Sponsoring a successful sportsperson or team should be a no-brainer for brands. Provided they pick one that appeals to their key demographic, they can benefit from their success, use them as a spokesperson, boost their brand and generally engage more deeply with potential and actual customers.
However, if this is true why are many of the biggest companies in the world conspicuous by their absence from sports sponsorship? I may have missed it, but I don’t see the logos of Google, Apple or Facebook on footballer’s shirts, F1 cars or advertising hoardings in athletics stadiums. They simply don’t see it as a good use of their marketing budgets it seems.
Looking deeper, this is part of a retrenchment over the past few years, with commercial sponsors replaced by trade suppliers in many sports. In Formula One, the biggest sponsor of Lewis Hamilton’s Mercedes is, err, Mercedes, while Red Bull is a hybrid owner/sponsor. In cycling a large number of teams are sponsored by bike manufacturers and equipment suppliers and in athletics the likes of Nike and Adidas have a huge profile. In football seven of the 20 Premiership teams were sponsored by online bookmakers over the 2015/6 season, and a further two (including champions Leicester) by their owner’s companies.
So, why are consumer brands less visible when it comes to sports sponsorship – and what can clubs, teams and sportspeople do about it? I think it boils down to four factors:
1. The threat of scandal
There’s always been a chance that your brand’s chosen ambassador will go off the rails and get you publicity for the wrong reasons. But in an age of constant scrutiny the slightest indiscretion is now plastered over the front pages before your brand has the chance to react – look at Tiger Woods as a good example. As testing technology improves, more and more drugs cheats are being caught, even if, as in the case of Lance Armstrong, it is years after their offences actually took place. And that’s before you start on the impact of corruption within governing bodies on public and business perceptions of a sport. Many brands simply don’t want to take the risk of involving themselves in a crisis down the line.
2. Value for money
Sports sponsorship obviously covers a huge range of budgets and opportunities, but generally is becoming more expensive. Global competitions, such as the Premiership and F1 have a worldwide reach, meaning that only the largest brands have the budgets to spend on sponsorship. And to get any value from your sponsorship you need to make sure people know about it, using other marketing activities to make sure that your target audience feels involved and included, and that you maximise the impact through advertising, corporate hospitality and other add-ons.
We’re coming up to Euro 2016 and the Rio Olympics, meaning sports fans will see a procession of sponsor logos over the next couple of months. By the end of it all, will people really remember who sponsored what? Was it Nike or Adidas that provided the match balls for Euro 2016, or had pride of place on the stadium hoardings? I’m sure, if asked, many fans would claim to have seen adverts for brands that weren’t even there, such is the level of advertising saturation we are subjected to thanks to wall-to-wall TV and internet coverage. Demonstrating this, over half of the brands that consumers associated with Euro 2016 in a poll were not even sponsors of the tournament.
4. Other opportunities
Put simply, brands have a growing number of places where they can spend their marketing budgets. From online advertising to supporting good causes, they are all opportunities to boost a brand and engage with audiences. In many cases these channels weren’t there 10 years ago – and equally some sports have been hit by what you can and can’t advertise. One of the reasons for the growth of F1 for example was the enormous sponsorship from tobacco companies – they had nowhere else they could advertise in most countries, so could focus their budgets on one sport. F1 is in many ways still coping with the hangover, with high costs and a cultural desire to outspend rivals – but not the budgets to support it.
Digital channels in particular make it much easier to measure the results of marketing in terms of click throughs, visits and sales, whereas measuring the impact of sports sponsorship can be more difficult.
So, is sports sponsorship doomed? Not completely, not while we are still able to be moved by amazing feats of sporting prowess on the field or track. However, brands need to be more careful on what they spend their money on, and activate sponsorship more cleverly if they are to stand out from the crowd. And teams, players and governing bodies need to focus on getting their own houses in order, removing cheats and corruption and remember that the reason that brands sponsor them is to reach the fans – put them first and you’ll build loyalty that will deliver return on marketing investment, whatever sport you are in.
It began as a bright idea to interest the general public in polar research and swiftly became an internet phenomenon. The little-known National Environment Research Council (NERC) wanted to come up with a fitting name for its advanced new polar exploration vessel, and so decided to hold an open competition for the public to provide suggestions and then to vote on which they thought would be most suitable.
