IEG SPONSORSHIP REPORT€¦ · IEG SPONSORSHIP REPORT Increased focus on social media. Like just...

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© 2012 IEG, LLC. ALL RIGHTS RESERVED. 1 WHO DOES WHAT AIRLINES MAINTAIN COURSE AMID INDUSTRY CONSOLIDATION Airlines place more focus on social media activation and charter business from sponsored teams. Although rightsholders may have fewer brands to pitch, sponsorship activity in the airline category remains alive and well. The airline industry has undergone a dramatic realignment over the past few years amid a whirlwind of mergers and acquisitions. Delta Air Lines, Inc. kicked off the consolidation wave in 2008 with its acquisition of Northwest Airlines, a move that catapulted the company into the ranks of the world’s largest carriers. More recently, Southwest Airlines Co. last year acquired AirTran Holdings—the parent of AirTran Airways—while UAL Corp. and Continental Airlines, Inc. in 2010 formed a new company, United Continental Holdings, Inc. Those mergers and acquisitions have resulted in the elimination of three brands, all of which were active sponsors: AirTran, Continental and Northwest. And another major brand could soon hit the dust following another wave of consolidation: US Airways Group is reportedly exploring a merger with AMR Corp.’s American Airlines, the country’s fourth largest airline. While consolidation has taken some brands off the table, the category’s remaining players remain active sponsors. As in the past, category hot buttons include building visibility in new markets, engaging business travelers, gaining business from sponsored properties and demonstrating community support. Below, IEG SR highlights two trends in the airline category: WWW.IEGSR.COM IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING JUNE 4, 2012 CHART 1: AIRLINE SPONSORSHIPS BY NUMBER OF DEALS ©2012 IEG, LLC. All rights reserved.

Transcript of IEG SPONSORSHIP REPORT€¦ · IEG SPONSORSHIP REPORT Increased focus on social media. Like just...

Page 1: IEG SPONSORSHIP REPORT€¦ · IEG SPONSORSHIP REPORT Increased focus on social media. Like just about every other category, airlines are placing more focus on social media as a sponsorship

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WHO DOES WHAT

AIRLINES MAINTAIN COURSE AMID INDUSTRY CONSOLIDATION Airlines place more focus on social media activation and charter business from sponsored teams.

Although rightsholders may have fewer brands to pitch, sponsorship activity in the airline category remains alive and well.

The airline industry has undergone a dramatic realignment over the past few years amid a whirlwind of mergers and acquisitions. Delta Air Lines, Inc. kicked off the consolidation wave in 2008 with its acquisition of Northwest Airlines, a move that catapulted the company into the ranks of the world’s largest carriers.

More recently, Southwest Airlines Co. last year acquired AirTran Holdings—the parent of AirTran Airways—while UAL Corp. and Continental Airlines, Inc. in 2010 formed a new company, United Continental Holdings, Inc.

Those mergers and acquisitions have resulted in the elimination of three brands, all of which were active sponsors: AirTran, Continental and Northwest.

And another major brand could soon hit the dust following another wave of consolidation: US Airways Group is reportedly exploring a merger with AMR Corp.’s American Airlines, the country’s fourth largest airline.

While consolidation has taken some brands off the table, the category’s remaining players remain active sponsors. As in the past, category hot buttons include building visibility in new markets, engaging business travelers, gaining business from sponsored properties and demonstrating community support.

Below, IEG SR highlights two trends in the airline category:

WWW.IEGSR.COM

IEG SPONSORSHIP REPORTTHE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING

JUNE 4, 2012

CHART 1: AIRLINE SPONSORSHIPS BY NUMBER OF DEALS

©2012 IEG, LLC. All rights reserved.

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Increased focus on social media. Like just about every other category, airlines are placing more focus on social media as a sponsorship activation platform. That interest is driven in part by the growing number of consumers using Twitter and other social media platforms to gain information on flight status.

For example, Delta in April ran an Instagram promotion around its sponsorship of the NHL New York Rangers and the team’s playoff run. The promotion featured six active Instagram users that captured images of the game from locations within Madison Square Garden. MSG gave the photographers access to areas within the venue that are normally off-limits to national media.

“Social media lets us take a sponsorship beyond what anyone would have imagined five years ago,” said Mauricio Parise, Delta’s general manager, worldwide marketing communications.

