Sponsorship deal central to the bigger picture

With the news emerging that Barcelona Football Club is to break with a century old tradition by embracing shirt sponsorship, and that they are to be very handsomely rewarded for the move, the value of sponsorship as a communication and public relations tool has been further underlined.

Why else would a charitable foundation pay £125 million over five years than to improve its perception in the eyes of the global public? The name is not on the shirt (as UNICEF’s was as a pro-bono gesture) to encourage more donations, rather it is there to highlight that the Qatar Foundation, its good works and, by extension, the charitable and affable nature of the Qatari government.

Gabrielle Marcotti this week claimed in a national newspaper that the deal may prove to be a mistake: ‘In PR terms, it is quite the banana skin.’ Marcotti was, however, referring to the PR of the Catalan giants, rather than the Qatari politicians. What is undeniable is that in terms of getting brand recognition and obtaining positive media coverage through association with the most aesthetic side in the game, the deal makes complete PR sense for the Gulf state.

This news comes a week after FIFA’s announcement that Qatar would host the 2022 World Cup and these two occurrences are certainly linked. This is not to say that the Barcelona deal in any way aided the Qatari World Cup submission, rather that these coinciding moves demonstrate a state determined to enter world football from several standpoints.

The size of the sponsorship and the fact that it is with a property that was previously unachievable is by no means an accident. Qatar is a state that has huge aspirations and one that prides itself on breaking new ground.

When placed alongside the World Cup bid it is evident that Qatar is making a conscious effort to attain recognition with sport and in particular ‘the beautiful game’.
It is arguable that the timing of the sponsorship deal (or at least its announcement) was strategically planned to enhance Qatar’s reputation on the back of the World Cup bid result. Revealed a mere eight days after the Fifa committee cast its votes, the sponsorship deal, had Qatar lost, would have gone some way to ‘stealing the limelight’ from the actual winner and positioned Qatar nicely as a preliminary candidate for the 2026 bidding process. In reality, the timing has perhaps communicated to sceptics that Qatar is very much a part of the global football sphere and that the award may well be justified.

Regardless of the way the World Cup vote went, it goes without saying that the announcement of the partnership at this time is a shrewd PR move by the Qatari government. Their association with Barcelona can only improve their image in the eyes of football fans. If they now reinforce their investment with a rounded communications campaign then by the time 2022 comes around perceptions of the nation could be markedly enhanced.

Ronan Joyce

London Welsh: Enter the Dragon...and bring your chequebook

As Worcester Warriors’ Andy Goode and Pat Sanderson patrolled the touchline at London Welsh’s Old Deer Park ground last Sunday, the gulf between Premiership and Championship rugby union became startlingly apparent to me.

Premiership regulars, Worcester, are currently masquerading in the First Division, albeit six points clear at the top.

Welsh gave the Warriors a good run for their money on that chilly afternoon in Kew and could well have won, were it not for a walk-in intercept try. The point is, Welsh looked mighty close to beating a Premiership (in all but current standing) team.

But if a club like London Welsh does not have, say, the multi-millionaire inventor of the combi-boiler as its chairman and backer (like Worcester), how can it attract the investment required to move into a Premiership stadium, attracting Premiership crowds being entertained by international stars?

London Welsh is a club that belongs in the Premiership. They have fantastic talent in the team with the likes of Josh Drauniniu and Aled Thomas. Indeed, “London Welsh have provided more British Lions than any other club, including 7 in one tour in 1971” the club proudly boasts on its website. Before the game last Sunday, Worcester head coach Richard Hill said Welsh are genuine promotion contenders this season.

So why isn’t this club, based in Richmond, the heartland of the English rugby, with a larger rugby community than you can shake a kicking tee at, with players like John Dawes, John Taylor and JPR Williams in its archives, and ground sharing potential with Brentford FC’s 20,000 capacity Griffin Park, in the Premiership already?

London Welsh is a club crying out for investment. From a sponsors’ perspective, it has everything going for it. Big names (Phil Greening is head coach), great community engagement opportunities, a spiral kick away from Twickenham, on the flight path (surely an obvious attraction for airliners?) and arguably the game’s most impressive heritage.

