The Annual Sponsorship Business Survey 2012 - Sporsora

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T h e A n n u a l S p o n s o r s h i p B u s i n e s s S u r v e y 2 0 1 2 P a g e | 10 3.0 | Social Media 3.1 The Industry’s Outlook on Social Media There is a very strong feeling in the profession that social media is here, it is here to stay and that it is essential that the sponsorship business engages effectively with it. 78% of sponsorship heads agree that social media is now a must for all sponsorship campaigns; with only 7% in disagreement. Despite this prevailing view, only 48% felt that their industry made good use of social media; concern on this was felt most strongly in North America where only 16% of sponsorship heads agreed that social media was being put to good use. We as an industry make good use of social media 25% 27% Agree Disagree 50% 48% 49% 16% UK Europe North America With the explosion of social media use and the continual improvements and developments occurring within digital media, there is no surprise that many heads believe their social media campaigns are not reaching their full potential. It is only recently that Twitter has started to take brands seriously by differentiating brands’ pages from other users, allowing closer integration with other forms of media and increasing opportunities for engagement with their fans. With social media, it is now easier to reach a global audience. Ali Russell, Chief Operations Officer at Rangers Football Club, stated that the club is looking into social media and all the different ways they can leverage the social networks to connect with their 5 million global fans. Similarly, Arsenal Football Club is ramping up digital marketing activity and social media initiatives to engage its international fans. 3.2 Individual Endorsements Social media allows fans to communicate directly with their idols, allowing sponsors to embed their brand and gauge fans perceptions. The resulting goodwill between the fan and sports star ultimately leads to the athlete having the power to influence fans’ purchasing behaviour globally. Kaka and Cristiano Ronaldo are among the most followed sports stars on Twitter with over 8.1 million and 6.5 million followers respectively, highlighting the vast global reach that social media provides. TWSM reports that personality sponsorship increased by 13% in 2011 and we expect this trend to continue growing in 2012. Sponsors must however be aware of the risks that arise from the use of stars that are increasingly prone to overstepping the boundaries and posting controversial comments on Twitter. Social media has also escalated the pace at which negative press spreads across the world making it imperative that sponsors cite expectations of appropriate behaviour in contracts with their sports stars. 3.3 Traditional Advertising The impact of social media in sponsorship has contributed, many think, to a reduction in the benefits achievable from traditional advertising, such as viral email advertising (which is only used by 30% of businesses surveyed). With a sponsorship focused audience it is not surprising that advertising continues to be seen as giving a poorer return than sponsorship. Despite this, ZenithOptimedia predicts global ad expenditure to accelerate to US$486 billion in 2012 – a 4.7% growth. The results of our survey do however provide a reminder that the traditional forms of communication matter too. 44% believe that there is a real risk within the industry of over reliance on social media and consequent neglect of other communication possibilities; only 27% actively assert their disagreement with this.
T h e A n n u a l S p o n s o r s h i p B u s i n e s s S u r v e y 2 0 1 2 P a g e | 11 3.4 Social Media Research and Evaluation A major concern with industry bosses surrounds the ability to effectively evaluate social media campaigns. 47% agreed that it is more difficult to evaluate the impact of social media on sponsorship than traditional forms of communication; only 30% disagreed with this. With the improvement in research and evaluation methods for social media, companies are slowly starting to partake in invaluable research; the London Stock Exchange and a range of brands recently appointed an agency to provide daily insight and analysis from social media sites. With sponsorship heads all around the world aware of the cost efficiency, global reach and power that social media provides, we predict that 2012 will see many companies explore further avenues to engage with their global audience. Which of the following social media has your business used this year in sponsorship campaigns? Social Networking Sites (Facebook/MySpace/Bebo) YouTube to post videos Twitter - Running stories/campaigns Blogs and Forums - seeding concepts and ideas Mobile Apps Targeted advertising on social networking websites Viral emails B2B Social networking sites (LinkedIn/Plaxo) 26% 30% 38% 37% 37% 56% 64% 85%
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The Annual Sponsorship Business Survey 2012 - Sporsora

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