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 MARCH 5, ADDING VALUE HOW TWO PROPERTIES ARE RAISING THE ADDED VALUE ANTE Properties can add value by offering 360-degree integrated marketing platforms that include turnkey activation programs. What are the latest activation and sales strategies at the country s largest sports properties? What are they doing to add value? IEG SR spoke with sponsorship sales executives at the MLS Chicago Fire and The PGA Tour, each of which is taking a new and distinct approach to addling value. The key takeaway: Properties should move away from selling sponsorship assets in favor of integrated marketing solutions. Below, two approaches by the Chicago Fire and PGA Tour: Chicago Fire Ignites Integrated Marketing Platforms Move over ROI, CPMs and other marketing acronyms. The Chicago Fire has introduced a new acronym to the sponsorship industry: IMA. The acronym stands for integrated marketing approach, a strategy that focuses on offering multi-faceted marketing solutions. Our strategy for 2012 and beyond is to offer marketing solutions that cross multiple assets for a total solution, said Dave Beck, the Fire s vice president of corporate partnerships. Case in point: The Fire s new multi-year tie with Nicor Gas centers around Take the Pledge, a campaign that encourages consumers to reduce energy consumption. The utility will support the program by presenting the team s April 28 game and distributing marketing collateral at Toyota Park. Nicor promoted the sponsorship and educational campaign in a bill insert mailed to 2.2 million customers throughout the state of Illinois. The Fire also has developed an IMA tie with the Quaker Oats Co. (Pepsico s New One For All, All For One Sponsorship Strategy ), the team s new jersey sponsor IEG, LLC. ALL RIGHTS RESERVED. 1

2 Representatives from Nicor and Quaker Oats discussed their IMA partnerships at the Fire s Feb. 7 sponsor summit at the Swissotel Chicago, said Beck. We had more than 50 partners hear about some of the new approaches that we re taking. PGA Tour Takes Proactive Approach To Activation The PGA Tour over the past few years has placed more focus on including activation platforms as part of its sales pitch. That effort has seen the pro golf tour move away from playing up brand fit and sponsorship assets in favor of demonstrating how a partnership can be activated to accomplish a prospect s marketing objectives. In the past, many times we would work out a deal and then figure out some of the big activation elements. Now the trend is figuring out major programs ahead of time, said Rob Ohno, the PGA Tour s senior vice president of corporate marketing. The strategy plays into the PGA Tour s new partnership with Avis Budget Group, Inc. ( Hertz Partners With Live National To Support new Music Initiative ) and the company s presenting sponsorship of the PGA Tour Player of the Month award. The two organizations this year redesigned the program to allow fans to vote for their favorite player on PGATour.com The program was contemplated before we had a deal. It showed Avis how they could leverage the partnership as opposed to figuring out details after the deal was signed. The Player of the Month award supports Avis interest in an ownable marketing platform and the company s We Try Harder tagline, said Ohno. Sources Chicago Fire, Tel; 708/ PGA Tour, Tel: 904/ IEG, LLC. ALL RIGHTS RESERVED. 2

3 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING MARCH 5, PACKAGING ATLANTA TRACK CLUB SEES SPONSORSHIP SUCCESS Custom packages, listening skills and flexibility are key ingredients for sponsorship success. A revamped sales strategy has helped the Atlanta Track Club post a low double-digit percentage increase in sponsorship revenue. The ATC which produces the AJC Peachtree Road Race, Atlanta Marathon and Atlanta Half Marathon has recently brought on a several new partners including The Sports Authority, Inc. and AGL Resources Inc. s Georgia Natural Gas. The running organization also has expanded an existing tie with Publix Super Markets, Inc., around which the retailer will present the AJC Peachtree Road Race s training program and cosponsor the Atlanta Marathon. The ATC kick started its sponsorship program in January 2011 with the hiring of Kevin Kimbell as director of business development and strategic partnerships, a new position. Before I came on there wasn t anyone focused on business development. We were fielding inquiries from interested parties, but those requests were drying up as a result of the economy. Below, three steps Kimbell has taken to achieve sponsorship success. Listen to sponsors needs. One of the first steps Kimbell took to revive ATC s sponsorship program was to listen to sponsors needs and offer tailored packages based on their objectives. We had a take it or leave it approach to sponsorship. It was here is the package, and this is what you get, said Kimbell, noting that the ATC did not have the necessary resources to develop custom packages. In today s economy you can t take that approach. You have to sit down with potential sponsors and ask them about their business objectives and what they re trying to accomplish. Create new assets. In addition to offering tailored packages, Kimbell also has put more focus on creating new assets IEG, LLC. ALL RIGHTS RESERVED. 3