It’s a question of a sponsor recognising the potential in London Welsh. What a fantastic opportunity for a sponsor to be involved at the start of the club’s journey! A chance to lay solid foundations with the club and partner with Welsh on their road to the Aviva Premiership. A much better story (and ROI) than simply jumping on the bandwagon if and when the club is promoted and paying a higher sponsorship price.

In the same way a powerful Number 8 steers a scrum, London Welsh needs the business world’s Imanol Harinordoquy at its base.

Oliver Druttman

Is the Premier League taking a gamble?

After the Wayne Rooney episode we have more proof that top flight football in England lives in a world of its own. Forget top name signings (or-resignings) like Rooney, Van Der Vaart and the little pea, Hernandez; the big money this season is in shirt sponsorship. Despite the recession, and marketing budgets for big brands being cut across the board, it seems there’s always some spare cash to plunge into football.

Recent findings show the English Premier League tops the table as this season’s European leader in shirt sponsorship revenue – leapfrogging deadly rivals the Bundesliga. A recent report from SPORT+MARKT states that Premier League shirt sponsorship is now worth a whopping €128 million – a €45 million increase on last season.

Table:
England – Premier League - €128million
Germany – Bundesliga - €118.5million
Italy – Serie A - €65.9million
France – Ligue 1 - €58.5million
Spain – La Liga - €57.5million
Netherlands – Eredirise - €42million

So it all looks rosy for the Premier League – but if you look at the report further you’ll see that the league is very much dependent on money from the gambling sector. This season, seven of the 20 clubs in the English Premier League have shirts emblazoned with the names of online betting companies. In fact this trend is seen across Europe, making the most out of the liberalisation of gambling and license laws. For example, Real Madrid's famous white jersey carries the corporate logo of Bwin, and BetClic ranks third among a host of new brands entering the football market with €20 million paid for jersey sponsorship deals with Juventus, Olympique Lyonnais and Olympique Marseille.

But what happens if the Government cracks down on gambling sponsorship in this country? The Gambling Act 2005 is still under review, and it’s currently unlawful for gambling operators to target children with their advertising within the UK. However, clearly with sponsorship there is a grey area; does shirt sponsorship constitute targeting children? Or is this argument too dependent on an assumption that children recognise Boyle Sports from an insurance company?

The right to sponsorship is a fight that tobacco companies lost, and alcohol brands are continuingly battling. So what’s next for the gambling industry?

Last year, GamCare reported a rise in the number of calls from younger people. Too many more reports like this and the industry will come under increased scrutiny.If so, then clearly this would have repercussions for sponsorship across all industries in the UK. It seems now is the time to start preparing the case for the defence…

Laura Oakley

A star on the Wayne?

The Wayne Rooney saga has seemingly reached a final conclusion with the striker’s 'shock' decision to sign a new five-year deal. Unusually for a man from Liverpool, Rooney has come to symbolise Manchester United, and the seemingly strange prophesies that he would stay from Jose Mourinho and Roberto Mancini, despite his intimations, proved to be true.

This startling sequence of events follows on from revelations about the striker’s private life, and while his sponsors have not withdrawn at quite the rate they did in the case of Tiger Woods, have his recent outbursts and misdemeanours diminished his appeal?

Has it meant that his sponsorship value and attraction has declined? There had been speculation that, on hearing revelations about his private life, and keen to protect their reputation as a family company, Coca-Cola was seriously considering dropping Rooney.

In buying into Rooney you are buying into his image; namely, the archetypal English footballer – committed, passionate, fiery and above all loyal. It is undoubtedly this last characteristic that is now under immense scrutiny. How much emphasis do sponsors place on loyalty?

When all this is combined with Rooney’s outburst against England fans at the World Cup, perhaps sponsors are looking elsewhere for a new star? His performances have become increasingly more withdrawn of late, and perhaps they may too in terms of endorsements. Equally, perhaps the status quo applies, and as a sponsor you take the highs with the lows. Arguably Rooney’s passion and fire to be the best and play for the best team means he maintains his value.

Certainly his choice to stay at Manchester United leaves him better positioned to keep the backing of his key sponsors; if certain stories were to be believed he was set to lose millions upon departure.

In the end, however, it will be his feet that do the talking. Play well and the fans will forget his misdemeanours and potential disloyalty – and if they can, so can brands. If he continues to have an indifferent season his star may well be on the Wayne.

