Can Sports Sponsorship Deliver?
Transcription
Can Sports Sponsorship Deliver?
Can Sports Sponsorship Deliver? WHITEPAPER THE INSIDER WHITEPAPER ABOUT THE INSIDER This whitepaper is part of MediaCom’s The Insider programme. The Insider helps advertisers understand and sort the latest global marketing topics and trends. To receive the latest updates, sign up at www.mediacom.com or scan this QR code: You can also stay up to date through our social media channels: Facebook.com/MediaComGlobalNews and @MediaComGlobal on Twitter. Let us know what you think. MEDIACOM MediaCom is one of the world’s largest Media Communication Specialists, with billings exceeding US $25 billion (Source: RECMA) and 113 offices in 89 countries around the globe. Our “People first, better results” philosophy drives our strategy and reflects our belief that putting People – employees, clients and consumers – at the core of our business leads to optimum business results. The MediaCom family of companies includes such leaders in their fields as: MediaCom Interaction, our global digital and interactive marketing agency, with future-forward proprietary technology that works to grow clients’ businesses; MediaCom Response, our direct engagement experts, creating close, measured connections with consumers; MediaCom Beyond Advertising, content specialists, helping to reach consumers with communications they welcome and value; MediaCom Sport, specialist sports sponsorship and strategy team delivering solutions to drive business growth; and MediaCom Business Science, focused on helping clients achieve maximum sales return. MediaCom Worldwide is a member of WPP, the world’s largest marketing communications services group, and is a part of GroupM, WPP’s media agency group which is the largest worldwide. For more information, visit www.mediacom.com. 2 CAN SPORT SPONSORSHIP DELIVER? • SUMMER 2013 3 THE INSIDER WHITEPAPER EINLEITUNG Sponsoring wirkt! Wo? Wie? Warum? Kaum ein Thema ist milieu-, generations- und länderübergreifend emotional so aufgeladen wie Sport. Es steht für „Impact und Passion“ – also genau jene Zutaten, die für einen wesentlichen Teil von Marken essentiell sind. Die große Herausforderung für die gesamte Branche ist dabei, das harmonische Zusammenspiel aller Disziplinen sicherzustellen. Vom Rechteinhaber, den Sponsoren, den beratenden Agenturen bis hin zu den vielen möglichen Aktivierungs- und Medienkanälen. Es gilt für alle Partner, die Inhalte und Botschaften zu einer für die Konsumenten relevanten ‚Story‘ medienübergreifend bestmöglich zu erzählen. Relevante Inhalte sind dabei das Fundament für Sichtbarkeit und Reichweite. Engagement und der Dialog zwischen Marken und Fans wird die Wirkung des Sponsorings in den nächsten Jahren bestimmen: Es geht um die emotionale Bindung von Konsumenten zu ihren Marken. Lange Jahre wurde Sponsoring als „Spielwiese“ des Vorstands belächelt. Heute gilt das nur noch in den seltensten Fällen. Effizienzsteigerung, Budgetoptimierung und Zielerreichung stehen klar im Fokus. Die teils riesigen Investments für den Erwerb von Sponsoringrechten und in die Marken- und Produktkommunikation müssen bestmögliche Wirkung beim Konsumenten erzielen. Die Basis dafür ist eine intelligente und effektive Umsetzung von integrierten Strategien. Es gilt tiefgreifende Insights über Konsumenten und Märkte, umfassende Medien- und Produktkenntnisse sowie Spezialistenwissen optimal miteinander zu verzahnen. Über Abteilungen hinweg, mit verschiedenen Agenturen und unterschiedlichen Playern an Bord. Eine komplexe und spannende Aufgabe! Sportsponsoring stößt dabei oft auf längst überholte Vorurteile, die eine Verzahnung erschweren oder gar verhindern. Dabei war Sponsoring noch nie so leistungsstark und relevant wie heute. In diesem MediaCom Whitepaper „Can Sports Sponsorship Deliver?“ beschäftigen wir uns mit dem „Wie“ und widerlegen eben diese althergebrachten Vorbehalte rund um Sportsponsoring. „Bei Sportsponsoring geht es um Awareness - nicht um die Wirkungsleistung“ oder „Sportsponsoring ist sehr teuer – und funktioniert nur für große Weltmarken“ sind zwei dieser bekannten Vorurteile. Lesen Sie auf den folgenden Seiten, welche Möglichkeiten Sie als Werbungtreibender haben, um Ihre Marke mit der Emotionalität von Sport gewinnbringend aufzuladen. Denn in der Praxis zeigt sich: Die Disziplin wandelt sich derzeit rasant. So zeichnet sich der Trend ab, dass klassische Standardpakete mit Trikotund Bandenwerbung als Stand-Alone-Lösung stärker hinterfragt werden. Rechteinhaber müssen kreativer und interaktiver mit ihren Marken agieren, damit Sportmarketing als gewichtiger Teil von integrierten Kommunikationslösungen weiter an Bedeutung gewinnt. 