Can Sports
Sponsorship
Deliver?
WHITEPAPER
THE INSIDER WHITEPAPER
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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.
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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.
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For more information, visit www.mediacom.com.
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CAN SPORT SPONSORSHIP DELIVER? • SUMMER 2013
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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.
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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
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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.
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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.
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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.
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“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.
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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?
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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.
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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
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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.
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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.
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“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.
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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
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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.
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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.
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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.
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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