Thursday, July 25, 2013

Real Money Decided on Court of Public Opinion

Over the past month, we have seen two star athletes stripped of endorsement deals.

For very different reasons, brands have turned their backs on both Aaron Hernandez and Ryan Braun.

Just days after he was handcuffed by federal agents, Hernandez lost deals with Puma and Cytosport. Although exercise is one of the few freedoms that Hernandez still has, he will have little purpose for protein shakes or athletic wear. He now spends his days in an orange uniform --- and not the kind that Puma endorser Rickie Fowler has made popular.

Ironically, an endorsement deal with Cytosport --- a legal sports supplement --- likely could have prevented Ryan Braun from losing marketing dollars from brands such as Kwik Trip. As a result of his 65-game suspension from the MLB due to PEDS, Braun will not only lose out on paychecks from the Brewers, but also from some of his commercial deals.

The recent troubles of Hernandez and Braun are examples of why brands must choose their endorsers very carefully. While struggles on the field of play may ultimately result in lower returns on investment, it is tribulations off the field that often doom endorsement deals.

It is for this reason that good-guys such as Kevin Durant, Phil Mickelson, Derek Jeter, and Peyton Manning are so often the recipients of huge endorsement dollars. These individuals have not only excelled with their performance in their respective sports, but they have also handled themselves as superstars in the press, in the locker room, and in their personal lives. These athletes represent far smaller risks than do many of their peers.

Yes, Floyd Mayweather Jr., Kobe Bryant, and Tiger Woods still rank atop the 50 highest-earning athletes. While the court of public opinion is still mixed with these athletes, their dominance has still reigned through. However, for athletes not atop their respective sports, even the smallest of blunders can damage their reputations permanently.

The recent troubles of Aaron Hernandez and Ryan Braun are clearly of different magnitude. Nevertheless, both have seen their reputations irreparably shattered. However, the effect of their mistakes is much more far-reaching than their individual careers.

Instead, their mistakes, and the inherent risk of investing millions in a single person, are reasons to why brands are now shifting many of their funds to teams, leagues, and properties. These investments are far less risky and offer more activation opportunities. Proof of such is the cost of naming rights at stadiums throughout the world. It is not only the New York Giants (Quest Diagnostics) and the Dallas Cowboys (AT&T) making enormous naming rights deals, it is also small CFL franchises such as the Hamilton Tiger-Cats, who just yesterday came to a 7-figure deal with Tim Hortons.

Though some brands, such as Gatorade and Subway, have seemingly perfected the process of selecting good-guy endorsers, the mistakes of others will result in smaller deals moving forward, and for a far smaller portion of the league's stars.

Thursday, July 11, 2013

Kentucky May Sell Out

University of Kentucky basketball is big business. The Lexington Center Corporation knows this as well as anyone. As a result, they recently began seeking offers for naming rights to perhaps the state's most famous landmark outside of Churchill Downs: Rupp Arena.

Lexington Mayor Jim Gray assured that irregardless of whichever brand wins the bidding war, legendary Kentucky Coach Adolph Rupp's name will remain in the title. However, "State Farm Rupp Arena" just doesn't seem to have the same ring to it.

Rupp Arena always sells out, so do they really need to sell out?

The growth, and subsequent commercialization, of college sports is a good thing for taxpayers and athletic departments. Its impact on the athletes themselves is negligible. The effect on the fans is a bit more complicated.

Over the past ten years, Freedom Hall and Shea Stadium have given way to the KFC Yum! Center and Citi Field, respectively. Giants Stadium is now MetLife Stadium. Athletic Directors, Owners, and City Councilman have been blinded by the dollar signs associated with naming rights.

Unfortunately, tradition has lost out. The transition is entirely logical. Executives are responsible for maximizing revenue. How then can they turn down the prospect of multi-million dollar long-term sponsorship deals?

But at what expense? Generations of sports fans came through the turnstiles of run-down Shea Stadium. Two World Series rings were won on that field. Young children will never understand the odd allure of that facility in the Queens. They will only know the sparkling new stadium that is a dream come true for corporate partners, irregardless of the lowly landlords.

Given the trend of naming rights, one has to wonder how much longer landmarks such as Fenway Park, Yankee Stadium, Lambeau Field, and Michigan Stadium will maintain their names.

Michigan Stadium, for what its worth, also doesn't allow any corporate signage within its turnstiles. And yet, the Athletic Department remains profitable.

Unfortunately, David Brandon's program is the anomaly. Other organizations need every endorsement dollar possible to operate effectively. As a result, they will gladly exchange a bit of tradition for a whole lot of cash.

Wednesday, July 10, 2013

Tottenham Hot(Spur) with American Brands

Over the last several years, the English Premier League has attracted top dollar from Fortune 500 brands.

However, while titans Manchester United and Chelsea have historically dominated the space, mid-level clubs are now joining the fray. Even lower-tier clubs such as Swansea City are signing multi-million dollar jersey sponsorship deals.

Tottenham FC is one of the clubs cashing in on the rising popularity of the EPL. Unlike many of the other top-tier teams that are turning to Asia for their latest endorsement deals, Tottenham has cashed in across the pond. For one, Tottenham has become the first major European club to wear jerseys produced by Baltimore-based Under Armour. In turn, Under Armour has utilized the club as their primary vehicle in marketing to soccer-starved Europeans.

Most recently, the Hotspurs have secured jersey sponsorship from Hewlett Packard, based in the soccer hotbed of Northern California. With their principal partnership, HP is rekindling their sponsorship of the club that dates back to the 1990s. While sports sponsorship is nothing new to HP, the deal represents one of the brand’s first forays beyond the United States. HP has previously held marketing deals with the NBA, Filipino Boxer Manny Pacquiao, the San Francisco 49ers, NASCAR and the Davis Cup. They are also the title sponsor of the Byron Nelson Championship (golf) and previously held the title of the San Jose Sharks arena.

HP’s new deal with Tottenham coincides with the club’s recent rise to the top of the EPL table. With wunderkind Gareth Bale leading the way in 2012-3, Tottenham tallied the most points in the club’s history. After surprisingly retaining Bale’s services and adding a couple other key pieces, Tottenham appears poised for Champions League qualifications, and perhaps even greater accomplishments, in 2013-4.

Their recent success on the pitch aside, Tottenham proves a tremendous fit for technology titan HP. With last year’s acquisition of United States National Team star Clint Dempsey, the Hotspurs seem keen on becoming America’s team of sorts. The benefits are already being reaped in the form of additional marketing exposure throughout this country. In a new billboard advertising their EPL rights for the 2013-4 season, NBC Sports chose to highlight Tottenham’s Gareth Bale, and in turn sponsors Under Armour and HP.

Whether it be their recent success, their acquisition of Dempsey, or Bale’s growing celebrity, there is little question that Tottenham has now developed a cool factor that is so appealing to fans and corporate sponsors alike. It will be interesting to keep an eye on whether this translates into the club’s increased popularity state-side.

Tuesday, July 9, 2013

MLS & EA Partner on New Method of All-Star Selection

Major League Soccer is putting All-Star Game selection in the hands of the fans....literally.

In collaboration with EA Sports, the MLS has developed the AT&T "In the Game" Challenge, which will determine the final starter on the MLS All-Star roster for their July 31st showdown with Serie A's AS Roma.

Whenever a virtual player has scored a goal in a "FIFA 2013" game over the past week, he has received a point. The Forward with the most points tomorrow morning will start the game up top for the MLS side vs Michael Bradley & co. The other 10 starters were previously selected through fan voting on the MLS website and via text messaging.

With Thierry Henry and Chris Wondolowski already voted in, leading candidates for the final roster spot include Seattle's Eddie Johnson, Philadelphia's Jack McInerney, and fan favorite Landon Donovan of the Los Angeles Galaxy. Regardless of which player earns --- for lack of a better word --- the start, this innovative partnership with EA Sports has established the MLS as a trend setter amongst the major sports leagues.

Given the recent efforts of Gary Bettman, Bud Selig, and Roger Goodell to raise interest in their sports' all-star showcases, one can expect this partnership to be imitated by other leagues.

Though the MLB sadly ended its long relationship with EA Sports in 2012, they would be wise to duplicate this with their own mobile apps. For example, how about if the final Home Run Derby selections were determined by the players in each league that hit the most long balls in Taco Bell's Home Run Derby app?