Other carriers also are placing more focus on social media. United Airlines has incorporated a social media component into its new “Fly Me to London” sweeps around the 2012 London Olympic Games. In addition to a dedicated Web site, consumers can enter the promotion on United’s Facebook page by claiming a virtual seat on one of the carrier’s 17 daily nonstop flights to London.

More interest in charter business. While airlines have historically used sponsorship to gain business from sponsored teams, many are doubling down on the medium to access new revenue streams.

That’s a key driver for Delta, which has placed more focus over the past few years on providing charter service to sponsored teams.

“Teams have to travel, and we want to make sure that we’re providing transportation. A brand halo is important, but at the end of the day we have to think about the bottom line,” said Parise.

In addition to teams, Delta also uses sponsorship to gain business from team cosponsors. For example, the carrier last month leveraged its partnership with Madison Square Garden and the property’s Garden Presidents Organization to drum up business for its private flight service.

Delta accomplished that task by hosting a GPO event at a hanger at New Jersey’s Teterboro Airport. The event featured a keynote address by JPMorgan Chase & Co. CEO Jamie Dimon and included Delta pilots and flight attendants.

“Delta walked out with a handful of leads and new business they wouldn’t otherwise have had,’ said Greg Economou, MSG’s executive vice president for corporate sales and solutions.

COMPANY 2011 SPENDING

American Airlines $30M-$35M

United Continental Holdings $25M-$30M

Delta Air Lines $20M-$25M

THE BIG THREE: TOP AIRLINE SPONSORS

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American Airlines 4333 Amon Carter Blvd.Fort Worth, TX 76155

Dawn Turner, sports & entertainment marketing manager 817/963-1234

Sponsorship/Activation Strategy: The nation’s fourth-largest carrier has kept a relatively low profile on the sponsorship scene after filing Chapter 11 bankruptcy protection in November 2011. The AMR Corp. subsidiary has historically used sponsorship to generate sales among 25-to-54-year-old business travelers, with a secondary objective of supporting corporate marketing strategies. The company measures three criteria when vetting deals: media exposure, promotional elements and tickets for client entertainment. American also looks for category exclusivity and access to women, African-Americans and other targeted groups. The carrier will not sponsor properties whose packages are limited to banners and “transportation provided by” status.

Current deals: Title: American Airlines Arena; Miami; American Airlines Center, Dallas; American Airlines Theatre, New York City. Cosponsor: Adrienne Arsht Center for Performing Arts of Miami-Dade County; Advocare 100 Independence Bowl; ALSAC St. Jude Children’s Research Hospital ; American Ballet Theatre; American Cancer Society Relay for Life; Apollo Theater; Arena Stage, Washington, D.C.; Arlington Park, Arlington Heights, Ill.; AT&T Cotton Bowl Classic; Auditorium Theatre, Chicago; Austin City Limits Music Festival, Texas; Bank of America Chicago Marathon; Bass Performance Hall, Fort Worth, Texas; Bell Helicopter Armed Forces Bowl; BOK Center, Tulsa, Okla.; Boston Ballet; Broadway in Chicago; Brookfield Zoo, Illinois; Carnival Miami; Center Theatre Group, Los Angeles; Chicago Children’s Museum; Chicago Flower & Garden Show; Chicago International Film Festival; Cystic Fibrosis Foundation; Dallas Children’s Theater; Dallas Museum of Art; Dallas Opera; Dallas Summer Musicals; Dallas Symphony Orchestra; Discover Orange Bowl; ECHL Charlotte Checkers; Film Society Lincoln Center; Fort Worth Symphony Orchestra; GI Film Festival, Washington, D.C; Goodman Theatre, Chicago; Greek Theatre, Los Angeles; Honolulu Marathon; ING Miami Marathon and Half Marathon; Los Angeles Convention & Visitors Bureau; Miami Air & Water Show; Miami Book Fair International; MLS Columbus Crew and D.C. United; Nantucket Film Festival; National Cherry Blossom Festival, Washington, D.C.; Navy Pier, Chicago; NBA Dallas Mavericks, Miami Heat and Washington Wizards; Nederlander Organization; NFL Dallas Cowboys; 2K Sports Classic benefiting Wounded Warrior Project, New York City; New York City Ballet; NHL Dallas Stars and New York Islanders; Palm Beaches Marathon presented by Publix; Paper Mill Playhouse, Millburn, N.J.; Paramount Theatre, Aurora, Ill.; Pasadena Tournament of Roses Parade presented by Honda & Rose Bowl Game presented by Vizio; Point Premium Root Beer International Cycling Classic; Portland International Film Festival; San Diego Opera; San Francisco Ballet; Susan G. Komen Race for the Cure; Roundabout Theatre Co.; U.S. Fund for UNICEF; USA Wrestling; Walton Arts Center, Fayetteville, Ark.; Washington Ballet; Wolf Trap Foundation for the Performing Arts, Vienna, Va.; Women Presidents’ Organization; WNBA Tulsa Shock.