4 CAN SPORT SPONSORSHIP DELIVER? • SUMMER 2013 Vor diesem Hintergrund ist MediaCom Beyond Advertising und hier die Gründung von MediaCom Sport zu sehen. Die Division ermöglicht neue Perspektiven im Zusammenspiel von Sport, Marken und Medien. Wir freuen uns, wenn wir in Zukunft auch Sie und Ihre Marken bei diesem Zusammenspiel unterstützen dürfen, wünschen Ihnen eine spannende Lektüre und schließen dieses Vorwort mit einem sportlichen Zitat der Fußball-Legende Pelé: „Sport und Business funktionieren nach den gleichen Regeln: Erstens, man muss seine Mitmenschen respektieren. Zweitens, gehe niemals davon aus, dass Du der Beste bist. Wenn Du das denkst, fängst Du an zu verlieren. Das gilt für jede Situation und jeden Beruf.“! Oder ganz einfach: ‚People first, better results.‘ Ihr Paul Remitz CEO MediaCom Deutschland Paul.Remitz@mediacom.de 5 THE INSIDER WHITEPAPER Executive summary Sports sponsorship has never been more powerful or more effective. At a time when many traditional ways of communicating with consumers are reaching fewer people, or failing to cut through, sport and entertainment has become increasingly central to all our lives. Despite the obvious opportunity, however, many brands still shy away from sports sponsorship. This caution is due to the numerous myths that surround the subject, including: • Sponsorships can’t be measured •A mbush marketing is separate from formal sponsorships and adds little value • Sports sponsorships only work for big, big brands. This whitepaper will demolish these myths… one at a time. 6 CAN SPORT SPONSORSHIP DELIVER? • SUMMER 2013 Introduction: SIX MYTHS ABOUT SPORTS SPONSORSHIP Objections to sponsorship typically fall into six broad categories. We call them the “six myths of sports sponsorship”: Myth 1. Sports sponsorship is about awareness, not business performance. Myth 2.Sports sponsorship is vanity marketing and does not deliver measurable ROI versus traditional media advertising. Myth 3.Why pay for the sports sponsorship rights when innovative ambush marketing can generate attention? Myth 4. Sports sponsorship exposes my brand to reputational risk. Myth 5. Sports sponsorship only works in a small number of brand categories. Myth 6. Sports sponsorship is expensive and can only work for big global brands. 7 THE INSIDER WHITEPAPER Six myths about sports sponsorship continued Myth 1: Sports sponsorship is simply about awareness, not business performance. The perception that sponsorship delivers only brand exposure is inaccurate. Successful sports sponsorships are based on a deep understanding of a brand’s audience and objectives, in addition to a view that a sponsorship is part of the overall marketing effort. For Coca-Cola, for example, the results of this process have produced a series of World Cup sponsorship integrations that focus not on awareness – after all, everyone knows Coke – but consumer engagement, fan loyalty and maintaining market share. The brand’s sponsorship strategy and activation initiatives focuses on delivering valuable fan experiences that enhance peoples’ enjoyment of their favourite sports. The sponsorship has become a product that delivers a powerful service benefit and – by extension – a precious halo effect for Coke. The benefits of sports sponsorships may also be internal, not just external. In the business service category, consultancy Deloitte worked with ParalympicsGB to reach 12 million registered disabled people in UK whilst engaging its own employees in the campaign. Research found that 95% of company staff was proud of the company’s support of disability sport, with more than 2,500 staff volunteering substantial time and effort to support disability sport across 18 regional offices. 