Download Lesson 8.2 - Slides-Sponsorship Growth

Lesson 8.2 –
Sponsorship Growth
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
Growth of Sponsorship
$20.6
(projected)
2014
2001
Year
$9.3
1996
$5.4
1987
$1.75
1980
$.30
$0.00
$5.00
$10.00
$15.00
Sponsorship Spending (In billions)
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
Sponsorship Growth
Sponsorship spending in 2014 by category (projected)
1) Sports - $13.8 billion
2) Entertainment tours and attractions - $2 billion
3) Causes - $1.8 billion
4) Arts - $927 million
5) Festivals, fairs and annual events - $853 million
6) Associations and membership organizations - $576
million
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
Growth of Sponsorship
Projected global sponsorship
spending by 2014 according
to IEG will reach $55.3 billion
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
According to the latest report from IEG, companies
with the highest levels of investment in sports
sponsorship programs last year include:
PepsiCo
$ 340-345 million
Coca-Cola
$ 265-270 million
Anheuser-Busch
$ 255-260 million
AT&T
$ 175-180 million
Nike
$ 215-220 million
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
Factors Influencing Sponsorship Growth
 Unique promotional opportunity
 Technology and increased media interest in sport
programming
 Growing frustration with traditional media
 Increased Levels of Consumer Acceptance
 Global nature of sports and entertainment
 Cause Marketing
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
Influence of Technology
 Bolstered by the increased commercialization of radio
and television through commercials
 Introduction of new media outlets
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Pay per view
Satellite television
“On Demand” viewing capabilities
Streaming audio and video online
Broadband cable
Satellite radio
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
Cause Marketing
Cause Marketing refers to marketing efforts
that tie an organization with a charitable cause
The Boomer Esiason Foundation Website explains that
with cause marketing programs, a corporation
receives tangible benefits – such as a marked increase
in sales – from tying its marketing strategy to the
fundraising needs of a charitable cause
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
Cause Marketing
Cause Marketing Exploding In Popularity
In 1990, cause marketing sponsorship
spending in the U.S. totaled only $120
million, according to the IEG Sponsorship
Report.
By 2012, spending on cause marketing is
projected to hit $1.8 billion.
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
Cause Marketing
Cause Marketing Exploding In Popularity
According to a report from
Performance Research, 41% of U.S.
consumers believe companies can best
improve brand perceptions by
increasing their cause sponsorships
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
Cause Marketing
How can you tell if it is
cause related marketing?
 There is a marketing objective associated
with the activity
 The marketing activity is being measured
 The program is being promoted
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
Cause Marketing
After watching footage of children playing soccer with a
ball of trash in Darfur, Tim Jahnigen launched the “One
World Futbol” program which distributes specially
made soccer balls that will never go flat.
The program received a giant boost in 2012 when
General Motors, as part of their sponsorship of
Manchester United, agreed to sponsor the distribution
of 1.5 million of the balls over the next three years.
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
Cause Marketing
Speedo launched a creative “Art of the Cap” cause
related campaign, featuring a special collaboration
between the brand, the sports’ biggest stars (Olympic
gold medalists Ryan Lochte, Natalie Coughlin, Nathan
Adrian, Dana Vollmer and Cullen Jones) and paired them
with five celebrated artists to design a limited edition
Speedo swim cap, sold exclusively on
www.SpeedoUSA.com. The proceeds from each design
were donated to the charities of each athlete’s choice.
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
Discussion Topic
How is sponsorship different
from traditional advertising
mediums such as television,
print and radio?
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
What differentiates sponsorship from
traditional media?
 Allows a company to tap emotional and intimate
appeals of customers
 Integrates the positive feelings of sports and
entertainment events with company products,
services and staff
 Sponsorships help reach segmented targets that
mass media typically proves ineffective
 Showcases a company’s products and services in an
environment representative of a consumer’s
particular lifestyle
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
Blank Slide Available
for Teacher Edits
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© 2014 by Sports Career Consulting, LLC
LESSON 8.2 REVIEW (ANSWERS)
Sponsorship &
Endorsements
1) Identify three factors that have impacted
the growth of sponsorship
Several factors have impacted the
sponsorship boom, including:
 Sponsorship as a unique promotional
opportunity
 Technology and increased media
interest in sports and entertainment
programming
 Growing frustration with traditional media
 Increased levels of consumer acceptance
 Global nature of sports and entertainment
Copyright
© 2014 by Sports Career Consulting, LLC
LESSON 8.2 REVIEW (ANSWERS)
Sponsorship &
Endorsements
2) Define and offer an example of cause
marketing
Cause marketing refers to marketing
efforts that tie an organization with a
charitable cause.
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© 2014 by Sports Career Consulting, LLC