How to make the most of Sponsorship Opportunities in 2020
The phrase “20/20 vision” is often used to describe people who have perfect eyesight. In this sense “vision” usually includes a wider range of visual abilities and skills. If you really want to focus on the sharpness of your vision, the term “visual acuity” would be more appropriate, which literally means the sharpness of your vision.
What does this have to do with sport sponsorship in 2020? Well, the sport business is full of visionaries who like making projections about the growth of the business in terms of media, sponsorship or attendance at future sports events. And, in 2020 they don’t come much bigger than the Olympic and Paralympic Games which will be held in Tokyo, Japan.
In June 2019, the organizers of Tokyo 2020 Olympic and Paralympic Games confirmed they have generated US$3.1 billion in domestic sponsorship revenue. This revenue has been amassed from no fewer than 62 Japanese companies. And, this excludes Bridgestone, Panasonic and Toyota who have TOP partner deals with the IOC.
When the organizers’ first Games sponsorship was signed in with Nippon Telegraph and Telephone (NTT) Corporation back in 2015, no-one was predicting more than US$3 billion of revenues. The previous record for domestic sponsorship was held by London 2012 with US$1.1 billion. An increase to US$1.5 billion would have been considered a major achievement.
One of the main reasons domestic sponsorship revenue has grown so much is the organizers decision to operate with ‘non-exclusive categories’ which allows more than one sponsor in key categories such as airlines, banking or newspapers.
The Olympic and Paralympic Games is a pipe dream for many sponsors but the presence of one of the mega sports event in 2020 changes the landscape and strategy for all brands.
Here are five considerations to sharpen your vision and sponsorship strategy in 2020:
- Go with the Olympic flow?
In an Olympic year increasing attention and interest generates a platform for all brands to hitch a lift if you can create a relevant association with an ‘Olympic theme’. The question is whether your message or activation will have the power to compete with official partners across the Olympic movement? Official partners have been investing for several years and are unlikely to reduce their marketing spend in an Olympic year.
- Have a summer break….
From Friday 24th July to Sunday 9th August 2020, sports fans will be focused on events in Japan. Are you going to compete with the Games to engage with your customers or fans in this period? Or, perhaps take a few weeks off and wait until Olympic fever has passed and fans are ready to engage with other sports again? Timing is everything and knowing when to engage can make a difference to the impact of your sponsorship budget.
- EUROs vs. Olympics
In sport marketing circles, the debate still rages about the benefits of football sponsorship versus Olympic partnership. After a busy domestic football season followed by the Cup Finals and Champions League Final, football fans will extend their interest to EURO 2020 in 12 different venues, starting Friday 12th June until Sunday 12th July. Football attracts billions of viewers and offers valuable brand exposure at matches for sponsors as well as the use of the logos, tickets, hospitality, sales promotions, fan experiences combined with wall to wall social media tracking every stat, meme and moment of the tournament. Take your pick.
- The Rules of Engagement
The time has passed when federations, event organizers and sponsors can dictate when and where to engage with their fans or customers. The younger generation like to decide when, where, how and with whom they engage. The rise of eSports is no surprise to those inside the industry as titles such as CS:GO, Fortnite and League of Legends has re-focused minds of those working in more traditional sports arena. Do you embrace the rise of eSports and gaming or compete with your own content, streaming video and VR fan experiences to engage with the next generation?
- Short term vs Long term
It is easy to believe that partnering with a major event will deliver a short term boost to awareness, consideration and possibly preference. But, it is no secret that brands like Coca Cola, P&G, Heineken, MasterCard, OMEGA, Samsung and VISA have invested heavily in sponsorship for many years. Even the likes of Nike who used to focus more on individual athletes now partner with some of the biggest franchises in sport like the NBA, an 8 year deal starting with the 2017/18 season worth an estimated US$1 billion. Fans like brands who stick around and are not just looking for a quick win.
Sponsorship is a powerful medium in the marketing tool box. Unlike some industries where you can measure each and every action, sponsorship is a combination of tangible and intangible benefits in a changing landscape with technology, content and changing fan behaviour.
Plan your 20/20 sponsorship strategy and activation with an independent expert.
In November and December I am offering an all-in ‘strategy session, concept development and activation’ package for a fixed fee of €950,- per month for a limited number of ambitious sponsors. For more information, please contact me via richard@db96.nl to sharpen your vision and objectives in 2020 and discuss what support you are really looking for.