8 “You can’t manufacture emotion. It’s already there. When you find it – just find a way to trigger it; tap into it; fuel it; and watch it grow into something remarkable.” Mark Harrison, Chair of the Canadian Sponsorship Forum CAN SPORT SPONSORSHIP DELIVER? • SUMMER 2013 Six myths about sports sponsorship continued Delivering results for the bottom line Fortunately, brands such as GE and Procter & Gamble (P&G) are willing to disclose their objectives and show us their paths to success. P&G reports that the last two Olympic Games have contributed significantly to revenue, with the Olympics in Vancouver 2010 adding $100m and London 2012 adding a projected $500m in increased sales; GE attributes $1bn in revenue over the last seven years to its decision to become a top-level Olympic sponsor in 2005. Every business will have its own critical KPIs, and these should be used to measure the success of sports sponsorship. Audi’s sponsorship of the US Ski Team during the Vancouver 2010 Winter Olympic Games ultimately drove a 30% increase in customer queries and a 34% increase in sales during the Olympic period: both goals targeted and planned for in advance. Key to Audi’s success was its use of unique content that told the moving personal stories of the athletes. The content was distributed both online and via an NBC broadcast. Another good example of successful activation is power- and gas company E.ON’s FA Cup sponsorship in the UK. The company attributes 138,000 new customers for its home energy business between 2008 and 2010 due to its association with the world’s oldest football competition. 9 THE INSIDER WHITEPAPER Six myths about sports sponsorship continued Myth 2: Sports sponsorship is vanity marketing and does not deliver measurable ROI versus traditional media advertising This myth stems from the fact that most sponsorship deals used to be signed by the head office based on personal preferences, and then may fail to ignite consumers or win significant returns. Today, sponsorship is measured and increasingly perceived as a tool to drive business growth. The transition in senior marketing thinking is perhaps best illustrated by this quote from David Wheldon, the former Global Director of Brand at Vodafone Group, now Head of Brand, Reputation and Citizenship at Barclays Group (both of which have invested heavily in sponsorship properties): “I certainly spent all of the 1980s thinking sponsorship was a waste of money, a chairman’s indulgence not capable of driving brand engagement, brand equity or all the things that I now know sponsorship to do very powerfully. I’m a total convert to sponsorship as a marketing platform” (WARC, April 2010). Sponsorship may also be linked to parts of a business that may be less visible to the public. Atos Origin, for example, has used Olympic sponsorship to successfully showcase its B2B infrastructure capabilities to prospective clients and business partners. What client wouldn’t be impressed when a potential partner shows how it successfully managed one of the world’s biggest communication challenges, integrating the contributions of all technology partners and suppliers to deliver seamless and instant communications to athletes, spectators, organisers, officials, media, TV viewers and internet users worldwide? 10 CAN SPORT SPONSORSHIP DELIVER? • SUMMER 2013 Six myths about sports sponsorship continued Rising investment and smarter management Investment in sponsorship is on the rise, and has consistently outpaced growth in traditional advertising during the last decade. Diagram 2: Advertising spending on sponsorship and in general, 2003 - 2011. 41% 88% 37.9 43 44.1 46.2 49 2007 2008 2009 2010 20 11 33.7 2003 US$ billion 2006 483.222 20 11 30.5 459.654 2010 27.9 435.500 2009 2004 466.142 2008 26 457.554 2007 2003 434.285 402.621 2005 2006 375.844 2004 342.697 US$ billion 2005 Global Sponsorship Spend Global Marketing Spend Source: GroupM – This Year, Next Year In the same period, data from GroupM, Kantar Media and IEG shows that investment in sponsorship has risen by 88%. A typical mistake is to invest in rights and then allocate no budget to activation. This is often the main reason that sponsorships do not deliver a positive ROI. It’s only a rough rule of thumb, but brands should budget at least as much for activation as for acquiring rights. It doesn’t all have to be new money, though, as integration often means using existing budgets to maximise return. 11 THE INSIDER WHITEPAPER Six myths about sports sponsorship continued Brands that recognise the need to back sponsorship with activation can demonstrate impressive success. Mobile service provider O2’s success is a well-referenced benchmark, as its sponsorship investment is a central part of its marketing communications to existing and new customers. Naming rights at the O2 Arena in London, UK – formerly the Millennium Dome – allow O2 to produce high-profile events, unique customer assets and consumer content that all work together to maximise the attractiveness of its service. Return on investment is estimated at 14.5, with the deal expected to ultimately deliver £639m in additional profit. Diagram 3: The Strategic Sponsorship Process MAXIMIZE ROI DRIVE