All was going well, with a selection of worthy names in the running, until BBC radio presenter James Hand came up with Boaty McBoatface. Interest (and votes) skyrocketed, with other new suggestions including RRS I Like Big Boats & I Cannot Lie, RRS Capt’n Birdseye Get Off My Cod and the apt RRS It’s bloody cold here. In all 7,000 names were provided by the public, though Boaty McBoatface was the clear winner with just over 124,000 votes cast for it. Through Twitter alone, the research council reached 214m people after the BoatyMcBoatface hashtag went viral.
This left the NERC with a bit of a problem, as Boaty McBoatface wasn’t quite what they were thinking of when they started the process. Instead, they’ve chosen the fourth place name, RRS David Attenborough – although one of the boat’s submersibles has been given the Boaty McBoatface moniker (surely it should be Subby McSubface?). The head of the NERC was even called before a Commons Select Committee to discuss whether the PR campaign was a success or failure – which either shows how little MPs know about PR or was simply an excuse for them to make boat-based puns.
So what can businesses learn from the PR campaign? I think there are four things:
1. Don’t take yourself too seriously
It would have been really simple for the NERC to close the poll or simply vet suggested names to ensure that they were ‘sensible’. But it didn’t – it rode the wave of good PR and used it to draw attention to what it does. Even the most casual observer now knows that the NERC does something with polar science.
2. Have a Plan B
The NERC made very clear from the start that the winner of the online poll wouldn’t necessarily be chosen as the name of the ship, and that public suggestions were merely ideas that would be considered. That meant that when it didn’t chose Boaty McBoatface the backlash was minimised – even more so when one of its robot submersibles was given the name. Expect him/her/it to get their own Twitter account as soon as they are launched.
3. Link to the rest of the news agenda
In many ways NERC was lucky, as the poll closed at pretty much the same time as the nation celebrated David Attenborough’s 90th birthday. This gave it a ready-made name that summed up exactly the right image of science, exploration and explanation that they were looking for. Holding the competition first, rather than simply naming the ship after Attenborough made all the difference to coverage of the announcement – it moved from a news in brief to the front pages of the press and onto the national news.
4. Make it work going forward
This is where NERC has to capitalise on the interest and goodwill of the British public and keep them involved once the ship is launched and dispatched to the polar regions. It needs to engage through social media, popularising what the vessel is doing and the benefits it brings in a straightforward and approachable way. That will not only help its work in particular, but will hopefully spark wider interest in science generally, guaranteeing its future importance (and funding).
So, before embarking on a campaign that may take off make sure you have a plan B, set clear rules of engagement but be prepared to go with the flow, and keep momentum going beyond the end of the programme. That’s the overall lesson for all communicators, whatever sector they are in or product they are publicising.
Devolution is all the rage in Whitehall at the moment, with areas outside London encouraged to band together, elect a mayor and take more control over their finances and future. The aim is to counterbalance the economic power of London – or if you want to be cynical to woo wavering Labour/LibDem voters over to the Tory party.
The first of these projects, the Northern Powerhouse, was trumpeted by George Osborne two years ago, and has seen powers over health spending devolved, plans for elected mayors take shape, and funding announced for transport improvements, although many remain sceptical until things actually happen.
In his last budget, the Chancellor spread devolution even wider, announcing plans for an Eastern Powerhouse, covering Norfolk, Suffolk and Cambridgeshire. Except it isn’t all of Cambridgeshire since Cambridge City Council has said from the outset that it doesn’t want to be part of the agreement. And it turns out that it may not be any of the county at all as Cambridgeshire County Council rejected the deal offered by the Government at a meeting on 25th March, calling for the terms to be renegotiated.
In fact, Cambridgeshire was never part of the original plans, which were for an authority to cover Norfolk and Suffolk. But the Government deemed this not large enough, so pushed to add Cambridgeshire to the mix. The fraught negotiations, which involve 22 separate county and borough councils, demonstrate the difficulty of getting any agreement across such a wide area.