Or how about the final guys on each NHL All-Star roster were determined by those who have scored the most goals in NHL 14? The franchise is one of the most popular sports games on the market, so the league would be wise to take full advantage. It matches perfectly with the brand's brilliant tagline, "If it's in the game, it's in the game."

EA Sports has become increasingly interactive with their promotions over the past several years, including contests to determine its cover athletes. This year's Madden competition even matched the sport's current stars against legends, ending with Barry Sanders earning the nod for the 2014 cover.

Given leagues' efforts to increase fan interest in the All-Star Games, and the very neat precedent set forth by Major League Soccer, one can expect similar activation from the NHL, NBA, and NFL in the near future.


Monday, July 8, 2013

Murray Expected to Put On Pounds

Andy Murray's loss to Roger Federer in the 2012 Wimbledon final broke the hearts of Brits. Many wondered whether the Scot had squandered his opportunity to etch his name into the record books.

However, as so often happens in sports, when Federer and Nadal both exited the Championships early, the door to redemption opened for Murray. This time, however, the Scot capitalized on his chances and defeated Novak Djokovic in straight sets, thrilling millions of his compatriots. In doing so, Murray is expected to cash in big time via endorsement deals.

Murray's victory at Wimbledon will no doubt elevate his stardom to new heights. While he won the 2012 US Open in the media capital of the world, it simply does not compare to the significance of a Brit winning the Wimbledon title. Some have compared the feat to Andy Roddick's 2003 US Open victory, which skyrocketed his popularity throughout the United States.

Though Roddick's feat was huge for tennis in this country, it does not approach the significance of what Andy Murray just accomplished. Brits have been longing for a Wimbledon title for 77 years, the last 20 of which were spent watching its stars such as Tim Henman and Greg Rusedski struggle under the pressure of the native fans.

Other journalists have compared Murray's triumph to that of Adam Scott months earlier at Augusta. Though Scott did not have to overcome the pressure of winning in front of a home nation starving for victory, he did make history, becoming the first Australian to ever win the Masters. For a nation rich in golf history, Scott's Green Jacket elevated his celebrity status Down Under to new heights altogether. As was certainly the case with Murray's Wimbledon win, Scott's victory triggered a number of incentive clauses in his endorsement contracts, in turn making him an even richer man.

Though Scott's win was historic, it still likely does not compare to the value of Murray's title. Sure, it can be argued that the Masters now generates more interest globally than does Wimbledon. As a result, Adam Scott --- arguably already a bigger name internationally than Murray --- benefitted in a big way. However, Murray's victory on home soil is expected to make him the country's second-richest athlete --- next to the incomparable David Beckham.

Some estimates put Murray's endorsement potential as high as $60 million per year. Though that figure appears aggressive, especially considering Tiger Woods' $65 million in endorsements in 2012, the impact on his commercial profile is undeniable. For one, his renewal discussions with Adidas have already commenced. According to some sources, Adidas now has Murray pegged to become one of their global ambassadors, besides the aforementioned Beckham, FC Barcelona's Lionel Messi, and Chicago Bulls' Derrick Rose. If true, that will be the first indication of Murray's new status as an international celebrity.

While other analysts suggest that Murray's endorsement value may rise to a mere $30 million, there is little question of his value to advertisers in the UK. Murray's international endorsements will be tied closely to his continued success. However, even if the Scot, now ranked #2 in the world, does not soon win another Grand Slam, he will always be a star in Britain. As a result, one can expect Murray to capitalize on his triumph via a number of lucrative marketing opportunities throughout the United Kingdom.

Murray will surely reap the benefits of the current media storm, be it through new sponsorship deals, or as many experts predict, by reupping with the brands that have been loyal to him from the beginning. With a career-high ATP ranking and a burgeoning rivalry with World Number One Novak Djovokic, Andy Murray is in a great position to cash in off the court.

Monday, July 1, 2013

Cashing In On Success

The University of Michigan's announcement to turn to dynamic ticket-pricing for single-game college football tickets is a significant move for not only the school, but for all of college athletics.

Though the South Florida football and Georgetown basketball programs have previously used the ticketing model, Michigan --- as any of their 500,000+ alumni will tell you --- is at another level. The Michigan Athletic Department, one of the only profitable programs of its kind in the nation, is big business. As a result, the nation often pays very close attention to what happens in Ann Arbor.

Beginning this fall, the school will use dynamic ticket-pricing for all single game football tickets. The cost of these tickets will be based on demand; which will be calculated electronically by computer program QCue. Prices will change over time, but will never fall below their stated face value of $65. However, tickets for the Wolverines' premiere home games against rivals Notre Dame and Ohio State will likely triple to over $200. Though this may upset many Michigan fans, it will not affect any of the season ticket-packages, which are main vehicle through which alumni and students purchase their tickets.

For the university, the decision is a no-brainer. While low-profile non-conference games such as the team's opener against Central Michigan will likely not sell for more than face value, its games against the Nebraskas and Penn States of the world will fetch over $100 per ticket. This will boost ticket revenue significantly for the university, which has recently invested millions in the renovation of Michigan Stadium and Crisler Center, the school's basketball arena. Given the school's rabid fan base, the higher ticket prices will not prevent the team from selling out the Big House each Saturday, irregardless of team record or weather. Many fans typically pay these higher prices on secondary ticket sites such as StubHub anyway. The only difference is that the school will be profiting directly.

Many experts predict that Michigan's decision to embrace dynamic ticket-pricing will have a domino effect throughout collegiate sports. However, while the model makes sense for schools such as Michigan, it may not be the right decision for smaller universities. Universities such as Michigan already operate their athletic departments as if they are professional teams. The Wolverines even lured current CMO Hunter Lochmann from his former post as VP of Marketing for the New York Knicks. For smaller schools, with less loyal fan bases, the move towards dynamic ticket-pricing may not prove as beneficial to the bottom line. With less demand for tickets, prices may not rise significantly above face value. Furthermore, it risks alienating the school's fans forever. And for those programs with a not-so-Big House, this may actually prove a costly mistake in the end.



Sunday, June 30, 2013

EPL Kit Sponsorship is Big Business

On Friday, EPL club Swansea City unveiled Goldenway, a Chinese finance firm, as their new uniform sponsor. The team will receive over 3 million dollars from Goldenway, double the number from their previous partner, 32Red. The new deal is largely the result of the Welsh club's successful 2012-3 campaign, where they finished in 9th place and qualified for the UEFA Europa League.

Swansea's deal with Goldenway represents a couple of trends within the space. Firstly, it demonstrates the globalization of the sport. However, it is no longer just Manchester United signing deals with Asian companies. Firms like Hong Kong based Goldenway are now choosing to invest their first sports sponsorship dollars in clubs such as Swansea, based solely on the rising popularity of the game overseas.

The deal also represents teams' slight shift away from gambling companies as sponsors. While companies such as 32Red very much maintain a presence in the sponsorship world, teams appear to be distancing themselves just a bit. Just days ago, Tiger Woods turned down nearly $100 million in potential marketing dollars from an Irish gambling house.

Finally, if clubs such as Wales' Swansea City, can earn $3 million from uniform sponsorship, then one must wonder when we might see advertisements on NBA, NFL, and MLB jerseys in the near future. Based on several reports, Adam Silver the NBA may be the first to make the move. If so, it will be extremely interesting to monitor what type of deals the league's most prominent franchises can bring in.


Friday, June 28, 2013

Brand Winners from the 2013 NBA Draft

The morning after the NBA Draft, analysts always pass out their grades for each team. Who made out like bandits? Who struck out big time? Who is the next Lance Stephenson? The next Adam Morrison?

Here I will declare the big winners from last night, but not as far as their roster improvements. Instead, I will touch on the teams and players who gained the most off-the-court from a marketing perspective.

1.) Brooklyn Nets

After last night's blockbuster trade with the Boston Celtics, the Nets became must-see tv. With a starting five of Deron Williams, Joe Johnson, Paul Pierce, Kevin Garnett, and Brook Lopez, Brooklyn now boasts an entire line-up of All-Stars. The Nets should benefit in a huge way, namely via increased ticket sales for the Barclays Center and a boatload of national television games.

The move makes Brooklyn a threat to the Knicks, not only to win the Atlantic Division, but also to win the battle on Madison Avenue. As a reasonable challenger to the Miami Heat in the East, the Nets are suddenly much more appealing to corporate partners.

