SPORTS MARKETING

Successful Sponsorships & Benefits

1. WHAT IS SPORTS MARKETING?

2. EXPLOITABLE COMMERCIAL POTENTIAL

3. BENEFITS OF SPORTS MARKETING

4. SUCCESSFUL CONCEPTS

5. RESEARCH AND INDUSTRY DETAILS

6. Q & A

SPORTS + MARKETING = A WINNING COMBINATION

SPORTS MARKETING

• In 2006, $8.94 billion was spent specifically on sports sponsorship in North America, accounting for two thirds of the $13.39 billion total spent on sponsorship as a whole. (IEG Sponsorship Report, 2007)

• Sports sponsorship spending in North America increased by nearly 40% from 2001-2006, and is expected to increase to $13.24 billion by 2011. (IEG Sponsorship Report, 2007)

SPORT SPONSORSHIPS ARE ON THE RISEMore and more companies are turning to sports marketing to interact with consumers

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

$6.40

$6.48

$7.08

$7.67

$8.31

$8.94

$9.90

$10.65

$11.45

$12.31

$13.34

Sports Sponsorship Spending in North America (In Billions)

Source: IEG, Inc., *IEG Sponsorship Report (2001-2006); eMarketer projections (July 2007)

By definition, a sports sponsorship is the relationship between a company seeking to market a brand/service AND a property in which the company pays in return for access to the “exploitable commercial potential” associated with the property.

SPORTS MARKETING

FANS

BRANDING/SIGNAGE

MEDIA

PROMOTIONS

HOSPITALITY

“EXPLOITABLE COMMERCIAL POTENTIAL”

FANS/DEMOGRAPHICS

SPORTS FANS REPRESENT A VALUABLE MARKET SEGMENT AND ARE ENTERTAINED IN A CAPTIVE ENVIRONMENT.

KEY DEMOGRAPHICS*:

• Higher Household Incomes• Men ages 25-59 skew higher in sports• More home owners attend games

*Scarborough Research 2007 Release 1

FANS/DEMOGRAPHICS

62.1%

37.9%

Men Women

High school graduate Some college College graduate Post graduate work or degree

35.8%

30.4%

12.1% 12.0%

33.2%

25.9%

15.4%14.3%

Albuquerque DMA Lobos fans

Per

cen

t o

f p

op

ula

tio

n

$25,000 or more $35,000 or more $50,000 or more $75,000 or more $100,000 or more

100 100 100 100 100102 106112

128

148

Albuquerque DMA Lobos fans

Ind

ex *

18 - 24 25 - 34 35- 44 45 - 54 55 - 64 65 or older

13.5%

17.3% 17.1%

19.2%

15.8%

17.1%

12.9%

10.9%

19.1% 19.5%

18.4%19.2%

Albuquerque DMA Lobos fans

Per

cen

t o

f p

op

ula

tio

n

Source: Scarborough Research, 2008, Release 1

FANS/DEMOGRAPHICS

9.80%

10.50%

11.70%

11.90%

12.90%

15.00%

15.80%

21.90%

35.00%

43.60%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00%

PGA

Fishing

Boxing

Action sports

Figure skating

NASCAR

NBA

MLB

NFL

College sports

WHICH SPORT HAS THE MOST AVID FAN BASE?Percent of U.S. population who say they are “very interested” in specific sports.

Source: Sports Business Journal - Based on a 12-month average, Nov. 2006 - Oct. 2007

BRANDING/SIGNAGE

Marketers turn to sports to develop a heart & mind connection. By leveraging the emotional power of a team, player, sport or event, a sponsor can create a strong tie between his/her brand and the fans.

The frequent appearance of a brand name or logo establishes the company as part of what that team, event, or league represents. This connection is more lasting and valuable than traditional advertising alternatives.

Fans Expect Signage at Sporting Events.

They are more likely to accept your brands.

Locations are strategically placed.

Sizing and design matter.

Placement often ties directly into TV, Newspaper, and digital coverage – further expanding the viewership.