Ronan Joyce

Sponsoring the future

For any sportsperson, some of the most influential people in their lives are the people who have shaped, advised and lived unspeakable highs and discouraging lows throughout their careers – the coaches. A family can love and support, a friend can offer an encouraging word, but a coach is the only person who truly understands what is going on deep in the darkest crevices that a sportsperson's mind plunders.

With the World Cup now a distant memory, all eyes have been on the FA to see how they can emerge from the wreck as a proactive association with a plan. Things become even more worrying when we consider how far ahead the rest of Europe is. England have just 2,769 coaches holding Uefa’s B, A and Pro badges, leaving us well short of the leading European nations. New hope was given when the FA launched its “Football Needs You” campaign, with the aim of producing 50,000 new coaches by 2011. This is definitely a step in the right direction, but can the FA really persuade a significant amount of people to look to coaching as a serious and viable career?

The need for further change to the English system was ratified on Friday evening, with England’s under-16 team the victims of a rampant display by Wales' under-16’s in the Victory Shield. If our next generation is struggling to perform against a supposed lesser home nation, surely the time has come for the FA to invest some serious money into an overhaul of our football system, much like the multi million euro spending plan the German FA implemented? McDonald’s have worked hard to support grass roots football, but it seems more support is needed at the higher levels of the game. Similar to the extensive input Aviva has had in developing UK Athletics that we hope comes to fruition at the 2012 London Olympics, there is a fantastic opportunity for a sponsor to fund an overhaul of football coaching, and connect their brand name with potential future success:

"This World Cup win was brought to you by..."

Christian Brown

Paddy Power Lords The Manor

With six of the 12 man European Ryder Cup team making their debuts at this year’s event, you would be forgiven for thinking that Colin Montgomerie had more pressing concerns in his opening team talk than the pros and cons of social media. Perhaps a sign of the times in modern sport, or a reflection of recent outrage in the golfing world, (no names mentioned Tiger), Montgomerie was quick to warn his team of the perils of a spontaneous tweet.

Despite his optimistic reviews of his own team, Monty knows that to beat the American’s is no easy task, despite the fact that they have not won in the last three European editions. The only certainty is that this weekend will be a very competitive affair. With play being postponed after only two hours on the first day, even further pressure is on the teams to perform, and it seems the Twitter accounts are back up and running.

Through the recent economic downturn, golf has remained one of the most lucrative professional sports in the world, with the last European event, at the K Club in Ireland in 2006, generating an estimated £50 million in revenue and around £10 million profit, according to George O'Grady, the Tour's current executive director. With the attention of millions around the world, this year’s event has so far generated little to fuel the press apart from Ian Poulter’s relentless tweets. Similarly tenacious communicating was seen by Paddy Power earlier in the week, and given the substantial finances and high viewing figures in the sport, it is unsurprising that they attempted to ambush a slice of the Ryder Cup pie. They were successful in their efforts to gain unofficial, but highly visible advertising space at Cheltenham Festival last March, but it appears event organisers are becoming more aware of methods to prevent this outlandish practice.

Following the lessons learnt from the World Cup, and this latest restricted attempt from Paddy Power, it might appear that ambush marketing is steadily being handled. A recent survey from Reuters would suggest otherwise however, and highlights that ambush marketing is very much at the forefront of sponsors and event organiser’s minds. Paddy Power may have been ordered to remove their sign, but they still erected it in the first place, and generated enough coverage to get their brand name visibility. Until this very grey area is given the colour of actual legislation, ambush marketing will continue to be very difficult to police, especially in large events.

Christian Brown

The Friendless Games

Recent events have thrust the Commonwealth Games, affectionately referred to as the Friendly Games, to forefront of the world's media. An event that once struggled to get column inches outside its participating countries (and sometimes even in them) is now getting publicity for all the wrong reasons.

I have a strong affection for the Games. I know they may not set the sporting world alight (Australia beating Malawi in the 100m freestyle is hardly headline news), but with over fifty countries participating, it is one of the biggest multi-sport events in the world. It presents a great platform for nurturing athletic talent, offering the chance to compete on a world stage to athletes who otherwise may not gain that important experience. The role the Commonwealth Games plays in “road-testing” events should not be underestimated, with successful rugby 7s tournaments resulting in the sport’s eventual admission to the 2016 Olympic Games. The Commonwealth Games also serve as a great platform for countries and cities to prove their credentials for hosting bigger events; namely the Olympic and Paralympic Games.

