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.