IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING

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1 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING JUNE 25, EMERGING CATEGORY SPONSORSHIP IN THE HVAC CATEGORY HEATS UP HVAC companies increase use of sponsorship to build visibility and drive brand preference. It may not be the most glamorous of categories, but companies in the heating, ventilation and air conditioning industry are warming up to sponsorship. Case in point: The NHL recently announced a oneyear partnership with York, a deal that represents the league s first-ever partner in the HVAC category. York is supplementing the sponsorship with ties to at least six clubs. Other HVAC companies are joining York with deals at the national and local level. Those include Andrews Air Conditioning, which in June announced a shirt sponsorship with the Charlton Athletic Football Club, and John W. Danforth Co., which inked a new tie with the NFL Buffalo Bills for the season. Other partnerships include Lennox International, Inc. and Penske Racing; Luxaire Heating & Air Conditioning and the Make-A-Wish Foundation; and Mitsubishi Electric Cooling & Heating and the PGA Tour. Mitsubishi this year expanded its golf program with a tie to the Champions Tour and an endorsement deal with Fred Couples. The HVAC category is largely comprised of two segments: Equipment manufacturers (Lennox, Mitsubishi, York, etc.) and dealers. Each segment has its own sponsorship hot buttons. Manufacturers typically sponsor to build visibility and gain promotional platforms that can be leveraged with dealers, while dealers use the medium to build credibility and demonstrate community involvement. For example, Lennox uses its 15-year-old partnership with Penske Racing to accomplish three primary objectives: engage customers and gain business from Penske Corp. and team cosponsors. HVAC is a natural category when it comes to B2B introductions, said Jonathon Gibson, vice president of marketing and communications with Penske Racing. HVAC companies frequently look for properties that can be activated during two key sales seasons: spring (air conditioning) and fall (heating) IEG, LLC. ALL RIGHTS RESERVED. 1

2 York Scores With The NHL The Johnson Controls, Inc. subsidiary aligned with the NHL to build visibility, drive preference and engage its roughly 2,000 dealers. The company took the tie on behalf of its residential heating and air conditioning products. The idea is to build awareness and provide a platform for dealers to build local promotions such as a sweepstakes around a Stanley Cup game, said Steve Hoffins, York s senior brand manager of unitary products. York took the sponsorship as result of the changing media landscape, he said. National advertising is not as effective as it used to be. We wanted to do something different. The sponsorship started with a call last year from Jeff Bail, a vice president with Van Wagner Sports & Entertainment. Bail and York have a preexisting relationship: The industry veteran managed York s Olympic sponsorship program in the 1980s and early 1990s. Johnson Controls purchased York in We talked over lunch about our distribution channels, marketing footprint and who we are trying to reach. Jeff said Have you thought about the NHL? It sounds like a perfect match. The more we thought about it, the more sense it made. The NHL partnership affords exclusivity in the HVAC category and a tie-in to the NHL Awards, NHL Draft, NHL Green and the Bridgestone NHL Winter Classic. York also gains status as the official HVAC company of the Hockey Hall of Fame. York will activate the partnership with local dealers. For example, the company plans to host visits by the NHL Winter Classic Truck Tour at local dealers prior to the outdoor hockey game. We ll schedule a series of stops at some of their business partners and retail locations, said David Lehanski, the NHL s group vice president of integrated sales and solutions. York also will gain branding on the truck, he added. York will support the league deal with ties to at least six teams. Those include the NHL Montreal Canadiens, Philadelphia Flyers and Vancouver Canucks; the company is negotiating deals with other teams. York chose the teams based on several factors including the strength of the local HVAC market and distributor penetration. The company will activate the ties with client hospitality and promotional nights throughout the season. Hoffins expects to extend the league sponsorship beyond the company s one-year contract. We anticipate it going beyond the 2013 season, he said. Van Wagner will help York activate the league and team sponsorships. Sources Johnson Controls, Inc., Tel: 414/ NHL, Tel: 212/ Penske Racing, Tel: 704/ IEG, LLC. ALL RIGHTS RESERVED. 2

