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redmandarin

defining sponsorship

defining sponsorship
Advertising and sponsorship have always been about using imagery to equate products
with positive cultural or social experiences. What makes nineties-style branding diffe-
rent is that it increasingly seeks to take these associations out of the representational
realm and make them a lived reality.

So the goal is not merely to have child actors drinking Coke in a TV commercial, but
for students to brainstorm concepts for Coke’s next ad campaign in English class…
Disney transcends its sports network ESPN, a channel for guys who like to sit around
in sports bars screaming at the TV, and launches a line of ESPN Sports Bars, complete
with giant-screen TVs.

The branding process reaches beyond heavily marketed Swatch watches and launches
‘Internet time’, a new venture for the Swatch Group, which divides the day into one
thousand ‘Swatch beats’. The Swiss company is now attempting to convince the on-line
world to abandon the traditional clock and switch to its time-zone-free, branded time.

From Naomi Klein’s rejection of the branded world, ‘No Logo’,


still the best sponsorship primer in print …

Reproduced with the kind permission of Flamingo.


“Okay, it looks like sponsorship, it feels like sponsorship…
but you’re telling me…”
T-Mobile Street Gig at the Natural History Museum, July 2006
One of ours!
ten years of redmandarin

It’s been ten years since Sally (Hancock) and Chris (Roe) set up Redmandarin and, although we’re a
self-effacing little business, we thought it was worth a celebration. Hence this book.
 
Sally meets Chris was essentially our original proposition: an excellent strategic understanding of
sponsorship applied with the rigour of management consultancy to deliver impartial, world-class
expertise.
 
Fundamentally, that hasn’t changed. We’re faithful to two founding beliefs: that sponsorship can be
an enormously powerful marketing tool; and that most brands in sponsorship need a level of support
beyond what’s commonly available to really make their practice sing.
 
Redmandarin today is structured to offer our clients the benefits of a multi-disciplinary team focussing
solely on ‘sponsorship’, with expertise in brand and management consultancy, research and evaluation,
planning, media, events, channel marketing understanding – to ensure our sponsorship thinking
maximises marketing ROI. Our approach to creative is similar: we work with a unique collection of
partners to ensure our creative concepts are drawn from outside of the traditional box of tricks.
 
What has changed – and continues to change – is our vision, our thinking, our methodologies and our
experience.
 
The other thing that’s changed … is sponsorship.
 
why defining sponsorship?

Since 1999, sponsorship has evolved enormously. Then, if anything, there was wider concensus
about the nature of sponsorship than now.
 
In 1999, and we’re talking 21 years after the FIFA Argentina World Cup, which arguably first saw
a structured, organised packages of ‘rights’ made available in a shape we would recognise today,
sponsorship was still largely defined by the price of your rights.

We’re talking only 15 years after the 1984 Los Angeles Olympic Games and the formation of the IOC’s
sponsorship and broadcast offering, a period of intense rights inflation, driven by the TV landgrab
inspired by BskyB’s brilliant 1992 seizure of the Premiership broadcast rights. The sponsorship model
was dominantly TV driven.

And David Beckham was still at Man U.


 
How things have changed.
 
We think it’s high time for a new definition.

So we asked 40 people their opinion on what lies at the heart of sponsorship, on what really makes it
special as a marketing activity. We tried to gather informed perspectives from every side, in the hope
that, somewhere in the middle, there might be a meeting, that we could develop a construct which
would provide a definition to take us forward. And we did.

