Good marketing things from 2009?

A Silver Lining in the Dark Economic Clouds?

The past year has certainly been challenging and scary. But to not learn from the events that we lived through would be a waste. Now is a good time to pause and reflect as it appears that the worst is over and we are seeing the beginning of stability that will become a recovery in 2010.
Despite the economic damage caused, plus the pain and suffering endured, there are benefits to be reaped and lessons to be learned. To that end, I wanted to share some of my observations and reflections as we reach year end.

1. Due Diligence Required – any investment, marketing plan, RFP request etc. has to be evaluated seriously and thoroughly before you recommend or approve it. Optimism, hope and the ‘or leading competitor is doing it’ are not acceptable substitutes.
2. Reasonableness – of assumptions, business model and any factor that goes into making a decision. Believing that real estate would continue to appreciate annually at 20% is not reasonable; common sense should have prevailed, and must in the future.
3. Metrics – everything you do in business must be measured, why otherwise would you do it? If you can’t figure that out, walk away.
4. End of ‘conspicuous consumption’– frugality is now ‘in’, which is not good for a recovery, but will be beneficial in the long term. How do you position your product to be a smart buy?
5. Customer service – more value as a differentiator and an element of the marketing mix (ie. Amazon or Zappo’s)
6. Valuing Customers – I have never felt more appreciation and love from companies I give my business to. Let’s keep this up, because without customers, you have nothing.
7. Values DO matter – even the Tiger Woods brand could not withstand the value judgments being made about him, right or wrong.
8. Image is NOT everything – sorry Andre Agassi - substance, being genuine and real does count. The world is far too connected, open and transparent to permit a false image to be maintained for long.
9. Green is real and expected – companies that merely wrap themselves in the green movement are sorely missing the bigger opportunity. Green marketing has direct benefits with customers, employees and every audience you want to reach.
10. Optimism is contagious – think about the mood in the US surrounding the Obama inauguration. Wasn’t it wonderful, refreshing and exciting? We owe it to ourselves to adopt and maintain a positive outlook, perspective and expectation of better things to happen.

In addition to looking back, it is also time to think about 2010. I'm not a big resolution person, but do believe that one must have a plan, if not vision for your upcoming year. It is very appropriate to pause a bit and sincerely think about all phases of your life and what you dream and hope will be true next year.

If you don't have a plan, you haven't got anything. Plan B is good to have too.

Happy New Year and good riddance to 2009!

Trends in Sponsorship 2009 – 2010

Now is an important time for everyone involved in the sponsorship industry to take a big step back and reevaluate. Agencies, properties and sponsors all have ample opportunity to evaluate, reflect and prepare to emerge as better practitioners of our craft.

A recent industry event I attended helped me crystallize some ideas that had been forming on my side. I’ll share an initial five trends today and follow-up later in the week with the remaining ones:


1. A Return to Fundamentals – time to step back and remember why sponsorship grew so large, so fast:
• The ability to draw and deliver an audience with deep affinity and personal connection to a sport or property, allowing brands to meet customer needs at the emotional intersection point.
• Broad, deep and unique marketing assets, affording brands ample room for creative integration opportunities

2. Accountable Sponsorship Deals – measurement, metrics and ROI have been on countless agendas among sponsorship professionals. For too long, it has been given only lip service by many in this space; preferring to wait for black box or silver bullet solutions.

Going forward, anyone pursuing sponsorship must include a pragmatic, realistic and doable measurement plan, with clear and tangible links to business objectives. This will put pressure on agencies and properties to provide structure and quantitative results input. It will also require brands to do the hard work of collecting and organizing the data. And then socializing it with all and anybody to ensure that the contribution to the business of sponsorship is well understood.

3. Shrinking of the Industry – let’s be honest, there are far too many college bowl games, conference tournaments, tour stops and second tier sports out there. As advertisers and sponsors seek quality, there will be retrenchment. There will be more casualties: leagues and teams may fold, made for TV events will go away, agencies consolidate, etc. While painful and unfortunate, the industry will emerge stronger as free market economic forces prevail.

4. Revamping of Deal Structures - Sponsors will push for shorter term deals, comprised of only the assets they value and can utilize for their brand. There will pressure on properties to disaggregate the ‘packages’ they have been accustomed to selling. Properties may look to get agreement on a series of 1 year deals as opposed to a multi-year agreement. Properties will also build in specific activation programs and budgets to ensure that the assets are used as planned. Properties must also be prepared for ‘performance based’ deals, where they have some skin in the game, as well as the sponsor.

5. Properties as Problem Solvers – It will no longer be acceptable to sell a deal and then move on. Properties that want to differentiate themselves and gain long term relationships will be forced to play a more important role with sponsor brands and agencies in creating and executing activation plans.


I will post the remaining trends I foresee in a few days. In the meanwhile, your insights and comments are invited.

Five Things ALL Sponsors Must Do -- NOW!

Very few people had anticipated the current economic situation, with long term economic and commercial implications remaining uncertain. For sponsorship professionals, this is a time of real challenge and opportunity.

Corporate sponsorships have always been viewed in a certain different light than other marketing investments. Because of the large financial commitments and some ‘squishy’ results reporting, there is potential for them to be lumped into the category of “Corporate Largess & Transparency” along with private jets, large bonuses and executive perks.

It is the role of the managers responsible for these relationships to take charge and be proactive in conducting analysis and report to senior management. Woe to the individual who waits for the cuts to hit them, only to scramble in haste to implement a budget number forced upon them.

In light of the cut backs announced at many leading properties and announcements of corporate partners ending or shrinking their relationships, the value of a deal signed years ago may be markedly less, as leagues end expansion plans; new venues are slowed or halted and properties cut staff.

There are several fundamental, yet critical actions that should be undertaken, if you have not already done so. Sophisticated sponsorship marketers regularly complete these steps, but if you have not, now is an especially important time to be prepared and ready to discuss the rationale, value and contribution of the sponsorship portfolio.

1. Understand the 2009 corporate and brand strategies, objectives and tactical plans.
1. Have priorities shifted?
2. What are the key metrics and targets?
3. How is the activation budget impacted?
4. What is the likelihood of success?

2. Review your sponsorship portfolio relative to the new strategies, economic order, customer mood and investor sentiment
1. How does the current sponsorship portfolio and plan match up?
2. Are changes needed to realign with the revised priorities?
3. Where would you invest or cut spending?

3. Review all sponsor agreements for:
1. Assets
2. Deliverables
3. Options to renegotiate or exit

4. Schedule a meeting with senior representatives of each property relationship, for a direct, frank and open conversation:
1. Corporate or brand plans, target audience change and channel or retailer impacts of economy.
2. Ask about the impacts and changes for the property – growth or investment plans, resources and assets

5. Develop a sponsorship plan and recommendation for marketing or brand executives
1. Updated activation plans, budget, measurement plan and projected results for investment spending
2. Property relationships for maintenance spending
3. Properties targeted that should be ended