Additional comments: Activates Susan G. Komen with Miles for the Cure fundraising program and the sale of co-branded gift cards, around which the airline donates $5 to the cause for every $50 of travel purchased. Accepts proposals through www.aa-promo.com. 2011 passenger count: 86 million*.

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Delta Air Lines, Inc. 1030 Delta Blvd.Atlanta, GA 30320

Mauricio Parise, general manager, worldwide marketing communications404/715-2600

Sponsorship/Activation Strategy: The second-largest U.S. carrier uses sponsorship to accomplish one primary objective: engage business travelers through sports and other consumer passion points. The company over the last few years has placed more focus on activating ties with social media and gaining business from sponsored teams. While the company sponsors properties around the country—and world—Delta largely focuses on two key U.S. markets: New York City and Los Angeles. The airline last month activated its three-year-old sponsorship of Madison Square Garden and the NHL New York Rangers by flying fans from New York City to Newark, N.J. to watch the Eastern Conference Finals Game 3 against the New Jersey Devils.

Current deals: Title: Delta Classic Chastain Park Amphitheater, Atlanta. Cosponsor: AJC Peachtree Road Race; All Things D conference, Rancho Palos Verdes, Calif.; Atlanta Ballet; Atlanta Opera; Atlanta Symphony Orchestra; Bank of America Atlanta Football Classic; Beacon Theatre, New York City; Breast Cancer Research Foundation; Brigham Young University Athletics; Center for Puppetry Arts, Atlanta; The Chicago Theatre; Chick-fil-A Bowl; Children’s Miracle Network; Food Network New York City Wine & Food Festival presented by Food & Wine; Fox Theatre, Atlanta; Fox Theatre, Redwood City, Calif.; Georgia Institute of Technology Athletics; GRAMMY Awards; Grandma’s Marathon presented by Wells Fargo & Toyota, Duluth, Minn.; High Museum of Art, Atlanta; James Beard Foundation Awards; Juvenile Diabetes Research Foundation Int’l; Macy’s Thanksgiving Day Parade; Madison Square Garden; Make-A-Wish Foundation; MLB Atlanta Braves, Cincinnati Reds, Detroit Tigers, New York Mets and New York Yankees; NBA Atlanta Hawks, Indiana Pacers, Los Angeles Lakers, New York Knicks and Utah Jazz; NFL Minnesota Vikings, St. Louis Rams and Tennessee Titans; NHL Los Angeles Kings and New York Rangers; North American Int’l Auto Show; Principal Charity Classic presented by Wells Fargo PGA Tour stop; TED conference, Long Beach, Calif.; U.S. Ski & Snowboard Assn.; University of Georgia Athletics; Virginia Arts Festival.

Additional comments: Activates AJC Peachtree Road Race with Runway to the World sweeps and the U.S Ski & Snowboard Assn. with once-in-a lifetime hospitality events. Passenger count: 113.4 million.

JetBlue Airways Corp.118-29 Queens Blvd.Forest Hills, NY 11375

Marty St. George, senior vice president of marketing and commercial718/286-7900

Sponsorship/Activation Strategy: The nation’s sixth-largest carrier uses sponsorship to support local communities, strengthen its presence in existing markets and build visibility in expanding markets. JetBlue in 2012 inked a new partnership with the inaugural Hollywood Half Marathon to support its presence in Southern California. The company in 2011 announced an eight-year extension with the MLB Boston Red Sox; the tie includes title of JetBlue Park, the team’s new spring training facility in Lee County, Fla. JetBlue this year activated the Red Sox partnership with a team-themed themed paint scheme on an Airbus A320 plane. Sponsors marathons and other endurance sports events to promote healthy, active lifestyles.

