Lesson 8.2 – Sponsorship Growth Copyright © 2013 by Sports Career Consulting, LLC

Growth of Sponsorship $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 Copyright © 2013 by Sports Career Consulting, LLC $18.9 (projected) 2012

Sponsorship spending in 2013 by category (projected) Sponsorship Growth 1) Sports - $13.8 billion 2) Entertainment tours and attractions - $2 billion 3) Causes - $1.8 billion 4) Arts - $920 million 5) Festivals, fairs and annual events - $849 million 6) Associations and membership organizations - $572 million LESSON 8.2 Sponsorship & Endorsements Copyright © 2013 by Sports Career Consulting, LLC

Growth of Sponsorship LESSON 8.2 Sponsorship & Endorsements Copyright © 2013 by Sports Career Consulting, LLC Projected global sponsorship spending by 2013 according to IEG will reach $53.3 billion

AT&T $ million Anheuser-Busch $ million Nike $ million LESSON 8.2 Sponsorship & Endorsements Copyright © 2013 by Sports Career Consulting, LLC According to the latest report from IEG, companies with the highest levels of investment in sports sponsorship programs include: PepsiCo $ million Coca-Cola $ 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 Sponsorship & Endorsements Copyright © 2013 by Sports Career Consulting, LLC

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 Sponsorship & Endorsements Copyright © 2013 by Sports Career Consulting, LLC

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 Sponsorship & Endorsements Copyright © 2013 by Sports Career Consulting, LLC

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 Sponsorship & Endorsements Copyright © 2013 by Sports Career Consulting, LLC

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 Sponsorship & Endorsements Copyright © 2013 by Sports Career Consulting, LLC

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 Sponsorship & Endorsements Copyright © 2013 by Sports Career Consulting, LLC

LESSON 8.2 Sponsorship & Endorsements 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.One World Futbol 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 Sponsorship & Endorsements Copyright © 2013 by Sports Career Consulting, LLC 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 Sponsorship & Endorsements Copyright © 2013 by Sports Career Consulting, LLC

Blank Slide Available for Teacher Edits LESSON 8.2 Sponsorship & Endorsements Copyright © 2013 by Sports Career Consulting, LLC

Sponsorship & Endorsements 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 © 2013 by Sports Career Consulting, LLC LESSON 8.2 REVIEW (ANSWERS)

Sponsorship & Endorsements 2) Define and offer an example of cause marketing Cause marketing refers to marketing efforts that tie an organization with a charitable cause. Copyright © 2013 by Sports Career Consulting, LLC LESSON 8.2 REVIEW (ANSWERS)