BUSINESS 1 6 IDENTIFICATION OF BUSINESS OBJECTIVES 2 CONFIRMATION OF TARGET AUDIENCE 3 DEFINITION OF SPONSORSHIP OBJECTIVES PLAN DEVELOPMENT 5 ASSESSMENT 9 MEASUREMENT MISTAKE TO START HERE 7 AQCUISITION 8 ACTIVATION 4 INTEGRATION WITH MEDIA CAMPAIGN The proper input to the strategic sponsorship process is aligned business and sponsorship objectives. Source: MediaCom Sport 12 CAN SPORT SPONSORSHIP DELIVER? • SUMMER 2013 Six myths about sports sponsorship continued Myth 3: Why pay for the sports sponsorship rights when innovative ambush marketing can generate attention? Ambush marketing tactics are proliferating and can be executed quickly. At the 2012 European Football Championship, betting brand Paddy Power paid Denmark’s Nicklas Bendtner to wear boxer shorts bearing its brand, and he duly revealed them after scoring a goal. Analysis of the event by MediaCom Denmark valued this stunt at £10m, but when it was done, it was done. By contrast, official sponsors secure a range of marketing assets to be exploited over a longer period of time, which – if successfully activated – can produce far more engaged advocates for the brand. Official sponsorship assets are also exclusive, and many deals come with clutter-free opportunities to make connections when everyone else is yelling. Official sponsorships can also generate assets that can be extended to trade partners, employee incentive schemes, product integration, joint commercial initiatives, consumer trial and experiential initiatives, just to name a few additional applications. “Consumers are spending about eight minutes per visit on average on “How Olympic Are You?”. That is double the time they spend on ordinary Samsung sites.” Ralph Santana CMO, North America, Samsung Consumers support sponsors Such exclusive sponsorship assets and opportunities can also develop business in ways that are unique. Consumers are generally aware that official sponsors contribute to the events or sports they love, and research from TGI Europa shows that sports fans have a more positive perception of event sponsors. That’s often because – for consumers – it’s not about the money: it’s about contributing to true fan experiences that enhance the overall enjoyment and visibility of events over time. Where rival brands do manage to create credible associations with events, it can often be because of a lack of creativity by the official sponsor. One of the cleverest pieces of product placement at the Olympics 2012 was the gift of bespoke, flag-branded headphones from Beats by Dr. Dre to athletes. These distinctive headphones were particularly noticeable at the swimming where athletes often listen to music before each race. The fact that Beats by Dr. Dre was able to create such an impact was because the official electronics supplier to the games, Panasonic, didn’t spot the opportunity. 13 THE INSIDER WHITEPAPER Six myths about sports sponsorship continued Myth 4: Sports sponsorship exposes my brand to reputational risk Marketing exposes brands to reputational risk – including false claims, banned adverts and negative social media reaction – and sports sponsorship is no exception. There are ways of mitigating those risks, though, and remember too that contracts today come with a host of protection clauses. The best way to approach the challenge is to consider the most common properties: endorsements by individual athletes, supporting specific teams and official sponsorship of events. Each brings with it powerful benefits. Studies have shown that individual endorsements deliver significant value for brands. “The Economic Value of Celebrity Endorsements” by Anita Elberse and Jeroen Verleun found that (quote) “signing the kinds of endorsers featured in this study – which included brands ranging from bottled water and chewing gum through to cameras and cosmetics – on average generates a 4% increase in sales – which corresponds with around $10 million in additional sales annually – and nearly a 0.25% increase in stock returns”. Of course individuals are fallible (paging Tiger Woods and Lance Armstrong…), so while supporting an individual can be a cheaper option, it may also put all of a brand’s eggs in one basket. During the build-up to the 1992 Games in Barcelona, Reebok invested heavily in a US campaign touting two US decathlon athletes, “Dan vs. Dave”. Unfortunately, Dave didn’t qualify, although Dan did pick up the bronze. Risks can be managed if a brand has a smart strategy. Nike used Tiger Woods, for example, to launch an entirely new product line, and so was able to compartmentalize the short-term storm around his infidelity. The brand has been confident enough to sign a new deal reported to be worth more than $100m with Rory McIlroy, a contender for Tiger’s mantle as the must-watch name in the sport. 