2.) Tim Hardaway Jr., New York Knicks

With a strong pedigree and a winning background, Tim Hardaway Jr. was very appealing to many NBA teams selecting in the bottom half of the First Round. By landing with the Knicks, Hardaway Jr. becomes an option to replace the talented, but unpredictable, JR Smith. The Michigan alumni is far more reliable and apparently wooed teams with his basketball IQ and winning personality.

The Knicks had just 2 guards under contract for 2013-4, meaning that Hardaway Jr. will have considerable opportunities to make his mark. He will also have the chance to make his mark in the marketing world. With a famous father, the spotlight has always been on Hardaway Jr. In the media capital of the world, this certainly will not change. If he can have some early success on the hardwood, Hardaway Jr's smarts and likeability should make him a strong candidate for some enticing endorsement deals.

3.) Nerlens Noel, Philadelphia 76ers

When Noel announced his intent to enter the 2013 NBA Draft, it appeared very likely that he would become a Cleveland Cavalier. Even if he was passed up, rumors suggested that the Orlando Magic were set on the Kentucky Freshman.

Instead, Noel slipped to the New Orleans Pelicans, who promptly dealt him over to the Philadelphia 76ers. In sports-crazy Philly, Noel will be far more visible than he would have been in Cleveland, Orlando, or New Orleans. Additionally, he will enter with friend Michael Carter-Williams, who will likely help Noel adjust to the NBA.

If Noel is able to rehab from his injury and succeed in his Rookie season, both he and Carter-Williams will receive their fair share of endorsement dollars. Especially on a team desperate for their first true star since Allen Iverson.

4.) Otto Porter, Washington Wizards

As the face of the 2013 Georgetown Hoyas, Otto Porter won over the hearts of DC. This makes his transition to the Washington Wizards simple, as the leap to the NBA should not be nearly as overwhelming for Porter as for some other Rookies.

Since Porter is already a recognizable face and name in DC, his agent is likely already receiving calls for endorsement deals. With fellow youngsters John Wall and Bradley Beal leading the way, Porter should be given every opportunity to succeed. If Porter can be the Wizards' missing piece, which many believe him to be, then his marketing value may skyrocket with the team's first playoffs appearance in years.

The DC sports market has been very welcoming to successful rookies in past years: Bryce Harper, Stephen Strasburg, John Wall, Alex Ovechkin, and Robert Griffin III. If Porter can replicate their success, he will reap the rewards in a big way via marketing dollars.

Thursday, June 27, 2013

Puigmania in the Big Apple

As its annual Mid-Summer Classic draws nearer, the hottest name in Major League Baseball is not Albert Pujols, Justin Verlander, or Miguel Cabrera. It isn't even Anthony Bosch.

Instead, Los Angeles Dodgers' Rookie Right Fielder Yasiel Puig has stolen the hearts of baseball fans everywhere. In less than a month, Puig has become must-see tv --- not only because of his historical numbers, but because of his electric playing style. Problem is, besides those few that subscribe to MLB Extra Innings or live in the Los Angeles Metro Area, not many baseball fans have actually seen Puig play.

Unfortunately for baseball fans everywhere, not to mention Major League Baseball itself, they also may not be able to tune in to see him play in the sport's biggest showcase outside of the World Series.

Since Puig did not make his Major League debut until early June, he was not included on any All-Star Game ballots. As a result, he faces an uphill climb to patrol the Outfield in Citi Field next month. Irregardless of his record-setting start --- 7 Home Run and 34 Hits in just 20 games --- Puig will need fans to write-in his name on their All-Star Game ballots. While his popularity is already skyhigh, this is a tough ask to say the least.

His 2nd option is to be selected by National League Manager Bruce Bochy, who has already expressed some doubt about Puig's credentials. Perhaps Bochy was persuaded by Puig's 3 hits, Home Run, and go-ahead RBI in a win over his San Francisco Giants on Monday. Nevertheless, it is a bit difficult to envision Bochy selecting a Rookie from the rival Dodgers as one of his All-Star picks.

Puig's last chance for inclusion is probably his best shot. With so much to gain from Puig's appearance, Major League Baseball will likely include him as one of their 5 National League players on their "Final Vote" ballot, which asks fans to vote via social media for the player that will fill the final roster spot on each team. The "Final Vote" not surprisingly always turns into a popularity contest, which should favor Puig over other potential candidates such as Paul Goldschmidt, Dexter Fowler, and Gerardo Parra.

Despite Bochy's skepticism, there is little doubt that Puig belongs in New York City next month. In just three weeks, Puig has proven his value as a five-tool player in the big leagues. His bat, legs, and arm have put fear into pitchers, catchers, and baserunners respectively. If Bryce Harper was deserving last year, then Puig's inclusion should be a can of corn this year.

All debate aside, Puig's Mid-Summer Classic appearance would be huge for baseball. For a league so desperate to build-up its All-Star Game that they put World Series Home-Field advantage on the line, Puig's inclusion would draw significant interest from fans, and even more attention from media. And in the world's media capital of the world, no less.

Major League Baseball has its stars in Cabrera, King Felix, and Tulo. It has its stories in Mariano's farewell, Matt Harvey's entry onto the scene, and Chris Davis' power explosion. And yet, just as he has done to the Dodgers' lineup this past month, Yasiel Puig's inclusion in one of its biggest weekends would add another dimension to the MLB's marketing campaign.

I mean, come on, who would dare change the channel when one of the game's most exciting, unpredictable, and talented young players was due up in the 9th against Mariano?

To be clear, Major League Baseball does not just want Yasiel Puig in NYC next month, it needs him there. In a city where Linsanity dominated the headlines for a couple months, Puigmania may prove more than a passing fad.









Wednesday, June 19, 2013

Kia in Rio

The FIFA Confederations Cup, held the year prior to each World Cup in the host country, serves as the perfect rehearsal for the nation’s operational and logistical plans. Transportation, security, and hospitality efforts are all closely examined to determine any flaws. Though the competition is off to a successful beginning, the host committee will have a full calendar year to identify resolutions to any minor issues that may arise.

This year’s competition, which hosts winners of major FIFA tournaments over the prior two years, is being contested in Brazil as a prelude to World Cup 2014. Thanks in large part to ESPN’s live broadcast of every game, as well as the United States’ success in the 2009 tournament, the Confederations Cup has gained quite a bit of popularity worldwide. While the Americans did not qualify for this year’s competition, television ratings are booming as a result of several exciting games, including a memorable bout between Italy and Mexico.

The tournament provides valuable preparation not only for the host committee, the teams, and the broadcast partners; it also enables FIFA sponsors to test their marketing campaigns.

One sponsor that is taking advantage of their presence at the 2013 Confederations Cup is Hyundai-Kia, which serves as the official automotive partner of FIFA. Hyundai-Kia launched their activation in Rio through the Official Vehicle Handover Ceremony, which marked the event’s beginning. At the Ceremony, the brand formally handed over the keys to more than 500 vehicles, which will be used for both ceremonial and operational purposes. These vehicles include the HB20, the Azera, and the Santa Fe, all of which will help FIFA manage all logistics required in hosting a large-scale international event.

Hyundai-Kia believes their FIFA sponsorship aligns well with the values of the company, which ranks Number One globally in Customer Loyalty. Hyundai has activated around collegiate football in the United States as a means to send this same message. Since soccer fans and college football fans represent two of the most passionate fan communities in the world, this makes all too much sense for the brand.

Tuesday, June 18, 2013

Understanding Ones Assets

Fox Sports 1 may be launching on August 17th, but its most important day might not come until February 2014.

Fox executives are smartly utilizing Super Bowl XLVIII as a carrot in enticing brands to advertise with the new sports cable network. According to several reports, the network is promising Fox Sports 1 advertisers the most valuable ad sports within the big game.  By doing so, they are instantly sweetening the new channel’s sales packages.
Though Fox Sports 1 will broadcast several of the country’s most rapidly growing sports, including soccer and UFC, it will not host an event near the magnitude of the Super Bowl. While many brands may have little interest in the network’s broadcasts of collegiate basketball and football, they may forfeit the extra cash in order to maximize exposure on February 2nd, 2014. Making these packages even more appealing is the location of the game; sources report that the asking price for ad space during Super Bowl XLVIII may exceed last year’s estimated $3.75 million due to the game being played in the New York metro area, which represents the world’s largest media market.