The latter is what many expected India and New Delhi to do on the back of this year’s Commonwealth Games, bidding for the 2020 or 2024 Olympic Games. Along with Africa, India must be high on the IOC’s list of ideal destinations for the Games, as it seeks to grow the Olympic brand. However, after recent events (Fears increase for the CWG), scandals, delays, missed deadlines and allegations of corruption, any Indian bid is now seemingly dead in the water.

It would take a brave man to bet otherwise, but I still believe that India has a chance of hosting the Olympic Games, provided they engage in a sustained and rigorous communications effort with all stakeholders, from sporting federations to politicians. With the world's media watching, now is the chance to illustrate the potential success of the Games, and highlight the resources, willpower and ability India will bring to the spectacle. Show a country embracing the Games, with packed stadiums of excited spectators, and all may be forgiven.

It is a challenge of Olympic proportions, but one that is well worth winning, and the reputation of the Federation and of India certainly depends on it.

Ian Budd

Sponsors spurred away from tradition

As Tottenham Hotspur made their entrance to the group stage of the UEFA Champions League last week the occasion highlighted more than a lack of killer instinct in closing out matches. Due to the unique nature of the club’s sponsorship deal, software infrastructure group Autonomy holds shirt sponsorship rights for the Premier League, whilst bank and asset management firm Investec is the shirt sponsor for domestic and European cup competitions. As such, Spurs looked somewhat different last Tuesday night.

The arrangement is a first for a Premier League club, bringing additional revenue to the organisation at the start of a pivotal season, yet some have argued that the deal exploits those who matter most – the supporters. Indeed, the facts present an initially damning case: the Spurs website is offering two versions of all three club shirts, meaning there are six to choose from at £45 each.

A closer examination of the details, however, presents an entirely different case. On top of the cash-boost provided by dual sponsorship, Spurs have given themselves an extra, high-profile corporate partner. With the squad now participating in the Champions League, the opportunity to extend the brand to the furthest corners of Europe and the wider world has never been timelier.

An intriguing question thrown up by this arrangement, however, concerns brand ownership. When there is one shirt sponsor for all competitions, there is a clear and distinct association between the club brand and its benefactor. To some extent, the sponsor ‘owns’ the brand, becoming synonymous with the club and its activities.

When sponsorship is divided this ‘ownership’ is diluted, and there is potential for each sponsor’s message to lack force, preventing cut-through with key stakeholders. To minimise the risk of this happening, sponsors must use all possible channels to gain maximum value for their money. Correct and efficient use of both digital and social media is crucial here; by fully utilising these channels co-sponsors can ensure that they are still seen as partners to the brand. If sponsors are willing to engage with non-traditional media to reach stakeholders, dual sponsorship can become a very attractive proposition.

Ronan Joyce

Twisis? What Twisis!

With the growth of social media, sponsors are rightly keen to utilise channels such as Facebook and Twitter to engage with fans. For some, the holy grail is to use the profiles of leading sporting stars to showcase what they are doing. These channels present virgin territory for sponsors both in the sense that they are a growing outlet for sponsorship activation, but also in that they offer an “unbiased” channel in the minds of fans, who have consciously chosen to “follow” this personality. Using these channels is growing in importance in leveraging a sponsorship today, but it is important to remember that these channels also come with risks, and to prepare for them accordingly. In the same way that leveraging social media is virgin territory, crisis preparedness within social media is equally nascent, but being prepared is best.

Many brands are often reported to be scared of using social media. They are fearful that they can’t control it, especially what comments might be posted, rather than seeing it as a fantastic opportunity to start a dialogue with consumers. Throw in the fact that they might get drawn into an issue, started by their brand ambassador and some will run for the hills. This month has seen Kevin Pietersen and Dimi Mascarenhas both fined for their Twitter rants and latterly Australian swimmer Stephanie Rise dropped by Jaguar for alleged homophobic comments posted on Twitter whilst celebrating Australia’s victory over the Springboks.

Leading sports stars are passionate and competitive individuals; they have to be in order to be good at what they do, and this passion is what appeals to many fans and why they follow them. Channels like Twitter present a great opportunity for sponsors looking to make the most of this emotional response, but it is important to be prepared for the times when this passion goes too far.