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Current deals: American Express presents Downtown NYC River to River Festival; Aquaphor New York City Triathlon presented by RCN; Boston Marathon; Broadway Across America—Boston; Hofstra University Athletics; Hollywood Half Marathon; Long Beach International City Bank Marathon & Half Marathon; MLB Boston Red Sox and Los Angeles Angles of Anaheim; MLS Real Salt Lake; NBA Los Angeles Clippers; NFL Buffalo Bills, New England Patriots and New York Jets; NHL Boston Bruins and Florida Panthers; Publix Fort Lauderdale A1A Marathon & Half Marathon; SunFest, West Palm Beach, Fla.; Tribeca Film Festival.

Additional comments: JetBlue in January hosted a live performance by U.K. artist Ellie Goulding as part of the Live from T5 concert series at John F. Kennedy International Airport. Passenger count: 26.3 million.

Southwest Airlines Co.2702 Love Field Dr.Dallas, Texas 75235

Andy Allman, director, national strategic partnerships 214/792-4000

Sponsorship/Activation Strategy: The largest U.S. carrier sponsors to engage consumers, demonstrate its community involvement and build visibility in new markets. Southwest in 2011 expanded its national footprint through its acquisition of AirTran Holdings, the parent of AirTran Airways. The carrier largely focuses sponsorship activity on a handful of key markets including Boston, Chicago, Denver and Philadelphia. The company has placed more focus on activating ties with promotions on behalf of its Click ‘n Save special offer and Rapid Rewards frequent flier programs. Activates SeaWorld Parks & Entertainment with a Shamu paint scheme on three planes and offering vacation packages through Southwest Vacations. Supports Country Throwdown music tour with a tie-in to the Boot Campaign, a nonprofit that provides assistance to veterans healing from physical and emotional wounds.

Current deals: Title: Southwest.com Chinese New Year Festival & Parade; Southwest Porch at Bryant Park, New York City. Cosponsor: California Capital Airshow, Sacramento, Calif.; Country Throwdown fired up by Kingsford music tour; Dallas Wind Symphony; Denver Chalk Art Festival on Larimer Square; EAA AirVenture Oshkosh; Georgia Aquarium; Girls Inc.; Grand Ole Opry; Live in the Vineyard; Loyola Marymount University Athletics; Make-A-Wish Foundation; MLB Baltimore Orioles; Milwaukee Brewers and Texas Rangers; NBA Denver Nuggets and Phoenix Suns; NFL Indianapolis Colts; Outfest, the Los Angeles Gay & Lesbian Film Festival; San Jose Mexican Heritage and Mariachi Festival, Calif.; SeaWorld Parks & Entertainment; Sesame Place, Langhorne, Pa.; Student Conservation Assn.; Sundance Film Festival; Taste of the Beach, Walton County, Fla.; Triple-A Baseball Round Rock Express.

Additional comments: Southwest has replaced Air Tran deals with the Southwest brand. For example, the company earlier this year announced a new partnership with the MLB Milwaukee Brewers, a team previously sponsored by Air Tran. Southwest sponsors the Sundance Film Festival in part to expand its presence in TV and film productions. SeaWorld tie runs through 2015. Passenger count: Southwest: 110.5 million; AirTran: 24.5 million.

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United Continental Holdings, Inc.77 W. Wacker Dr. Chicago, IL 60601

Kevin McKenna, managing director of brand marketing 312/997-8000

Sponsorship/Activation Strategy: United Continental was created following the 2010 merger between Continental Airlines, Inc. and United Airlines. The company uses sponsorship to boost market positioning and build relations with frequent business customers. The carrier is activating its tie to the U.S. Olympic Committee with the “Fly Me to London” sweeps that dangles trips to the 2012 London Olympic Games. The promotion offers two roundtrip U.S. flights to 17 winners to support the 17-day Olympic Games and the airline’s 17 daily nonstop flights to London. Frequently activates to support frequent flier programs. For example, United leverages the MLB Chicago Cubs by offering MileagePlus members the opportunity to redeem miles for behind-the-scenes experiences at Wrigley Field, trips to the team’s spring training camp and other unique experiences. Operates hubs in 10 markets: Chicago; Cleveland, Denver, Guam, Houston, Los Angeles, New York/Newark, San Francisco, Tokyo and Washington, D.C. Gains sponsor status of some NGBs as a result of USOC tie.