14 “Communities play an integral role in our business of helping people to progress in life. This is why Allianz is heavily involved in sport sponsorship around the world. We are involved in a number of sport sponsorships, all of which have their own purpose and place in our brand portfolio.” Christian Deuringer, Global Head of Brand Management at Allianz SE CAN SPORT SPONSORSHIP DELIVER? • SUMMER 2013 Six myths about sports sponsorship continued Pele, the enduring legend MediaCom has entered into a representation agreement with Pelé at a time when Brazil will have the world’s attention at the FIFA 2014 World Cup and the 2016 Rio Olympics. While these events are important, Pelé and other iconic athletes attract significant year-round attention and can remain an evergreen focal point for consumers and the media. Many brands will also use athlete endorsement as an activation mechanism to help give the message behind their event sponsorships more credibility and authority. This was readily seen at the London Olympics 2012 with David Beckham’s endorsement of Samsung and P&G’s “family” of athletes, including Sir Chris Hoy and Mark Cavendish. What’s key is that – whether a brand sponsors an individual, a team, an event or all three – there is no one size fits all solution. And the risk of sponsorship has not been shown to be any more significant than the risk of using other advertising channels. 15 THE INSIDER WHITEPAPER Six myths about sports sponsorship continued Myth 5: Sports sponsorship only works for a small number of product categories Sport sponsorship has traditionally been associated with categories such as sports apparel, finance, automobiles, alcohol and – in recent years – telecomm and insurance. Look at the list of official sponsors for any big global sporting event, however, and you’ll see a number of new product categories emerging. Infrastructure, technology and software companies, for example, are increasingly leveraging the roles they play in operating sports events into above the line sponsorships. Diagram 4: The Worldwide TOP Partners, IOC. FMCG ELECTRONICS LUXURY INFRASTRUCTURE Coca-Cola P&G McDonald’s Samsung Panasonic Omega Acer Atos DOW GE Visa Source: http://www.olympic.org/sponsors 16 CAN SPORT SPONSORSHIP DELIVER? • SUMMER 2013 Six myths about sports sponsorship continued Utilities are also investing heavily, with British Gas supporting swimming in the UK, Npower taking on football, EDF backing London 2012, Iberdrola tackling Spanish football and international sailing and, most recently, Russia’s Gazprom sponsoring the UEFA Champions League. Airlines, too, have gotten in on the act, with Emirates taking up naming rights for Arsenal’s new stadium in North London and Etihad using the same strategy at Manchester City. Even tech companies have not resisted the lure of sport. In the UK, augmented reality app Aurasma has used its sponsorship of the football club Tottenham Hotspur to enable fans to access a range of unique content delivered via technology. And like infrastructure companies, technology plays a vital role in sport, paving the way for Microsoft (British & Irish Lions Rugby Team), SAP (World Sailing Series), IBM (Grandslam Tennis & Golf events), HP (Basketball), Acer and Samsung (The Olympics) to all make large investments. Sponsorship can also be an important tool when entering new markets. Korean construction firm Doosan is expanding into the western European market and has used golf’s Open Championship to develop business interests, recognition and credibility with a key business audience. In this case, strong Korean and Asian interest in golf means the association will also reap rewards back in its home markets. Lastly, sponsorship can be executed using a CSR strategy to build grassroots relationships. In the UK, retailer Sainsbury’s has extended its sponsorship of the Paralympic Team GB to the next Olympics, with a further £1m commitment to disabled sport. To quote Sainsbury’s CEO Justin King: “The sponsorship delivers a positive difference to community and the chance to have a different conversation with customers.” All brands in all categories can find an appropriate event, team or sporting icon: it’s just a question of researching the opportunity, understanding your strategy for business growth and considering sponsorship to be a mechanism for connecting with a target audience. 