But enough from us for now, have a read...


 
perspectives

1 Frank Craighill, Chairman and CEO of Altis Marketing LLC


2 Kevin Roberts, CEO Worldwide of Saatchi & Saatchi
3 Peter R Franklin, Group Director, The Coca-Cola Company
4 Steve Cumming, Global Category Director, Sponsorship, PR and Events, Diageo
5 Keld Strudhal, Global Marketing Director, Carlsberg
6 Tony Ponturo, Founder and CEO of Ponturo Management Group, LLC
7 Patrick Nally, Principal of EMC2 Ltd
8 John Luff, Founder of Sustainable Marketing
9 Philippe le Floch, Marketing Director at UEFA
10 Paul Meulendijk, Head of Sponsorship for MasterCard Europe
11 Richard W Pound, Partner at Strikeman Elliott
12 Simon Lowden, CMO for Pepsi International
13 Simon Pestridge, Marketing Director for Nike UK & Ireland
14 Ade Adepitan, Paralympian basketball player
15 David Wheldon, Global Director of Brand, Vodafone Group
16 Richard Crookes, Head of Corporate Brand Management at BASF SE
17 Martin Lindstrom, CEO and Chairman of LINDSTROM
18 Dany Bahar, Commercial & Brand Director of Ferrari SpA
19 Simon Thompson, CMO of lastminute.com group
20 Peter Wells, Founder of Nilewide
21 David Butler, Former Marketing Director for Honda Racing Formula 1
22 Alain de Botton, author, journalist and thinker
23 Philip O’Brien, Director of UNICEF’s global Private Fundraising and Partnerships Division
24 Andy Walsh, General Manager of FC United of Manchester
25 Lesa Ukman, Chairman and co-founder of IEG
26 Marc Gobe, President of Emotional Branding LLC
27 Dave Stewart, Eurythmics and Weapons of Mass Entertainment
28 David Aaker, Vice-Chairman of Prophet
29 Sally Hancock, Director of Group Sponsorship for Lloyds TSB
30 Giles Gibbons, CEO of Good Business
31 Prof Simon Chadwick, Chair in Sport Business Strategy & Marketing at Coventry University
32 Mark Earls, Herdmeister
33 Norman Jay, DJ
34 Patric Veronne, President of the Writers Guild of America, West
35 Malcolm Gerrie, CEO of Whizz Kid Entertainment
36 Nic Couchman, co-founder of Couchman and Harrington Associates
37 Wayne Rabbit Bartholomew, 1978 Surf World Champion
38 Ross Rebagliati, winner of the first Olympic gold medal for snowboarding
39 Faris Yakob, Chief Technology Strategist at McCann Erickson New York
40 Charlie Hiscocks, Group Director of Brand Communications at SABMilller plc
41 Defining sponsorship
frank craighill
Chairman and CEO of Altis marketing LLC

The most dramatic change over the time that found that they got two or three times what
I have been in the sports marketing industry they had paid in value.
has been the acceptance of sponsorship as an
important strategic marketing communications When we first founded ProServ in the early 70’s,
tool. In the early days of the industry, sponsorship the whole industry was in its infancy in terms of
suffered from being seen as how the chief the dollars involved in professional sports. The
executive likes to spend his time. If he was a two major agencies at the time were ProServ
golf fan or a tennis fan then his company would and IMG. At Proserv we were primarily focused
Frank is Chairman and CEO sponsor a golf or tennis event. There wasn’t much on how we could help with the development
of Altis marketing LLC, discussion about return on investment. Today of a circuit of professional tennis events. At the
consulting with Olympic bid the numbers have gotten so big that the industry time, we were able to assist in the creation of a
cities and Olympic Sponsors. has been forced to focus on return. There’s an tennis broadcast package on public television to
interesting shift going on currently based upon expose the professional game and its sponsors.
Previously Frank was the extraordinary segmentation that is taking In the early days of professional tennis the
Chairman of Helios Partners, place in the marketplace and the dilution of players often were offered guarantees since
representing Sochi’s interest in terrestrial television; brands are being there was no prize money. For example, we might
successful bid for the 2014 forced to be more targeted, particularly when get an offer of $25,000 in the form of a guarantee
Winter Olympics. Before that trying to reach a younger audience who rarely for the players and we would persuade the
he was Worldwide President watch television these days - the one thing they tournament director to put the $25,000 in the
of Octagon, and co-founded do watch is sport. prize money because we
Advantage International
media value is a crutch were trying to help build a
and developed Fortunately, there is a realization within the circuit of prize money tournaments. Since our
The Olympic Program. sponsorship community that through the first four clients were Arthur Ashe, Stan Smith,
integration of its sponsorship a company can Bobby Lutz and Charlie Pasarell, this was very
Frank began his career as a reach many different segments of the market. As appealing to the tournament directors.
lawyer, also spending a result, sponsorship is becoming more important
several years as a not less. In addition, the industry has gotten better
correspondent in Vietnam. at determining and measuring return on their
investment. Too often media value is a crutch:
when the marketing director has to stand in front
of his Board and justify the value the company’s
received for its sponsorship outlay, he thinks
he must have some numbers. I remember that
Mercedes, in the early years of their sponsorship
of the ATP Tour, got their agencies to physically
count the minutes their logo appeared on the
television screen and did an equivalence eval-
uation based on the cost of a 30 second spot,
1 then discounted that number by 90% and still
Courtesy of Tennisclub Weissenhof E.V
kevin roberts
CEO Worldwide of Saatchi & Saatchi

