Revolutionary Measures

Is sports sponsorship worth the money?

 

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.

The Parc des Princes, which was hosting the fi...

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.

3. Saturation
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.

May 25, 2016 Posted by | Creative, Marketing, PR | , , , , , , , , , , , , , , , , , | Leave a comment

Sport – the dirtiest business of all?

In an age of social media and always-on news, every brand can feel that it is constantly under attack, even if it is for what seems like trivial reasons. Surly barista serve you coffee? Unclean hotel room? Consumers can share their thoughts and views with the world in seconds, and quite often the resulting viral storm will be intense, but fade as quickly as it came into being.

English: panoramic shot of the olympic stadium...

In contrast, the world of sport, or more specifically its administration, is facing an unprecedented attack from both media and the public. FIFA has now been joined in the dock by the International Association of Athletics Federations (IAAF), with senior figures alleged to have taken bribes to ensure that failed drugs tests never saw the light of day. A report published by the World Anti-Doping Agency (WADA) points the finger at doping on a massive scale by Russian athletes, implicating senior figures in its government, while French prosecutors have arrested Lamine Diack, the ex-head of the IAAF, who is accused of receiving bribes of over €1 million to cover up failed tests. And it isn’t that long ago that the International Olympic Committee (IoC) had to confess that cities had ‘bought’ the right to host the games, while the close links between the then senior leadership at cycling’s governing body the UCI and drug cheat Lance Armstrong have also been highlighted.

On the outside it seems like all these organisations have a culture where too much power and a sense of entitlement mix with control over major decisions that have big political or financial impacts. As the head of UK Athletics pointed out, the leader of the IAAF is referred to as Mr President, inflating the holder’s ego as a matter of course.

Essentially sports administrators are in the spotlight, and need to rebuild their credibility. I’d see five areas to focus on:

1.Look wider for staff
Administrators seem to be either ex-athletes, those that have served their time in country federations or people attracted by the glamour of working for sporting organisations. Often promotion relies on who you know, rather than how good you are at your job. It is time to change this by recruiting capable figures from outside sport to lead administrations. They obviously need to know about the sport they are leading, and have an enthusiasm for it, but they don’t necessarily have to have spent their life in it. By bringing in outside managers, with the right skills (and no links of patronage), it will send a clear message that administrations want to change.

2.End culture of entitlement
The IoC is widely seen to have cleaned up its act, yet its bureaucrats still expect the world to revolve around them. The sell-out London Olympics saw gaps in the venues as “members of the Olympic family” decided not to bother going to certain events, while one of the reasons that Norway pulled out of bidding for the next Winter Olympics were demands for free booze for bureaucrats at the stadium and a cocktail party with the King. No one is against hard-working administrators having access to events as part of their roles, but it should be a privilege, not a right.

3.Transparency
I’ve said it before about voting for the World Cup, but every major decision being taken needs to be transparent and auditable. So no secret ballots – the results of who voted for who should be public at the time and open to the widest possible constituency to avoid any allegations of impropriety. All activities, particularly those involving potentially controversial subjects such as drug testing and financial matters, should be audited independently by consultancies that actually understand them, rather than treating the whole thing as a tick box exercise. The same applies to new hires, who should have to declare any business interests to links to particular countries/teams/companies.

4.Move offices
The IAAF probably has strong tax reasons for being based in Monaco, while FIFA and the UCI (amongst others) have headquarters in neutral, but secretive, Switzerland. At a time when credibility is tenuous, location matters, so associations need to look at moving to more ‘normal’ jurisdictions where they can be subject to proper scrutiny. It should also help with recruiting from a wider talent pool.

5.Be more independent from political control
As the Russian doping scandal (and winning Russian bid for the World Cup) both show, it is easy for administrations to become subject to outside political influences. This is true not just in Russia, but other countries where sport is seen as a tool of soft power, irrespective of the rules. Therefore all local administrations need to be independent of government, without members of ruling families or parties running them to avoid any allegations of bias.

Sport has the ability to bring people around the world together – a fact that administrators and their marketers are always reminding us of. This cuts both ways – not only do fans join together to salute outstanding athletic achievements, but they can equally unite to condemn the administrators that are destroying the sports that they love.

November 11, 2015 Posted by | Marketing, PR, Social Media | , , , , , , , , , , , , , | 2 Comments

Football crazy? Can clubs control the media?

The new football season is already nearly a month old, and while action on the pitch is taking centre stage, how fans get information about their team is also becoming a hot topic for debate. Several clubs, such as Swindon and Newcastle, have banned certain newspapers from attending their press conferences or talking to their managers and players. The reason? They prefer to communicate direct with fans through club websites, newsfeeds, social media, apps or even in-house TV channels. Scottish club Rangers has even banned particular journalists due to not liking the articles they’ve written about the club’s governance or finances.

Polish Football Fans 001

In a way this approach simply fits with the ability of the internet to remove middlemen (in this case the media) and to connect brands directly with their audiences. However it also sets a dangerous precedent – with coverage reduced to happy soundbites stage managed by the club’s PR team. The decline of newspaper and magazine staff numbers has tipped the balance in favour of big brands, with many journalists now using their skills to publicise companies and PR agencies. Football teams are not the only brands aiming to do this, using the distribution mechanisms of the internet and social media to get their message out unfettered by the critical filter of the press.

As a PR person I can see the initial attraction in this – after all, what marketing manager doesn’t want guaranteed 100% positive coverage? But it isn’t sustainable. One of the reasons for the rise of PR was that an independent article in a newspaper or an interview on the radio was more believable, and therefore worth more than an advert. While the internet has blurred the lines, I’m convinced people still react best to coverage that delves deeper than a press officer’s prepared statement. Football is the perfect case in point – fans may love their club, but be intensely suspicious of the owners, board, manager or particular players. Take the frequent demonstrations at matches and the vitriol directed at players on social media. Therefore simply providing bland statements of how the new centre forward is looking forward to the season ahead and how wonderful the training facilities are, is not going to keep true fans interested or happy. At the same time social media, while providing a channel for brands, also actively undermines them by making it easy and fast to share unofficial information. This could come from anywhere – a disaffected (or unthinking) player, a taxi driver that overheard a conversation or a barman that saw that same new centre forward slumped over his pint the night before his debut.

What brands (of all sizes) need to realise is that you need three different types of content (paid, earned and owned) to build your profile. There is paid media, essentially advertising and sponsorship, where it is normally clear that money has changed hands. Earned content is when a third party (which could be a publication or simply a fan on social media) shares or publicises your messages. Finally, owned media are the channels you control – from in-house TV channels to websites and Twitter feeds.

Successful brands combine all three of these in a cohesive way that builds engagement. Fans will want to the chance to interact directly with you and get information straight from the horse’s mouth, but at the same time they want independent verification through trusted third parties such as the press and the backing of their peers through social networks. And these same social networks provide the platform for independent fans and commentators to create and share their own content, outside the club’s control. Therefore the football clubs that have succumbed to the beguiling fantasy of controlling the news should take a step back and look at organisations and countries such as Soviet Russia that have relied on propaganda. Citizens stop believing in the news they read and before too long even the most rigid states begin to show cracks and eventually collapse.

August 19, 2015 Posted by | Creative, Marketing, PR, Social Media | , , , , , , , , , , , , | Leave a comment