Activation - The Sponsor https://www.thesponsor.com/category/sponsorship-activation/ Sponsorship news, insights and analysis Mon, 03 Jun 2024 12:08:49 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.3 https://www.thesponsor.com/wp-content/uploads/2022/08/Favicon-150x150.png Activation - The Sponsor https://www.thesponsor.com/category/sponsorship-activation/ 32 32 Why Cazoo’s big sponsorship bet failed and the lessons we can learn https://www.thesponsor.com/why-cazoos-big-sponsorship-bet-failed-and-the-lessons-we-can-learn/?utm_source=rss&utm_medium=rss&utm_campaign=why-cazoos-big-sponsorship-bet-failed-and-the-lessons-we-can-learn Tue, 21 May 2024 21:05:51 +0000 https://www.thesponsor.com/?p=1675 Uncover the high-stakes gamble that led Cazoo to financial ruin and the lessons every brand must learn to impact consumer behaviour.

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Cazoo, the online car retailer, entered administration yesterday after an aggressive and high-profile sponsorship strategy. The company's downfall highlights critical lessons for other brands considering similar approaches. Here’s a detailed look at why Cazoo's sponsorship strategy failed to yield the desired results and what other brands can learn from this expensive misstep.

While sponsorships can generate significant brand awareness, their true power lies in engaging audiences beyond mere visibility. Without meaningful activation and genuine connection to the audience's passions, sponsorships become an exorbitantly costly form of advertising that fails to influence consumer behaviour effectively. In Cazoo's case, the lack of engagement meant that their extensive sponsorship portfolio did little more than put their logo in front of millions without fostering the deeper relationships needed to drive brand loyalty and purchasing decisions.

The Ambitious Sponsorship Portfolio

Cazoo's sponsorship deals spanned multiple sports and countries, with an estimated total annual spend of approximately £36,500,000. The portfolio included:

  • Football: Everton FC and Aston Villa FC in the Premier League, Real Sociedad and Valencia CF in LaLiga, SC Freiburg in the Bundesliga, and Lille OSC in Ligue 1.
  • Snooker: Title sponsor of events such as the Cazoo Masters, Cazoo UK Championship, Cazoo British Open, and Cazoo Champion of Champions.
  • Darts: Sponsorship of several Professional Darts Corporation (PDC) tournaments.
  • Rugby: Partnerships with the Welsh Rugby Union and the 2021 Rugby League World Cup.
  • Cricket: Sponsorship of The Hundred.
  • Golf: European Tour.
  • Horse Racing: Epsom Derby and St Leger Stakes.

Cazoo's goal was to rapidly increase brand visibility through these high-profile sponsorships. However, the sheer number of sponsorship deals meant that the company struggled to activate and engage audiences meaningfully.

The Downfall: Too Many Properties, Not Enough Engagement

While Cazoo’s sponsorships generated substantial brand awareness, they failed to achieve the deeper engagement necessary to bring about changes to consumer behaviour. The company spread itself too thin across too many properties, leading to several key issues:

Inadequate Activation: Effective sponsorships go beyond merely placing a logo on a shirt or a banner. They require active engagement strategies to connect with fans. Cazoo’s widespread sponsorships lacked the personalised activation efforts needed to make a lasting impression.

Lack of Consumer Connection: Simply being seen is not enough. Brands must connect with consumers on a personal level, aligning with their passions and enhancing their experiences. Cazoo's broad approach diluted its ability to foster these connections.

Failure to Change Consumer Behaviour: The ultimate goal of sponsorship is to influence consumer behaviour. Cazoo’s efforts did not translate into increased consumer trust or preference when buying a car, failing to justify the substantial marketing spend.

Lessons for Other Brands

Cazoo's experience underscores several important lessons for brands considering sponsorships:

Focus on Engagement, Not Just Awareness: Sponsorships should aim to engage audiences deeply. This involves interactive experiences, personalised content, and genuine contributions to fans’ passions.

Quality Over Quantity: It’s better to have a few well-aligned, well-activated sponsorships than many poorly executed ones. Concentrate efforts on key properties where the brand can make a significant impact and resonate with fans deeply.

Understand the Audience: Successful sponsorships resonate with the target audience’s interests and enhance their experience. Brands must invest in understanding what their audiences care about and find ways to add value.

Measure Impact: Continuously track the effectiveness of sponsorships in driving not just awareness but consumer behaviour. Adjusting strategies to maximise return on investment is critical when managing multiple sponsorship assets.

Cazoo’s ambitious sponsorship strategy, while impressive in scope, ultimately did not achieve its intended outcomes and contributed to the company’s financial difficulties. The key takeaway for brands is that sponsorships must go beyond mere visibility. Effective activation and genuine audience engagement are crucial for converting awareness into consumer loyalty and ultimately behavioural change. By focusing on these aspects, brands can ensure their sponsorship investments deliver meaningful and lasting benefits.

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Decoding stadium sponsorship success: Four essential criteria for brands https://www.thesponsor.com/decoding-stadium-sponsorship-success-four-essential-criteria-for-brands/?utm_source=rss&utm_medium=rss&utm_campaign=decoding-stadium-sponsorship-success-four-essential-criteria-for-brands Mon, 25 Mar 2024 22:32:04 +0000 https://www.thesponsor.com/?p=1645 How to navigate fan sentiment and harness stadium sponsorship to boost brand visibility and forge enduring community connections.