4 Case in point: The ATC this year created a sponsorship package that included presenting status of the AJC Peachtree Road Race s awards ceremony, an asset the marathon had not previously sold. The company wanted broad exposure, but some of our assets were already taken. They wanted significant exposure on the day of the event, so we gave them some latitude around the award ceremony. Provide activation ideas. Realizing the importance of activation to a sponsor s success, the ATC now takes a proactive approach to pitching ideas. Kimbell brainstorms activation platforms at the beginning of the sales process and tweaks the programs as he learns more about the prospect s objectives. We go to them with ideas, and once we get a better understanding of their business objectives we can tweak the ones that don t make sense. The strategy can require flexibility. Such was the case with ATC s new partnership with The Sports Authority. Sports Authority was fairly adamant about driving traffic to their stores, but we didn t have a mechanism for that, said Kimbell, noting that it would be logistically challenging for the retailer to host packet pick-ups for the AJC Peachtree Road Race s 60,000 participants. To overcome that challenge, ATC developed an activation program around which local Sports Authority stores will distribute awards for the marathon s top 1,000 finishers. ATC will promote Sports Authority in marketing collateral, blasts and other outreach efforts, said Kimbell. Sources Atlanta Track Club, Tel: 404/ IEG, LLC. ALL RIGHTS RESERVED. 4

5 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING MARCH 5, ADDING VALUE US YOUTH SOCCER SCORES WITH DIGITAL ASSETS National associations can use digital inventory to provide engagement opportunities at the local level. As a national sports organization, US Youth Soccer has a highly desirable audience: three million five-to-19-year-old athletes and one million adults. But while it has a large, coveted audience, the organization has historically sold sponsorship packages based around its national and regional tournaments, all of which touch only a portion of its total membership. The challenge: Providing engagement opportunities through US Youth Soccer s 55 state associations and 5,000 teams. To overcome that challenge, the organization over the past few years has placed more focus on digital media to give sponsors access to the local level. We created assets that sponsors can use to better access our membership as opposed to just being at an event. Instead of handing out a coupon, now they can communicate to larger, more targeted audience, said Todd Roby, US Youth Soccer s director of communications. That effort has caught the attention of sponsors, with the organization posting a roughly 10 percent increase in sponsorship revenue over the past two years. New partners for 2012 include the Army National Guard ( Despite Budget Cutbacks, U.S. Armed Forces Remain A Formidable Player In Sponsorship ), concussion testing company Axon Sports, LLC and Pro Performance Sports, LLC s SKLZ training products. US Youth Soccer also has expanded an existing partnership with The Sports Authority, Inc. through The organization began its new sponsorship initiative in 2007 as part of a long-term strategy to repurpose its web site as the online destination for youth soccer. The web site includes soccer-related information for administrators, parents and other stakeholders as well as sponsor promotions IEG, LLC. ALL RIGHTS RESERVED. 5

6 The digital strategy has allowed us to integrate partner activation at a level we couldn t offer in the past, said Roby. Case in point: Unilever Home & Personal Care, USA s Degree ( Personal Care Marketers Refresh Sponsorship Portfolios ) deodorant uses to solicit requests for free co-branded jerseys. The company distributes more than 85,000 jerseys to local teams each year. US Youth Soccer also uses its annual magazine and monthly Fox TV show to provide sponsors added value, Roby added. Source US Youth Soccer, Tel: 800/ IEG, LLC. ALL RIGHTS RESERVED. 6

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