Sponsorship & Addressable Advertising
Why do companies sponsor teams, events and people? This question really depends on the overall organizational objectives at the time. It certainly changes as a company matures and executives join or leave the senior management teams.
About 20 years ago, many teams/groups used a one size fits all mentality. Sponsorships were grouped into three levels (i.e. gold, silver and bronze) packages and then sold on a tiered basis. Today, sponsorship is more complicated and fits the needs of each individual organization. In the last year, I have heard from too many sales people that enter into their elevator pitch of why a company should be joining as a corporate partner before really understanding the simple questions like:
What are the company goals?
Who is the target demographic?
Why are you considering sponsorship?
Many have been so excited to reach a live person that the over-practiced pitch just comes tumbling out. I understand that time is limited with a prospect on the other end of the phone or in person. However, sales people that really want to understand their potential partners have done their homework well beyond “I saw that you also sponsors……” This kind of call is used too often as decision makers are getting bombarded by these offers on a daily basis.
Things you might want to ask yourself before making the call:
How is your opportunity different from the others falling on my desk (or my inbox)?
Does your sales deck give me a compelling reason to call you back and explore a partnership?
Tell me about activation.
In today’s beat up economy, it is all about activation. Long gone are the days of slapping a sign against an outfield wall and waiting for the TV to sweep across your logo in the background. Sure, the signage is apart of any brand building exercise and awareness and interest are part of a package.
Sports provides a unique opportunity for businesses to connect with fans attending events in the thousands, often millions and you have a captivated audience who are there for a positive experience.
NASCAR has been one of the leaders in the sponsorship field for many years. Why? Well, it starts with the athlete. The drivers understand that without sponsors, racing teams do not exist so the buy in here came early and often. Fans have also been very loyal to specific brands. However with the unemployment rising and people losing houses, harder times for sponsors has directly affected how many teams the sports now fields.
One of the ways sponsorship will change in the next few years comes in the form of better targeting. Take for example an NFL football game. While you spend hours watching your favorite team battle on a Sunday afternoon, everyone sees the same beer ad, right? However, what if you could segment the market and show different ads based on age, income or taste? Just as the internet allows for specific targeted ads to turn up on your favorite web sites, look for more targeted TV advertising coming your way very soon on your favorite big screen.
This new approach to reach viewers is called addressable advertising. According to an April, BusinessWeek story, a consortium of cable operators and others will begin rolling out this new technology possible as early as June 1.
At the center of this change is a consortium of cable operators based in New York City called Canoe Ventures. According to their website, this joint venture is aggregating the collective capabilities of cable digital infrastructure and collaborating with industry leaders in technology, research, programming and more to re-energize TV. Founding partners include: Bright House Networks, Cablevision Systems Corporation, Charter Communications, Inc., Comcast Corporation, Cox Communications Inc., and Time Warner Cable.
If this venture is a success, you will never watch TV the same way again.
