IEG SPONSORSHIP REPORT...2016 IEG, LLC. ALL RIGHTS RESERVED. 2 IEG SPONSORSHIP REPORT Philips posts...
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© 2016 IEG, LLC. ALL RIGHTS RESERVED. 1 DIGITAL CONTENT SEEING IS BELIEVING: HOW PHILIPS IS USING MUSIC TO PROMOTE CONNECTED LIGHTING Lighting giant uses online video series to demonstrate product functionality and reach new audiences. Philips Lighting is using music to elevate light beyond illumination. The company has partnered with Live Nation Entertainment on the “Living Light Sessions,” a series of five online videos featuring up-and-coming musicians performing in a living room outfitted with Philips Hue connected lighting systems. Part of the growing trend of connected homes, consumers can use Philips Hue to create dynamic in-home lighting experiences via more than 450 third-party apps. Philips markets Philips Hue with the “Turn On Living” tagline to promote the product’s various uses including comfort and security (“Turn on Peace of Mind”) and 15 million-plus color variations (“Turn on Imagination”). “Historically, lighting has been a functional on-and-off category. We’re trying to create an experience to show people that lighting can do so many more things,” said Todd Manegold, senior director of product marketing, Philips Hue. “Our challenge is creating that ‘seeing is believing moment.’” When developing the videos with Live Nation, Philips stressed the importance of conveying product functionality. As a result, the videos were shot in living rooms with lighting environments created by the artists. “I don’t want to be perceived as something just for entertainment. We want to show this is a product that can be used in your house to create a unique experience.” Philips launched the first video in November 2015 with Rudimental, an English drum and bass band. The company has since posted videos by Irish rock band Kodaline and American indie pop band Saint Motel. Philips will launch the fourth video later this month with RAC, a Grammy-nominated electronic music act. The fifth act has not yet been determined. Live Nation picked the artists based on their appeal to tech-savvy males, said Jeremy Levine, Live Nation senior vice president of digital sales. “Historically, light bulbs are more of a female buy. We want to shift that ratio to reach tech-forward men and convert them into brand evangelists.” WWW.IEGSR.COM IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING APRIL 11, 2016
Transcript of IEG SPONSORSHIP REPORT...2016 IEG, LLC. ALL RIGHTS RESERVED. 2 IEG SPONSORSHIP REPORT Philips posts...
© 2016 IEG, LLC. ALL RIGHTS RESERVED. 1
IEG SPONSORSHIP REPORT
DIGITAL CONTENT
SEEING IS BELIEVING: HOW PHILIPS IS USING MUSIC TO PROMOTE CONNECTED LIGHTING Lighting giant uses online video series to demonstrate product functionality and reach new audiences. Philips Lighting is using music to elevate light beyond illumination. The company has partnered with Live Nation Entertainment on the “Living Light Sessions,” a series of five online videos featuring up-and-coming musicians performing in a living room outfitted with Philips Hue connected lighting systems. Part of the growing trend of connected homes, consumers can use Philips Hue to create dynamic in-home lighting experiences via more than 450 third-party apps. Philips markets Philips Hue with the “Turn On Living” tagline to promote the product’s various uses including comfort and security (“Turn on Peace of Mind”) and 15 million-plus color variations (“Turn on Imagination”). “Historically, lighting has been a functional on-and-off category. We’re trying to create an experience to show people that lighting can do so many more things,” said Todd Manegold, senior director of product marketing, Philips Hue. “Our challenge is creating that ‘seeing is believing moment.’” When developing the videos with Live Nation, Philips stressed the importance of conveying product functionality. As a result, the videos were shot in living rooms with lighting environments created by the artists. “I don’t want to be perceived as something just for entertainment. We want to show this is a product that can be used in your house to create a unique experience.” Philips launched the first video in November 2015 with Rudimental, an English drum and bass band. The company has since posted videos by Irish rock band Kodaline and American indie pop band Saint Motel. Philips will launch the fourth video later this month with RAC, a Grammy-nominated electronic music act. The fifth act has not yet been determined. Live Nation picked the artists based on their appeal to tech-savvy males, said Jeremy Levine, Live Nation senior vice president of digital sales. “Historically, light bulbs are more of a female buy. We want to shift that ratio to reach tech-forward men and convert them into brand evangelists.”
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IEG SPONSORSHIP REPORTTHE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING
APRIL 11, 2016
© 2016 IEG, LLC. ALL RIGHTS RESERVED. 2
IEG SPONSORSHIP REPORT
Philips posts the videos, interviews and other behind-the-scenes content on the Phillips Hue website (www.MeetHue.com) and dedicated YouTube page. The company also posts videos on the Philips storefront on Amazon.com.
Philips promotes the videos via Facebook and Instagram, while the artists do the same on their own social and digital channels.
Philips also has enlisted social media influencers to promote the product line. Technology influencer Jonathon Morrison gives Saint Motel a tutorial on Philips Hue in one of the videos.
“Social influencers lend credibility and help expand the conversation to an even wider audience,” said Levine.
The Live Nation partnership builds on a 2014 promotion with the Syfy cable TV channel and Sharknado. Consumers who downloaded the Syfy Sync app could use Philips Hue to create a light experience based on action in the movie such as red lights when someone was eaten by a shark.
“We wanted to create an immersive experience based on what was going on in the show. That’s the thinking with Live Nation. We want to show that lighting can create immersive experiences with content.” Philips sells the four-year-old product line through Best Buy, P.C. Richard & Son, Wal-Mart and other big-box retailers.
