In early 2009, we were projecting huge decreases in sponsorship spending because of the economic crisis our country was facing. We were wrong. We discovered companies were cutting back on hospitality, season tickets, and advertising, but our sponsorship revenue continued to grow.
Why do companies continue to invest more in sport sponsorships when advertising and marketing budgets have shrunk?
The 2012 Consumer Electronics Show (CES) is upon us again, reminding us of how important technology and communication are to our business. One of the key points of discussion at CES this year is expected to be device interconnectivity. By 2015, the average household is expected to have 15 devices that will all be interconnected—from tablets, to televisions, to dishwashers—our lives are seemingly destined to be controlled by some sort of "technology command center" on our coffee tables. No doubt, the Jetsons are becoming a reality right before our eyes. The question obviously follows for those of us who make our livings in the sports business world...if homes are going to have this type of interconnectivity, why can't our stadiums and ballparks?
When recently structuring what would become the largest deal in the history of the NBA Development League, it is important to focus on the three things that formulated this deal. We would not have discovered these three things if it were not for one important ingredient. That ingredient is listening. This is the most important ingredient to any deal and partnership that is being developed. The key to any deal and any relationship is to listen to what your partner is telling you.
It’s easy to become enamored by the assets of a sponsorship property. Their marks have a certain luster, the digital signage really “pops” and those thousands of Facebook and Twitter followers offer incredible potential.
It’s all nearly hypnotic. But before you start falling into a deep, deep sleep, wake up and remember it’s not about the assets. Sponsorships are about outcomes.
There is a litany of important outcomes we could highlight, but three are especially relevant to a brand’s overall sponsorship success:
1. Connect to emotion,
2. Deliver meaningfully engagement, and
3. Create distinction.
Brands Require Better Data to Make a Sponsorship Decision
Companies spent an estimated $12 billion for all sports sponsorship deals in 2010, according to IEG. That was an increase from 2009 and a trend expected to continue this year. Leading brands now invest an average of $15 million in sports sponsorships annually.
As spending increases, so does the desire for more detailed data.
James Emmett, features editor of London-based Sports Pro magazine, contends that 90 percent of the time, knowing how a sports property ranks with a specific demographic is "absolutely crucial" to a potential sponsor.
Brand executives now view sports marketing as an integrated function of the company’s overall marketing plan. They want specifics about who they will reach through a particular venue and who will be most impacted by messaging as it appears in a particular property.
For those of us on the business side of the sports world, we know there is one thing that we have absolutely no control over: The play on the court (or field, ice, pitch, etc.). What we do have control over is how we prepare for, and take advantage of, the opportunities when our team is winning.
After my first two regular seasons working at the NBA level, we were focused more on ping-pong balls than playoff games. I can definitely state that it’s a great transition to be selling for a team that isn’t worried about the results of the draft lottery. On top of that, factor in our franchise relocation, and being able to sell a winner equals an incredible opportunity.
by Kern Egan, Principal, Richards Sports + Entertainment
As sports marketers, we easily focus on the sports part of our jobs and overlook the marketing aspect. This often can lead to misguided strategy and inefficient activation tactics that don’t give partnerships a chance to succeed. What we must remember as sports marketers is that marketing is the most important function of our jobs, and sports is the platform we use to execute programs or partnerships to reach our clients’ objectives.
Jersey sponsorships. What once was unthinkable is now inevitable. It’s commonplace in England’s Barclay’s Premier League (EPL) and, perhaps predictably, Major League Soccer is at the forefront of the movement in the U.S.
“Imagination is more powerful than knowledge.” Albert Einstein
My friend Tim DeLaughter, lead singer for Polyphonic Spree, is one of the most creative people I’ve ever met. Not too long ago we were talking about providing inspiration and encouragement to the dreams of those we are blessed to lead. Tim shared with me his thoughts on how creativity is so often stolen from us early on.
We’ve all been there. We claim every possible sales lead, with the best of intentions. We see a hot new potential sponsor and intend to call them right away, introducing them to the wonders of sports marketing. Before we realize it, we can’t even remember why they’re on our sales lists.