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From FedEx Field to the T-Mobile Arena, 88% of sports stadiums in the US have a naming rights partner, while in Europe, that figure plunges to just 12%. In this article, we examine the reasons why brands have been reluctant to take advantage of the enormous benefits brought about by stadium sponsorship in Europe and consider the key characteristics of a successful naming rights partnership that doesn’t alienate fans.

Football has graced the grounds of St James' Park in the North East of England for nearly 150 years. However, when the club's previous owner, Mike Ashley, proposed renaming the stadium as the Sports Direct Arena after his own company, it ignited an immediate and widespread backlash from fans. While the intention behind the move was to attract future bids from other brands seeking to attach their name to the stadium, the reality was quite different. Instead, it served as a stark warning to potential suitors, highlighting the significant PR backlash they could face.

Despite the widespread acceptance of sponsorship in the US, with stadium naming rights and sponsor logos filling every corner, iconic venues like Madison Square Garden and Fenway Park stand as exceptions, untouched by corporate sponsorship. This demonstrates that even in a sponsorship-friendly environment, there are limits.

Fans have an unwavering respect for the tradition and history of their clubs, and brands should think carefully before handling such a prized possession.

Yet, despite the potential for negative fan sentiment, stadium naming rights sponsorship provides brands with a unique opportunity to not only generate significant exposure but also place their logo at the heart of a city’s community. One of Europe’s most prevalent stadium naming rights partners is German insurance brand Allianz which has attached its name to no less than four stadiums across mainland Europe. A statement on the company’s website reads:

“We invest in stadiums because we are committed to supporting local communities by helping develop central hubs for global industry and tourism in key regions worldwide."

Stadium naming rights deals in the US can span from $300,000 to $30 million, showcasing the immense financial appeal of such partnerships. Understandably, many European sports teams are eager to capitalise on this lucrative asset. However, it's crucial to recognise that the driving force behind the sponsorship value in numerous US deals stems from the frequency of events held in these stadiums and their proximity to competing venues.

For instance, a venue like the So-Fi Stadium in Los Angeles, boasting a naming rights sponsorship deal reported to be worth $504 million over twenty years, plays host to either a Rams or a Chargers game every few days, not to mention the occasional Taylor Swift concert. Furthermore, unlike cities in the UK, which often feature five or six teams from the same sport and division within a 30-mile radius, it's common in the US for a single city to have only one team and one stadium, with hundreds of miles separating them from another provider of similar sporting entertainment. This makes that piece of real estate the central hub of the entire city's sporting community.

As we delve into the patterns and value propositions of stadium sponsorship in both the US and Europe, it becomes clear that certain conditions must be present for stadium sponsorship to thrive. These conditions, together with the existing sponsorship requirements of brand alignment and reach, define the ideal environment for brand investment and serve as a framework for identifying successful stadium naming sponsorship opportunities.

1) Modern Stadiums

Stadiums with less historical significance may be more suitable for sponsorship as fans are less likely to have strong emotional ties to them.

2) Standalone Venue Advantage

Stadiums with limited nearby competition for attention may offer better visibility and exclusivity for sponsors as well as serving as central hubs for the community.

3) Densely populated Location

Stadiums located in densely populated metropolitan areas offer greater potential for reaching a larger audience and maximising brand exposure.

4) Frequency, Popularity and Diversity of Events

Stadiums that host a diverse range of popular events, such as sports games, concerts, and other entertainment, provide sponsors with multiple opportunities to engage with a wide audience and offer hospitality experiences.

Considering these factors, it appears that several current sporting venues in the UK, such as the London Stadium and the Tottenham Hotspur Stadium, which are both seeking naming rights partners, may not fully meet all these criteria. The fact that these sponsorship opportunities remain unsold could indicate a misalignment between the perceived value of the asset by the rights holders and that of potential brands.

This year, The Sponsor's dedicated Consulting team will once again assess the fair market value of every Premier League club's sponsorship, including, for the first time, front-of-shirt, sleeve, and stadium sponsorships. This research is an important tool for guiding potential sponsors as to the true value of such a partnership.

In summary, stadium naming rights sponsorship presents brands with a potent opportunity for significant exposure and community engagement. While the US leads in this arena, Europe's slower adoption may stem from factors like fan sentiment and historical significance. Nevertheless, successful partnerships like those of Allianz highlight the vast potential for brands to align with stadiums and communities. By pinpointing modern venues, standalone locations, densely populated areas, and diverse event calendars, brands can effectively harness stadium sponsorship to boost brand visibility and forge enduring community connections.

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M&C Saatchi Sport & Entertainment celebrates 20 years with new ‘Passion Pulse’ offering and shift to ‘Fancom’ model https://www.thesponsor.com/mc-saatchi-sport-entertainment-celebrates-20-years-with-new-passion-pulse-offering-and-shift-to-fancom-model/?utm_source=rss&utm_medium=rss&utm_campaign=mc-saatchi-sport-entertainment-celebrates-20-years-with-new-passion-pulse-offering-and-shift-to-fancom-model Tue, 16 Jan 2024 22:10:18 +0000 https://www.thesponsor.com/?p=1622 Image: M&C Saatchi Sport & Entertainment's new strategic collective, Passion Pulse M&C Saatchi Sport & Entertainment commemorates two decades of creativity by introducing its groundbreaking 'Passion Pulse' offering. As part of this milestone, the agency boldly departs from the traditional fandom model, embracing the forward-thinking 'Fancom' approach to fan engagement. Celebrating 20 Years with Passion […]

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Image: M&C Saatchi Sport & Entertainment's new strategic collective, Passion Pulse

M&C Saatchi Sport & Entertainment commemorates two decades of creativity by introducing its groundbreaking 'Passion Pulse' offering. As part of this milestone, the agency boldly departs from the traditional fandom model, embracing the forward-thinking 'Fancom' approach to fan engagement.

