The Sports Marketing 360 conference by SportBusiness took place 23 September 2009 at the BT Centre, London. Viewed as a ‘must-attend’, this year around 300 global delegates from brands, media owners, rights-holders and agencies came together to debate the changes and challenges affecting the sports marketing arena.
Braben Sport was the PR partner, here’s a snapshot of what we heard:
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Notes – Top 10 Nuggets
1. The next 48 months offers huge potential for sports marketing and sport has an important role in pulling the country out of the recession.
2. Manchester United is said to have 300 million fans, the same as Disney. Disney monetises every single one of those fans in many different ways – film, DVD, TV, merchandise. Manchester United doesn’t yet. So do the Red Devils have a successful business model?
3. FIFA has a much higher profile than the IOC with the youth market. Why? Because of the videogame, not the sport itself.
4. Advice to all sports rights holders: Don’t sell rights, create benefits for your sponsors.
5. More advice to sports rights holders: Remember, brands have a powerful role to play in marketing the sport for you.
6. A view from a sports rights holder: Sponsorship is about a true partnership – offer unique content, unique opportunities for fans.
7. In defence of sponsorship: There has been much debate this year focusing on the credit crunch, banks and corporate sponsorship which has led to the defence of sponsorship as a valued marketing medium. Does more need to be done?
8. Advice from an Olympian to potential sponsors: understand (and enjoy) the sport, don’t lose faith in an athlete’s performance, training comes first and remember – activate the sponsorship
9. More advice from an Olympian: sponsorship is evolving and it is a platform for doing something good
10. It’s not just brands that benefit. The global nature of sport has seen cities and countries using it to promote themselves on a global scale – Dubai, London, China – this will continue.
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Quotes – A (paraphrased) selection of the best!
Ian Ayre, Commercial Director, Liverpool FC said –
“It’s important for rights-holders to identify exactly what a brand is trying to achieve from a marketing perspective and then tailor the sponsorship proposition around it. The days of straight shirt sponsorship are gone. You cannot go out to market with the same package for everyone. You should be aiming for a true partnership, where your sponsor is an active partner in promoting your brand alongside their own. We are very focussed on continuing to measure and demonstrate value for all of our partners.”
“For the past 17 years we have enjoyed a fantastic relationship with Carlsberg, in the eyes of the fans they are a part of the Liverpool family. But over time, the objectives of both rights-holders and brands change and they sometimes doesn’t fit together the same way they did in the past. After working closely to create a bespoke package, we have signed a new deal with Standard Chartered and we are continuing to talk to Carlsberg about the best way of working together in future.”
“We have recently been planning our Asian tour in conjunction with Carlsberg and Adidas. We have sold all 150,000 tickets directly through pubs and retail stores – so fans have to engage with our sponsors – they can show fans value.”
Mark Evans, CEO, Harlequins FC said –
“Our sponsorships have certainly been tested over the past few months, but the reality is that while all of our sponsors had the opportunity to leave or renegotiate, none of them did, which says a lot about the relationships we have in place and the value they receive through the association with Harlequins.”
Paul Meulendijk, Head of Sponsorship, Mastercard said –
“Sponsorship is not an add-on activity. It is at the heart of [Mastercard’s] strategy. We are rigorous in leveraging it, in driving value out of our involvement. We do it to capture fan enthusiasm, emotion and passion. It is a mass platform for engagement with our audience. In fact, we look for ‘return on engagement.’”
“Rights-holders must listen to the needs and objectives of brands [as opposed to offering a set rights package]. The relationship has to be win:win. Our ‘priceless’ campaign is at the heart of how we market Mastercard. We need rights-holders to help create priceless moments. For example, we have a programme of player escorts, where 22 kids walk out onto the pitch at games – a unique experience.”
Patrick Wendt, Sponsorship & Marketing Manager, Toyota F1 said –
“There has been a lot of turbulence in F1, but looking forward, we have a very positive future. FOTA (the Formula One Teams Association) has been established and for the first time, all of the teams are working together to develop new ideas to add value for our audience and sponsors. Next year we will have 19 races, with South Korea joining for the first time. We will have 13 teams. It is very positive.”
“There are a number of initiatives looking at how we develop F1 as a brand. For example, F1 Rocks will take place for the first time in Singapore and Abu Dhabi. F1 simulators are being made available. We are developing away from the track.”
“Formula One provides a platform for both B2B and B2C engagement. For us, the power of Toyota itself as a brand is attractive to brands – sponsorship of Toyota F1 provides an entry point to the organisation as a whole.”
Paul Samuels, Executive Director – Sponsorship, AEG said –
“There is a definite change in how sports sponsorship is being used. For example, Sky has created its own cycling team in order to ‘take ownership’ of cycling.”
“Your sponsors should be helping you market the sport, it’s to their benefit to do that. For example O2 help the RFU market rugby via ‘Scrum in the Park’.”
“My advice to rights-holders is to be careful taking on sponsors. Look at everything they offer, not just the money. How are they going to help you market the sport – what other channels and assets do they have that can help long-term.”
“I always say to my team that it’s not about securing the sponsor, its always about renewal. From the moment we start working together, I always look to how to create value so that it’s easy to renew.”
Karen Earl, Chairman of the European Sponsorship Association said –
“The ESA view is one of cautious optimism. Sponsorship works. Our research shows that the big sponsorships are working, the middle level ones are struggling and the grassroots ones are expanding as brands seek cheaper options.”
“It is not inevitable that alcohol sponsorship will be banned. Sport is higher up the government agenda than ever before. Withdraw funding and sport as a whole will suffer. If it has to go, we will recommend a period of transition.”
Lucien Boyer, President of Havas Sport & Events said –
“In a recession, sponsorship is the first to be cut – by people that don’t understand its power to inspire and carry a brand. It is a mistake, and brands have quickly realised this – you can already see them spending again.”
“In France alcohol sponsorship has been banned for a long time. When it came in, the government offered subsidies to sports to give them time to find alternative sponsors.”
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For more information: www.sportbusiness.com and www.sportsmarketing360.com.