Ian Budd

Championing the Cause for Brands in Football

Play some word association with the average American, and “Super Bowl” is likely to elicit a few responses over and over: football; corn dogs; beer; and ad breaks. The creative, big-budget productions filling the advertisement breaks during the game have become as much an American cultural institution as apple pie – yet, unlike the delicious, ubiquitous treat, this concept has yet to spread overseas.

Yesterday’s UEFA Champions League draw threw up some tantalising clashes, and with 2009’s final the most watched sporting event of the year, it’s going to be interesting to see if next year’s final can topple the Super Bowl once and for all. But despite how close both events are in terms of size of audience, there are still marked differences in the sponsorship and advertising strategies that accompany them. Whilst the Super Bowl ad breaks have become synonymous with blockbuster premieres (like Apples infamous 1984 Macintosh commercial, widely credited with having started the Super Bowl ad trend), or competition-winning user-generated ads (see Doritos’ excellent “Crash the Superbowl” campaign), brand affiliation at the Champions League final is less overt.

At the Super Bowl, some viewers tune in deliberately just to watch the commercial breaks, and USA Today even publish a yearly Super Bowl “Ad Meter” – rating each advertisement depending on the second-by-second reaction of a panel of viewers. This unashamed recognition of the cultural impact creative advertisements can have is an excellent opportunity for brands, though they pay big for the Super Bowl platform, with some thirty-second slots now costing just under $3 million. During the Champions League final, although key UEFA partners are recognised with a sense of brand ownership through idents and sponsorship hoardings, there is no such obvious forum for fans to engage with the brands presenting them with the sport. Football fans recognise brands such as Sony and Ford as having an association with the tournament, but they don’t necessarily see how those brands fit in with their own enjoyment of the spectacle.

This may be, in part, due to a more-sceptical European view of brands. Certainly, our American cousins are regarded as being less averse to advertising and commercial partnerships infiltrating their entertainment than we are. As with many other areas, however, the Americans appear to lead the way, and brands associated with the Champions League will no doubt be working hard to forge the strong relationships they want with football fans and casual viewers alike, a process made that much easier (when it’s done right) by the prevalence of social media. The Champions League final is definitely there to own, and it will be fascinating to see how the big partners (Sony, Ford, Heineken and Mastercard), and other affiliates (Sony Ericsson, Adidas, Konami) explore new opportunities to do this. I’m convinced it will be a richer entertainment experience for it.

So let’s ditch the cynicism, embrace the commercial powerhouses making the Champions League possible, and get ready to enjoy ever-more creative, compelling and amusing advertisements as a result. 2011, this is your year…

Steve Sandsmith

As the dust settles and the Vuvuzelas fade, I think of what's next

The sound of the vuvuzela’s is finally fading but the memories will live with us forever. The 2010 South Africa World Cup has come to an end and the impact it has had on South Africa will leave a cultural legacy that even FIFA cannot have envisaged when they awarded us this magnificent tournament. Over the past month our nation grew together in pursuit of a common goal – providing the best World Cup ever and sharing the African experience with the world. At Arcay we have had the privilege to experience hosting the world cup not only on a personal basis but also on a professional level, offering us up the opportunity to work with some of the world’s biggest corporations who we treated to some good old fashioned South African hospitality and showcased our beautiful country. We can only hope that the rest of South Africa benefitted in the same way we did. As sad as we all are to see the end of this spectacular event, I for one feel that this is the beginning of a new vibrant era for South Africa when we can confidently promote ourselves to the rest of the world. Now it’s time to seize upon the opportunity FIFA provided us with...next stop 2020 Olympic Games?

South Africa Prepares

Burson Marsteller's African Affiliate Arcay Communications are producing a blog throughout the 2010 FIFA World Cup, today, Chairman Robyn De Villiers, previews 'Football Tuesday'

It’s Football Tuesday!

For months and months South African companies have been supporting the Football Friday initiative and having their staff come to work on Fridays dressed in football gear. We do it too. Tomorrow it will be Football Tuesday for all supporters of Bafana Bafana (our boys)! We are going to start work at 07:00 so that we can close our offices at 15:00 in time to head off to watch the critical match. It is a long shot – we have to score 5 goals against France! – but we have so much spirit that we might just do it. This weekend’s newspapers were full of positive messages about the World Cup to date. We all have to be part of it. The stadium and the fan parks will be packed tomorrow. And we’ll be blowing them vuvuzelas!