Current deals: Title: United Center, Chicago. Cosponsor: Adler Planetarium & Astronomy Museum; American Theater Wing’s Tony Awards; Asian Art Museum, San Francisco; AT&T Pebble Beach National Pro-Am, Calif.; Breast Cancer Network of Strength; Broadway in Chicago; The Broadway League; Carnegie Hall, New York City; Chicago Symphony Orchestra; Cynthia Woods Mitchell Pavilion, The Woodlands, Texas; Farmers Insurance Open PGA Tour stop; French Quarter Festival presented by Capital One; Hobby Center for the Performing Arts, Houston; Houston Ballet; Houston Grand Opera; Houston Livestock Show & Rodeo; ING New York City Marathon; Insperity Championship presented by UnitedHealthcare; Joffrey Ballet of Chicago; John G. Shedd Aquarium; PGA Tour stop; Lincoln Center for the Performing Arts; Lincoln Park Zoo, Chicago; Lookinglass Theatre Co, Chicago, Make-A-Wish Foundation; March for Babies; MLB Chicago Cubs, Chicago White Sox, Cleveland Indians, Los Angeles Dodgers, San Francisco Giants and Washington Nationals; Museum of Science and Industry, Chicago; NBA Chicago Bulls, Cleveland Cavaliers and Houston Rockets; NFL Chicago Bears, Cleveland Browns, Denver Broncos, Houston Texans, Kansas City Chiefs, New Orleans Saints, New York Giants, San Diego Chargers, San Francisco 49ers and Washington Redskins; New Jersey Performing Arts Center; NHL Chicago Blackhawks; Northern Trust Open PGA Tour stop; Rock & Roll Hall of Fame & Museum; Smithsonian National Zoological Park; State Theatre, New Brunswick, N.J.; Steppenwolf Theatre Company, Chicago; Theatre Under the Stars, Houston; US Figure Skating; U.S. Olympic Committee; USA Bobsled and Skeleton Federation.

Additional comments: Agencies include Paragon Marketing Group and Chicago Sports & Entertainment Partners. Inked exclusive tie in 2011 with the MLB Chicago Cubs. Emirates Airline in 2012 replaced Continental as the official airline of the USTA U.S. Open. United passenger count: 50.4 million; Continental: 45.1 million.

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US Airways Group111 W. Rio Salado PkwyTempe AZ 85281

Andrew Nocella, senior vice president, marketing and planning480/693-0800

Sponsorship/Activation Strategy: The country’s fifth-largest airline largely uses sponsorship to support the local community in three primary markets: Arizona—the location of its corporate headquarters—and three hubs: Philadelphia, Phoenix and Charlotte, N.C. “It’s a natural fit to pair up Charlotte’s hometown airline with the hometown team,” said Nocella in a 2010 statement announcing the company’s partnership with the NBA Charlotte Bobcats. The company has promoted the NFL Arizona Cardinals, Philadelphia Eagles and other pro sports teams with special paint schemes on jets. Supports Make-A-Wish Foundation by allowing Dividend Miles members to donate frequent flier miles to the nonprofit.

Current deals: Title: US Airways Center. Cosponsor: Arizona Opera; Arizona Science Center; Arizona SciTech Festival; Arizona State University Athletics; Blumenthal Performing Arts Center, Charlotte, N.C.; Children’s Museum of Phoenix; Franklin Institute, Philadelphia; Make-A-Wish Foundation; MLB Arizona Diamondbacks; NBA Charlotte Bobcats and Phoenix Suns; NFL Arizona Cardinals, Carolina Panthers, Philadelphia Eagles and Pittsburgh Steelers; NHL Philadelphia Fliers and Phoenix Coyotes; Opera Company of Philadelphia; Pennsylvania Ballet; Philadelphia Theatre Company; Phoenix Symphony; Waste Management Phoenix Open PGA Tour stop.

Additional comments: US Airways is reportedly exploring a merger with AMR Corp., the parent of American Airlines. Passenger count: 52.9 million.

*2011 scheduled domestic and international enplanements per the U.S. Dept. of Transportation’s Bureau of Transportation Statistics.