To be clear, this strategy is not a new one by any means. It has been used over the past couple years by both NBC and CBS, each of which recently launched their own sports cable networks.
By including Fox Sports 1 in many of their Super Bowl XLVIII sales packages, the network is definitely confirming that its launch is a priority. However, in doing so, they are absolutely taking a risk. The move will undoubtedly generate a bit of hesitation amongst traditional ad buyers. Whether this drives down the price or significantly delays the sales process, it will likely cause a bit of angst among Fox execs.

Another interesting point to watch will be how Fox integrates their new channel into coverage of the event. CBS Sports Network and NBC Sports Network provided relatively little analysis of the games. With their deep roster of analysts, one would expect Fox Sports 1 to be integrated more seamlessly into the pre-game coverage than viewers have previously seen.

Tuesday, June 11, 2013

Faster than a Speeding Bullet

Summer has always been a popular time for blockbuster film releases.

And studio executives have never spared expenses to promote those premieres. A relatively new trend, however, is their propensity to spend big money on sports sponsorship as a promotional vehicle.

The NBA and NHL playoff coverage has seen quite a bit of movie promotion over the past couple years, much of which has been rather inorganic (the dramatic Channing Tatum-narrated “White House Down” trailers during the Heat-Spurs series are not exactly the bestfit.)

However, Warner Brothers has arrived at a much more successful sports partnership with NASCAR’s legendary Hendrick Motorsports. For the second straight year, Dale Earnhardt Jr.’s No. 88 car will be branded with a paint scheme tied to an upcoming superhero movie.

In 2012, Dale Earnhardt Jr. won the Quicken Loans 400, his first Sprint Cup Series victory since 2008, in his “Dark Knight” Chevrolet, which was painted Batman-black. In his 2013 return to Michigan International Speedway, Earnhardt will again race in a car inspired by a Christopher Nolan-directed superhero film. This time, the car will promote that weekend’s release of “Man of Steel,” and will include the Superman “S” on the hood.

The deal, which was fashioned through a tie-in with Earnhardt Jr.’s primary car sponsor, the National Guard, makes a ton of sense for both parties. In a NASCAR world full of superstitious drivers, why wouldn’t Earnhardt Jr. attempt to repeat last year’s Dark Knight success?

From Warner Brothers perspective, the Superman tie-in is quite rational. For one, NASCAR racing is tremendous brand alignment for a superhero that is so often described as all-powerful, and more specifically “Faster than a Speeding Bullet.” Plus, anytime a brand can partner with the world’s most popular driver, it cannot hurt at the box office.


Monday, June 10, 2013

Capitalizing on Naming Rights

In an exciting activation at their newly titled stadium in Carson, California, StubHub is bringing to life their famed Ticket Oak.

The Ticket Oak, which has appeared in the brand’s television advertisements and out-of-home campaigns, is the focal point of a new 1,600 square-foot outdoor space at the stadium. The area includes artificial grass, picket fencing, and lawn chairs, giving the feel of an authentic back yard. The main feature of the space, and the digital Ticket Oak, is the large video wall, which consists of nine flat-screen televisions. Gabby Duno, StubHub’s Senior Manager of Partnerships and Activation, also reports that the video wall will have a social media element, which will enable fans to interact in real-time.

According to the Sports Business Journal, the video and audio content on the digital Ticket Oak is entirely customizable based on the particular event that is taking place. While the screens are the centerpiece of the area, StubHub will also employ real life brand ambassadors to promote the company’s rewards program via iPad minis. There will also be ticket booths set-up in the stadium’s North End Zone.
This activation by StubHub is very exciting because it prevents the brand from making two of the more common mistakes in sports marketing. First, many companies fail to make a direct connection between their advertising campaigns and their marketing tactics that touch consumers. With this activation, StubHub is utilizing their recognizable Ticket Oak as an effective, tangible touchpoint with Stubhub Center attendees.

Secondly, many brands pursue naming rights, without any plan on how to activate against them. The investment on title sponsorship of a stadium should only be one step to connect with consumers. In order to touch attendees, the company needs to customize an experiential campaign that will break through the clutter of other branding opportunities throughout the stadium. By creating this area that is unique, and authentic to StubHub’s brand, the company instantly becomes part of the stadium experience.

Monday, April 1, 2013

AT&T, Coca-Cola Unveil Final Four Activations

With the participants at next week's Final Four now set, the event's presenting sponsors are now releasing some of their activation plans. It is a big week for Coca-Cola in particular, whose corporate headquarters are based in Atlanta, not far from the Georgia Dome, which will host this weekend's matchups.

Longtime partners of the NCAA, both Coca-Cola and AT&T are extending their presenting sponsorship of this weekend's festivities into the entertainment world. In addition to branding at the actual games and their ancillary events, both Coca-Cola and AT&T will have a large presence at this week's tapings of TBS' "Conan," which will be taped in Atlanta for this week as a lead-up to the hoops action. According to multiple reports, the shows will focus on the Final Four and will feature relavant guests such as Turner basketball analyst Charles Barkley.

The sponsorship makes sense for the brands, both of which utilize the Final Four to target the 18-24 demographic. Conan O'Brien is particularly popular amongst college students and is also very active in social media. As a result, fans can expect that both Coca-Cola and AT&T will be very active throughout the digital space in the coming days.

As another supplement to their presenting sponsorship, both Coca-Cola and AT&T will sponsor concerts featuring star performers. Coca-Cola's concert on Saturday afternoon will include primarily hip-hop and will feature performances by Flo Rida and Ludacris, while AT&T's show on Friday night will be a bit more mellow, featuring Zak Brown Band and My Morning Jacket. Capital One is the sponsor of the third Final Four concert on Sunday, which features Dave Matthews Band.

Wednesday, March 13, 2013

Clooney, Timberlake, and.....Danica?

As a result of her 8th place finish at the 2013 Daytona 500, Danica Patrick earned an impressive $357,464. Not a bad day's work I'd say.

However, the financial benefits of Patrick's performance in Daytona last month extend far beyond the prize money. Her performance in the GoDaddy-branded "10" car has apparently raised her marketability considerably. So much so that her rating on The Marketing Arm's "Davie-Brown Index" --- which "determines a celebrity's ability to influence brand affinity and consumer purchase intent" --- rose 30 spots. To provide a better landscape for her rating, Patrick now sits between George Clooney and Justin Timberlake, yes that George Clooney and Justin Timberlake.

In other words, Danica Patrick has every bit the endorsement potential as Clooney and Timberlake.

For those doubting Patrick's value to sponsors, just consider the ROI for GoDaddy, one of Patrick's most visible endorsers. According to Repucom, GoDaddy received over 20 minutes of screen time throughout the Daytona 500, which has an approximate media value of $2.9 million dollars. To put in perspective the significance of Patrick's move to NASCAR, GoDaddy received only $1.5 million dollars in media value during her entire last season of IndyCar.

More impressive may have been Danica's social media impressions. In the week leading up to Daytona, which included Patrick becoming the 1st woman in NASCAR history to win a pole position, she received over 971 million impressions on Twitter.

Not a bad day's work indeed.

Tuesday, March 12, 2013

Friendly Fire

"You can please some of the people all of the time, you can please all of the people some of the time, but you can't please all of the people all of the time."

 As brands seek out new audiences, they often risk abandoning their most loyal clientele, whether it be members, partners, or fans.

 It is no secret that college sports fans are incredibly passionate about their universities. However, Arizona State University President Michael Crow may not have anticipated the extent to which this fervor expands to all walks of the game-day experience, including even the appearance of the school's mascot, "Sparky."

Collegiate athletic programs have recently taken significant actions to engage their alumni base. Marketing departments have begun polling fans on issues such as game times, uniform design, and even food items sold within the concourse.

 Some, such as the University of Mississippi have even staged votes to determine the school's new athletic mascot. This, as it turns out, could have provided Arizona State with an invaluable lesson.

 Whether it is because of the national television appearances or the pep rallies, people really do care about their mascot. Why else would the University of Michigan have eliminated their own costumed mascot, which the school's proud alumni passed off as looking like an angry badger?

 In an effort to appeal to the next generation of Sun Devils fans, the Arizona State changed the appearance of their mascot "Sparky," who appears at many of the school's athletic contests. In order to do so, the school even consulted with the good people at Walt Disney Co., and asked what features make a costumed figure more "kid-friendly."

