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 | 8 2.3 Major Sports Events and Sponsorship The impact of major sports events on the current strength of the sponsorship market cannot be overstated. As highlighted in the analysis of regions, there are several high-profile events that will generate serious sponsorship spend. These events aim to create a lasting legacy of sportrelated economic activity. In 2011, the Rugby World Cup was held in New Zealand. A report conducted by MasterCard stated that increased tourism, civic sponsorship and business development in New Zealand as a result of hosting the tournament would total NZ$1.44bn by the end of the decade. The next Rugby World Cup will be held in England in 2015. The International Rugby Board (IRB) received a welcome boost when it agreed a deal with Heineken to extend its contract for the next tournament. This year is an Olympic year, and the summer event will take place in London. By September 2011, the London 2012 Organising Committee (LOCOG) had met its upper domestic sponsorship target of £700m. One of the event sponsors, Lloyds TSB, is already reaping the benefits of its association with the Olympics. The company stated that 70% of their customers were aware of their sponsorship of London 2012, and of those who were aware, 40% would recommend Lloyds TSB as a result of its partnership programmes. London 2012 does not provide sponsorship opportunities just for large organisations. The Financial Times (29 th December 2011) reported that Olympic organisers have created a sponsorship programme specifically for small and medium sized enterprises (SMEs) in order to fill a funding gap for training British athletes. These SMEs receive a link to the Olympic brand and have access to networking events. With other major global tournaments being held in the BRIC countries and the Middle East in the next decade, there is much hope of sponsorship generation and the establishment of a longstanding legacy of sporting economic activity in these regions. 2.4 Disparity in Sports Sponsorship Whilst sports such as football and the Olympics have been successful in their sponsorship fund generation, others have struggled. There appears to be an acute difference between male athletes and sportsmen in comparison to females. The New York Times (December 2011) compared two Olympic gold winners at Beijing 2008. Sprinter Usain Bolt is aspiring to be the first track and field athlete to earn $10m per year, whilst discus Olympian Stephanie Brown Tafton expects $25k for a year’s worth of sponsorship from Nike. In the UK, The Commission on the Future of Women’s Sport believe that women’s teams and athletes are “spectacularly missing out” on large sponsorship deals. Women’s sport sponsorship equated to 0.5% of the UK market. Channel 4 News (21 st December 2011) reported that Paralympians are struggling to attract lucrative corporate sponsorship ahead of London 2012. However Justin King, the head of Sainsbury’s, believes the best way in which Parlympians can secure these deals is through success. 2.5 Innovative Ways of Sponsorship Generation In order to secure sponsorship funding, sports organisations are looking for new and innovative ways of attracting potential sponsors. The Sponsorship Business Survey found that 86% of all respondents agreed that sports events should be more inventive in engaging their fans, whilst 54% believed that sport can learn from the arts and entertainment sector on how to better engage with fans.
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 | 9 An example of innovation from the arts and entertainment sector in 2011 was from Blackberry who had the Foo Fighters playing songs from a new album, in the garages of eight winning fans in eight North American cities. Museums are also using innovative marketing, as MasterCard cardholders were given the opportunity to take advantage of a range of exclusive experiences such as After Hours exhibitions at The Natural History Museum. In football, Nescau’s chocolate bars and ice-creams will be available to fans at all stadiums during the FIFA Confederations Cup 2013 and 2014 FIFA World Cup in order to get closer to their fans and consumers. Rangers Football Club has appointed a Global Partnerships Director to help secure global partnerships and increase its already large global fanbase. The Scottish champions now have an office in London, and the UK capital will be the hub of its commercial deals. Tottenham Hotspur Football Club has utilised shirt sponsorship by securing deals with both Autonomy and Investec. Autonomy is the shirt sponsor for Premier League fixtures, whilst Investec is the sponsor for cup competitions. Similarly, to utilise all of their assets, Manchester United has signed a deal with DHL for training apparel which is a phenomenon in the NFL but a trend that is yet to catch on in UK football. These examples illustrate the desire of organisations to stimulate interest from sponsors, and it is likely that those in sport will continue to seek and create innovative ideas to generate sponsorship. 2.6 Challenges for Sponsorship Generation Although the predictions for the sports sponsorship market for 2012 and the years ahead appear healthy, there remain several challenges. PwC believe that the globalised nature of sport will lead to increased competitiveness of the sponsorship market. Furthermore, the Sponsorship Business Survey discovered that 83% of all respondents felt that accountability for sponsorship accounts is greater than ever. Sponsorship is becoming more integral than ever before to the marketing strategy of business. 63% report a growing acknowledgment that sponsorship needs to sit centrally within the marketing strategy; only 8% do not agree that such an acknowledgement exists. 58% feel that this will result in better quality sponsorships. Therefore, the incorporation of sponsorship into marketing rather than existing as a single entity provides a challenge to organisations. Sponsorship needs to sit centrally within the marketing strategy Overall Rights Owners Brands Agency 62% 63% 64% 69% The measurement of sponsorship, according to PwC, needs to become more sophisticated. It is no longer enough simply to monitor media hits. Reporting must show whether sponsorship is achieving more ambitious objectives.
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The Annual Sponsorship Business Survey 2012 - Sporsora

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