As someone who lives in Suffolk and spends a lot of time working in Cambridge I can see the Chancellor’s original idea behind the Eastern Powerhouse – use the energy and buzzing economies of Cambridge and Norwich to revitalise the rest of the East. But as a PR person I’m deeply sceptical of initiatives that are strong on bluster but short on details. I remember the Cambridge 2 Ipswich High Tech Corridor of 2000 which signally failed to generate much entrepreneurship between the two places. For the Eastern Powerhouse to work it has to be more than a paper tiger and, I believe, have the following attributes:
1. Proper investment in communications
The Northern Powerhouse has been criticised for slow progress on improving transport links, but at least there are motorways linking Leeds and Manchester. Roads in Suffolk and Norfolk are simply not up to scratch, and there is no spare capacity – if the A14 is blocked then forget trying to get from East to West in a hurry. Trains are lackadaisical when it comes to speed – you can get from York to London in about the same time as London to Norwich, despite it being almost twice as far away.
The other thing that the region lacks is 21st century (or even 20th century) telecommunications. Cities in the region may have 3G, or occasionally 4G, but in rural areas you are lucky to get any coverage at all. What brought this home to me was when I was in the middle of the Yorkshire moors, miles from anywhere – and I had a 4G signal. At home 2G is the norm. And you can forget Fibre to the Home connections – many villages in Suffolk have yet to receive any fibre connectivity at all. This is all despite BT’s main research labs being located in the county.
So, if an Eastern Powerhouse is to flourish it needs serious investment in transport and communications – potentially billions of pounds. And this isn’t just moving existing spending commitments to a new pot. This is going to have to come from central government and intoday’s straitened times I simply can’t see this happening.
2. Investment in skills
Both Suffolk and Norfolk languish near the bottom of league tables for school achievement, with inspections by Ofsted heavily criticising both county councils. Again, this comes down to investment – government policies have focused money on underachieving inner city schools but have neglected rural and coastal areas. Suffolk only got a university within the last decade, while Peterborough has been promised one as part of the Powerhouse proposals.
3. Change in leadership
Since I moved to Suffolk the County Council has shut my son’s school, tried to build a waste incinerator in an area that failed to meet its own environmental criteria and had to cope with a chief executive who received a six figure payoff after being accused (and cleared of) bullying that led to the suicide of another official. I’ve seen the damage cuts have done to its own education department and the slow speed at which vital decisions are made. Suffice to say I have an incredibly low view of its utility or the calibre of its elected officers. Yet, when there is talk of an elected mayor, it is widely believed it will come from one of the county councils. I therefore heartily agree with entrepreneur Peter Dawe, who says he will stand for the post of elected mayor of the region, criticising local councillors for “their myopic, parochial interests based on the past, and on keeping what powers they have, whilst carping about lack of money.” However I can see party machines mobilising to shut out an independent that threatens their candidates.
4. Change in attitudes
This is probably the hardest thing to change, but people need to be encouraged to realise their potential – and high achievers need to be encouraged to return to the county. More young people need to go to university or college, and more should be done to support innovative new businesses that deliver jobs to the region. This doesn’t just require investment, but a cultural change that opens up opportunities to everyone – however it does rely on the communications, skills and leadership change mentioned above if it is going to happen.
If the Eastern Powerhouse is to achieve anything it needs to address these four areas – otherwise it risks being a solely cosmetic extra and costly layer of government that will fail to improve the aspirations, careers, and lives of those within the region.
Obesity is an enormous problem in the UK, especially amongst the young. One in three children leave primary school overweight or obese. It has a huge impact on the health and wellbeing of the obese themselves, and treating it costs services such as the NHS an estimated £5.1 billion every year.
So the Chancellor’s unexpected announcement of a sugar tax on soft drinks from 2018 in the recent budget makes financial and social success. If you can reduce the consumption of sugar in soft drinks, it will help reduce the impact (and cost) of obesity by lowering sales. A 10% tax levied in Mexico worked, bringing down the amount of soft drinks drunk by 6%. In the UK proceeds from the tax are ringfenced, and will be spent on primary school sports, meaning the government can’t be accused of simply making this a revenue generating exercise. Campaigners, such as Jamie Oliver, are delighted – while soft drink makers such as Coke are threatening to sue the government.