 What they overlooked, however, was the effect that this change would have on the school's fans, students, and alumni around the world. There has been a substantial outcry from this fan base, who feels that the "new Sparky" is too superhero-like and marks too dramatic of a change from the traditional character. In fact, ASU students have even started an online petition protesting the new costume.

 To be clear, the Arizona State logo will not be altered. Nevertheless, the students feel that the mascot represents a significant part of the school's brand, thus bringing up one of brand marketers' biggest challenges: How do you attract new audiences without disappointing your existing base?



Monday, March 11, 2013

Degree Does More

Unilever brand Degree is launching a new campaign featuring several of their most visible endorsed athletes. For the first time in memory, Degree Men and Degree Women are attached in the same marketing campaign, one which focuses on the famous individuals outside of their chosen field.

The ad campaign is interesting in that it highlights athletes such as New York Knicks' forward Carmelo Anthony and US Women's Soccer Player Alex Morgan, but gives little mention to their successes on the court or the pitch. Instead, it features Anthony boxing and Morgan surfing. In doing so, Degree showcases the stars' efforts to stay fit and active outside of their paid jobs.

Degree's other commercials feature Oklahoma City Thunder Forward Kevin Durant cycling and US Olympian Lolo Jones bobsledding,

With the tag line of "Do:More", Degree challenges the public to push themselves further. The campaign aims to appeal to individuals who participate in the same activities as these superstar athletes. As exercise and healthy living receives increasing emphasis from educators, parents, and politicians, this ad pushes the public to "do more." With more and more people participating in endurance events and cross-training than ever before, the timing could not be better.

Unlike so many of the million dollar ad campaigns which laud the athletes as larger than life, Degree allows viewers to relate to their heroes. If one-name stars such as Carmelo and LoLo can trust Degree products in their own workouts, then the average New York Sports Club attendee can as well.

Wednesday, January 30, 2013

Brands as Content Creators

As the world grows more commercial, many brands are being forced to adapt in an effort to break through the clutter. For a couple years, social media was the easy solution for any brand seeking to engage an audience.

Need to generate some excitement around a new product launch? Just host a live Facebook chat.

Trying to develop a more personal relationship with consumers? Just host a Twitter Q&A.

Now, with little resistance, social media has become more commercial, than social.

As a result, brands are being forced to develop more creative tactics. While this is a challenge for many companies, it has also proven to be an enormous opportunity for certain brands to distinguish themselves from competitors in the industry. In other words, it is a chance for companies not only to build a more loyal audience, but also to tell consumers how they are unique.

In order to separate from the competition, many brands have turned to content creation. They have become publishers of unique content, some of which does not directly relate to the product being sold. However, as publishers of their own content, they are building a following -- consumers that may feel partisan towards that company's product, irregardless perhaps of its quality or price. Similar to my authoring this blog, they are seeking engagement with their consumers through their shared content. For many brands, this has been done via premium videos which provide viewers with an inside look into the company's lifeblood, interests, or product offerings.

Studies have shown that over 65% of marketers feel that branded content publishers have a better chance of reaching sales goals than do brands that focus primarily on social media.

To be clear, this has definitely been a boon or bust, depending on the makeup of the company. For brands such as Red Bull, the opportunity to push the envelope via customized content has come to define the brand. For goods less skilled at content creation, including those which are less clear on their company culture, this has set them back. Whereas these brands have some hope admist the marketing clutter of television commercials or branded signage, they have little chance to compete with the more innately creative and strategic companies on the market.

The effects of commercial clutter have extended to live events as well, where branded signage has become far less valuable than an engaging on-site activation. Whereas consumers are becoming ignorant to OOH campaigns and on-site advertisements, they are more receptive than ever to experiential marketing tactics. While these executions require more time, money, and man-power, the return on the investment is significantly larger, most especially when fans can return home with some connection to the product. For example, any activation that includes a call-to-action for fans to check back on their tablets or mobile devices guarantees the brand more engagement time with the consumer.

While publishing content has proven enormously successful for many brands, the development of customized material does not guarantee that consumers will buy-in. As is the case with any successful blog or media site, the content must be interesting and original. There must also be enough of it to engage the viewers. If not, they will dissociate with the brand. Finally, the content must be interactive and appealing. It cannot simply be words or video, but must rather call on the public for their participation or opinions. YouTube's comment and subscription format have made it very popular amongst brands, musicians, and athletes looking to engage with their fans.

Irregardless of any great successes, however, brands must not let up on the gas. If they press the brakes for even a bit, they risk being abandoned amidst the commercial clutter.

Tuesday, January 29, 2013

Are Super Bowl Ads Worth It?


Earlier this month, CBS announced that the network had sold out their advertising inventory for Super Bowl XLVII. Despite a lofty price tag of approximately $4 million for each 30-second spot, brands such as Doritos, Samsung, and Skechers jumped at the opportunity to promote their product on the country’s biggest stage.
Given the startling costs associated with producing a Super Bowl commercial, one must question whether the return is worth the financial investment.

Yes, there is always considerable hype around the commercials during the big game. And yes, the top ads do generate a great deal of hype throughout the following week. However, would brands be better off spending their advertising budgets elsewhere?

Analysts argue that one of the main reasons behind purchasing a Super Bowl ad space is the subsequent bump in stock that comes soon after the announcement. Studies show that stock values jump for companies in the days immediately following the brand’s public release that they will air a Super Bowl commercial.  These announcements are now more often executed via sneak peeks on YouTube, and less so at formal press conferences featuring the company CMO.

Though Super Bowl ads may be good for stock value, or boasting amongst ad agencies, or interesting Monday morning water cooler discussion, they are not the most practical use of marketing budget.

First, the sheer cost of Super Bowl ads typically prevents any brand from purchasing more than one spot. As a result, companies lose out on any opportunity to reach back out to their target audience. Without any degree of repetition, there is little value to the advertisement in the first place.
As proof, focus groups have proven unable to recall which products were associated with specific advertisements. In other words, they may remember that great Darth Vader car commercial, but will not recall which car brand it promoted (Volkswagen).

Another possible reason behind this inability to associate products with ads could be the number of commercials that air within a three or four hour period. When combined with all of the product promotion during the game broadcast itself (ex: Pepsi Super Bowl Halftime Show), there is too much clutter for even the most creative advertisements to make a lasting impact. After a while, viewers lose focus on each individual commercial, another reason why the spots immediately following Kickoff are often the most coveted. Just ask Coca-Cola.

While the massive Super Bowl viewership helps justify the $4 million price tag, it also makes it nearly impossible for brands to develop their ad campaigns. With consumers of all shapes and sizes tuning in for the big game, marketers are presented the challenge of appealing to a very general audience. Oftentimes, the brands are only trying to promote to a more specific target demographic. If that is the case, they would be better off diverting funds to advertising that can speak to this audience directly.

With the invent of new digital technology, brands now have more vehicles for advertisement than ever before. While the digital industry still lags behind in terms of big-brand investment, its importance is growing quite quickly. Digital advertising has several benefits to brand marketers: 1.) it allows them to target a very specific demographic, 2.) it is generally less expensive than television ad space, and 3.) it offers the opportunity to break through the clutter. For example, for the cost of a 30-second Super Bowl piece, a brand could receive a banner ad on the YouTube homepage for eight straight days. Or the brand could purchase enough ad inventory on Hulu to generate over 100 million impressions.

Though the total impressions secured via these digital avenues may be quite similar to those obtained during a Super Bowl commercial, these advertisements ensure repetition and arrive amidst less clutter. Additionally, with more consumers now utilizing their tablets or mobile devices to access information, these opportunities will only increase in value over the next several years. For brand marketers that do choose to purchase Super Bowl ad space, it is absolutely essential that they also engage consumers via these second screens in order to maximize the return on their massive investments.

Who has the most to gain at Super Bowl XLVII?

Every year around this time, conversation turns to which brand can “win” Super Bowl weekend. In other words, which activation, commercial, or PR stunt will generate the most discussion in offices and classrooms on Monday morning? USA TODAY’s Ad Meter is usually a telling resource, but Coca-Cola, GoDaddy, and Volkswagen have all been successful in recent years.

With its enormous television audience, over 111 million viewers in 2012, the Super Bowl offers one of the world’s biggest stages on which to perform. Along with that attention comes a great deal of opportunity for its participants. While the athletes’ primary motivation obviously comes from their drive for a Super Bowl ring and the fulfillment of rising to the peak of their profession, one would be remiss not to mention the multitude of potential marketing opportunities that are on the line.