17 THE INSIDER WHITEPAPER Six myths about sports sponsorship continued Myth 6: Sports sponsorship is expensive and can only work for big global brands It’s certainly true that some sponsorships are expensive. IOC tie-ups and FIFA World Cup deals start at $100m, Manchester United’s most recent shirt sponsorship deal cost $600m and Nissan has paid $250m to be the official automobile brand at the 2016 Rio Olympics. These brands are paying for a global property that will reach huge audiences. At a more local level, sponsorships can require a much smaller investment. A €4m investment with UEFA for the Europa League sponsorship, for example, guarantees a regional media and marketing platform that reaches prime-time evening TV audiences for nearly 10 months. Likewise, a $1M sponsorship of Golf’s Asian Tour Order of Merit provides a brand with virtually week-by-week TV coverage and continuous yearround online coverage across most of the region. By being creative, brands can also create new, extremely costeffective opportunities. Danish sports and leisure brand Hummel has developed a series of unlikely deals with the Tibetan Football Team and the Afghanistan Women’s National Football Team, alongside more conventional deals with Sierra Leone, Lithuania and clubs across Europe. Rather than trying to compete with Nike and Adidas, Hummel created its own singular niche. Most potential sport investments offer a range of sponsorship options. Whether you are the worldwide partner for a major football tournament or a supplier-level sponsor for a local professional golf tournament, the resulting rights can help build a message and reinforce a positive brand positioning. 18 CAN SPORT SPONSORSHIP DELIVER? • SUMMER 2013 Actions for advertisers In the end, there is huge potential in sports sponsorship for nearly all brands. Here are 10 steps to guide you to sports sponsorship success: 1. D o the proper due diligence. As with any marketing campaign, brands must identify their key objectives and the key measures that will determine whether what they do is successful. Finding the right sponsorship and then activating it successfully requires brands to truly understand the consumer and what motivates them. 2. Make sure any sponsorship is integrated into an overall marketing plan. This will help ensure that the effort is executed effectively, with support from all key internal stakeholders. 3. I dentify what matters most. Having a clear idea of what’s most important will help you negotiate a better deal at the outset. 4. Budget for activation. Negotiating the sponsorship is just the start: as with any marketing effort, you must plan, budget and resource on the ground. 5. Extend the reach of your message. Identify all potential messaging platforms, including packaging, internal communications and partner relations, as well as digital and traditional media. 6. Content is key. A sponsor must build and disseminate timely, relevant, educational and engaging stories. It’s vital that your consumers have something to care about. 7. M anage the conversation. Timely content produces social currency, but brands must actively manage what’s being said on social media in real time, and provide evidence of a positive contribution if sentiment turns negative. 8. S how your passion. Sport is a consumer passion centre: genuine involvement can show that you care as much as the fans. 9. Create great experiences. Value-added experiences and activation initiatives, combined with integrated media campaigns, drive volume and sentiment 10. Stay relevant. Understanding and taking part in the key conversations of the moment can often be an effective way to reach engaged consumers. 19 THE INSIDER WHITEPAPER 20 CAN SPORT SPONSORSHIP DELIVER? • SUMMER 2013 21 ABOUT MEDIACOM SPORT MediaCom Sport offers four key areas of services: strategic advice, rights negotiation, rights activation and measurement. Together with MediaCom’s Global Account Directors, we manage relationships with key sporting bodies and provide clients with first-hand access to opportunities that can help them meet today’s complex marketing challenges. IF YOU WOULD LIKE TO RECEIVE MORE INFORMATION ON SPORTS SPONSORSHIP, PLEASE CONTACT: Paul Remitz CEO MediaCom Germany Email: Paul.Remitz@mediacom.de Markus Jaisle Director MediaCom Sport Email: Markus.Jaisle@mediacom.de MediaCom Agentur für Media-Beratung GmbH Derendorfer Allee 10, 40476 Düsseldorf, Germany www.mediacom.de