Sources Delta Air Lines, Inc., Tel: 404/715-2600 Madison Square Garden, Tel: 212/465-6000

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ONE-ON-ONE

HONDA’S SPONSORSHIP STRATEGY ROLLS ON Auto import credits Honda Civic Tour with influencing brand perception among young adult consumers.

Although the sponsorship industry has largely recovered from the darks days of 2008 and 2009, many companies still remain hesitant about committing to long-term relationships.

But American Honda Motor Co. is an exception.

To wit: The company earlier this year extended its title of the Honda Classic PGA Tour stop with a four year contract running through 2016, making the company the longest-running continuous sponsor of the PGA Tour.

Honda has taken a long-term commitment with other properties as well. Those include the proprietary Honda Civic Tour (11 years) and Little League Baseball (16 years).

IEG SR spoke with Jenny Howell, Honda’s manager of regional marketing, about the upcoming Honda Civic Tour, how the tour has impacted brand perceptions, the company’s growing focus on social media, and other topics.

Below are edited excerpts from the conversation.

IEG SR: The 11th iteration of the Honda Civic Tour will kick off in August with Linkin Park and Incubus. What is the thinking behind the sponsorship?

Howell: What we’re trying to do is enhance the Civic’s relevancy to the youth market. We want to increase awareness and opinions through an affinity with the bands on the tour.

We use the tour to reinforce the youthful, edgy side of the Civic brand. Honda is often thought of as being a relatively safe company. We try to get bands that are edgier than something you may normally think of as being associated with Honda.

IEG SR: Who exactly is the youth market that Honda is trying to reach?

Howell: When the tour first started we were going after 16-to-24-year-olds. That demographic is obviously young in terms of people who buy a car, but we’re trying to build our brand image for when they get ready to buy a vehicle.

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In recent years we expanded the tour with bands that have a slightly broader appeal. Linkin Park has been around a long time, and they have a large and diverse fan base.

IEG SR: How will Honda activate the tour?

Howell: A lot of what we do leads up to the tour. We have a TV commercial and we’re a big believer in social media these days. Traditionally we also have done print, but Linkin Park isn’t a big believer in print, so they asked us to shy away from it.

With the world being what it is, and especially with this target, we’re doing a lot of activation with social media. We have a Facebook page, a Twitter handle and our own Youtube channel.

The Honda Civic Tour Facebook page has quite a few followers: We have 229,000 likes for the tour.

We also work with the bands’ social media channels. Linkin Park has more than 40 million Facebook likes and 1.3 million Twitter followers. Using their social media presence to promote the tour is great. We look at a band’s social media presence when we evaluate bands for the tour.

IEG SR: Honda has sponsored the Civic Tour for 11 years. That’s a long time. How do you measure success, and what kind of success have you seen?

Howell: We look at the basic metrics, such as the number of tickets sold and attendance numbers. We also give away a customized car and motorcycle designed by each of the bands. We track sweepstakes entries and the number of people that opt in to receive more information from Honda. We can match that back to sales, but that’s not the primary driver for this promotion.

We also conduct a study on the people that attend the event and their impression of Honda. We have seen a lift in brand perception and awareness. The tour has made an impact on people’s perception of Honda.

Source American Honda Motor Co., Tel: 310/781-4000

AT A GLANCE: AMERICAN HONDA MOTOR CO.

Estimated 2011 Sponsorship Budget• $35millionto$40million

Key Players• TomPeyton,Hondabrandmanager• JennyHowell,manager,Hondaregionalmarketing

Major Deals

Title• HondaBattleoftheBandspresentedbyVerizon• HondaCampusAll-StarChallenge• HondaCenter,Anaheim,Calif.• HondaCivicTour• HondaClassicPGATourstop,PalmBeachGardens,Fla.• HondaLAMarathon

Presenting• RoseParade,PasadenaTournamentofRoses

Cosponsor• AustinCityLimitsMusicFestival• DisneylandResort• EsurancePresentsSasquatch!musicfestival• LittleLeagueBaseball• NationalHockeyLeague• NHLAnaheimDucks

Sponsorship Management• PeytonoverseesSasquatch,ACLandotherproperties; Howell manages Honda Civic Tour, Honda Classic and Little League Baseball

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STRATEGY

SUBARU GAINS TRACTION WITH ENDURANCE SPORTS EVENTS Sellers that represent nontraditional endurance sports properties should put Subaru on their prospect list.