You receive multiple views per person in each game, making it much more effective than passing by on the side of the road.

BRANDING/SIGNAGE

BRANDING/SIGNAGE

MEDIA: DESTINATION PROGRAMMING

On-air coverage of sporting events creates a window of opportunity for marketers. Exclusive destinations for sharing an experience allows the marketer access to a captive audience.

RADIO – TELEVISION – PRINT - ONLINE

A CAPTIVATED AUDIENCE

DESTINATION PROGRAMMING

EXCLUSIVE CONTENT

MEDIA: DESTINATION PROGRAMMING

PROMOTIONS: CREATING INTERACTION

Sometimes, showing a product on a screen, or hearing an ad on the radio is not enough.

Using the mass appeal of a sporting event allows your organization to connect directly to the fan base.

Creating a positive community image at the event goes a long way to build loyalty, converge new users, and establish lasting impressions.

PROMOTIONS: CREATING INTERACTION

INVOLVING FANS BUILDS RETENTION AND BRAND

AWARENESS.

INCREASE FAN ENTERTAINMENT AND

RECEIVE A DEDICATED, AND CAPTIVE, AUDIENCE

ADDITIONAL BENEFITS OF

PROMOTIONS:

1) MEDIA TAGS2) EXTENDED

RECOGNITION3) FOCUSED FAN-

BASE4) TRACKING DATA

(EX: TEXT TO WIN)

HOSPITALITY: ONE-ON-ONE INTERACTION

Corporate hospitality is no longer just about entertaining clients.  It’s about maximizing your return on investment.  According to Sports Business, “It costs five times as much to acquire a new client as it does to keep an existing one.” 

Yet, the majority of brand owners have not even begun to scratch the surface of using hospitality as a way of retaining and motivating clients or their own employees in any meaningful way.

Source: SportsHospitality.com

HOSPITALITY: ONE-ON-ONE INTERACTION

Source: SportsHospitality.com

FIVE KEY’S TO HOSPITALITY:* Choose the right event for the right people

* Ensuring the right mix of guests

* Choosing an appropriate location or venue

* Good and professional organization of the event

* Good quality and quantity of food and drinks

WHY USE HOSPITALITY:* Cement and build relationships

* Thank your customers

* Raise your profile

* Motivate your staff

* Enhance loyalty and retention

* Remind your customers of what you do

FINANCIAL BENEFITS: RELATIONSHIP TO STOCKS

“Using announcements from the five most popular professional “ball and stick” sports in the United States, the results of the study document that official sponsorships were perceived positively by stock market investors…

Specifically, Cornwell, Pruitt, and Van Ness (2001) showed that Indianapolis 500 race-winning sponsors with direct ties to the automotive industry experienced increases in stock prices almost 3 percent higher than the sponsors of unrelated products.”

Source: Journal of the Academy of Marketing Science, 33(4), 401-412

FINANCIAL BENEFITS: BANK OF AMERICA

“…the millions that Bank of America spends on sports sponsorships is an income-generating activity, not a frivolous marketing outlay, say bank officials. For every dollar the bank spends on sponsorships, they say, it brings in $10 in revenue and $3 in earnings.”

Source: Ken Lewis, Bank of America CEO/President in Sports Business Journal, March 2009

FINANCIAL BENEFITS: AAA INSURANCE

“AAA clubs use sponsorship to engage customers and prospects and develop positive feelings about the brand.”

“The club credits its sponsorship and other non-traditional marketing activities with playing a key role in lifting its market penetration from less than 3.5 percent share to roughly 15 percent.”

Source: IEG Sponsorship Report, 8/10/09, Volume 28: Number 15

SPORTS MARKETING: SUMMARY

Creating a common connection through sports with your customers will reveal a lifetime of loyalty and brand recognition.

Incorporating the right mix of branding, media, promotions, and hospitality with your local sports franchise will provide the qualitative and quantitative results to justify your commitment to the sponsorship.

SPORTS MARKETING

QUESTIONS?