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.