Celebrating 20 Years with Passion Pulse

M&C Saatchi Sport & Entertainment marks its 20th anniversary with the introduction of 'Passion Pulse,' a transformative offering that redefines the dynamics of fan engagement. This strategic move underscores the agency's commitment to staying at the forefront of the industry by understanding and adapting to the evolving nature of consumer passions.

Fancom: A Paradigm Shift in Fan Engagement

In a departure from the conventional fandom model, M&C Saatchi introduces 'Fancom' to revolutionise the concept of fan communities. Fandom traditionally implies a mass, homogeneous following with a single attitude. Fancom, on the other hand, recognises the contemporary fan as a dynamic participant in coalescing communities centred around intersectional interests and behaviours.

Laura Coller, Managing Director, emphasises this shift, stating, "There has been a demonstrable move away from the tropes of traditional fandom towards what we call Fancom. Away from mass homogenised groups and towards communities coalescing around intersectional interests and behaviours."

Alongside the announcement the agency has also published a new report, 'Fandom is Dead. Welcome to Fancom' which you can access here.

Passion Pulse Leadership and Expert Team

Overseeing the Passion Pulse initiative is Strategy Partner Neil Hopkins, who leads a team of 12 experts. These experts, known as the Passion Pulse team, are strategic passion specialists with in-depth knowledge across sports, entertainment, and various sub-passions and communities. Their role is to decode the intricacies of fan communities, ensuring clients can authentically integrate with diverse passion spaces.

Coller comments on the team's significance, stating, "I’m proud to launch Passion Pulse, an expanded strategic offer comprising the brightest thinkers at the heart of sport and entertainment culture."

A Shift in Audience Needs and Behaviour

Recent research commissioned by the agency highlights a fundamental shift in audience needs and behaviour. The study reveals that 63% of people utilise their passions as a means to engage with others in real life, emphasising the importance of connecting consumers not just to brands but to each other through shared interests.

Emphasising the shift Coller stated, "This demands a shift in how we look at audience needs, and we believe there has been a demonstrable move away from the tropes of traditional fandom, towards what we call Fancom."

As M&C Saatchi Sport & Entertainment enters its third decade, the launch of Passion Pulse and the adoption of the Fancom model under the leadership of Managing Director Laura Coller position the agency as a visionary leader, continuing to forge authentic connections between brands and their audiences in the ever-evolving landscape of passion marketing.

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Actions speak louder than words: How Barclays, DHL, and Amex embrace sponsorship as a force for good https://www.thesponsor.com/actions-speak-louder-than-words-how-barclays-dhl-and-amex-embrace-sponsorship-as-a-force-for-good/?utm_source=rss&utm_medium=rss&utm_campaign=actions-speak-louder-than-words-how-barclays-dhl-and-amex-embrace-sponsorship-as-a-force-for-good Mon, 08 Jan 2024 15:49:49 +0000 https://www.thesponsor.com/?p=1612 Discover how brands like use sponsorships to drive positive impact, authenticity, and long-term benefits beyond partnerships.

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An estimated $105 billion was spent on sponsorship globally in 2023. The allocation of these significant budgets and the entities they support is entirely at the discretion of the purchasing brand. To quote the common proverb, ‘With great power comes great responsibility’.

At The Sponsor, we champion sponsorship as a force for good. We believe the best partnerships are those that not only provide a return to the sponsoring brand but also seek to make a positive contribution to the communities they impact.

Authenticity and engagement are the keys to a successful partnership. When brands go beyond advertising-based sponsorship and actively make a positive contribution, they are viewed more favourably by audiences, increasing audience propensity to sample, purchase intent, loyalty and advocacy. In simple terms, people buy things from people they like; this is as true of sales as it is for brands and sponsorship.

So how can brands use sponsorship as a force for good to authentically engage audiences and positively shift stakeholder perception?

Enhancing audience Experience

The first step for almost all brands moving beyond simple logo placement is to use their position as a sponsor to enhance the audience's enjoyment or experience of an event. This can be straightforward, like tech brands giving fans greater insights with real-time sports data analysis. There are simple examples outside the tech realm, such as behind-the-scenes content giving fans , free event transportation, or exclusive meet-and-greet experiences. Such activity ensures that exposed audiences are not only aware of the sponsoring brand but have developed an enhanced perception. Partnerships lacking this most basic form of activation are, in reality, nothing more than very expensive advertising.

Gender Equity

Women’s sports have seen tremendous growth in recent years, driven partly by the fantastic work of early adopters such as Barclays. The bank has not only been a long-term supporter of women’s professional game but has also contributed immense support for youth with gender equity through its Girls’ Football School Partnerships. The campaign has grown significantly in recent years and is now active in over 10,000 schools, with 85% of teachers agreeing that the campaign has positively impacted young girls' perception of football.