Source Philips Lighting North America Corp., Tel: 617/423-9999
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IEG SPONSORSHIP REPORT
SIDEBAR
EMERGING CATEGORY: CONNECTED HOME DEVICES As demonstrated by Philips’ partnership with Live Nation, the growing ubiquity of the Internet of Things is driving new sponsorship activity on behalf of companies and products in the smart home ecosphere.
Nearly 20 percent of U.S. households with broadband connectivity had at least one smart home product at the end of 2015, according to Parks Associates. The research firm expects that number to grow to 66 percent by 2025.
“The Internet is undergoing its own transformation as all types of physical objects are connecting into the digital world, and the industry is quickly innovating in the ways consumers will interact with these devices,” said Brett Sappington, Park Associates’ director of research, in a statement.
As a result, home security, appliances and other segments of the smart home industry are expected to ramp up sponsorship to demonstrate their products in a real-life environment.
Key categories and companies include the following:
• Home security (ADT, August, Nest Labs, etc.)• Lighting (Philips Hue, LIFX, General Electric, etc.)• Appliances (LG, Samsung, etc.) • Temperature and climate control (Honeywell, Nest, etc.)• Smart outlets (Belkin, D-Link, etc.) • Entertainment (Samsung, etc.) • Software (Apple HomeKit, etc.)
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IEG SPONSORSHIP REPORTTHE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING
APRIL 11, 2016
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IEG SPONSORSHIP REPORT
ADDING VALUE
WHAT’S YOUR TAKE? SPONSORS WEIGH IN ON ADDED VALUE Marketing executives from Wells Fargo and Nestlé Waters give their take on added value—including what should and should not be offered. As nearly every property knows—or should know—added value plays a critical role in a partnership’s success.
In short, added value applies to benefits and services delivered by the property beyond assets included in a contract.
In edited excerpts below, marketing executives from Wells Fargo and Nestle Waters give their take on added value—and what it should and should not include.
Tim Collins, senior vice president, experiential marketing, Wells Fargo & Co.In an ideal world, an added value offering should be informed by the relationship the property has with the brand. Hopefully, the property knows what the brand is trying to do, and is thinking of ways to support the brand on an ongoing basis.
A few examples might include:
• Going above and beyond at contract events (meet and greets, etc.) A team might upgrade a player appearance from rookie talent to All-Star talent.• Additional customer hospitality. Recognizing that we had many key customers in for an event, one of our partners offered us additional hospitality to entertain those customers while they were in town.• Additional promotional assets in-line with brand strategy and marketing campaigns. • Assets from media companies and other like-minded cosponsors. Good things can come when the property connects its partners with each other.• Inclusion in cause and community partnerships/events • Pilots of new technologies (beacons, virtual reality, etc.)
The examples are endless, but should always be bounded by the brand’s strategy and objectives.
What Is Not Added ValueJust because the property offers an asset doesn’t make it added value. Sometimes properties position additional assets as added value, when, in fact, they have no connection to the brand’s objectives and strategy. Just because it’s offered doesn’t mean it’s of value. With any partnership, certain things just don’t work out (weather cancellations, talent illness, etc.). Sometimes, properties position additional assets as added value, when it’s really a make-good for a contractual element they couldn’t fulfill.
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APRIL 11, 2016
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The wording matters, as it is reflective of the level of trust and partnership between the brand and the rightsholder. But when done right, added value offerings build trust and strengthen the relationship between property and the brand by incrementally helping the brand achieve its objectives. It’s the “surprise and delight” of the sponsorship world.
Kevin Cleary, marketing manager, sponsorships and promotions, Nestlé WatersA strong partnership is one in which the agreement does not need to be referred to as partners work together and understand each other’s vision. There is an open and ongoing dialogue to work together to build up each other’s brands.
Examples include the following:
Green assets. Green programming is important—it’s beyond a brand supporting recycling and more about sharing what companies are doing for a better tomorrow. There could be some great content that consumers would enjoy further knowledge about.
Sponsor summits. Summits are important to allow partners to meet one another and make connections within the greater partnership and work together when appropriate. The best summits allow connections to be made and information to be shared.
Ongoing sponsorship updates. Instead of waiting for a recap deck, offer up key learnings and other benefits throughout the duration of a partnership. Be sure to include data—data is more and more important and vital in recap reports.
Don’t wait to show value—it’s best to show ongoing information such as brand image and how often an image or sign is shared on an ESPN broadcast or in other traditional and digital media channels.
Sources Nestlé Waters North America, Inc., Tel: 203/531-4100 Wells Fargo & Co., Tel: 866/878-5865
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ABOUT IEG AND ESP PROPERTIES
IEG has shaped and defined sponsorship over three decades. It is the globally recognized source for industry insights, trends, training and events via sponsorship.com, its annual conference, online publications, trend reports, surveys and webinars.
IEG is part of ESP Properties, a WPP company. As a commercial and creative advisor for rightsholders, ESP Properties helps organizations unlock greater value from their audiences and brand partnerships.
Our consulting team assesses and advises how to grow the value of rightsholders’ commercial programs. We do this through a full range of services across data, digital and content development to better understand audiences and create more relevant ways to engage with them. This provides brand partners with new ways to connect with communities of fans and followers, growing the potential value of commercial partnerships.
Our sales team provides partnership strategy and sales representation to the world’s most active sponsors, within and beyond the WPP network of brand clients. Through WPP we have extensive contacts and deep insights into what it takes to create successful partnerships.
For more information about IEG and the sponsorshp industry, please visit www.sponsorship.com, www.espglobal.com, or call +1 312 944 1727.
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