Athlete Endorsers – Buyer Beware!

2009 has certainly given brands with celebrity athlete endorsers plenty to think about. From Michael Vick to Donte’ Stallworth, Michael Phelps, the MLB Steroid List and Serena Williams there is plenty to remind us of the potential downside of tying major marketing campaigns and your brand image to another person. Now with the Tiger tales emerging, the environment is downright scary. It will take a bold and courageous brand manager to suggest a high profile endorsement idea in the short term.

But return they will. Why? Simply because it works. Brands have a long history of turning to athletes for advertising, spokespeople or other association. Shave cream, tobacco and beer companies found out early on that sport was and remains an effective way to reach a male audience. As media outlets and exposure has exploded, sports have taken on a much larger role in our culture. As a result, stars and celebrity athletes have grown in their ability to shape customer perceptions, buying behavior and create new brands. For example, Nike Golf is the business that Tiger Woods built.

Does that make an endorsement a slam dunk? Certainly not. Like all marketing activities, this requires planning, careful consideration and evaluation. Below are some areas that must be considered before you enter the endorsement waters

1. What is your marketing objective? How long before you achieve it?
2. Know your brand and your target audience
3. Understand the role of the endorser, what do they bring to the program?
4. Define the attributes of an ‘ideal’ athlete
5. Evaluate at least 3, but definitely more than 1 athlete
6. Have the brand manager spend time with the athlete (not the agent!) understanding them and getting a feel for how they will fit with the brand and relate to the target.
7. BEFORE you negotiate with an athlete or agent, be sure you have identified every possible and potential use of their image, likeness, marks etc. You don’t want to go back after a deal is done and ask for something else
8. Share the marketing ideas with the athlete to get their input and allow them to feel like part of the team
9. After you reach terms, it is critical that the brand manager sits with the athlete (again, NOT the agent) one to one, to reaffirm the seriousness of the relationship and desire for it to work for both parties.
10. Delineate a very clear and complete ‘morals clause’ that will enable you to get of the deal for any behavior you find offensive or detrimental to the brand. Don’t settle for boilerplate language, make it as specific and flexible as possible, to meet any unforeseen situations.
11. Insert some ‘penalty’ language, in the event of unforeseeably bad behavior (Tiger). This goes above and beyond breaking the deal and walking away and may allow you to recoup some of the brand value lost. (At the very lest you will have done the right thing)

Typically, agents for bigger name athletes have been reluctant to include language, clauses and other steps that were considered invasive or challenging. Obviously, the Tiger Woods revelation has set a new standard which should enable potential sponsors to seek and obtain greater transparency, flexibility and collaboration. Any brand making a major investment would be wise to consider extensive background checks and investigations, as part of the due diligence process.

The marketing landscape is now shaped by so many outlets and marketing vehicles. The instantaneous nature and easy access is a huge opportunity and threat at the same time. As long as we build our businesses utilizing humans, with all our frailty and weaknesses, the potential for marketing doom exists. Cell phone cameras, security videos and Tweeter are a mere few seconds from the Internet.

Choose wisely and enter the athlete endorsement world with your eyes open. No surprises!

Key Marketing Facts for Sponsors of the FIFA World Cup

So, the US unexpected performance during the 2009 FIFA Confederations Cup raised soccer awareness in the States for a few days. As important as that is, it also served as a good reminder that the FIFA World Cup is only 11 months away. We’ve heard the rumors and echoes whether South Africa was even going to have the chance to host the event. Clearly, the show will go on, albeit with some added attention to hotel accommodations and transport.

And yes, those annoying vuvuzellas!

Most American fans and marketers place greater emphasis on other sporting events ahead of the World Cup, however for most of the world; it is THE competition like no other. Given that I offer some ideas and perspective on FIFA World Cup marketing:

