Archive for the ‘Sponsorship’ Category

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Plug It

Tuesday, April 7th, 2009

It makes sense that athletes should be passionate about the products / services / brands they endorse. And no, using the product isn’t the same as being passionate about it.

Brands love it when their consumers talk positively to other consumers about their products and services. So when a brand sees, reads or hears a celebrity talking about their product in the media they take extra notice.

It’s not uncommon for potential sponsors to come knocking when they know a celebrity is passionate about their brand. So the big question is, how do you communicate this passion to the marketplace? Well you don’t. This is the athlete’s job.

As a manager, you can tell a potential sponsor the passion your client has for their product (this is common in any sponsorship proposal). But it doesn’t have the same impact as the athlete plugging the product in the media.

Before you debate the merit of giving brands free plugs in the media, think about the risk verse reward. Don’t get me wrong, free plugs should be discreet and used only once but nonetheless they should be put out there. This lets the brand know they have a high profile fan and it momentarily shows the power of having a public ambassador. “Wow, that was great endorsement, how does our brand get more of that?”

When looking at individual sponsorship, brands value this ‘passion’ from ambassadors over anything else. So don’t be shy, educate your athletes on the benefits of talking about their favourite products and services in the media. What do you have to lose?

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Getting Into Bed with TV

Tuesday, March 31st, 2009

Australian media deals between TV networks and athletes are extremely lucrative (think Stephanie Rice and Channel Seven) but there are pros and cons. Let’s look at some of them.

Pros

  • Lucrative multi year contracts
  • Great exposure for the athlete that is nearly always positive
  • Broadens the athletes appeal as they are used across different programming
  • Invaluable on-camera experience which helps their presenting and media skills
  • Opportunity to cross promote the athlete’s other sponsors
  • Gives you an excuse to knock back other / unwanted media requests
  • Can help win potential sponsors (they see it as a channel for free and regular publicity)
  • Can help ease the athlete into a media career when they retire


Cons

  • Limits the athletes exposure across other media channels
  • Pushed into programming that may not fit the ‘brand’ of your athlete
  • Media burnout from appeasing the network + all other print, radio requests
  • Creates rivalries with other networks (they can turn against your athlete)
  • Creates friction with the media plans of other sponsors / club / sporting body
  • Disrupts your own media plan as the athlete is always on call for the network
  • You can’t sell paid exclusives to other media outlets
  • Can turn off potential sponsors by limiting the reach of PR campaigns

Personally I think the money on offer from the networks outweighs the cons. But it’s still important to evaluate everything when considering these deals.

For example, a media deal would suit an established athlete who is nearing the end of their career. It keeps them in the spotlight (which is good for sponsors), and helps develop their TV skills which can give them a crack at a career in the media when they do retire.

On the other hand, such a deal might restrict the up and coming athlete and can even make them look bad because they are inexperienced or pushed into uncomfortable roles. Just some points to think about when your evaluating your next media deal.

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Like Attracts Like

Friday, March 27th, 2009

Have you ever chosen a restaurant over another simply because you can see that there are more people eating there? You think “this place is popular, they must be better than the guys next door”! As silly as this sounds, the same principle can often apply in athlete sponsorship. Sometimes a brand will be attracted to an athlete simply because of the other brands that athlete is aligned with.

Brand benefits flow each way in sponsorship. Yes the athlete adds to the sponsor’s brand, but let’s not forget that the sponsor also adds to the athlete’s brand. If you’re an athlete with quality blue chip sponsors then your perceived market value is going to be a lot higher.

So what does this mean? Well sometimes athletes have to sell themselves short just to get in the door with a great brand. But hopefully in doing so, they will attract other great brands at the correct prices.

Let’s say I have an athlete with 1-2 sponsors who aren’t doing much in the way of leveraging the relationship. The money’s ok but I’m really trying to grow the athlete’s brand to attract better quality sponsors. Now let’s imagine a prestige brand comes to me in this situation and wants to sponsor my athlete. Perfect, however they want to pay under what the athlete is worth and use the savings to go above the line (eg. national print campaign and/or TVC featuring the athlete). Do I tell them to go jump or sell my athlete short?

I would take the latter option almost every time. You simply can’t buy the sort of brand positioning and exposure a major campaign with a prestige brand gives your athlete. How do I know this? Because I experienced a similar situation to the one above and the result for the athlete was a flow on effect of blue chip sponsors at the right prices.

Money shouldn’t be the sole consideration when looking at sponsorship deals. Look at the bigger picture. Sometimes you need to take a step back to leap forward.