Super Bowl triumph opens otherwise impenetrable doors for the team’s most visible stars. Talk show appearances, autograph signings, and endorsement opportunities are just some of the marketing deals that often lie in wait. For marketing agents looking to build their clients’ brands, there is no greater prize than Super Bowl stardom. Without further ado, let’s take a look at whose brands have the most to gain this Sunday in the Mercedes-Benz Superdome:

 The Harbaugh Brothers
Jim and John Harbaugh may be the biggest stars of Super Bowl XLVII. In fact, their stories will likely be played out before the “Har-Bowl” even kicks off, which already make both men winners. The Harbaugh brothers are the only ones on this list whose brand value will not be impacted by what happens on Sunday evening. One man will win, and one will lose. Regardless of who comes out on top, their brands will inevitably be tied to one another. Look for them to be featured together in any major commercial opportunities in 2013, much like the Williams sisters and the Manning brothers.

The Rays

Ray Lewis and Ray Rice, the two faces of the Baltimore Ravens, each have a great deal to gain on Sunday. And for very different reasons.

Ray Lewis’ story has been told. One of the best linebackers of all time will be retiring after the game on Sunday. He is a tremendous leader, but one who’s past was irreparably marred after an incident in Atlanta following Super Bowl XXXIV. With a victory on Sunday, Lewis can cap off his emotional journey, and a Hall of Fame career, on a positive note.
 
Ray Rice, despite his unique skills, is less often profiled in the national media. Standing just 5’8, Rice is one of the more effective --- and versatile --- backs in the entire National Football League. Full of personality, it is a bit surprising that Rice has not yet become a bigger star in the marketing world. Rice is one of the top fantasy backs year-in and year-out, and yet his brand has not yet taken off. After overcoming tragedy, with the murder of his father, Rice is a great story of perseverance and hard work. With a victory, and perhaps an MVP trophy, in Super Bowl XLVII, Rice will become a full-fledged star on the national stage.

Randy Moss
Moss is undoubtedly one of the best wide receivers to ever play. Just look at the statistics. He is 3rd in yards, 2nd in touchdowns, and 9th in receptions all-time. He also had perhaps the best receiving season of all-time in playing for the New England Patriots and Tom Brady. With a Super Bowl ring, Moss will cement his place in the record books. Regardless of his ability, and his quirky personality, Moss has not appeared in any notable ad campaigns. All that could change on Sunday evening.

 Joe Flacco
The Quarterbacks will take the spotlight in the Superdome on Sunday night. What else is new?
Joe Flacco has the opportunity to take a HUGE step in the respect category. The Super Bowl will provide Flacco with a chance to elevate himself amongst the NFL’s elite signal callers. Just ask Eli Manning and Ben Roethlisberger what a Super Bowl victory can do for their personal brands. Both turned Super Bowl MVP appearances into significant endorsement deals and are now household names in the sports marketing world. With a big-time performance in New Orleans, the Ravens QB can earn himself a great deal in endorsement money. While those in Baltimore may already believe in their guy, a win in Super Bowl XLVII will make CMOS nationwide “Whacko for Flacco.”

Colin Kaepernick
While Joe Flacco is not yet a household name, he is certainly recognizable amongst NFL fans. Colin Kaepernick was a complete unknown just a couple months ago. A 2nd Round pick in the 2011 NFL Draft, he was previously the back-up to Alex Smith. That all changed when Smith went down with an injury mid-season.
Now the University of Nevada graduate is taking the National Football League by storm. As a dual threat with his speed and a rocket arm, Kaepernick has been unstoppable throughout this year’s playoffs. Even more impressive has been Kaepernick’s confidence and mentality. In a Divisional round game against the Green Bay Packers, Kaepernick bounced back in a big way after throwing a pick six on his first possession. In the NFC Championship at a hostile Georgia Dome, Kaepernick brought the 49ers back from a 17-0 1st Half deficit. Kaepernick’s swagger and athleticism make him a natural fit for rich endorsement deals.
No longer is he overshadowed by fellow youngsters Andrew Luck, Russell Wilson, and Robert Griffin III. Kaepernick is now only one big game away from far surpassing all three in terms of marketability.  

Thursday, January 24, 2013

Save the Polar Bears

In a move that may shock commercial enthusiasts, Coca-Cola’s Super Bowl ad campaign, titled “Mirage,” will be sans polar bears. While the decision may disappoint a number of Super Bowl viewers that have come to love their not-so-ferocious furry friends, it has already paid off in the form of mainstream media attention.

This year, Coca-Cola’s agency Wieden + Kennedy developed a 60-second commercial featuring showgirls, cowboys, and a gang of bikers. The ad, which is already accessible online, centers on the three parties’ pursuit of Coca-Cola through the barren desert.

In an effort to generate discussion and engage with the 100 million-plus watching the big game, Coca-Cola is allowing the audience to choose the commercial’s ending. Viewers can vote for the group that they feel should win the race, either by tweeting or logging on to CokeChase.com.  Votes will be tallied in real-time and the complete ad will air immediately following the conclusion of the game.

By giving a degree of power to viewers themselves, Coca-Cola is targeting second-screen users. With a large percentage of the audience watching the game alongside their tablet or mobile device, this is an important tool for brand marketers. With this ad, Coca-Cola is hoping to maintain the consumer’s attention for longer than the 60-second commercial within the game broadcast.
Given the extraordinary costs of Super Bowl commercials --- an estimated $4 million for a 30-second ad --- brands are looking at new ways to increase the return on their investment. Given the explosion of social media, what better way to capture people’s attention than inviting them to participate via YouTube, Facebook, and Twitter. In order to encourage viewer participation, Coca-Cola will be providing incentives. They plan to offer free bottles of Coke, Diet Coke, or Coke Zero to the first 50,000 people that vote online.

Coca-Cola sought out second-screen users in 2012 by allowing viewers the opportunity to watch a live feed of the famed polar bears throughout the entire game broadcast. Though more than 9 million people logged in to watch the bears, it was definitely a less aggressive and engaging campaign than that which is scheduled for this year.
Though it is definitely a departure from previous Super Bowl ads, “Mirage” has already received positive reviews from consumers. By smartly releasing the commercial via YouTube, Coca-Cola has ensured that fans will be on the lookout for the ad during the game. Additionally, by announcing that the final ad will debut after the final whistle, Coca-Cola has ensured that they will engage consumers throughout the entire game.

As brand marketers continue to measure their success by the quality of engagement via social media and the second-screen, this ad campaign should rank very well. If nothing else, it will likely be discussed on Monday in offices and classrooms around the nation.
Also, just one blogger’s prediction here, but don’t be surprised if polar bears do eventually make an appearance in the final ad. Could they beat out the showgirls, cowboys, and bikers for the Coke?

Wednesday, January 23, 2013

Yes, There's Crying in Figure Skating


On the heels of Buffalo Wild Wings’ partnership with the NCAA comes another sponsorship that represents a great fit for the investing brand.
Yesterday it was announced that Proctor & Gamble’s tissues brand, Puffs, has agreed to terms with United States Figure Skating on a “high six-figure deal” to sponsor the sport’s famous (infamous?) “Kiss-and-cry zone.”

For those unfamiliar with the sport (whoever those people are), the area is where the skaters nervously lie in wait for the judges’ scores. It is often home to raw outpourings of emotion, be it agony after a fall on the sport’s biggest stage or pure ecstasy after the performance of a lifetime.  
For those who only watch figure skating sparingly, the memorable reactions in the “Kiss-and-cry zone” are often the highlight of the entire program. As a result, it is also one of the U.S. Figure Skating Association’s most prized ownable assets. Since the area receives an estimated 10 minutes of television exposure each hour of the broadcast, the organization has been reluctant to package the asset as added value in any of its existing deals with Prudential, Smuckers, and Hilton.

Instead, the U.S. Figure Skating Association was in favor of selling the area to an appropriate partner as the centerpiece of a new sponsorship deal. Puffs, a tissue brand, felt the opportunity was a perfect fit for their product.
Laura Dressman, Communications Manager for Puffs, explained why the brand jumped at the opportunity to sponsor the “Kiss-and-cry zone” at all U.S. Figure Skating events through 2014, “We realize that’s an emotional place for the skaters, and Puffs is all about helping people put their best face forward, so we realized it was a natural fit.”