The ROI that sponsorship has to bother itself with tic, true and genuine - and certainly not manipu-
has changed. Return on Involvement is where lative. Consumers will get supremely tired, very
the game is going to be played and sponsorship quickly, about anything that is not authentic and
will get obliterated if it measures itself as it does deeply rooted in the brand. David Ogilvy said it
now on awareness and eyeballs, because those very smartly 25 years ago - the consumer is not
are the wrong, wrong measures in today’s age. a moron, she’s your wife. Sports fans are not mo-
We’ve moved from the Attention Economy into rons but sometimes they get treated like it. Most of
an Attraction Economy. Whereas eyeballs mat- the great sponsorships are grounded in the fans.
Kevin Roberts is CEO tered, the question now is how do you attract
Worldwide of Saatchi & consumers to feel loyalty beyond reason? How Much of what Coca-Cola does in sport is really
Saatchi, the world’s fourth do you develop priceless value? Can sponsor- admirable because they do it from the fans’ point
largest communications ships demonstrate priceless value? Can they de-of view. Toyota is another company that really
group. He is the author of monstrate purpose, enrichment and involvement? gets sport sponsorship if you see what they do
three Saatchi & Saatchi with Munster rugby and the
books on brands and what does women’s tennis Heineken cup. Some of the
What does women’s tennis
marketing. He is also a bring to Sony Ericsson in bring to Sony Ericsson in other stuff just tries hard but
member of the Publicis terms of involvement and terms of involvement and there is no link - and fans
Groupe Management Board. enrichment or happiness or and consumers just look at
enrichment or happiness
purpose to the base propo- it and say there’s something
Previously Kevin held sition? That is the question
or purpose to the base wrong: it’s not authentic or
leadership positions that women’s tennis has proposition? That is the credible.
globally with premier to answer. Sponsorship is question that women’s
brands, including Gillette talking about the wrong stuff Nothing in marketing that we
and Pepsi. He is a former
tennis has to answer
and some of the stories are did over the last three years
director of the New Zealand juvenile. It’s trying to compete with traditional is going to necessarily sustain over the next three
Rugby Union and current media with the old-fashioned metrics, and it’s go- years. We are entering an era where consumers
Chairman of the USA ing to lose. Sponsorships are all about emotion, have all the power, because they have masses of
Rugby Board of Directors. yet most of them are still sold rationally. If I were information. The rules of marketing are about to
a sponsorship property now I’d be investing my change from demand and control to connectivi-
money in new techniques that attempt to measure ty and collaboration. The best brands will look to
emotional connectivity and predict involvement. collaborate with like-minded partners, who get
that they are a triumvirate of property, brand and
The reason brands are interested in music consumer, all as equal partners. Most sponsors
and sport is because they’re shortcuts to come at this from the wrong end of the spectrum,
people’s hearts. Every brand has to deliver the focused on brand equity or financial return, and
rational stuff - product, performance, quality, the consumer is treated like something at the end
distribution, at a price that is competitive. If it of the line.
doesn’t, it’s dead. But in this economy that is not
2 enough. It has to demonstrate that it’s authen-
Courtesy of Getty Images
peter r. franklin
Group Director, Worldwide Sports & Event Management for The Coca-Cola Company