• It is HUGE - everywhere but the US. Football/Futbol/Soccer has the highest awareness and affinity of any sports brand across the globe. More people play, follow and watch it than any other. The sport has an everyman appeal – it is simple and universal – requiring only a ball, pitch (field) and 2 goals; the rules are not overly complex. Fans cut across the spectrum of demographics.
• It’s Mass & Niche. The TV audience is very large - 2006 Cumulative TV audience of 26.29 billion (24.2 billion in-home viewers, 2.1 billion out-of-home). Yet, local marketing opportunities abound, in each of the 32 countries participating and especially so in the host country. Keep in mind that the World Cup mark/logo has much lower audience recognition and awareness than the Olympic Rings.
• It's not easy. Few sponsorship relationships ever are, but working with FIFA and the local organizing committee can be a very taxing exercise that will test the patience of anybody. Success will require that you be clear on your objectives and requirements, know the rules, know when to be flexible, and know when to stick to your guns.
• Everything is Al a Carte. A World Cup sponsorship doesn’t come with much in the way of out-of-the-box strategy or activation programs. The rights to use the event marks are valuable, but pricey. Sponsors are largely on their own to create and leverage activation programs that drive business value. FIFA has a few standing programs (Fan Fest public viewing, Global Trophy Tour & Domestic Trophy Tour) that can be leveraged on a buy-in basis.
• The FIFA Calendar is Marketing Friendly. With a very defined four year schedule of qualifying matches, milestone events (Final Draw, etc.), Confederations Cup, plus a full month of World Cup competition, there is ample opportunity to build and execute cohesive and timely programs over an extended period.
• Broadcast advertising does not work. If you don’t know, world soccer is not very TV advertising friendly. The game action runs for a continuous 45 minutes per half – no commercial breaks, no timeouts. There are on screen presence opportunities, but like sponsor field boards, they don’t deliver a message. Ad dollars may be better utilized on-line and in non match settings.
• Outstanding customer hospitality opportunities, but tricky. World Cup hospitality is among the most aspirational of all sports. Done well, a World Cup hospitality program can help a company enhance valuable business relationships in ways that will have lasting, positive impact on its business. But it can be complicated. Typically matches are played in 10 -12 cities in the host country. Guests often desire to see the ‘major’ matches Semi-Final or Final, or want to see their home country play, which makes good coordination and client management critical. Matches are not schedule for everyday of the event, so sightseeing and cultural activities allow for a great experience.
• It’s the World Championship of Football/Futbol/Soccer. The athletes are all well paid professionals who compete for various clubs around the world who join the national team for this event. Unlike the Olympics, there are few athlete hardships and no great societal causes. So don’t expect to wrap yourself in corporate responsibility. FIFA has some charitable activity, but it is not a sponsor thrust.
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Kevin Hanft has first hand experience activating and managing FIFA World Cup programs in 2002 & 2006

Funding Sponsorship Deals – Look Across the Board for Hidden Dollars

Most typically, corporate sponsorship deals are funded and managed within advertising, brand or corporate marketing and sales promotion organizations. With the current economic times requiring senior buy-in, full utilization and accountability, it may require internal advocates to find broad based support and budget resources.

Careful review of leveraging activities and assets may reveal untapped and hidden opportunities that are beyond marketing functions. There are many internal groups that have benefited from sponsorship deals (along with others who haven’t even been considered) and may not have been asked to provide funding.

Below are a few business functions and areas that Marketing Leverage LLC has worked with successfully in generating participation and support for sponsorship related activities. Some are obvious, others not so.

• Employee Relations –This group should be part of the matrix core team as they can be central in helping to evangelize the benefits of a sponsorship along with telling the business strategy and sell the business case value. In addition, internal communications teams are often seeking ‘good news’ stories and interesting & relevant content to share with employees. Many companies provide access to sponsorship assets (tickets, merchandise, etc.) at a discount as an employee perk. Several Olympic sponsors run internal contests with winners awarded working trips to the host country during Gamestime.
o Generally the financial budget for Employee Relations is limited, so don’t expect many hard dollars. However, they can be a major ally when buy-in or renewal is needed. Also, by creating a win-win relationship, they will be more likely to do an effective job on communicating sponsorship strategy, sell in and wrap up.

• Human Resources / Campus Recruiting – These groups are marketing the company as a brand, too. Sponsorship relationships can help contemporize and demonstrate coolness or relevancy to potential hires. Most companies have job fairs, on campus recruiting and advertising that can all be enhanced by fully leveraging relationships.
o HR does have funds available, so plan to have them kick in some towards the rights fees. But help them out by sharing sponsorship related created, signage, ads or exhibit structure. This will offset some of their operating costs and also ensure they follow a consistent look, feel and thematic.

• Corporate Education and Training - May be seeking corporate activities to align with and thematic to tap into. Many sponsorship deals lend themselves as creative ideas and provide an interesting structure for training programs.
o Like HR, Training likely will not have many funds available to contribute. Assume this group as another internal ally in leveraging the deal. This may require you to give more than you get. But helping to relieve expenses, ultimately benefits the company. Sharing of sponsorship related creative, logos, photos, identity etc. will enable them to follow a consistent look, feel and thematic and make your life easier.

• Health & Wellness – Many large corporations have groups dedicated to promoting healthy lifestyles. These groups run employment involvement activities and health education seminars that are all easily tied into any sports sponsorship.
o H&W usually doesn’t have many funds available.Plan to use this group as another ally in demonstrating a “full circle” integration of the deal, to the employee body and senior management. Appeal to the property to see if they have health education programs or information readily available that can be ported over.