Puffs will receive title sponsorship of the area, which will be rebranded “Puffs Kiss and Cry,” and there will be branded tissues available to all of the athletes. There will also be sampling opportunities, signage, as well as a media buy in all of the sport’s broadcasts. Puffs also plans on building a replica “Kiss and Cry” booth in the concourses of all major U.S. Figure Skating Championships so that fans can experience the same emotion felt by the skaters themselves.

Tuesday, January 22, 2013

Rise and Fire


Every once in a while, there comes a sponsorship that makes so much sense that it leaves you confused as to what took so long. Today brought the announcement of one of the more no-brainer sponsorship deals in recent memory.
Successful restaurant chain and sports bar supreme Buffalo Wild Wings has entered into a four-year partnership with the NCAA, which includes activation rights to all 89 NCAA championships. Most significantly, it provides them the designation as the “Official Hangout of March Madness.” Since Buffalo Wild Wings pretty much already unofficially owned that label --- especially with the demise of ESPN Zones around the nation --- it is a perfect fit for the brand.
The deal represents the chain’s second major sports sponsorship, the first came with title sponsorship of a bowl in Tempe which pits a Big Ten school against a Big 12 school. The first-ever Buffalo Wild Wings Bowl saw Michigan State edge out a dramatic victory over TCU.

As part of their partnership with the NCAA, Buffalo Wild Wings will receive media rights with CBS Sports and Turner Sports throughout March Madness. Viewers can now expect a number of the brand’s commercials on both the television broadcast and via the online stream. March Madness is well aligned with Buffalo Wild Wings’ past commercials, all of which focus on the absurdity and drama of sports. Buffalo Wild Wings should take advantage of their new rights to utilize footage from historical games from past NCAA tournaments, including the famous Bryce Drew (Valparaiso) and Christian Laettner (Duke) shots.
Most importantly, however, fans can expect more from Gus Johnson, the voice of the brand’s commercials. Since Gus is no longer employed by CBS to broadcast any of the games, this will be fans’ only opportunity to hear from him.
Fans should also expect to see activations from Buffalo Wild Wings in Atlanta, the site of the 2013 Final Four. The brand is very focused on connecting with sports fans nationwide and what better way to deepen their engagement then at one of the country’s most beloved sports properties.

One idea? How about the opportunity to film your own highlight, to be announced live by Gus Johnson? Fans could film their own buzzer-beater at the Final Four FanFest and then edit it online so that it fits one of Johnson’s famous March Madness calls. All participants would then be encouraged to post their clips online via social media.

Wednesday, January 16, 2013

Tennis Looking East, Far East


Tennis is hurting. As the case with any dying brand, the sport has lost its appeal.
As a result, tennis is devising a strategy to attract a new audience. In this case, a very large one.
Organizers of the Australian Open are making efforts to boost interest in tennis throughout China. According to several reports, tennis is actually booming in China --- a stark contrast to the downtrend of the sport throughout North America. Li Na, the 2011 French Open winner and the first Chinese player to ever win a grand slam, has triggered a great deal of interest within the country. On the men’s side, there is no such superstar. However, 21-year-old Wu Di, the 186th ranked player in the world, is the first Chinese man to compete in a Grand Slam since Wimbledon in 1959. A rather shocking stat indeed.
Captivating the Chinese population would be a huge coup for both the ATP and WTA, especially given the lack of interest in the United States, no doubt attributable to the lack of an American superstar in the men’s game. The significance of the Chinese market cannot be understated. Just ask the Houston Rockets, who recently signed Jeremy Lin to an outrageous contract, or Manchester United, who just signed two major sponsorship deals with Chinese brands.

The Australian Open is seeking to make their major inroads via digital media. Organizers will be posting updates and premium content on Chinese social networking sites. There were also a record number of Chinese media invited to this year’s event, which is aiming to brand itself as the Grand Slam of Asia and the Pacific. By developing new digital properties, tennis executives are hoping that they can accelerate the growth of the sport in China, which claimed only 14 million participants last year.

Tuesday, January 15, 2013

Azarenka Gets Her Wings


Red Bull has added to its stable of athletes by signing the Number One women’s tennis player in the world, at least according to the flawed WTA ranking system. In recent years, the brand has ramped up their athlete endorsements, signing the PGATOUR’s Rickie Fowler, Los Angeles Clippers’ Forward Blake Griffin, and Dallas Cowboys’ Defensive End DeMarcus Ware.

Victoria Azarenka not only represents Red Bull’s first foray into tennis, but also, perhaps more significantly one of the brand’s first endorsements of a female athlete.  With a dearth of notable young Americans in the sport, Azarenka represents the most marketable player in the sport. At just 23 years old, she has already won a grand slam (the 2012 Australian Open) and come very close at several others (finalist at the 2012 U.S. Open). With a very promising career ahead of her, Azarenka will no doubt garner a great deal of media attention, particularly whenever Serena and Venus Williams decide to retire.

Equally important to her success on the court is Azarenka’s image and temperament, both of which fit Red Bull’s brand strategy to a tee. Firstly, she is widely regarded as one of the more attractive players on tour, which certainly does not hurt with Red Bull’s target market of young males.  Beyond her looks, Azarenka is the rare WTA star that shows a great deal of emotion and personality. After big wins, and even between points, she has been known to dance --- as was the case during the 2011 WTA Luxembourg Final.  As evidenced by their endorsement of both Fowler and Griffin, Red Bull is definitely partial to athletes that have big personalities and do not always conform to their respective sport’s more traditional behaviors.

Red Bull is definitely not the first major brand to identify the appeal of Victoria Azarenka. Nike, American Express, and Citizen Watch all endorse Azarenka, who may very well be the next big thing on the WTA Tour.


*UPDATE: Victoria Azarenka is dating Redfoo from LMFAO.  Awesome.

Monday, January 14, 2013

Easy Call for Nike

Earlier today, Nike introduced Rory McIlroy as Tiger Woods' heir apparent. In reality, McIlroy announced himself as Tiger's likely successor as golf's next superstar with his dominant victory in the 2011 U.S. Open at Congressional. However, Nike's decision to sign Rory to a five-year contract, estimated to be worth up to $200 million has sent shock waves throughout the sports industry and confirmed the Northern Irishman's place among the world's most famous athletes.

Nike's endorsement of McIlroy is not at all a surprising move. Their deal, and loyalty, to Tiger Woods has illustrated their commitment to partnering with the superheros of sport, regardless of any off-the-course hiccups: Roger Federer, LeBron James, Cristiano Ronaldo, and now McIlroy. With Woods entering the back nine of his career, Nike's investment in McIlroy proves their confidence that the 23 year-old will win many, many more major championships. Though the brand has also invested in several other young players, Phil Knight is putting all of his eggs in McIlroy's basket. By the way, Knight stated earlier today that he looked forward to meeting Rory at the Master's. Pretty amazing that the Nike headman has never met McIlroy and yet he invested an estimated $200 million in the young man.

For Nike, the move makes so much sense. It means that the two top golfers in the world are playing with their clubs. It ensures that there will be a couple extra swooshes on everyone's television screens this year, beginning with this week's Abu Dhabi HSBC Championship, during which Tiger and Rory are expected to be paired together. Most importantly of all, however, it will ensure that another generation of young golfers will grow up worshiping a Nike athlete, and a pretty good one at that.

By the way, how good is the new Nike Golf commercial?


State of the Blog

20 blog entries in, I have received some great feedback from my readers. In general, there is demand for 1.) more content and 2.) more opinion, evaluation, and simply put, "brand scoring"

As a writer that is passionate about the subject on which I write, it is important to me to produce content that is valuable to my readers. As a result, I have decided to make a couple slight changes to the format of the blog.

Firstly, I will work hard to create more content and cover more topics. In order to do so, the entries will be shorter and will include less informational reporting. Instead, they will include a brief synopsis of the campaign, deal, or issue and more personal opinion.

I welcome your feedback to all posts, whether it be in support or sharp disagreement with my take. If you prefer that your comments remain private, please feel free to email me at araphael47@gmail.com to continue the discussion. As always, I also welcome guest posts, so please email me if there is any interest in that regard.

Thank you!