Subaru of America, Inc. (“Subaru Likes The Sponsorship Road It Is On” 03/08/10) has long sponsored flower shows, lifestyle festivals, ski resorts and other types of properties that resonate with its target audience.

Now the auto manufacturer is expanding its portfolio to connect with a growing segment of customers: runners.

Subaru this year has come on board as the presenting sponsor of the Destination Races Wine Country Half Marathon Series. The company kicked off the sponsorship last weekend at the Virginia Wine Country Half Marathon and will wrap the program in October with California’s Healdsburg Wine Country Half Marathon.

Also this fall, Subaru in October will launch a new partnership with the Men’s Health Urbanathlon obstacle course series. The series will take place in Chicago, New York City and San Francisco.

The deals follow Subaru’s two-year-old presenting sponsorship of the 10-stop Merrell Down & Dirty National Mud and Obstacle Series.

The automaker is placing more focus on endurance sports as a result of its growing customer base, said Todd Lawrence, Subaru’s promotions and sponsorship manager.

“Everything we sponsor is based on supporting the activities and passions of Subaru owners. Our customer base is growing, and running consistently comes up as an activity that our owners enjoy and participate in.”

Like its sponsorship of the Merrell Down and Dirty Series, Subaru was drawn to the Destination Races series due to the uniqueness of the property. The events take place in scenic wine regions ranging from California’s Napa Valley to Northern Virginia’s Loudoun County and Oregon’s Willamette Valley.

“Subaru owners are experience seekers, and we wanted to do something more than a traditional running event,” said Lawrence.

The automaker activates the events by offering VIP parking and brunch for Subaru owners and up to three guests.

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“We’ll reward owners and hopefully introduce new prospects to the brand.”

Subaru also is activating the tie with a consumer sweepstakes that dangles a trip to the Oct. 27 Healdsburg Wine Country Half Marathon. The company is touting the promotion through email blasts, ads in Drive magazine and other customer communication channels.

In addition to signing new deals with endurance sports events, Subaru over the past few years has tweaked its activation strategy. The company’s new objective: enhancing the consumer experience.

“We try to ask the question ‘If we weren’t at an event the following year, would participants miss us?’ We want that answer to be yes,” said Lawrence.

The strategy has seen Subaru move away from static on-site displays in favor of programs that engage consumers in an authentic, relevant way. For example, the company activates the Merrell Down & Dirty Series with the post-race human car wash.

“Participants get dirty at the event, so the human car wash is a way for people to clean up and cool off. We play music, people dance and have fun. It’s a great way for people to interact with our brand.”

Subaru also tries to leverage ties with other sponsors. The company activated its presenting sponsorship of the May 18-20 Dominion Riverrock with a promotion with two other like-minded sponsors: Ruffwear dog apparel and Zuke’s dog treats. Consumers that visited all three sponsor booths received a passport redeemable for a water bottle, dog bowl and dog treats.

In a different twist, Subaru leverages the Merrell Down & Dirty Series by offering a free pair of Merrell shoes to consumers that take a test drive at a local dealership.

Subaru also sponsors flower and garden shows, mountain biking events, winter sports and other types of activities that resonate with its customer base. Ties include the National Ski Patrol, Northwest Flower & Garden Show and the Subaru Freesking World Tour.

Source Subaru of America, Inc., Tel: 856/488-8500

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ABOUT IEGIEG leads the way in sponsorship solutions. With over

30 years providing insights, evaluation, and guidance,

our teams bring unparalleled perspective and proven

methodology to every challenge.

We partner with top brands and properties to create fresh

strategies, evaluate opportunities and maximize results.

Our clients rise above competitors, meaningfully engage

audiences and achieve lasting impact.

A unit of WPP’s GroupM, IEG is connected to specialty

sibling communications companies in media, digital and

activation. GroupM is the leading global media investment

management operation that also serves as parent company

to WPP media agencies including Maxus, MEC, MediaCom,

and Mindshare.

For more information about IEG and the sponsorship

industry, please visit www.sponsorship.com or call

800/834-4850 (outside the U.S. and Canada, 312/944-1727).

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INSIGHTSEVALUATION GUIDANCEIEG LEADS THE WAY IN SPONSORSHIP ANALYSIS, INSIGHT, VALUATION & MEASUREMENT