing through through Sport PropertiesSport PropertiesPart of communication strategy Part of communication strategy throughthrough Sport PropertiesSport Properties
Globally: $38 billion spent on corporate sport marketingGlobally: $38 billion spent on corporate sport marketing12% Projected Increase in 2007(North American Companies)12% Projected Increase in 2007(North American Companies)
Outpacing the estimated <4% growth in sales promotion and Outpacing the estimated <4% growth in sales promotion and advertising advertising
Why Sponsorship?Why Sponsorship?
Seller Perspective Seller Perspective Secure broadcast and advertising exposureSecure broadcast and advertising exposureCreatively bundle tickets and advertising Creatively bundle tickets and advertising Enhanced patron experiences Enhanced patron experiences New source of revenue to offset rising costsNew source of revenue to offset rising costs
Pepsi Ten Buck Tuesdays
Why Sponsorship?Why Sponsorship?
Buyer perspectiveBuyer perspectiveUnique positioning opportunity Unique positioning opportunity Cutting through the clutterCutting through the clutterEmotional connection with consumersEmotional connection with consumers
RelevantRelevantExperientialExperiential
Sport appeals to diverse consumer groupsSport appeals to diverse consumer groupsBusinessBusiness--toto--Consumer (BConsumer (B--22--C)C)BusinessBusiness--toto--Business (BBusiness (B--22--B)B)
Optimally, sponsorship represents a Optimally, sponsorship represents a ……““marketing, promotion, & sales solutionmarketing, promotion, & sales solution””
Sponsorship TrendsSponsorship Trends
Sellers are Buying & Buyers are SellingSellers are Buying & Buyers are SellingProperties as sponsorsProperties as sponsorsSecondary marketers Secondary marketers
Creative FinancingCreative FinancingCoCo--ops, Coops, Co--sponsors, & Collaborative Inventorysponsors, & Collaborative Inventory
Industry Maturation = SophisticationIndustry Maturation = SophisticationSponsorship philosophy and policySponsorship philosophy and policy
Sponsorship Philosophy & Sponsorship Philosophy & PolicyPolicy
Results OrientationResults OrientationReturnReturn--onon--investment (ROI)investment (ROI)ReturnReturn--onon--objective (ROO)objective (ROO)
Servicing Servicing Less is MoreLess is More
ActivationActivationEmbedded activationEmbedded activationAdded activationAdded activation
“…“…ROI will almost always go up when the property focuses on activaROI will almost always go up when the property focuses on activation tion because activation is the substance of the relationship.because activation is the substance of the relationship.”” Tony Tony ShillerShiller, , Paragon Paragon MMarketingarketing
Most Important Sponsorship Most Important Sponsorship ObjectivesObjectives
(IEG Sponsor Report, March 12,(IEG Sponsor Report, March 12, 2007)2007)
The FedEx Sponsorship Portfolio The FedEx Sponsorship Portfolio ModelModel
LeadershipR
evenueH
omet
own
Key Targets
Hospitality
Consists of five distinct categories of corporate marketing objectives
Creatively Financing Creatively Financing SponsorshipSponsorship
Multiple year agreements w/escalating rights fees Multiple year agreements w/escalating rights fees Discount fee in exchange for promotional Discount fee in exchange for promotional commitment commitment CoCo--op arrangement w/vendor, supplier, or brand op arrangement w/vendor, supplier, or brand Referral rebates Referral rebates
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Sponsorship ActivationSponsorship Activation
Generating Media Traffic & AwarenessGenerating Media Traffic & AwarenessHospitalityHospitalityCreating OnCreating On--site Programs site Programs
OneOne--onon--one/Hostingone/HostingSamplingSampling
Branded contentBranded contentRetail Campaign ExecutionRetail Campaign ExecutionDevising Internal Sales Devising Internal Sales Tool(sTool(s))
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Optimizing Sport SponsorshipOptimizing Sport Sponsorship
Purpose drivenPurpose driven……not menu drivennot menu drivenMutual benefitMutual benefitStart smallStart small……think bigthink bigIdentify Identify ““hidden treasureshidden treasures””
Practical ChallengesPractical Challenges
Identifying SponsorIdentifying SponsorProspectsProspects
Look For/Demonstrate Audience Look For/Demonstrate Audience Fit/RelevancyFit/Relevancy
Audience ResearchAudience ResearchDemographicsDemographicsPsychographicsPsychographicsSponsor Recognition/RecallSponsor Recognition/RecallLoyalty To/Attitude Toward SponsorsLoyalty To/Attitude Toward SponsorsLoyalty To/Attitude Toward PropertyLoyalty To/Attitude Toward Property
Determine Who To ContactDetermine Who To Contact
Sponsorship/Sports Marketing ManagerSponsorship/Sports Marketing ManagerMarketing/Advertising ManagerMarketing/Advertising ManagerPublic/Community Relations ManagerPublic/Community Relations ManagerBrand Manager/Business Unit ManagerBrand Manager/Business Unit ManagerOwner/PresidentOwner/PresidentAccount Manager at SponsorAccount Manager at Sponsor’’s Agencys AgencyFoundation/Corporate Giving ManagerFoundation/Corporate Giving Manager
Be Street Smart In Generating Be Street Smart In Generating Leads to Sell SponsorshipLeads to Sell Sponsorship
New Product LaunchesNew Product LaunchesClassifieds: WhoClassifieds: Who’’s Hiring?s Hiring?Intros by Current SponsorsIntros by Current SponsorsMarketing/Business Events and Marketing/Business Events and PublicationsPublications
Mine Entire Category At OnceMine Entire Category At Once
Length of decisionLength of decision--making process does making process does not allow for approaching companies one not allow for approaching companies one at a timeat a timeInform prospects that you have also Inform prospects that you have also contacted their competitorscontacted their competitors
Sponsorship Fact:Sponsorship Fact:
Your Profit Is In Your RenewalYour Profit Is In Your RenewalSponsorship Is About More Than Sponsorship Is About More Than BenefitsBenefitsSponsors Renew Based On ServicingSponsors Renew Based On Servicing
Key Takeaways To Focus OnKey Takeaways To Focus On
Provide turnkey activation platformsProvide turnkey activation platformsDefine success in advanceDefine success in advanceEducate your audienceEducate your audienceIncentIncent activationactivationFacilitate crossFacilitate cross--promotionspromotions
PostPost--Fulfillment ReportsFulfillment Reports
After the sponsorship is before the After the sponsorship is before the sponsorship!sponsorship!Must be an ongoing process.Must be an ongoing process.Institutionalize regular meetings with Institutionalize regular meetings with sponsor to discuss recent research and sponsor to discuss recent research and future services.future services.Best renewal tool to your disposal.Best renewal tool to your disposal.
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