Adam

Friday, January 11, 2013

Right Call for T-Mobile in MLB Deal

In big news out of the 2013 International Consumer Electronics Show in Las Vegas, it was announced that T-Mobile is now the Official Wireless Sponsor of Major League Baseball.

Surprisingly enough, the deal marks the first time in over a decade that the league has a sponsor from the telecommunications category.

As part of the deal, T-Mobile will provide on-field wireless technology, simplifying the system for managers to make calls to the bullpen. There have been several occasions where the dugout landlines have malfunctioned --- including a notable World Series game involving the St. Louis Cardinals' manager Tony LaRussa. Now, the phones will all be wireless, preventing such happenings while providing managers with an easier method for speaking with their bullpen coaches.

The deal will also benefit fans, as T-Mobile will provide 4-G wireless networks in Major League ballparks throughout the country. This will allow fans to communicate with one another and also to access offerings from both the team and Major League Baseball. Additionally, T-Mobile customers will experience an enhanced version of the league's mobile app when used on a T-Mobile tablet or smartphone, providing an appealing incentive for passionate MLB fans.

In another smart move by the brand, the system will first be tested at this spring's World Baseball Classic. This will not only provide a good dress rehearsal for the technology, but will also give T-Mobile international exposure. Once the Regular Season begins in April, the impressions from the bullpen calls alone will likely earn T-Mobile enough impressions to rationalize the sponsorshiop dollars.

T-Mobile's investment in baseball will extend into broadcast and digital properties, as they will be the Presenting Sponsor of ESPN's popular Wednesday Night Baseball. They will also have a presence on the MLB's other televisions partners: Fox, MLB Network, and Turner Sports.

In order to celebrate the beginning of the partnership, T-Mobile and Major League Baseball are co-hosting a sweepstakes to win tickets to the Opening Day game of a fan's choice. As countless other brands have realized over the years, what better way to earn fan loyalty and gain exposure than to offer free swag.

The three-year, $125 million deal is T-Mobile's first foray into baseball. Previously, the brand focused its sports sponsorship on the NBA and several of its more recognizable stars, including Charles Barkley and Dwayne Wade.

For the country's fourth-largest wireless carrier, this is a great opportunity to not only build brand awareness, but also to get the product in the hands of the consumer. With a great digital partner like the MLB Advanced Media, which has helped develop MLB At-Bat, one of the industry's best mobile apps and the Fan Cave, T-Mobile will surely benefit.

One notable, challenge, however, will be the partnerships of the individual clubs, many of whom are currently sponsored by AT&T or Verizon Wireless. For many of the hometown fans, these are the brands with which they interact with more regularly. As of last year, T-Mobile had relationships with only two MLB teams, the company's hometown Seattle Mariners and the lowly Pittsburgh Pirates.
 

Thursday, January 10, 2013

Chevrolet Targets Soccer Fans

In July 2012, Chevrolet announced deals with two of the English Premier League's superpowers, Liverpool FC and Manchester United. The partnership launched with Chevy's sponsorship of Liverpool's Preseason tour through the United States during Summer 2012, during which the brand activated at stops in Boston and Baltimore.

With less than 1% of market share in the United Kingdom, Chevrolet is using their association with two of the country's most well-respected brands to boost their sales. After posting record market share in Q1 of 2012, Chevrolet felt the time was right to invest further in the market.

Though the sponsorship was Chevrolet's first entry into European soccer, General Motors' Vauxhall Motors is a partner of the English Football Association. As part of their deal, Vauxhall Motors receives branding on the national team's practice jerseys.

As the centerpiece to their partnership with Manchester United, which has been valued by some at over $600 million, Chevrolet will receive logo recognition on the club's jerseys, beginning in the 2014-5 season. In order to establish some good will with their new property, Chevrolet also offered a fleet of sports cars to the Manchester United athletes. Unfortunately, ManU Manager Sir Alex Ferguson promptly banned many of the players from driving the vehicles, in fear perhaps that it may inflate their egos or distract them from the pitch.

In an effort to further develop their partnerships with EPL rivals Liverpool and Manchester United, Chevrolet has established "Chevrolet FC", an effort by the brand to use soccer as a way to bring people together. As part of the campaign, Chevrolet has been active in distributing content via social media, most namely Facebook and YouTube. While the project is certainly an admirable attempt to tap into, literally, a world of new consumers, it has not sat well with fans of the two clubs.


Chevrolet FC's "DrivenBy" manifesto video, which has garnered almost 300,000 views in less than a week, has angered fans, who feel that the brand do not understand the rivalry between the two teams. With its split-screen imagery and players from the two sides reading in concert, the video --- eerily similar to ESPN’s “Born Into It” commercial featuring ManU and their crosstown rival, Manchester City --- attempts to communicate the power of soccer to bring together even the fiercest of rivals. Unfortunately for Chevy, their video received far less positive feedback. Instead, the brand was criticized for not truly understanding the seriousness of the rivalry.

For any sports marketer, the worst criticism one can hear from fans is that the sponsorship was forced, or even worse, offensive. Though the disapproval in this case is likely an overreaction from two very passionate fan bases, it is not music to Chevy’s ears. In actuality, given Chevrolet’s attempt to tap into the emotion of soccer fans throughout Europe, this may appear a rather ironic response. Nonetheless, it reflects a lack of both research and sensitivity on behalf of the brand marketers.

In order to engage the target audience, Chevy would be better off pinning the two fan bases against one another in some type of challenge --- perhaps over a social media platform.

Regardless of the backlash to the video and social media activity, Chevrolet should be applauded for their corporate social responsibility. As part of their FC initiative, Chevrolet is working to distribute soccer balls to millions living in impoverished areas. It is their hope that the sport can be used to help establish peace and impart some tolerance on those living in these regions.  

In addition to their admirable charitable endeavors, Chevrolet plans to activate at Sunday’s derby (read: rivalry) match between the two clubs at Manchester United’s Old Trafford. The game will be televised worldwide, included by Fox in the United States, and will be watched by hundreds of millions around the globe.

Despite the rocky start to the partnerships, Chevrolet will ultimately benefit from these deals --- most especially in 2014 when their logo will be seen on the jerseys of Manchester United, one of the most valuable sports franchises in the world.

Regardless which team you are rooting for come Sunday afternoon, we should all support Chevrolet’s “One World Futbol” project, which could have an extremely positive impact on communities around the world.

Wednesday, January 9, 2013

PGA Tour Aims to Ace Digital Coverage in 2013

For the past seven years, the PGATour's digital operations were managed entirely by Turner Sports. Now that their partnership has concluded, the PGATour has obtained the freedom to develop their own digital strategies. However, as Eleanor Roosevelt so eloquently put it, "With freedom comes responsibility."

For the PGATour, the conclusion of the digital sales agreement came at a convenient time. First, with a title sponsor locked in to all but one of their 45 tournaments (Transitions Optical's sponsorship of the Tampa Bay event expired in 2012), the tour can devote their attention to generating new revenue streams. These include building new digital inventory and also expanding globally, firstly to both Canada and Latin America.

Secondly, popularity of the PGATour is at an all-time high. With Tiger poised for a big year in 2013, Rory set to dominate once again, and a host of young guns aiming for a first major, there are countless reasons for fans to tune in each weekend. The recent success of players in non-traditional golf markets, such as Japan's Ryo Ishikawa, has also contributed to the tour's rising popularity overseas.

In order to sell, and manage, their digital inventory, the PGATour is planning for several new hires, some of which may be based in large media markets such as New York City. Though the development of their digital assets is still in progress, there are two major opportunities for brands.

The majority of new inventory will come as part of PGATour.com's simulcast of all NBC and Golf Channel telecasts. The video player will be co-branded and will offer brands a variety of advertising offerings. Reports suggest that the PGATour is also in discussions with CBS Sports for a similar agreement. It is unclear whether the video player will also show premiere pairings or any extended coverage beyond the traditional television schedule.

While the PGATour.com video player will certainly be welcome news to all golf fans, it will likely be quite dangerous for work productivity, particularly on Thursdays/Fridays of the majors.

The second comes with the rumored launch of the first PGA Tour mobile application. While individual tournaments have hosted their own apps in the past, this would be the first for the tour as a whole. It would likely offer fans spectator information, in-depth player interviews, apparel offers, as well as possible access to PGATour.com's live video.

Regardless of the specific capabilities of the app, there is little question that it will ultimately offer sponsors considerable added value and new exposure to fans of the red hot PGATour.