Following up on my earlier posting of key trends to look out for in the sponsorship & sports marketing space for the next few years, below are an addition five that I believe will impact the landscape.
6. Better and Thoughtful Leveraging of Digital Assets - Properties and sponsors will have to be creative and collaborative in applying this untapped media to improve reach and quality of the interaction with fans.
• Live or streaming competition
• Highlight packages
• Statistics and analysis
• Fantasy competition
• Merchandising
• Community & Interactivity
7. The Demise of Hospitality and Tickets – The current mood and demonizing of corporate events will make hospitality trips and tickets radioactive for some time. Sponsors with deals heavily weighted with either will struggle to get customers agreeing to attend events. Properties will have to adjust and change their selling strategies and valuations. “Destination” events such as the FIFA World Cup will really struggle to sell tickets and fill hotels.
8. Return of Creative Financing and Monetizing – As sponsors & properties look for ways to strike relationships, they will become more flexible and look for ways to fund and balance deals. Current sponsors with stranded assets (tickets or hospitality) will seek out barter professionals to unlock some of the value. Properties may be more open to aggressive use of value in kind (VIK) structured deals. Budget relieving relationships may become as interesting as they used to be.
9. Entry of Non -Traditional Brands & Marketers – With current brands pulling back activities, others previously priced out or not attractive to properties will move in. We are already seeing this in media (Denny’s Super Bowl ads), but expect that will happen in the sponsorship area. Particularly brands that are prospering in the economic conditions or are situated well and confident in the opportunity to set themselves further apart in a down market.
10. Small Properties Suffer OR Thrive – It all depends on their focus and execution. Some have tried to follow strategies appropriate for large properties – equity owners of media time; serving a mass audience; expanding commercial relationships outside the sport – will pay the price unless they can quickly adapt.
Those that have maintained focus on their niche, core audience and deliver a committed, connected audience can thrive. Olympic sports (think badminton or kayaking) can develop content, experiences and relationship via direct marketing, digital media and social networking. For companies targeting that segment – gear manufacturers, clothing, magazines and travel – will be very willing to pay well for the shared equity delivered.
The very good news for smart, adaptable professionals these trends are ripe with opportunities. They are different from those of the ‘90s and probably more challenging to implement, likely not nearly as fun as before, either.
I am optimistic that those that embrace the changed environment and work to up the overall level of rigor – top to bottom – in the sponsorship practice will succeed and derive better and more meaningful rewards.
SO what am I missing? Do you have some other trends, implications or predictions? Please share and let’s get some dialogue started.
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