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Socceroos

Tuesday, March 24th, 2009

The Socceroos are on the verge of qualifying for the FIFA World Cup. If they beat Uzbekistan next Wednesday (1st April) and other results go their way then South Africa 2010 here we come.

There is no doubting the popularity and strength of the Socceroos brand. How many other brands can unite the nation with as much passion and excitement as this mob? Who else can pack out bars at 3am on weekdays? Who else inspires people to hang flags from their car windows, to wear yellow, and to hug total strangers in the street?

Along with the Olympic Games, the FIFA World Cup is the biggest sporting event on the planet. It only comes around every four years, but when it does, it’s a huge deal. Before the last World Cup, a lot of Australian’s didn’t know the names Mark Bresciano, John Aloisi, Mark Schwarzer and Tim Cahill. Now they do and they are superstars.

So how will Australian brands leverage Australia’s participation in the 2010 World Cup? Well, some will spend all their money with the broadcaster (SBS), some will partner with the FFA and others will align themselves with individual Socceroos and a few will do all of the above.

For those looking to sponsor individual players, keep in mind the category restrictions with FFA partners and also be aware that many Socceroos are based overseas in the lead up to the big event. That means agreements that are heavily appearance based won’t work, rather agreements that use the intellectual property (IP) of the athlete are best (think TVC’s, on pack branding, consumer promotions and print ads). But remember, non FFA partners cannot use Socceroo IP (team uniform, the word Socceroos etc).

If you’re a brand with the budget to be involved with the Socceroos or it’s players then lucky you. Just make sure that you understand what rights you have before you enter into any agreement.

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E-Sponsorship

Monday, March 16th, 2009

Harvey Norman, Ford, VB, Toyota and Coca Cola are all big sponsors of Australian sport, but what about online businesses such as Carsales.com, Ebay, RealEstate.Com, Stayz.com and CareerOne, why aren’t they big sponsors of Australian sport?

After all, the online world shares the same business objectives as the real world, both are about attracting and retaining a growing base of satisfied customers. Both face fierce competition in crowded marketplaces. And both involve individual brands that need to appeal and connect with people.

In this economy, a lot of traditional businesses (those that sponsor sport) are struggling. Yet this hasn’t stopped athlete managers pitching for sponsorship. And that means your sponsorship proposal is sitting on the desk with 100 other sponsorship proposals, for a brand with a limited budget.

But what about true online businesses and brands, those that are growing at a rapid rate in this economy (such as e-commerce)? No one thinks of selling to these guys. They probably don’t even know how to leverage a sponsorship! So why don’t you pitch to them and show them how your athlete / sporting club can benefit their business. With your athlete’s popularity and a host of free social media platforms to use, coming up with leveraging ideas shouldn’t be hard.

At least you won’t be competing with the masses.

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Car Sponsorships

Friday, March 13th, 2009

When you sit down with an athlete and ask them for a dream list of sponsors (effective way to learn about the products they believe in and admire) one of the most popular answers is a car sponsorship. Sounds reasonable, but is it worth it? Well if the car company is a manufacturer as opposed to a car yard, is a combination of cash and product and the partnership adds value to your athlete’s overall brand positioning then go for it. Otherwise tread carefully.

Firstly, if the car brand doesn’t align with your athlete’s brand then don’t do it, that’s a no brainer. If the car company is a car yard, they won’t have the budget to do quality advertising around the partnership, but that doesn’t mean they won’t try, and your talent will look ordinary. And lastly, if there is no cash incentive then you’re selling yourself short.

Unfortunately most car sponsorships in Australia are product only. What a great deal for the car company! While other sponsors are paying market value to be associated with your talent, the car company gets all the same rights for the price of a car that really doesn’t cost them much. If I’m an athlete do I really want to be doing X number of appearances and photo shoots for the equivalent of $35,000 (or less) when my market value is six figures?? I’d rather give my time and energy to sponsors who are paying me market value and then buy my own car without the headaches of additional commitments.

It’s also important for athlete’s to remember that managers don’t receive any benefit from product only deals, yet they have to service the relationship. This takes up valuable time and resources that could be better spent on more lucrative deals. Don’t get a car deal for the sake of getting a car, make sure it makes sense.

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Twitter

Wednesday, March 4th, 2009

twitter-birdMore and more celebrities are starting to take advantage of the social networking site Twitter. For those who don’t understand the platform watch this video or read this text. Now why should an athlete be on Twitter?