Earlier in the year, The Sponsor sat down with Rosie Guest, Chief Marketing Officer of Apex Group, and sponsors of Sail GP. The company had a pre-existing aim to improve gender equity across financial services, and this transfers through to its sponsorships. At present Sail GP has no female captains but Apex, working together with Sail GP, is seeking to use it’s position as a sponsor to change this.

“I firmly believe that when we empower women and provide them with the necessary tools, resources, and support, they can excel in any field, including the traditionally male-dominated sport of sailing. By breaking down gender barriers and fostering a culture of inclusivity, we can unleash the full potential of talented female sailors and create a more balanced and dynamic competitive landscape.”

You can read the full article here.

Actions speak louder than words, and such public action transcends written statements of inclusivity and diversity, demonstrating a genuine commitment that is not lost on stakeholders.

Supporting Youth Development

Brands can build positive associations by using their sponsorship budget to support youth development in a particular field. For example, Under Armour compliments its high-profile sponsorships with significant support and development of young talent, improving access to sports equipment for millions of teenagers. What impact does such an activation have on those young people, their friends and families when shopping in the local sports shop?

Similarly, many large financial brands are seeking to enhance perception through their support of young musicians and artists. American Express, for example, hosts the Amex Gold Unsigned, giving young, relatively unknown artists a powerful platform to showcase their talents, play at festivals and build a following. In the art world, American Express’ reputation is enhanced by such activity, not because they put their logo on it but because they make a meaningful and authentic contribution.

Sustainability

Perhaps the one topic that transcends all sports, cultural events and industries is sustainability. Sponsors can provide invaluable know-how to make events more sustainable; they can provide access to expensive tools and technology and use their immense purchasing power to only partner with events demonstrating a genuine commitment to sustainability.

For example, Formula 1 as a sport has come under increasing pressure from sponsors to cut emissions. This pressure has resulted in significant changes to the sport, including the introduction of sustainable fuels, resulting in up to 96% carbon emission reductions as part of its ambitious 2030 net zero pledge.

Sticking with Formula 1, The Sponsor spoke with Arjan Sissing, Global Head of Brand at DHL, to learn how the company is using its position as a sponsor to provide efficient, environmentally friendly logistics for Formula 1’s travelling circus of nearly 35,000 tonnes of racing freight each year.

DHL used Formula 1’s huge platform to build its own brand and raise awareness about sustainability amongst F1 fans.

“At the Brazilian Grand Prix, for example, we used our partnership to raise awareness of marine plastic pollution. We partnered with NGOs and 90 volunteers to collect over 500 kilos of waste. With the help of a local artist, we used this waste product to create a beautiful Formula 1 car sculpture at the track.”

These sustainable activations do not disappear into thin air, they resonate and resurface at key points in the consumer decision-making cycle.

Charity

The most philanthropic sponsorship activity brands can employ when seeking to use sponsorship as a force for good to enhance perception positively is to support charitable events such as Standard Life’s support for Cancer Research Race for Life.

Perhaps the most charitable sponsorship of all was BNY Mellon and Newton Investment Management’s sponsorship of the Oxford Cambridge Boat Race. Having secured the rights to the world’s most famous rowing race, the firm gifted the sponsorship and all its associated brand awareness to the event charity partner, Cancer Research UK. Such an act may indeed reduce BNY Mellon’s brand exposure, but to its existing clients and stakeholders, it undoubtedly increased loyalty and advocacy.

"We're not fussed about the actual coverage of our name this year – we're handing that over. This goes to the heart of businesses being responsible to society and connecting with communities. I feel very strongly that this is what it takes to be a modern and responsible business, we hope that others would then follow suit and we would see more companies thinking actually how could we use our sponsorships in different ways?"  Helena Morrisey, Former Chief Executive, Newton Asset Management.

Conclusions

When sponsorships are strategically harnessed for the greater good, they yield tangible benefits for the community and exert a transformative influence on brand reputation, leading to enduring financial returns that persist long after the partnership has drawn to a close.

By aligning corporate support with meaningful social initiatives, sponsors contribute to the community's welfare and forge a lasting connection with consumers who appreciate and remember the positive impact. This synergy between altruism and brand promotion creates a ripple effect, amplifying the resonance of the partnership and solidifying the brand's position as a socially responsible and ethical entity. Consequently, the dividends reaped extend far beyond the initial collaboration, establishing a legacy of goodwill that continues to shape the perception of the brand in the marketplace. continuing to deliver benefits long after the partnership concludes.

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Bud Light’s branding rollercoaster: A Lesson in brand perception and sponsorship strategy https://www.thesponsor.com/bud-lights-branding-rollercoaster-a-lesson-in-brand-perception-and-sponsorship-strategy/?utm_source=rss&utm_medium=rss&utm_campaign=bud-lights-branding-rollercoaster-a-lesson-in-brand-perception-and-sponsorship-strategy Thu, 26 Oct 2023 09:42:02 +0000 https://www.thesponsor.com/?p=1567 Bud Light, America's once best-selling beer, has learned a crucial lessons about sponsorship strategy and brand perception.

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Perhaps the greatest single benefit of sponsorship is the ability to alter or enhance brand perception.  Bud Light, America's once best-selling beer, has navigated a turbulent journey recently, learning crucial lessons about sponsorship strategy and audience alignment.