• Corporate Social Investment / Philanthropy – These groups definitely have funds available, either through a foundation or direct corporate allocation for arts and charitable needs to demonstrate socially responsibility
o Many have specific rules on what they can fund. This may restrict their participation to charitable aspects of a property, etc. Sponsorship leaders will have to spend time understanding these parameters. Working closely with properties is required to structure deals that can tap these funds or align with property related philanthropic activity (i.e. NFL – United Way; FIFA – UNICEF)

• Environmental Outreach – Companies whose processes or plants impact the environment often align with conservation related organizations.
o Most have funds, but individual situations should be explored.

• Product Management / R&D Budgets – In many categories (technology, automotive, video games, etc.) product managers have funds set aside for early user trials or product launch. R&D may be interested in extreme situations that can fully stress out products under demanding circumstances.
o These may take the form of direct cash funds or value in kind contributions. Sponsorship managers will have to be smart in structuring deals with properties in selling the true value of the goods being provided.

• Retail Promotion – Consumer package goods often have ‘key retailer’ strategies with specific funding for in store promos. The retailers are always seeking unique and differentiating ideas. Clever and tight integration of a sponsorship into retail can be a major step forward in enhancing this relationship.
o Funds are definitely available!Retail promos are usually planned at least three quarters in advance, so early engagement is needed. Be aware of the sponsor agreement and ‘pass thru’ rights considerations.

• Sales Awards – Virtually every sponsor of a major property utilizes one or many events as an award platform for the sales team. It is aspirational, exclusive and typically provides access to senior management.
o Sales always has money, so don’t be shy or timid! Get them to pay for part of the property rights, not just their own hospitality costs.

• Channel Marketing / Affiliate Relations – Most corporations have an extended ecosystem of partners, vendors etc. Many are actively engaged in leveraging or benefiting from sponsorship deals. (MasterCard & Visa – issuing banks; auto makers – dealers; Large retailers - manufacturers)
o Like sales, this group has money,make sure they are appropriately funding the overall deal, plus their direct costs.

• Advertising and Media Budgets – These groups may have dollars already allocated for assets that are part of the sponsorship package -- ad or signage placements in a variety of media that are viewed as useful and valuable. The sponsorship may “be” the big idea of the ad campaign and include entitlements to celebrities that will be featured in creative.
o The media group may loath this conversation, fearing that you have agreed to undesirable, off-target spots or large financial commitments. Like with other groups, early engagement, inclusion and solicitation of input is recommended.

This exercise is not merely about seeking and finding internal funds. The days of the old “tin cup” routine, where advocates make the rounds looking for investors have long since passed. Strategic, smart use of sponsorship assets requires that the project leader look broadly across the company, educate people on the benefits and provide marketing consultation.

Identify any and all angles for potential benefit extraction. Think about every group of constituencies that somehow touch the business – customers, employees, suppliers, partners, investors, media, analysts, regulators, etc. All may provide opportunities for further leveraging of the property.
In many cases, the group cannot provide directly investible funding. But they may be in a position to build upon the investment in place – fees, activation programs, etc. – that provide cost avoidance in their budget. Be sure to quantify and track these. At final review or renewal time they provide further evidence of the value to the business – plus the strong and effective leadership you have provided.

Good luck!

Sponsorship Activation – Technology Firms Use Their Products AS The Activation

B2B marketers have found that their products can be the central idea of a sponsorship activation program. Rather than investing incremental funds into creating a promotion or free standing program, they look back to the brand or product strategy. Rather than just logos in ads or a designation "Official Widget of ..." use of their product within the property or event, provides the brand an authentic association. Smart marketers then have to extract the value from the relationship.

Here are four ideas that can help organize a program of integrating your product as the activation.


1. Appropriate Fit – There must be a clear and logical reason for that product to be associated with that property. IBM’s role with tennis results and the event websites highlights their capabilities in a meaningful way. Atos Origin supports the IOC with logistics, accreditation and distribution of competition results among other IT and software services.

2. Get the Timing Right – Sponsorship properties and events can be a great platform for launching a new product, but that release cycle must coincide with the event calendar. This approach may argue for a shorter term relationship as long term deals may feel stagnant, unless there is product news of interest on a regular basis.

3. Leverage, Leverage, Leverage – Make sure the audiences you care about know what you are doing. Communicate with customers, analysts, investors, sales and distribution channels, employees so they understand and can evangelize. A technology sponsorship is a great platform to create lots of rich content and affords a continuing story. Take advantage of it!

4. Fair Value Exchange – When the property has a genuine need for your product, the opportunity is high to reduce the overall cash component of the deal. This means where budget relief can be achieved through the relationship, value in kind can be swapped in lieu of cash. One word of caution, this doesn’t mean you can throw in all the bells and whistles you want to showcase and the property doesn’t need!