Firstly, let’s look at one of the basic reasons why brands sponsor athlete’s. Athlete’s help put a face and personality to a product or service, and that human element helps the brand CONNECT with their target market. Brands try to achieve this connection by way of athlete appearances, consumer promotions and above the line advertising etc. These are all great, but are often expensive and sometimes a scatter gun approach to actually REACHING key customers.

So how does Twitter reach key customers? To give you a rough example of the power of Twitter, let’s say you’re selling a product and want to make 2,000 sales. Using your ambassador you decide to put an ad in the sports section of the paper (hoping it hits some of your target market), it costs you $30,000. A small percentage of your target market reads the paper, an even smaller percentage see your ad, and a smaller percentage actually take action. You make the 2,000 sales but it cost you $30,000. Now, just imagine your ambassador has 10,000 followers on Twitter, but these aren’t any ordinary people, they are fans who are INTERESTED and PASSIONATE about your ambassador. The ambassador has built incredible trust with his/her followers through daily tweets about their lives. Now instead of spending $30,000 on a newspaper ad, you ask your ambassador to tweet about your product with a direct link to a page that allows consumers to purchase that product. How many of these passionate followers do you think will click on the link? A bloody big percentage and all of a sudden they are at the check out counter. You easily get 2,000 sales (probably more) and it cost you nothing.

Twitter isn’t for everyone, but for those athletes that want to better connect with their fans and add value to their sponsors then I don’t see a better platform.

Some quick rules. Please don’t use a PR person to Twitter on behalf of your athlete, fans see right through this which defeats the power of Twitter. What you put in is what you get out. And don’t let your athlete abuse the service by over promoting their sponsors, they need to interact first, then promote, then interact some more.

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Show Initiative

Monday, March 2nd, 2009

RecessionThe end of the financial year is still some months away but companies are already bracing themselves for tough announcements to shareholders. As the full impact of the economic downturn is realised, companies are beginning to make big decisions regarding their 2009/10 strategy for marketing, advertising and sponsorship spend. The decision to renew a sponsorship will most likely be made over the coming months even if that contract doesn’t expire until the end of the year. So too will decisions regarding new sponsorships. So whether you’re chasing sponsorship or hoping to renew existing deals, you need to get on the front foot now. Sponsorship guru Kim Skildum-Reid has a great white paper on strategies for both sponsorship seekers and sponsors in a scary economy.

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MEDIA SHY

Friday, February 27th, 2009

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There are many coaches and athletes out there who are absolutely brilliant at what they do on the pitch but when it comes to media they don’t want to know about it. These people can be a real challenge for managers and sport administrators. The fact is that if you’re in a high profile sport that generates enormous income from broadcasters, advertisers, sponsors and fans and you are being rewarded appropriately because of the money that sport brings in then you have an obligation to the media, like it or not. The media aren’t always fair, they aren’t always kind and they may even have hidden agendas from time to time, but they are a crucial cog in the money making machine that sport is. No coverage = less interest from fans = less interest from sponsors = less advertising dollars = pay cut for you the athlete.

While I’m on the subject, it’s amazing how many sports stars shun the media when competing only to look for job opportunities in the media when they retire?? Everyone has parts of their job they don’t like, media can be one of those for athletes but that doesn’t mean you can ignore it. In future posts I will comment on the how to deal with it part.

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Sweat the Small Stuff, It Matters

Thursday, February 5th, 2009

Many athletes sign a sponsorship deal and then sit back and wait for the sponsor to leverage the relationship. The contract says you must do XYZ, so naturally you do XYZ. This might include shooting a TV commercial, attending a signing session with fans or schmoozing with clients. The athlete is fulfilling their duty to the sponsor so everyone’s happy right? Well not always. As in life, to be successful you must go above and beyond what is expected of you. Sponsorship is no different. Forget the big photoshoot, the TVC, and the lavish corporate hospitality, those things are all expected of an athlete, after all it’s in the contract. What is not in the contract is the small stuff that makes a huge difference. I’m talking about the athlete who takes the time to find out the CEO’s birthday and then sends him/her a personal card on the day. The athlete who turns up to the head office with a hamper for the staff, the athlete who sends their sponsor tickets to watch them compete, the athlete who sends their sponsor a signed memorabilia piece, the athlete who stays a bit longer at an appearance, the athlete who asks questions / takes an interest in the lives of those who sponsor them. It’s simple stuff but it never happens, so when it does, sponsors fall off their chair. They remember and care about these little things more than the athlete can ever imagine. I’ve seen cases (they are rare) when an athlete retires and fades from the public eye, their brand no longer warrants the dollars they are paid, yet the sponsor hangs on. I think you know why. Sweat the small stuff.

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