An Insight From South Africa

Destiny Gillbee a Senior Consultant at Arcay Corporate Communications, Burson-Marsteller's African affiliate, provides an insight into the first week of the 2010Fifa World Cup.

It’s the first week of the 2010 FIFA World Cup and you can definitely feel the energy in the air across South Africa. After years of preparation, which included building extensive transportation infrastructure and spectacular stadiums, the first day of the World Cup finally arrived. It was awe inspiring. The country just about came to a standstill as companies closed their doors early and excitement built up in every individual. As part of the build up we were entertained with dancing and singing, South African’s favourite pastime, as the opening ceremony provided a feast of colours and sounds that represent our nation.

For the first time in the history of South Africa as I know it, the entire country was united in blowing vuvuzelas, singing the national anthem with overwhelming pride and we all screamed our lungs out for our team, Bafana Bafana. The whole country rocked with passion as they scored the first goal of the game. The opening match set the scene for the rest of this week as the stadiums have filled up with passionate supporters and those unable to attend the matches have turned to their television screens.

I’m based in Johannesburg and the city is buzzing with excitement – flags are flying high from vehicles and buildings, and all conversations, whether with friends or strangers, have focused on the World Cup. With all this excitement in the air, I’m starting to become a fan of the sport. Yes, I’m a late bloomer but I’m not a sports person.

24 Hours and Counting

The FIFA World Cup™ begins tomorrow and in the tradition of all good sporting pundits I am about to make a bold prediction on who will be celebrating come July 11th.

My congratulations go to.......Nike! That’s right, this World Cup is a battle of sponsors and kit manufacturers.

Looking at the usual main contenders, anyone offering outrageous deals if England win the World Cup should be safe. So that’s bad news for anyone who has taken up Nationwide or Currys on their World Cup promotions. Sadly the genius of Rooney and the discipline of “Mr Capello™” won’t make up for our traditional shortcomings in technique and failure from the penalty spot.

So who else might triumph in South Africa? Well let’s start with the defending Champions, Italy. An ageing squad and defeat in a warm up match against Mexico suggests the Azzurri could be heading home sooner than their 2006 odyssey, all of which is bad news for fans of skin tight kits!
With Italy out of the way, how about Germany, the other traditional European powerhouse? A constant threat at major international tournaments, this one seems a step too far, deprived of their talismanic captain Michael Ballack, Germany look ill equipped to progress past the quarter finals, meaning adidas will have to look to its other teams for success.

Up first, Argentina. Guided on the pitch by the finest player of his generation Lionel Messi and managed by possibly the greatest player of all time, Diego Maradona, surely the Argentineans must be one of the favourites? Sadly, anyone who saw them in qualifying will know that even Messi’s genius cannot counteract Diego’s tactical frailties; if they do triumph in South Africa, Messi’s reputation will be surely verging on that of his manager, especially if he helps them past our final two candidates...

A final between five time champions Brazil and reigning European Champions Spain, is undoubtedly football purists’ dream ending. If the Nike laden Brazil team have trimmed down on flair for this tournament, they still possess stars such as Robinho and Kaka to maintain Brazil’s tradition as entertainers. Spain’s technical superiority over the past three years has set the world alight, their combination of quick passing and lethal finishing has set opposition pulses racing at a similar rate to that of another famous team wearing the adidas three stripes, the Total Football playing Dutch of the 1970’s.

Meanwhile, Nike has one ace up its sleeve that no-one else can lay claim to. It is the sponsorship of club side Barcelona. Even if Spain or Argentina does triumph at the World Cup, the stars of their respective teams will be donning the famous Barcelona kit with the Nike logo emblazoned on it next season. The thought of Xavi, Iniesta and David Villa (to name but three) combining for their national side and returning to play for the same club team is a kit manufacturers dream! And for the football fans it’s not a bad prospect either.

David Godfrey

Ambush Marketing an Own Goal?