The missteps: Bud Light's sponsorship with trans activist Dylan Mulvaney

Bud Light's missteps began with a seemingly innocuous sponsorship of trans activist Dylan Mulvaney. Despite the campaign's limited scope, the beer giant failed to understand the depth of its audience's beliefs. The fallout was swift, with figures like Florida Gov. Ron DeSantis and Caitlyn Jenner criticizing the brand openly. Sales plummeted by 29%, and Bud Light found itself in a challenging position.

Lesson 1: Research and audience alignment

The debacle highlighted the paramount importance of market research. Understanding the diverse perspectives of their consumer base is essential. In an era where progressive movements matter, Bud Light’s oversight showcased the need to comprehend market dynamics comprehensively.

Lesson 2: Clarity in communication

Bud Light's response was ambiguous and lacked conviction. Clear, consistent communication is essential when faced with controversy. Bud Light's failure to communicate a strong, unified message left both supporters and critics dissatisfied, showcasing the need for transparency and consistency.

Lesson 3: The comeback: Leveraging sponsorships to alter brand perception

Fast forward to the present, Bud Light has opted for a new sponsorship strategy by partnering with UFC, a lucrative multi-year deal reportedly worth over $100 million. This strategic move aligns with Bud Light’s core audience and aims to shift customer perception back to Bud Light’s core values.

I’m proud to announce we are back in business together. There are many reasons why I chose to go with Anheuser-Busch and Bud Light, most importantly because I feel we are very aligned when it comes to our core values and what the UFC brand stands for.  UFC CEO Dana White

The comeback: Bud Light and UFC reunite

Bud Light's reunion with UFC signifies more than just a partnership. It’s a strategic pivot, an opportunity to reconnect with its audience, especially the younger demographic. UFC’s popularity among millennials and Gen Z makes it an ideal platform for Bud Light's rebranding efforts.

The takeaway: Sponsorship as a powerful brand perception tool

Bud Light’s rollercoaster journey underscores a critical lesson: sponsorships wield immense power in shaping brand perception. They can dramatically alter the narrative surrounding a brand, either positively or negatively. The key lies in meticulous research, clear communication, and strategic alignment with the audience’s values.

As the brand steps into this new chapter with UFC, it's a testament to the resilience of marketing strategies and the importance of adapting to changing times. The story of Bud Light serves as a valuable case study, emphasising that in the realm of sponsorships, understanding your audience and aligning with their values can redefine a brand's narrative.

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What effect does a gambling partnership have on fellow sponsors? https://www.thesponsor.com/what-effect-does-a-gambling-partnership-have-on-fellow-sponsors/?utm_source=rss&utm_medium=rss&utm_campaign=what-effect-does-a-gambling-partnership-have-on-fellow-sponsors Wed, 06 Sep 2023 09:33:55 +0000 https://www.thesponsor.com/?p=1530 In this article, we take a look at how and why betting companies continue to bail out clubs, and what that means for sponsors down the line.

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Nottingham Forest recently announced a two-year sponsorship deal with TGP Europe-owned Kaiyun Sports. The East Midlands club has struggled to secure commercial sponsorship since its arrangement with BOXT expired at the end of the 21/22 season. It now joins Aston Villa, Crystal Palace, Real Madrid, and Inter Milan in partnering with the obscure gambling website. In this article, we take a look at what these partnerships mean reputationally for existing sponsors.

Since arriving in the Premier League, Nottingham Forest has been holding out for a £10m sponsor deal. That lofty evaluation is over double The Sponsor’s Fair Market Value for the club at £3.9m. Quite reasonably, potential partners were hesitant to invest in the inflated prices that betting companies have fostered.

How does this fit with Forest’s existing approach?

Despite previously lacking a commercial front-of-shirt sponsor, the Nottingham club hosted the logo of UK for UNHCR, the UN’s Refugee Agency, on their matchday shirts midway through the 22/23 season. Club owner Evangelos Marinakis stated "I hope fans of Nottingham Forest will also be proud that we have chosen to highlight the work of UNHCR…in addition to the local causes our Community Trust supports.” The partnership showed a club using sponsorship, albeit temporarily, for a positive cause in conjunction with its own activities in the community. The shift in tone to a betting firm on the front of Forest shirts obscures the club’s values and means that its platform for other sponsors is a harder place from which to communicate.

New and existing sponsors need to take notice

Part of the attraction of sponsorship opportunities like this is the club’s historic presence in and importance to the community; each of the principal partners (Adidas, Ideagen, e.on, The Park Hospital) are operational in Nottingham. While it has relationships with top-flight clubs, Kaiyun Sports’ press release with Nottingham Forest was vague and uncommunicative. It did not mention the words “betting” or “gambling” despite being a betting website and gave no indication of specific brand activations.

That Kaiyun sports is generally irrelevant to the area will have an impact on related brands. It shows the club ignoring its fanbase and even its wellbeing by undoing their work to promote healthy gambling. For brands looking to promote family and community, this deal changes the perception of Nottingham Forest and by extension the values it can convey. The deal represents a missed opportunity for more relevant potential partners to tap into Forest’s core audience and reflects poorly on related brands. Then again, with their increased scrutiny, betting firms and gambling-related platforms are willing to pay more than others to compensate for their diminished position and the negative effects they have on their business surroundings.

