Sponsorship is dead, long live sponsorship

Alex Lintermans, Vice President Sponsorship, Europe for MasterCard presenting at SponsorLive in Brussels earlier this month proudly stated ‘sponsorship should be at the heart of the marketing mix.’

Especially an organisation seeking to build connections with customers, generate love for the brand and drive traffic into stores. For 20 years, MasterCard has been creating Priceless experiences for customers, vendors and fans all over the world. Why? Because experiences matter more than things.

With projected global sponsorship spend of $62.8 billion for 2017 there are plenty of marketers who would agree with Lintermans. Most of us know MasterCard Player Mascots at UEFA Champions League matches but the portfolio also includes live streaming Q&A sessions with Graham McDowell at The Open, being part of Main Street Parade at Disneyland or enjoying the ‘red carpet’ treatment at the Cannes Film Festival. But perhaps the most Priceless experience is Pharrell Williams surprising one of his biggest fans. Check it out here: https://youtu.be/P3vlp5Bw4-4

When it comes to trends, marketers are guilty of being some of the biggest followers, rather than leaders, according to marketing consultant Simon Sinek. I love this quote by Sinek: “Trend data says that kids these days are using apps more and more and more, so marketers respond and do more apps. But it’s simply a trend. It doesn’t mean it’s positive or negative.” Sponsorship is often criticized because it is all about ‘events and experiences’. Sinek has a response: “This is because human contact and going out with your friends is a big deal.” And, unique sponsorship assets allow brands to create an environment where friends can share memorable moments together, which makes the brand experience so valuable.

Target has got the sponsorship bug too. Soon, the iconic bullseye logo will be appearing on the Minnesota United Player’s shirts and as an Official Partner of the MLS including airtime broadcasts on ESPN, Fox Sports and Univision. Sounds a bit like the UEFA Champions League sponsorship formula. Target has a plan that includes stadium experiences, player appearances and ownership of certain major MLS platforms. A critical ingredient in the sponsorship is the Official Retailer of Youth Soccer that supports more than 3 million players aged 5 to 19 as well as 900,000 coaches, volunteers and administrators. Why make this investment? Because sales of soccer related items in Target stores rose 15% last year and the popularity of soccer in key demographics is increasing, especially amongst the Hispanics. And, there will be a Target United Cup, the largest recreational tournament in the US. More experiences.

Cups are valuable assets. Particularly those called The Wembley Cup. After a merger of T-Mobile and Orange creating a new brand called EE, The Wembley Cup allowed EE to engage the difficult to reach 18-24 age group using gamers and youtubers. Check out the video at http://wembley.ee.co.uk/wembleycup/ The goal was to build an influencer channel as opposed to a brand channel that would influence first choice purchase intention. Using FIFA EA Sports gamers, youtubers and ex footballers, EE created a campaign that generated 4.6 billion views and more than 400 years of viewing time! The average watch was 10 minutes which increased organic engagement by 67%. About 20,000 fans watched the final live at Wembley Stadium and there was even unofficial merchandise and ticket touts which reflects the appeal, originality and impact of a well-designed and executed sponsorship program.

If you get the impression sponsorship costs millions, don’t worry. According to proprietary data on more than 150,000 proposals analysed in 209 markets over three years by Performind, 95% of all deals are less than $100,000. Only 1% are more than $1 million. And to pay that amount of money they must be Priceless and sit at the heart of your marketing mix!