BrandDunk

Branding the World of Sports

Posts Tagged ‘Sponsorship Deals’

BrandDunk in Final Four sponsorship article

Posted by ZA on February 21, 2010

Media Life Magazine ran an interesting article, by Diego Vasquez, on the cost and value of sponsorships at the NCAA Final Four.  The article focuses on the value that can be derived by “out of home” sponsorships at events like the Final Four.  And if you read down to the bottom, you’ll see a quote I contributed to the article.

“Certainly you’re getting your brand in front of a strong target market. In addition to the fans, there are also a lot of corporate types — a lot of influential people will be there. So if you’re setting up something like a fan experience outside of the arena, you’ll get great traction locally and get exposure among corporations entertaining clients, as well as the fans.” Zach Anderson, a marketer who runs the blog BrandDunk

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Posted in College Basketball, College Sports, Sponsorship Deals, Sports Brands, Sports Marketing | Tagged: , , , , | Leave a Comment »

New York Times only tells half the story

Posted by ZA on April 5, 2009

The New York Times piece by Eric Pfanner titled, “When the Attention isn’t Worth it” misses the mark.  While true that companies need to spend wisely when it comes to sports sponsorships, that doesn’t mean they should eliminate them when times are tough.  The article is critical of the sports sponsorship deals cut by companies that that are part of the government bailout, and specifically points out excessive spending by AIG and RBS.  But the article fails to point out the importance these sports sponsorship deals have in a company’s marketing plan.  It also doesn’t mention that some of these deals are proven money makers, like some of the deals that Bank of America was criticized for by Congress.

Sports sponsorships are a vital component of many large companies marketing plans.  They are equally as important as other forms of advertising and public relations.  They play a big role in building the brand of the companies that use them.  I think the Times & Pfanner need to paint a more complete picture of the subject, not just focus on the dollars being spent.  They need to report the dollars that are being generated as well.

Posted in Endorsement Deals, Sponsorship Deals, Sports Marketing | Tagged: , , , | Leave a Comment »

AIG loses their shirt…literally

Posted by ZA on March 18, 2009

The news for troubled insurance giant AIG has not been kind lately.  When the most powerful man in the free world is angry with you, that is never a good thing.  And President Barrack Obama did not mince words this week when he said he was angry at AIG over their handing out bonuses to top executives.

So how does a brand respond to the crisis?  How is AIG responding to this current crisis?
It appears AIG is doing a whole lot of nothing.  This article from AdAge discussed what PR steps AIG could take to help their current situation.  Even the PR experts admitted this situation is going to be extremely tough for AIG to rebound from, because money spent on a PR campaign to win back consumer hearts and minds will likely be viewed as more excess.  AIG did not respond to questions sent by AdAge on the story.

Making it worse for AIG is that while they take their duck and hide approach to handling this crisis, one of their biggest marketing opportunities just ran away.  News came out that AIG is losing its shirt sponsorship with soccer club Manchester United.  The deal which AIG has held since 2006 will not be renewed after the 2010 season is done.  While on the surface it might seem great for AIG to rid themselves of a $25+ million dollars per year team sponsorships, it is a big loss for AIG.

Manchester United is one of the most popular football (i.e.- soccer) clubs in the world.  Man U jerseys (or “kits” as they are called in soccer) are worn by their fans across England, Europe, Asia and the United States.  Wikipedia reports that Manchester United has over 330 million supporters worldwide, which is almost 5% of the Earth’s population.  Assuming it is true, that means that one out of every twenty people on this planet count themselves as a support of this soccer team.  That means there are millions upon millions of people walking with Man U jerseys with AIG on the front.

Is it worth $25 million dollars per year for AIG to get that type of brand exposure? I think so; and some smart company is going to jump at the chance to pay Man U even more in their next jersey sponsorship deal.  CNN reports that Indian conglomerate Sahara and Saudi Telecom are already interested and I bet a few American corporations give it a close look.  Nike, are you listening?

So AIG is not saving $25 million dollars per year, they are losing brand exposure on a global scale.  The richest club in all of professional sports, with the largest fan following in sports, is wearing your company name on their chest; and you give that up?  Makes no sense to me, it seems like they could have cut corners on some other marketing deals in order to maintain the relationship with Manchester United.  But alas, it is just another blunder in a series of missteps that AIG has made lately.

Posted in Apparel & Shoes, Soccer, Sponsorship Deals, Sports Brands, Sports Marketing | Tagged: , , , | Leave a Comment »

Wells Fargo walks away from PGA sponsorship

Posted by ZA on March 18, 2009

Wells Fargo’s acquisition Wachovia is not only walking away from their sponsorships with the PGA Tour, they are walking away and leaving money on the table.  Some of Wachovia’s deals with the PGA Tour are through 2014, but Wells Fargo still made the decision to give them up.  The reason Wells Fargo is giving up the PGA Tour is that consumers are seemingly unhappy with the failed financial company (Wachovia) still spending money on sports sponsorships.  This bowing down to public perception occurred even though Bank of America has come out recently with data in support of their sponsorships of sporting events.

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More at SportBusiness on Wells Fargo pulling the plug on their sponsorships of the PGA Tour.

Posted in Golf, Sponsorship Deals | Tagged: , , | Leave a Comment »

Bank of America is making money off sports marketing

Posted by ZA on March 16, 2009

Why all the fuss about Bank of America spending on sports marketing? People have been complaining about BOA’s spending on sports endorsement deals and sponsorships because BOA took government bailout money.  They took TARP money, but Bank of America is making money from their sports marketing deals.  Let me repeat that, Bank of America is reporting that they are MAKING MONEY from their sports marketing deals.  So it appears those that criticize BOA’s spending, might not really know all of the facts; perhaps they should have listened to the BOA CEO before passing judgment.

Bank of America CEO, Kenneth Lewis, says they make “Ten dollars ($10) in revenue and three dollars ($3) in earnings” for every one dollar ($1) they pump into sports marketing deals.  Lewis went on to say that the money Bank of America spends on sports marking “is not wasted money.”

I don’t know much about how Bank of America runs their business, but it does appear their support of sports has been lucrative for their business.  They are making a 300% ROI (profit) from investing in sports, which you take every time in the advertising world  So perhaps the politicians in Washington will refrain from wagging their tongues on the matter, until they at least have some facts to support their criticism.

Bank of America’s Sports Sponsorships
include:

* Major League Baseball
* Nascar
* NFL
* PGA golf
* US Olympic Team

Read more on BOA’s sports sponsorships on their website.

Posted in Sponsorship Deals, Sports Marketing | Tagged: , , , | 4 Comments »