Why fans and community matter in sponsorship

Sponsors should watch closely at the fan reaction to Forest’s gambling partnership. Chelsea’s proposed and aborted partnership with Stake.com in July shows that this issue really does matter to fans; when a brand disconnects from its audience, the sponsorship strength across the board atrophies. A striking 77% of 3,297 fans polled either disagreed or strongly disagreed with the decision to partner with Stake.com. If sponsorship is seen solely as a question of money, it becomes a superficial venture. While this deal with Kaiyun has gone through, Forest’s next sponsor will want to address the community and the shareholders if it wants an engaged audience.

In the immediate future, other brands sponsoring clubs alongside gambling firms should consider the strength of their position. Not only is their reputation harmed by association, but due to a damaged relationship with the community, the ability to leverage sponsorship is reduced.

Sponsors that fuel the fan-club relationship will always be able to mutually strengthen brand identity. Those that intercept or splice this relationship through non-alignment will produce a knock on effect towards other sponsors that starts with a loss of faith and/or interest.

 

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Sponsorship risks and environmental responsibility: A critical balance for brands https://www.thesponsor.com/sponsorship-risks-and-environmental-responsibility-a-critical-balance-for-brands/?utm_source=rss&utm_medium=rss&utm_campaign=sponsorship-risks-and-environmental-responsibility-a-critical-balance-for-brands Mon, 04 Sep 2023 08:56:54 +0000 https://www.thesponsor.com/?p=1526 In a world increasingly attuned to environmental concerns and societal values, the landscape of corporate sponsorships has evolved dramatically. Brands, particularly those associated with industries that bear environmental concerns, find themselves at a critical crossroads when contemplating sponsorship commitments. The pivotal question they face is whether the advantages of sponsorship outweigh the potential risks posed […]

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In a world increasingly attuned to environmental concerns and societal values, the landscape of corporate sponsorships has evolved dramatically. Brands, particularly those associated with industries that bear environmental concerns, find themselves at a critical crossroads when contemplating sponsorship commitments. The pivotal question they face is whether the advantages of sponsorship outweigh the potential risks posed by environmentally conscious consumers and advocacy groups, especially those who are scrutinising the environmental reputation of the sponsoring brand.

Recent events, such as Greenpeace's campaign targeting TotalEnergies' sponsorship of the Rugby World Cup, spotlight this shifting landscape. Brands are under increasing scrutiny, not just from traditional stakeholders but from a global audience that is deeply concerned about the planet's well-being.

Sponsoring events, sports teams, or cultural festivals has historically been a potent tool for brand exposure and recognition. However, the days of indiscriminate sponsorships are rapidly fading into the past. In this new era, comprehensive risk assessment and diligent due diligence have emerged as essential prerequisites for any responsible and forward-thinking company considering sponsorship.

Let's delve deeper into why this shift is taking place:

  1. Consumer Power:

    Modern consumers are not only better informed but also environmentally conscious. They pay close attention to the alignment of their favorite brands, holding them accountable for their affiliations. A sponsorship that contradicts environmental values can lead to backlash and adversely affect a brand's reputation.

  2. Advocacy Influence:

    Environmental advocacy groups have grown in prominence and influence. They possess the ability to bring into focus sponsorships that they perceive as conflicting with their mission. Utilising social media and multimedia campaigns, they can draw attention to inconsistencies between a brand's values and its sponsorship choices.

  3. Long-Term Brand Health:

    Sponsors must assess the long-term health of their brand. A sponsorship may yield short-term benefits, but if it compromises the brand's reputation or long-term sustainability, it may not be a prudent investment.

In this context, due diligence and risk assessment are not just recommended; they are fundamental steps in the sponsorship decision-making process. It's about ensuring that sponsorship choices align with a brand's core values, mitigating potential risks, and ensuring the sponsorship resonates positively with the target audience.

Environmental due diligence involves:

  • Evaluating Environmental Responsibility:

    Sponsors must evaluate their own environmental practices and the environmental impact of the event or entity they intend to sponsor. Are there practices that could be seen as harmful to the environment? Are there opportunities for improvement?

  • Anticipating Activist Responses:

    Sponsors should consider potential reactions from consumers, advocacy groups, and environmentally conscious individuals. Identifying potential sources of protest and engaging with stakeholders prior to sponsorship enables brands to devise strategies to address concerns proactively.

  • Supporting Climate Solutions:

    Brands that bear responsibility for environmental harm cannot simply sponsor events to divert attention from their impact. They must tackle the issue head-on by supporting initiatives that strive to address environmental challenges and contribute to the global effort to combat climate change.

In conclusion, sponsorship in the modern era necessitates meticulous consideration of environmental factors, especially how they relate to the reputation of the sponsoring brand. Brands that fail to undertake due diligence and risk assessment before sponsoring events or entities potentially engaged in environmentally harmful activities may find themselves facing reputational damage and disconnect with their environmentally conscious audience. In this age of accountability, responsible sponsorship practices are not just ethically sound but also vital for the long-term success and sustainability of brands in an ever-changing world.