3 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING JUNE 25, SELLING THE BUYER S PERSPECTIVE: WHAT PROPERTIES NEED TO KNOW Flexibility and a willingness to go beyond terms of a contract can help properties stand out from the pack. What do sponsorship buyers want to hear in a pitch? What are the attributes of desirable properties? IEG SR poised those questions to a handful of sponsorship buyers. Below, they share feedback on what properties need to do to stand out from the pack. Make sure there is a relevant fit. When targeting prospects, sellers need to make sure there is a natural fit between the property and prospect. Not every partnership is relevant to a company. I wish properties would consider that before soliciting a company. I ve received offers that make absolutely no sense for a luxury car brand, said Susie Rossick, Acura ( Acura Launches Music Marketing Program ) brand manager. At the most basic level, properties should make sure their audience represents a demographic the prospect is interested in. If we are going after 18-to-34-year-old males, it doesn t make a lot of sense to review a sponsorship for 35-to-45 year-old women. I know this sounds simple, but you would be amazed at how many proposals we receive that are off target. Treat sponsors as partners. To ensure a relationship is a success, properties need to move away from transactional relationships in favor of multi-dimensional partnerships that provide value to both parties. That is the thinking of Mercedes-Benz USA, LLC. ( How Sponsors Are Using RFID Technology To Activate ). We understand Mercedes-Benz is a great name for a property, but we want someone who will not take that for granted. They need to provide what we need, and we will provide what they need, said Stephanie Zimmer, Mercedes department manager, brand experience marketing IEG, LLC. ALL RIGHTS RESERVED. 3

4 Zimmer points to the automaker s relationship with Four Seasons Hotels & Resorts as an example of a partnership. In addition to providing customers complimentary rooms, the automaker promotes the hotel, its services and chefs at its own events. Similarly, Mercedes leverages its partnership with Nike Golf by giving the company exposure at sponsored events. We bring them to the PGA Championship and Ryder Cup. We use their product in everything we do. Be flexible. Tony Schiller, executive vice president of Paragon Marketing Group, looks for properties that are flexible and willing to go beyond terms of a contract. Schiller points to the NHL New Jersey Devils as an example. The team embraced a new activation idea that was brought up as part of PNC Financial Services Group, Inc. s renewal discussions despite the fact the program extended beyond terms of the original relationship. There wasn t talk of We don t do this or we haven t done that. They embraced the idea and said How do we make this happen? said Schiller, who reps the bank. The days of transactional relationships are disappearing. If a property can t engage with brands to build a platform, it s not going to be a long-term sponsorship. Tim Collins, Wells Fargo & Co. s senior vice president of experimental marketing, sums it up: Like any good relationship, desirable properties listen, are flexible, go above and beyond and are proactive in providing information and resources. Sources American Honda Motor Co., Tel: 800/ Mercedes-Benz USA, LLC, Tel: 201/ Wells Fargo & Co., Tel: 866/ Paragon Marketing Group, Tel: 847/ IEG, LLC. ALL RIGHTS RESERVED. 4

5 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING JUNE 25, ACTIVATION ACURA LAUNCHES MUSIC MARKETING PROGRAM Automaker uses music to build preference among young upwardly mobile consumers. American Honda Motor Co. ( Honda s Sponsorship Strategy Rolls On 06/05/12) is using music to promote the new Acura ( Luxury Auto Imports Accelerate Sponsorship Activity 11/14/11) ILX entry-level compact sedan. Acura has kicked off a partnership with Canadian indie rock band Metric and will sponsor the July Pitchfork Music Festival in Chicago. The automaker is using the ties to reach 25-to-35-year-old emerging affluent consumers, said Susie Rossick, Acura brand manager. The Acrua ILX carries a starting price tag of $25,900. In keeping with its social media-savvy audience, Acura is leveraging the ties through a mix of experiential and digital marketing. Acura will activate Metric with five invite-only concerts that will offer a preview of songs from Metric s new album Snythetica. The concerts produced in conjunction with local radio stations will feature the ILX as the center point of a projection mapping art installation. Concertgoers also will be able to access an exclusive Metric track by checking in to Foursquare or Dropp. This first-of-its kind Acura integration allows the brand to meaningfully engage a band that is recognizable and favored among Gen Y, said Rossick, in a statement. This program gives us a unique opportunity to tap into the interests of this younger audience and introduce the ILX as the gateway to the Acura brand. The concert series kicks off this month and will run through September. The concerts take place in five markets: Chicago, Los Angeles, New York City, Philadelphia and San Francisco. Acura will offer an exclusive Metric song and other band-related content to drive traffic to its Facebook page. It also will run the Very Important Passenger sweepstakes that dangles an ILX, a meet-and-greet with the band and other prizes IEG, LLC. ALL RIGHTS RESERVED. 5

