Lesson 8.2 – Sponsorship Growth Copyright © 2014 by Sports Career Consulting, LLC.

Lesson 8.2 –

Sponsorship Growth

Copyright © 2014 by Sports Career Consulting, LLC

Growth of Sponsorship

1980

1987

1996

2001

$0.00 $5.00 $10.00 $15.00

Year

Sponsorship Spending (In billions)

$.30

$1.75

$5.4

$9.3

LESSON 8.2

Sponsorship & Endorsements


$20.6 (projected)

2014

Sponsorship spending in 2014 by category (projected)

Sponsorship Growth

1) Sports - $13.8 billion

2) Entertainment tours and attractions - $2 billion

3) Causes - $1.8 billion

4) Arts - $927 million

5) Festivals, fairs and annual events - $853 million

6) Associations and membership organizations - $576 million

LESSON 8.2



Growth of SponsorshipLESSON 8.2



Projected global sponsorship spending by 2014 according

to IEG will reach $55.3 billion

AT&T $ 175-180 million

Anheuser-Busch $ 255-260 million

Nike $ 215-220 million

LESSON 8.2



According to the latest report from IEG, companies with the highest levels of investment in sports

sponsorship programs last year include:

PepsiCo $ 340-345 million

Coca-Cola $ 265-270 million

Factors Influencing Sponsorship Growth

Unique promotional opportunity

Technology and increased media interest in sport programming

Growing frustration with traditional media

Increased Levels of Consumer Acceptance

Global nature of sports and entertainment

Cause Marketing

LESSON 8.2



Influence of Technology Bolstered by the increased commercialization of radio and television through commercials

Introduction of new media outlets

* Pay per view* Satellite television* “On Demand” viewing capabilities* Streaming audio and video online* Broadband cable* Satellite radio

LESSON 8.2



Cause Marketing refers to marketing efforts that tie an organization with a charitable cause

Cause Marketing

The Boomer Esiason Foundation Website explains that with cause marketing programs, a corporation receives tangible benefits – such as a marked increase in sales – from tying its marketing strategy to the fundraising needs of a charitable cause

LESSON 8.2



Cause Marketing Exploding In Popularity

Cause Marketing

In 1990, cause marketing sponsorship spending in the U.S. totaled only $120 million, according to the IEG Sponsorship Report.

By 2012, spending on cause marketing is projected to hit $1.8 billion.

LESSON 8.2



Cause Marketing Exploding In Popularity

Cause Marketing

According to a report from Performance Research, 41% of U.S.

consumers believe companies can best improve brand perceptions by

increasing their cause sponsorships

LESSON 8.2



How can you tell if it is cause related marketing?

Cause Marketing

There is a marketing objective associated with the activity

The marketing activity is being measured

The program is being promoted

LESSON 8.2




LESSON 8.2


After watching footage of children playing soccer with a ball of trash in Darfur, Tim Jahnigen launched the “

One World Futbol” program which distributes specially made soccer balls that will never go flat.

The program received a giant boost in 2012 when General Motors, as part of their sponsorship of

Manchester United, agreed to sponsor the distribution of 1.5 million of the balls over the next three years.

Cause Marketing


LESSON 8.2


Cause Marketing Speedo launched a creative “Art of the Cap” cause

related campaign, featuring a special collaboration between the brand, the sports’ biggest stars (Olympic gold medalists Ryan Lochte, Natalie Coughlin, Nathan Adrian, Dana Vollmer and Cullen Jones) and paired them with five celebrated artists to design a limited edition Speedo swim cap, sold exclusively on www.SpeedoUSA.com. The proceeds from each design were donated to the charities of each athlete’s choice.

LESSON 8.2



How is sponsorship different from traditional advertising mediums such as television, print and radio?

Discussion Topic

What differentiates sponsorship from traditional media?

Allows a company to tap emotional and intimate appeals of customers

Integrates the positive feelings of sports and entertainment events with company products, services and staff

Sponsorships help reach segmented targets that mass media typically proves ineffective

Showcases a company’s products and services in an environment representative of a consumer’s particular lifestyle

LESSON 8.2



Blank Slide Available

for Teacher Edits

LESSON 8.2




1) Identify three factors that have impacted the growth of sponsorship

Several factors have impacted the sponsorship boom, including:

Sponsorship as a unique promotional opportunity

Technology and increased media interest in sports and entertainment programming

Growing frustration with traditional media

Increased levels of consumer acceptance

Global nature of sports and entertainment Copyright © 2014 by Sports Career Consulting, LLC

LESSON 8.2 REVIEW (ANSWERS)LESSON 8.2 REVIEW (ANSWERS)


2) Define and offer an example of cause marketing

Cause marketing refers to marketing efforts that tie an organization with a charitable cause.


LESSON 8.2 REVIEW (ANSWERS)LESSON 8.2 REVIEW (ANSWERS)

Lesson 8.2 – Sponsorship Growth Copyright © 2014 by Sports Career Consulting, LLC.

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