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Crafting a Winning Partnership: Research-Driven Synergy between Laithwaites Wines and England Cricket https://www.thesponsor.com/crafting-a-winning-partnership-research-driven-synergy-between-laithwaites-wines-and-england-cricket/?utm_source=rss&utm_medium=rss&utm_campaign=crafting-a-winning-partnership-research-driven-synergy-between-laithwaites-wines-and-england-cricket Wed, 16 Aug 2023 13:55:59 +0000 https://www.thesponsor.com/?p=1517 In the world of sports sponsorships, the key to success lies in a profound understanding of your audience. Laithwaites Wine has perfected this art through its partnership with the England and Wales Cricket Board (ECB). In a recent episode of the Sponsor Podcast, Matt Knight, Marketing Director of Laithwaites Wine, unveiled the insights that underpin […]

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In the world of sports sponsorships, the key to success lies in a profound understanding of your audience. Laithwaites Wine has perfected this art through its partnership with the England and Wales Cricket Board (ECB). In a recent episode of the Sponsor Podcast, Matt Knight, Marketing Director of Laithwaites Wine, unveiled the insights that underpin this collaboration, highlighting the pivotal role research plays in its success.

At its core, this partnership thrives on aligning with the preferences of the target audience. By pinpointing what resonates with customers, Laithwaites seamlessly merged its brand with cricket's allure, forging authentic connections. This approach culminated in a partnership that effortlessly blended with the brand's identity and cricket enthusiasts' passions.

Yet, this partnership extends beyond traditional methods. Laithwaites adeptly harnessed social media's power to engage fans. They curated a series of "vintage moments," celebrating iconic instances in English cricket. This contemporary approach showcases the brand's agility and ability to reach audiences beyond the cricket grounds.

Their presence extended to the physical realm as well. The vivid red perimeter boards and dynamic tri-screen advertising became emblematic of Laithwaites Wine at cricket matches. A vintage van stationed at various test matches offered attendees the chance to savor their wines—a tactile experience that bridged the gap between the brand and potential customers, leaving an indelible mark.

Moreover, Laithwaites Wine embraced social responsibility by partnering with the ECB and championing causes like the Red for Ruth campaign. This commitment not only amplified their brand's positive impact but also resonated with socially conscious consumers.

A key lesson from the podcast was Matt Knight's emphasis on measuring success beyond immediate ROI. Instead, Laithwaites Wine focuses on the long game of brand building. This strategy underscores their nuanced understanding that meaningful partnerships transcend financial metrics, aiming to foster enduring impressions and relationships.

The insights shared by Matt during the podcast provide valuable food for thought for marketers seeking impactful collaborations. By aligning with audience interests, embracing modern platforms, and transcending logo-centric activations, brands can create experiences that resonate and stand the test of time.

In essence, the partnership between Laithwaites Wine and England Cricket shines a spotlight on the crucial role of research in shaping triumphant collaborations. This fusion, driven by a deep understanding of the audience, infuses vitality into a partnership that surpasses the ordinary. It promises an immersive, authentic experience for cricket enthusiasts and wine aficionados alike.

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Irene Gowing on growing brand awareness: “Sponsorship is a long-term play” https://www.thesponsor.com/irene-gowing-on-growing-brand-awareness-sponsorship-is-a-long-term-play/?utm_source=rss&utm_medium=rss&utm_campaign=irene-gowing-on-growing-brand-awareness-sponsorship-is-a-long-term-play Wed, 26 Jul 2023 11:20:01 +0000 https://www.thesponsor.com/?p=1506 In this interview, we spoke with Head of Brand, Sponsorship and Consumer PR, at Bord Gáis Energy, Irene Gowing about sponsorship with the GAA.

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Bord Gáis Energy has been proudly serving customers in Ireland since 1976. With a current base of over 460,000 unique customers, the company’s standing is significant. The sport of hurling is likewise important to the island. To help raise brand awareness in rural areas and support a sport with extensive history and traditions, Bord Gáis Energy partnered with GAA (Gaelic Athletic Association) in 2009. In this interview, we spoke with Head of Brand, Sponsorship and Consumer PR, at Bord Gáis Energy, Irene Gowing.

You entered a partnership with the GAA (Gaelic Athletic Association) - when did that come about and what does it entail?

We’ve been a partner of the GAA since 2009. We first entered a partnership with them as the title sponsor of the under 21 Hurling Championship. It was a fantastic competition, and we really got a lot of value out of that. We're also the sponsor of the Bord Gáis Energy Legends tours of Croke Park Stadium, which take place every year and we bring customers on that. More recently in 2017, we started the sponsorship of the All-Ireland Senior Hurling Championship and we're one of three partners in that mix. We have a long-standing relationship with the GAA, and it's served us well.

What do you see as the intended goals of the partnership?

If you look at the goals of any and every sponsorship, it’s grounded in what the business ambition is. We have commercial goals that align to the growth of our business and growing our relationship with our customer base. When we started working with the GAA, we had very little rural brand awareness; as a gas company, our traditional customer base is around urban areas. We needed to raise awareness in rural Ireland and offer electricity to those customers. There were certain pockets that we needed to delve into a little bit more and they were often strongholds for hurling: Cork, Munster, Limerick. At this stage, we have a very strong brand awareness on a nationwide level and our partnership with GAA was the starting point.

We’re now on a journey towards reaching net zero by 2045 and helping our customers with that transition too. To do that, we need customers to start to bring in more sustainable energy solutions, including deep retrofitting their homes. While they're aware of Bord Gáis Energy as an energy supplier, they may not be aware of the suite of services that we supply. That’s the commercial reasoning behind this partnership. It's very important to us that nobody is left behind. We call that the just transition, which aligns with the government sustainability strategy.