No-one would deny that we are facing an obesity epidemic – simply look around at the number of people (adults and children) you see that are overweight. And few would argue that it is a good thing for either their own health or the country as a whole. Where the arguments start is the relative roles of government and individual in dealing with the problem. How do you balance free choice for people to do something that is perfectly legal (buy fizzy, sugary drinks), against the harm it is doing to themselves and the cost to the NHS? Most people accept that in some cases, such as tobacco, high taxes are justified by the damage that cigarette smoking does, and the addictive qualities of nicotine. Other examples, such as tax on alcohol and petrol are less clear cut. Living in the countryside, with a skeleton bus service, I need to drive to most places, so does that make fuel taxes unfair in my case?
Where you draw the line is the issue. The government would argue that in the case of obesity, particularly among children, the damage is too great and that previous attempts to educate the public about the dangers of sugar have not worked. Critics see the tax as interference in their lives, even if what they are doing is harming them in the long term.
As a parent, I think there is another dimension to this – it may sound old-fashioned, but we’ve got a duty to educate our children about the dangers of over-consumption of anything (whether sugar, chocolate, alcohol or food generally), the need for exercise and to set a good example. By that I don’t mean turning into marathon running vegans who exist on a lettuce leaf a day, but showing that you need to balance what you eat and drink, while getting out and taking exercise when you can.
I expect the PR battle around the sugar tax to rage for a long time, with both sides advancing their arguments to the electorate. It promises to be a fascinating contest – on one side you have Jamie Oliver and those that believe people, especially children, need to be saved from themselves, while on the other the massed ranks of the soft drinks lobby will try and paint the tax as something that won’t have an impact and will limit people’s freedom to consume what they want. The fight has already started – whether Coke or the Naked Chef wins is going to be central to where the line between free choice and government intervention is redrawn.
Thanks to her celebrity and high profile, Maria Sharapova’s positive drugs test resonates far beyond tennis. As the world’s highest paid sportswomen she has built a strong, lucrative brand that is now less about her success at tennis, but more about her image and what it stands for. In turn, this has attracted multi-million pound endorsements from blue chip sponsors. Like Tiger Woods with golf, she was arguably bigger than women’s tennis, despite not being world number one. She was even an ambassador for the United Nations.
So, when she tested positive for meldonium, the PR fallout didn’t just focus on her, but her sponsors, supporters and the attitude of the tennis authorities as well. As has been pointed out already her first PR response was textbook crisis management. She took control of the story, announced it herself to the world’s media, dressed soberly in a deliberately low key press conference. She admitted she’d made a mistake, which she positioned as an honest failure to read warnings that meldonium was to join the WADA banned list from 1 January 2016, and appealed for leniency.
However, since then the story has slipped out of her control, with two questions that remain unanswered:
1.Where’s her support team?
Why did no-one in her entourage, including her doctor, see that meldonium was being banned and advise her not to take it? It was on the WADA watch list for a year before the ban came into effect. Sharapova has to take responsibility for what is in her body, but as a high profile athlete she should have advisers and coaches helping her keep up with the WADA banned list.
2.Why was she using it?
Meldonium was created to help those with heart problems and diabetes, but is proven to help with athletic endurance. It is freely available online and in Eastern Europe – indeed it sold over the counter in Russia. Since 1st January there have been 100 positive tests by athletes for the drug, from across a wide variety of sports. Clearly, all of those that have used it didn’t have the health issues it was originally prescribed for – otherwise it is unlikely they’d be international athletes. However, while using meldonium for a purpose that it was not intended for may have been ethically a grey area, up until this year it was legal. Sharapova’s argument that she was prescribed it, by her family doctor, after tests showed abnormal ECG readings and some diabetes indicators is definitely open to question. However the fact remains that WADA’s code provides the line in the sand – you can take anything that may improve performance provided it is not on the banned list. Pretty much any substance is performance-enhancing – otherwise you will have to ban water or energy gels from athletic competition. As John McEnroe said, if meldonium had been around legally while he was playing he would have taken it – though he did go on to doubt Sharapova’s story that she was unaware of the rule change.
As a PR person what’s particularly interesting to me is the aftermath of the announcement and how sponsors and people from the world of tennis reacted:
- Some, like Nike, have been quick to act, either ending or suspending their relationship with Sharapova. Given Nike’s previous bad experiences with the likes of Lance Armstrong, this is not a surprise.
