Driving Sport Sponsorships: Safely Navigating The Complexity & Unlocking Real Value
In this guest post, Chris Haigh (pictured below), CEO of sports social content agency 20FOUR, offers his tips for brands wanting to navigate the prickly space of sports sponsorships…
It’s fair to say Australia is a nation devoted to sport. We are a country bursting with sporting codes, spanning from the nation’s favourites AFL and NRL right through to those in the action and Olympic categories. As a result of this remarkable affection we arguably have some of the world’s most engaged fans and the value of sport in Australia will always be compelling.
Globally the sports sponsorship market is worth approximately US$62 billion a year with the Australian value sitting at around US$734 million, suggesting sponsorship levels remain significant and stand strong against other developed nations. Yet, there lingers a tangible fear and scepticism towards engaging in sponsorship deals, with the idea often ending up in the ‘too hard’ basket.
The initial reluctance often comes from unjustified fear around ‘protected’ sponsorships and the myth of ‘exclusivity’ that is all too-often associated with these. The reality is that in each sporting code there is only a very small number of protected categories, and within those there are again only very few official partners that have the ability to gain a fully ‘exclusive’ position in that code.
There are often strict requirements around a minimum commitment that earns exclusivity, however in many cases this will not rule out involvement from other brands at a club or athlete level. This is why it’s so important to take a multi-dimensional approach to sports sponsorship. There are deals to be made at athlete, club, code, association, league and event levels. Each of these tiers offer different levels of sponsorship and are suited for different types of businesses and scales of investment. Depending on the level of the athlete there will often be a couple of black spots (from their code or team), however this is significantly outnumbered by the huge volume of opportunities to work with a particular brand or organisation.
What we are also seeing more frequently is individual athletes getting serious about their right to engage in unique deals and seeing past the assumed constraints on these caused by deals made at the governing board level. Star fast bowler Mitchell Starc recently became the first player to align with a rival to one of Cricket Australia’s protected sponsors. Starc joined a partnership with Audi Centre Parramatta despite Toyota being a principal sponsor of Cricket Australia. This also highlights the breadth of opportunities available for smaller businesses when it comes to sports sponsorship that they often haven’t considered for fear of facing protected sponsorship clauses from much larger brands.
Whilst discussing this topic we must remember the core reason why sports sponsorships work; there is gain to be had for both parties. This age-old mutually beneficial arrangement has led to a booming industry that shows no signs of diminishing, but rather adapting. Recently we have seen big name sponsors retract from major events. For example, Emirates has just announced it is ending its decade-long partnership with the Australian Open as “brand recognition in Australia is now very high so sponsorships are no longer necessary”. This is an example of a brand not adapting to the new rules of sports sponsorship.
No longer is the role of sponsorship to simply drive brand awareness, the emphasis lies on increasing consumer engagement. Marketers need to be smart and seek to include promotions, events and activations in their deals such as KFC’s cricket sponsorship. This has seen KFC create revenue from unique cricket-themed products, whilst driving customer engagement with campaigns such as the ‘Bucket Head Army’. If anything, this simply leaves the sports sponsorship field more fertile with opportunity for those who are invested enough to engage with the deal in a smart and strategic way.
In a recent article, former AFL player Matthew Pavlich wrote of the difficulties of navigating “a modern sporting deal” where he claims it is “easy to overlook the delicate balancing of the interests of rights holders, leagues, clubs and individual players”. I am inclined to disagree. It is always very clear, and those who have done their research will know exactly who has protection in each particular space. At the end of the day, whilst it can seem a daunting challenge, navigating the sports sponsorship space does not need to be stressful, as long as you take a strategic approach. For those wishing to navigate a sports sponsorship deal, here are my top tips:
1. Have a game plan – Don’t just go with the biggest or best your budget can afford you. First decide what your brand stands for and means, then identify the team/individual/tournament that best reflects those qualities.
2. Do your homework – There is a host of data available as to the size of an audience, the passion of the followers, engagement levels, demographic skews, all of which points to an ultimate ROI for your brand.
3. Keep your finger on the pulse – Once the deal is signed don’t sit back and relax. Keep monitoring public perception throughout sponsorship and stay disciplined in leveraging the assets you’ve acquired. These data insights are often the most valuable part of the sponsorship offering.
Latest News
Sydney Comedy Festival: Taking The City & Social Media By Storm
Sydney Comedy Festival 2024 is live and ready to rumble, showing the best of international and homegrown talent at a host of venues around town. As usual, it’s hot on the heels of its big sister, the giant that is the Melbourne International Comedy Festival, picking up some acts as they continue on their own […]
Global Marketers Descend For AANA’s RESET For Growth
The Australian Association of National Advertisers (AANA) has announced the final epic lineup of local and global marketing powerhouses for RESET for Growth 2024. Lead image: Josh Faulks, chief executive officer, AANA Back in 2000, a woman with no business experience opened her first juice bar in Adelaide. The idea was brilliantly simple: make healthy […]
Is Meta’s New AI Chatbot Too Left-Wing?
Meta's chatbot accused of being left-wing after being caught wearing a Che Guevara T-shirt & listening to Billy Bragg.
TV Ratings (23/04/2024): Why Did No One Tell Angela That Farmer Wants A Wife Is Set On A Farm?
As wonderful as this headline is, let's face it, we all know an 'Angela', don't we?
PubMatic Unveils New AI Partnership To Turn Social Posts Into Ads For Any Digital Channel
Here's some nifty tech for turning social posts into ads. Assuming said posts aren't one-star character assassinations.
Intuit Mailchimp Makes A Splash With Its First Australian Brand Campaign
Ever laugh along at a gag you didn't get so as not to appear dumb? Get ready for more feigning with this new work.