Five days to go and excitement ahead of the 2010 FIFA World Cup™ is reaching fever pitch. On billboards, radio and TV there are a multitude of reminders that the world’s biggest single sport competition is about to begin. For all those working in the sponsorship world the issue of ambush marketing has once again raised it’s head. Picture the scene – you’re the head of a major multinational brand who has paid millions of pounds to associate with an event like the 2010 FIFA World Cup™ and you see this ad from Kit-Kat during the half-time interval of the cup final. Have a break? More like a breakdown in this instance. Unfortunately this is the dilemma that sponsorship managers across the globe are increasingly facing as brands become ever cuter in their attempts to circumvent the laws around ambush marketing. Sure deodorant recently launched a neat sweepstake competition where fans could win a money prize based on a tournament taking place in South Africa this summer that is clearly the 2010 FIFA World Cup™ despite the fact that it is never explicitly mentioned.

Defined by the International Olympic Committee as ‘all intentional and unintentional attempts to create a false or unauthorised commercial association’, it was not until the Sydney Olympic Games in 2000 that brands began to get injunctions to help protect their sponsorship asset against guerrilla activities. In today’s sponsorship environment legal contracts prohibiting endorsement are the new norm. However, in some cases this can create a negative perception of an official sponsor who are deemed guilty of adopting a heavy-handed approach. Witness the level of criticism that FIFA faced in 2006 when they stepped in and forced thousands of Netherlands to remove orange lederhosen trousers simply because they were sponsored by Bavaria beer, a rival to Budweiser the ‘official’ beer of the 2006 World FIFA World Cup™.

For sponsors a key question worth considering is whether they want to be associated with a sport or an event? In the context of the 2010 FIFA World Cup™ results from one recent survey suggest that the general public are often unclear on who actually are the official sponsors of a tournament. Coca Cola may run a competition whereby fans can win tickets to the big tournament but Pepsi’s elaborate on-pack promotion starring the likes of Torres, Messi and Drogba is equally attention grabbing.

In an ideal world you would have all these things – FIFA World Cup™ assets; superstar players as your ambassadors and prizes that appeal to even the non-football fan. However, budget constraints mean this is often a rarity. So which to choose? They all have their positives, but for the football fan there’s really nothing like being there for the live action and seeing history made....

Eamonn Collins

Event Video: How social media is shaping sponsorship strategy

We had a great event last week that looked at social media and sponsorship – you can get a flavour of the discussion in the video. One of the things that came up was that five, or even three years ago, social media rights were rarely part of a rights agreement. But now, for many sponsors it’s in their top five requests and they have questions. Where is the social media plan? What channels (e.g. Facebook, Twitter, YouTube) are available to me? How can I monetise them?

This means that a rights holder with a sophisticated social media rights package become more attractive.

We also discussed that while social media means a sponsor can communicate directly with fans, consumers, colleagues or peers (to name a few!) , it needs to done in an authentic way. It is certainly not, as one speaker said, a case of just dumping a marketing plan on a social network!

We hope you enjoy the video. You can click here to download the presentations from Sony-Ericsson and IEG. Please feel free to share with colleagues – enjoy!

Ian Budd

Social media and sponsorship - the opportunity

“I just don’t have time for social media”, was a conversation I overheard yesterday. “I am not sure why I need social networking” said the head of one of the UK’s most prestigious business schools to me recently. These comments highlight the challenge (not an insurmountable one) of demonstrating the value of social media in certain business contexts.

The role of social media for sponsors and rightsholders is much clearer. It presents a huge opportunity. Social media campaigns work best where the interests and passions of people intersect with a brand rather than being interrupted by a brand. Sponsorship can be at that intersection when it participates in a way that adds value for the fan.

So how best to exploit this intersection between fan and brand? Coming from a communications background, I see two key things that matter.

It’s possible to be blinded by the plethora of social media platforms - wikis, life-streams, social book marking, micro-blogs etc. But fundamentally what counts is the quality and relevance of the content - not the platform. The other thing is that the most effective social media campaigns are integrated. By that I mean they don’t just live in a social media bubble – they use offline and online PR, advertising and activity on owned media such as websites to drive traffic and engagement.

A couple of examples. We were recently tasked with increasing the number of fans on the Sony Ericsson Miami Open page on Facebook. The platform already existed. What we did was to post engaging content on a regular basis – things like behind the scenes videos and voting events for fans. The result was an increase in membership from 500 to 8000 over a few months. In case you missed it - Susan Boyle’s youtube video has a mind-boggling 40 million views. That was all started by the ‘traditional media’ - a TV show, then a feeding frenzy by the print media.

By Adam Lewis