- Others, such as Women’s Tennis Association president Steve Simon and ex-champion Martina Navratilova see it as an honest mistake, and therefore something that should be treated accordingly.
- At the other end of the spectrum Sharapova’s racquet manufacturer Head has been much more bullish, not only re-affirming its relationship with her, but questioning whether meldonium should be on WADA’s banned list at all. It has been joined by the Russian sports minister in this stance, hardly a good association for Sharapova or tennis generally, given the proven doping problems in Russian sport.
What has particularly impressed me are the people who have been prepared to speak out and ask more questions. For example, Andy Murray has said that it is ethically wrong to take a drug purely to boost performance, and that Sharapova deserves a ban for failing the drugs test. He also criticised the stance of Head (also one of his own sponsors), calling its stance and decision to extend Sharapova’s contract ‘strange’.
The PR impact of the Sharapova drugs test, along with recent revelations about match-fixing in tennis, threaten the entire image of the sport. What is needed from the authorities is strong action that sends out a message that cheating, whether wilful or not, will not be tolerated. It is time to be more like Andy Murray, and less like Head, if they want to win back the trust of the public and sponsors.
Despite all the talk of innovation, there are plenty of things that people continue to do, even though they are no longer the optimal way to achieve something.
Take typing for example. The QWERTY keyboard dates back to the first, manual typewriters, where the typist hit a key manually pushing the inked letter onto a sheet of paper. The problem with the first typewriter designs was that people could hit the keys faster than the machine would cope with, leading to jams as multiple keys became intertwined. Hence adopting what was essentially a sub-optimal system in terms of speed, in order to make typewriters more efficient overall. Now, in the digital age jamming is no longer a problem, yet everyone still uses a QWERTY keyboard, as that is the de facto standard, irrespective of the fact that it can give you carpal tunnel and repetitive strain injuries.
Driving is another area where tradition dictates what we do. The reason that in England we drive on the left dates back to the days when people rode horses – as the majority of the population was right handed you could hold your reins with your left hand, leaving the other free for your sword. As part of the French Revolution this was reversed in France, and then imposed by Napoleon on the countries he conquered. This means that the majority of countries in the world now drive on the right, despite the fact that accident rates are lower amongst left hand drivers, perhaps due to right eye dominance.
These two examples demonstrate two things:
- The most logical, sensible solution can’t necessarily overcome the status quo, particularly if it means people have to completely relearn how they operate.
- People continue to choose a particular course of action, even if the reasons for it are lost in the mists of time. Tradition rules.
Why is this important? I meet a lot of technology startups, and many of them enthusiastically talk about how their invention will completely change a market or sector. Build it and they will come seems to be the mantra. All it takes is for people to see how outmoded and inefficient the current technology is, and switch to their new, unproven, but potentially much better solution. And normally relearn how they operate. And pay a bit more. Often, they then wonder why they fail to get market traction or growth.
Essentially people weren’t sufficiently convinced of the advantages to change what they did. They preferred to be inefficient rather than invest the time to solve a problem. We’ve all done this, spending an extra minute or so doing something on our PC because that’s how we were taught 20 years ago, rather than spending 15 minutes reading the manual and upgrading our knowledge.
This isn’t to say that innovation can’t happen. Look at the Dyson vacuum cleaner – the advantages of changing (no bag, better performance), outweighed the higher cost and learning how it worked. But in that case the benefits were extremely clear, and, most importantly, marketed very well.
So, the lessons for every business, whether a startup or not, are clear. The vast majority of the population generally doesn’t like change, and therefore the benefits of something new have to dramatically outweigh the disadvantages of how things have always been done. Innovation has to be clearly marketed if it is going to take root with the majority, as opposed to early adopters – it won’t just sell itself. It has to fit inside the ecosystem of what people are comfortable with, and provide them with the best overall experience. That’s why VHS beat the technologically superior Betamax technology – it had the content from Hollywood studios and was easier to operate. Often it can be easier to sell a better mousetrap than a completely new method of rodent killing device. Therefore talk to your audience, understand their pain points and make sure you provide a simple, powerful solution – otherwise you are likely to join the ranks of technically superior, but unused products, and all your innovation will be wasted.