6 The automaker will activate Pitchfork with an on-site experiential marketing program that will highlight an ILX modified with an internal projection mapping installation. The on-site area also will include a photo booth and product specialists. Acura received the Pitchfork sponsorship as added-value to an ad buy on Pitchfork.com, said Rossick. Music also plays a prominent role in the ILX s media campaign, including TV ads that feature songs from The Ting Tings and Nick Waterhouse. Acura is supporting the vehicle launch through interactive media including placements on Good.com, Pandora.com and Xbox Live. Santa Monica, Calif.-based RPA helped spearhead the integrated marketing campaign. Acura s other ties range from film festivals (Sundance Film Festival) to pro cycling teams (Optum Pro Cycling presented by Kelly Benefit Strategies) and branded entertainment (Marvel s The Avengers). The brand also is a long-time sponsor of the New Orleans Jazz & Heritage Festival presented by Shell. Source American Honda Motor Co., Tel: 310/ IEG, LLC. ALL RIGHTS RESERVED. 6

7 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING JUNE 25, SELLING CREATIVE SELLING: SALES SEASONALITY Properties can identify prospects and close deals by offering activation platforms that coincide with key sponsor sales seasons. In addition to audience make-up, available assets and other deliverables, properties should consider another factor when prospecting potential partners: the timing of their event or series during the calendar year. For example, the NHL recently secured a deal with York ( Sponsorship In The HVAC Category Heats Up ) heating and air conditioning due in part to the overlap between the professional hockey season and the two key sales periods in the HVAC industry, spring and fall. They ll promote their heating products in October and November when the NHL season begins, and their cooling products in the spring during the Stanley Cup playoffs. There is a natural connection from a seasonality standpoint, said David Lehanski, the NHL s group vice president of integrated sales and solutions. Other sponsorship sellers also use the timing of events as a hook to identify potential partners and close deals. The time of year may influence the companies that get on your short list of prospects, said Bruce Erley, president of Creative Strategies Group, a sponsorship sales agency. Seasonality is a USP a unique sales proposition within our strategic sponsorship sales efforts, said Brian Corcoran, president and owner of Shamrock Sports & Entertainment, another sponsorship sales agency. As an example of that strategy, CSG is targeting the lottery ( A Good Bet: More Sponsorships On Behalf Of State Lotteries ) and tax preparation categories for Denver s 9New Parade of Lights, an event it represents. The event takes place the first weekend in December, so we look for companies that want to monetize the holiday season, said Erley. The agency is targeting the lottery category to drive interest in a holiday-themed scratch-off ticket for use as a stocking stuffer, he said IEG, LLC. ALL RIGHTS RESERVED. 7

8 Shamrock last year used the strategy to secure a deal between the Army National Guard ( Despite Budget Cutbacks, U.S. Armed Forces Remain A Formidable Player In Sponsorship ) and the Arena Football League. The tie affords ownership of the indoor football league s spring and summer season. The National Guard uses the partnership to accomplish two goals: Reach annual recruiting goals from March to August and retain active duty soldiers by recognizing their service during the summer. Properties also can add value to existing partnerships by creating activation platforms that help drive sales during their partner s key sales seasons. For example, the NHL last year created the Discover NHL Thanksgiving Showdown as part of the credit card company s new four-year extension. The league created the platform to help Discover gain visibility prior to the holiday shopping season. The program afforded co-title of a float in the Macy s Thanksgiving Day Parade and title of the inaugural NHL game broadcast on Black Friday the beginning of the holiday shopping season. From a new business standpoint, seasonality is part of every conversation we have, said Lehanski. Sources NHL, Tel: 212/ Creative Strategies Group, Tel: 303/ Shamrock Sports & Entertainment, Tel: 207/ IEG, LLC. ALL RIGHTS RESERVED. 8

9 ABOUT IEG IEG leads the way in sponsorship solutions. With over 30 years providing insights, evaluation, and guidance, our teams bring unparalleled perspective and proven methodology to every challenge. We partner with top brands and properties to create fresh strategies, evaluate opportunities and maximize results. Our clients rise above competitors, meaningfully engage audiences and achieve lasting impact. A unit of WPP s GroupM, IEG is connected to specialty sibling communications companies in media, digital and activation. GroupM is the leading global media investment management operation that also serves as parent company to WPP media agencies including Maxus, MEC, MediaCom, and Mindshare. INSIGHTS EVALUATION GUIDANCE IEG LEADS THE WAY IN SPONSORSHIP ANALYSIS, INSIGHT, VALUATION & MEASUREMENT For more information about IEG and the sponsorship industry, please visit or call 800/ (outside the U.S. and Canada, 312/ ). WWW. SPONSORSHIP.COM 2012 IEG, LLC. ALL RIGHTS RESERVED. 9