Sponsorship It’s Everywhere!!!!!!
When did it all begin? • 1858- First known event that required paid admission. A baseball game (cost .50 cents). • 1923- Golfer Gene Sarazen signed an endorsement deal with Wilson Sporting Goods that becomes the longest running endorsement deal in the history of sports. It was for $6000 per year plus travel. Lasted until his death in May 1999. • 1925- Goodyear Tire and Rubber Company- builds the Pilgrim, the first blimp to fly over athletic fields. • 1928- Coke partners with the Olympics and remains a sponsor to this day
When did it all begin? • 1939- First televised NFL game. 1000 homes • 1949- First major endorsement by a female. Babe Didrikson Zaharias signs with Wilson Sporting Goods for $100,000 per year • 1951- First live coast to coast broadcast • 1975- first pay-per-view athletic event “Thrilla in Manilla, Ali vs. Frasier. • 1984- The first Olympics to profit for the first time the Olympics is totally privately financed, and shows a profit
Sponsorship Defined • A partnership between a sponsor (business) and a property ( team, league, movie, etc.). • A business sponsors a property to help achieve a variety of goals. • Event triangle- The Event, The Business, The Fans • All three components need each other or sponsorship won’t work.
Growth of Sponsorship • Sponsorship is a foundation based on “Borrowed Equity” • Equity means value • Borrowed because companies are borrowing something from the fans of sports/entertainment • Borrow their loyalty • They will stick with a team through thick and thin • Want good feeling towards the team to rub off on the products company • Its ok for sponsorship to build recognition towards the company but it eventually has to turn into revenue or the value isn’t there.
Factors Contributing to the Growth of Sponsorship • Frustration with Traditional Media • Costs of advertising is up, viewership and ratings are down. • Businesses are growing frustrated with the traditional media • Tradition media (tv, newspapers, radio, etc) is cluttered with ads. Makes it very difficult to stand out • Social Concerns (Cause Marketing) • As concerns over environment, poverty, etc. increase, so does the feeling that these issues should be the concern of businesses. They look for opportunities to tie into causes they feel are important • They are hoping you will too and will be loyal to their brand • Studies have shown that customers are more willing to switch brands in order to purchase products of companies they believe in.
Factors Contributing to the Growth of Sponsorship • Dialogue not Monologue • Instead of companies speaking to us about the product, companies view sponsorship as another means of strengthening their relationships with customers • Higher Consumer Acceptance • Sponsorship has a much more positive acceptance level than other types of advertising (telemarketing, ads in movies or videos). • Without sponsors, customers know that without the sponsors the event may not happen • Sponsorship is viewed as “giving something back”
Why Companies Sponsor • Increase Visibility • Exposure in Media and in Print • Great for publicity: news coverage, signage, human interest stories, press conferences • Association with a particular lifestyle • Buick- Is not necessary to play golf, but the product wants to be associated with that lifestyle • Why? Because golfers match their target market • Business to Business Marketing • Coke and Pepsi “fight” with grocery stores for shelf space • If Coke sponsors a major event they have more bargaining power with the stores for point-of-purchase displays and end-cap space.
Why Companies Sponsor • Distinguish from the Competition • “Category Exclusive Sponsorship” a company locks out the competition and creates the position of being the only sponsor of an event. • Used to entice new customers • Reap benefits- tickets, player appearances, VIP seating. • Bank can make these benefits available to customers • Hospitality and Entertainment • Use the perks of sponsorship to network and build business relations outside business hours • Table at a charity dinner, preferred seating • A huge component – The luxury suite • Can be used for employees and customers
Why Companies Sponsor • Opportunities to Merchandise • Point-of-Purchase Displays with sports tie-ins • Sports and sports related merchandise are viewed and popular and “in demand” • Show off a product or service • Call attention to specific products • A motor oil company sponsors auto racing • Drive Sales • The ultimate goal
Deciding What to Sponsor • Event/Team and Company Image Compatibility • Cadillac sponsoring WWE (???) • Size and scope of the event of a concern • The Audience (target market) • Waste of resources if the people who buy the product aren’t watching • Working with Retailers • Many companies use sponsorships to secure new retail outlets or improve their working relationships with current retailers
Deciding What to Sponsor • Media Impact • Major events get more media attention • No value in media coverage if you are not visible and/or identified as a partner • The more visible the more expensive the sponsorship
Types of Sponsorship • Title Sponsorship- Enables the corporate partner to appear as if they have ownership of the event • Tostito’s Fiesta Bowl • Smucker’s Stars on Ice • Presenting Sponsorship- (The Extreme Games are presented by……) • Title Sponsor or Presenting Sponsor of a section, area, entry, or team • Toys R Us Kids section • Could also be a sponsor of a weekend, day of an even • Could also be a sponsor of an award, trophy, or scholarship: Footlocker MVP award
Types of Sponsorship • Exclusivity • License- Use of logo(s) and trademark(s) in advertising media and sales promotions as well as supporting materials • Can also be merchandising rights- the rights to sell event merchandise, on or off-site • Media Inclusion- Sponsor inclusion in all print, outdoor, and/or broadcast ads • Also on promotional materials (flyers, apparel, etc), ad time during TV event, ad space in program • On-site • Sampling Opportunities to fans, demonstration/display opportunities, coupon distribution
Types of Sponsorship • Signage- Venue signage, pre-event street banners, flags, etc., press conference signage. Can apply to the web as well • Hospitality- Event Tickets (luxury boxes, preferred seating, general admission), VIP tickets/passes (sideline pass, pit passes, press box, etc.)