How do you think Bord Gáis Energy has leveraged the sponsorship to mutual benefit?

We have over 460,000 unique customers and there are 2,200 hurling clubs in Ireland. A lot of our customer base are deeply steeped in those clubs so we're able to talk to them all the time.

A core pillar of our brand promise is the commitment to nurturing and developing an inclusive culture of equal opportunities and creating a culture where difference is valued, and all can thrive. We're promoting the game as a platform for everybody and anybody to get involved. We’re proud that we have been able to use our sponsorship property to start a conversation about team inclusivity and allyship. Last year, we created a campaign ‘State of Play’, that spotlighted diversity and inclusion ahead of the National Pride Festival and was an important step change for how we show up as a brand and use our sponsorship to champion a societal issue.

Our new campaign this year is called It’s Anybody's Game, and we truly believe in speaking to everyone from the hardcore hurling fan right through to the fair-weather fan and everyone in between. The sport is a great leveller. It's the type of sport where you can pick up a hurl and learn it. It doesn't matter where you're from. It doesn't matter what the colour of your skin is or what your sexual orientation is. Through a media partnership with Newstalk’s Off the Ball,, we are hearing people's stories every week about how hurling has become a doorway into their local community. We're very much about attaching our activation to what our customers want to see.

Have you been able to measure any response to the partnership?

When you're writing a business case around buying sponsorship rights, you want to have your homework done on what you can contribute to the commercial plan and what you can contribute to the brand metrics. As we are modernising our image, we’re reflecting a more modern Ireland. Sponsorship has a huge role to play.

Beyond growing that rural brand awareness, the next commercial problem was customer retention and customer loyalty. We have tickets to games that nobody else has and customers of ours can buy tickets to games that are sold out. That is a reason to stay with Bord Gáis Energy and one reason why our retention scores are strong.

Sponsorship is a long-term play. If you're looking for sponsorship to deliver a direct response in the same way as a radio or TV campaign, you're not going to get it. That's not going to give your brand long-term success. But if you're looking to build long-term reputation and long-term growth by investing in the future, then a good sponsorship and a considered activation plan is going to deliver that for your brand. My job is to start building and developing our brand for the future.

That leads on to my final question: do you have any advice for marketing teams that are looking at similar sponsorships?

You need to treat sponsorship as a significant business investment. Consider any sponsorship asset that you're about to obtain as a long-term purchase. Organise your business case in a way that can demonstrate how it will deliver strong commercial value in line with the organisation’s goals and objectives. Be able to demonstrate how it can deliver strong brand value because your brand needs to be set up to deliver on commercial promises.

For example, our brand needed to be much more modern facing to have an authoritative voice in moving our customers towards net zero. That's the role this sponsorship has for us. My advice would be that you need to be able to demonstrate brand growth through your sponsorship platform and or demonstrate strong commercial growth. Track your brand health and where you currently are, because if you can't track return on investment, then you're not going to be able to stand up when there's budget challenges and strategy challenges going forward.

To learn more about how sponsorship can support your brand's sustainability efforts, click here.

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Apex Group and SailGP: 3 Key Takeaways From our Conversation with Rosie Guest https://www.thesponsor.com/apex-group-and-sail-gp-3-key-takeaways-from-our-conversation-with-rosie-guest/?utm_source=rss&utm_medium=rss&utm_campaign=apex-group-and-sail-gp-3-key-takeaways-from-our-conversation-with-rosie-guest Thu, 20 Jul 2023 14:30:45 +0000 https://www.thesponsor.com/?p=1499 Rosie Guest, Chief Marketing and Communications Officer of Apex Group, discusses the partnership with SailGP.

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In a recent episode of The Sponsor Podcast, Rosie Guest, Chief Marketing and Communications Officer of Apex Group, discusses gender equity, sustainability, and the strategy behind the company's exciting new partnership with SailGP.  

On Gender Equity 

"Gender equity goes beyond achieving numerical representation; it is about creating a culture that values and supports the contributions of all individuals, regardless of their gender. I firmly believe that when we empower women and provide them with the necessary tools, resources, and support, they can excel in any field, including the traditionally male-dominated sport of sailing. By breaking down gender barriers and fostering a culture of inclusivity, we can unleash the full potential of talented female sailors and create a more balanced and dynamic competitive landscape." 

On Sustainability  

Both SailGP and Apex Group have a huge focus on the environment. ESG services are one of our largest offerings at the group and it involves helping our clients become more responsible as organizations and delivering the reporting and advisory to enable them to do that. Our founder, Peter Hughes, who is still the CEO today, is very passionate about the environment so it is something that is built into our DNA. SailGP is the most sustainable sport out there so those links around climate change and our product are all very well aligned. 

On Measuring Impact 

Our social media targets and KPIs go beyond impressions and visibility; they focus on meaningful engagement with our content. Sponsorships have proven to deliver the highest return in terms of visibility and alignment with our messaging. It's not just about showcasing our logo; it's about reinforcing our business identity and purpose, which revolves around driving positive change, such as gender equality and environmental stewardship. Our brand survey helps us track changes in people's recognition and understanding of our messaging each year. Additionally, we employ various metrics to measure employee engagement, retention, and brand pride. These areas are our primary focus when assessing our impact. 

You can listen to the full podcast episode on Spotify or click the link here. 

For more advice and insight from sponsors of global sports events, click here.

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