GumGum’s Rob Hall: Advertisers Can No Longer “Rely On Binary Descriptions” Of Consumers
If anyone's got their finger on adtech's pulse, it's Rob Hall. He also avoids using the good paper in the office printer
Mastercard Nabs Florencia Aimo From Marriott International
Marriott International's Florencia Aimo jumps from the hotel business to the exploitative credit card one.
Bastion Agency Appoints Cheuk Chiang As New ANZ CEO
Cheuk Chiang takes the reins over at Bastion Agency. But not the rains down in Africa.
Spotlight On Sponsors: Major Sponsorship Wins After A Disappointing Week In Sport
B&T continuing our deep dive into local sport sponsorships & that's despite not a single offer of a free ticket as yet.
Macca’s Marketing Director, Samantha McLeod On Big Mac Chant: “What Was Once Old Is Now Cool Again”
Macca's using the power of nostalgia in latest Big Mac campaign. Well, only for those who've ever eaten one sober.
World Premiere Of Midnight Oil: The Hardest Line To Open Sydney Film Festival 2024
Oil's biopic to open Sydney Film Festival. Here's hoping Molly Meldrum will take his pants down at the premiere.
Entries Are Now Open For The 2024 Brandies, IntelligenceBank’s Annual Brand Marketing Awards
The Brandies are, of course, a prestigious marketing gong and not the mystery tipple favoured by nannas everywhere.
The Fred Hollows Foundation Appoints Ardent For PR
Yes, we all like to have a joke at PR's expense. But sometimes it does important work, like this.
AI, eCommerce & Marketing Specialists Are In Increased Demand By Businesses, New Data From Fiverr Shows
Has your philosophy & anthropology degree left you with nothing but a huge HECS debt? Here's what you should've studied.
Perth’s First 3D Anamorphic Billboard Arrives Courtesy Of oOh!media
Do you love a buzzword? Now you can add anamorphic to the list as it relates to billboards, not a colleague's ears.
MasterChef Australia & Crown Resorts Launch Unique Dining Experience With ALUMNI
A pop-up restaurant staffed by MasterChef contestants! That's fine dining prices for first-year apprentice chef cuisine!
Amanda Laing Announces Resignation From Foxtel Group
Foxtel's chief commercial & content officer heads for the exits. Read nice things the bosses said about her right here.
The Lost Letters From Our Diggers: News Corp Unveils ANZAC Day Special
It's nice when brands respectfully acknowledge ANZAC Day.
Howatson+Company Acquires Akkomplice
Large indie acquires a slightly smaller indie. Much like a shark eating a tuna, just with less thrashing and blood.
Google Delays Third-Party Cookie Deprecation Again
In good news for the sale of picture library biscuit photos, Google continues to tease over the end of cookies.
Education A Low Priority For Aussies More Concerned With Cost Of Living Forethought Study Reveals
Study finds Aussies cutting back on education due to cost of living. Booze & Uber Eats sales remain largely unaffected.
“I’m Still The Same Person That I Was”: Rikki Stern Says “Fucc It” To Cancer Stereotypes
B&T always happy to promote the anti-cancer cause. Even brands that massively overdo it with the hot pink.
The Unapproved Climate Certification Allegedly Causing Mass Greenwashing
Are you left flummoxed in the canned tuna & free range eggs aisle? Just wait till this green certification gets up.
TV Ratings (22/04/2024): Fans Mock “Over The Top” Reaction To New MasterChef Judges
MasterChef returns for its 2024 season. B&T stands by putting peppercorns in Gravox & no one will be any the wiser.
Dentsu Restructure: Muddle, Harvey & Johnston Take Leadership Baton As Bass & Yurisich Exit
A large broom has swept through Dentsu's local ops this morning, taking with it some big names & the air con's cobwebs.
Industry Shares Trends Shaping The Industry This International Creators Day
B&T's asking adland creators to reveal their top trends. And it's not good news for your Jenny Kee cardigan collection.
Mable Extends HOYTS Sensory Screenings Partnership
Mable has extended its HOYTS sensory screening partnership. Vigorously defends its two-star Oppenheimer review.
Orphan Launches ‘They Need Our Help. We Need Yours’ For Children’s Cancer Institute
Anything to do with childhood cancers has B&T's 110% support. That said, we do ignore the red meat & alcohol warnings.
Smile Team Orthodontics & Keep Left Collaborate On Smile-Inducing Campaign
As parents would attest, given the cost of orthodontics you'd expect this campaign to be a lavish production indeed.
Opinion: How Video Calls Neglect Learning Diversity
Need an excuse to duck out of a video call this arvo? Show this to your boss.
DoubleVerify Achieves First-Of-Its-Kind Responsible AI Certification From TrustArc
DoubleVerify receives responsible AI certification. However, not its robotic vacuum that's been seen menacing the cat.
Smile For A Good Cause: The Social Media Campaign Giving Back To The Community
Are you known as the office Austin Powers? More for you teeth than shagability? Get snappy new fangs with this news.
Elon Musk Mocks Albo After ESafety Wins Court Injunction Against X
Albo's 2024 from hell continues - Rabbitohs in crisis, down in the polls and now feuding with world's richest man.
Real Estate Developer In Hot Water Over “Sexually Exploitative” OOH Campaign
Real estate agents again tops in the 'least trusted profession' polls, nudging used car salesmen & ad creatives.
Epsilon’s Shane Hanby: Post-Cookie Era Relies On “Teamwork” Between Brands, Marketers & Tech
This pro predicts more "teamwork" in a post-cookie era. Which spells bad news for the uncooperative or plain stubborn.