When Coca-Cola looks at a sponsorship, there Another benefit that we can bring to our rel-
ationships with rights-holders is our global reach.
has to be a particular role for us to play. If you
For example, we can talk to FIFA about the 2010
could just as easily substitute one of the other
sponsors into our space, then we’re not reallyWorld Cup in South Africa in a very informed way
doing a very good job. There has to be some- because it’s a very strong market for us, one of
our 10 largest markets around the world. The
thing that is unique for us, in helping to tri-
angulate between our brands, the property, scope and sophistication of our business in that
and the consumer’s passions. Any activation country allows us to bring a lot of value to our
Peter Franklin is Group relationship with FIFA. This value extends bey-
– whether it is ours or another sponsor’s – that
Director, Worldwide Sports feels generic, not personalized for the brand,ond consumer marketing to other important areas
and Event Management for is not successful from my point of view. such as public affairs and communication. That
The Coca-Cola Company, type of business intelligence
managing the Company’s We have had very long when Coca-Cola looks at is very valuable: an enor-
relationships with its major associations with FIFA and a sponsorship, there has mous contact book around
global sports partners, the Olympics. Going back to to be a particular role for the world because we sell
including the IOC, FIFA the beginning, it has always over 1.5 billion servings of
and UEFA.
us to play… something … our product every day.
been about connecting with
people around the world unique for us, … helping
Peter has been with where they live, work, and to triangulate between our
Coca-Cola for 15 years, play. One of the things that brand, the property, and
previously in the Corporate we can bring to the table for
Legal Division with primary our rights-holder partners
the consumer’s passion...
responsibility for International is our knowledge of how people tick, all across
Business Affairs. the world. Often times we have more knowledge
Peter formerly practiced of consumer behaviour in these territories than
law at the international the rights-holders do, and that is an enormously
law firm of Skadden, Arps, powerful thing to be able to bring to a
Slate, Meagher & Flom. sponsorship. Our business is about under-
standing people’s behaviour in virtually every
country in the world - that’s what we do. That
knowledge can help rights-holders with their
specific objectives. For example, over a number
of years we have been helping the IOC in their
aim of reconnecting with youth.

3
Courtesy of the Coca-Cola Company
steve cumming
Global Category Director, Sponsorship, PR and Events at Diageo

Sponsorship. There isn’t a single definition, but of partnerships and relationships to bring it alive.
the unique nature of sponsorship is in its Like any relationship you have to be commit-
relationships and shared IP. Great sponsorship is ted to working on it. You have to move past
realised through great experiential delivery. the transactional to the brand placing itself at
How people perceive sponsorship is not where the heart of a space and bringing media to the
sponsorship is or should exist in the way brands space as appropriate, as Orange have done
connect with consumers. with film. I really do admire Red Bull’s approach
and their sustainable commitment. There’s an
Steve Cumming is Global Sponsorship at the outset was very transactional asset strategy that’s really grown a brand.
Category Director, but it’s gaining more acceptance as a
Sponsorship, PR and mainstream marketing discipline. It’s unique My title at Coke was Head of Marketing Assets
Events at Diageo. because, as a platform, it drives a number of and Brand Experience. Coke get it. It is about
other strategic invest- leveraging your asset
He started with Grand Met ments. The debate used we want the brand - and partnerships, to allow you
as a Graduate trainee and to be: advertising or the sponsorship experience to create the sort of ex-
happened to be in the sponsorship, but it’s - to be the enabler to a deeper periential campaigns that
brewing business when it become a much more deepen relationships. I
emotional connection
was broken up in 1990 and integrated discussion, as it don´t see any significant
has been in drinks since. should be. Passion Point investment enables your differences with experiential. Marketing asset
He went on to Scottish brand and business to cut through in ways that management doesn’t take it far enough though,
Courage and Carlsberg via other business and marketing levers can’t. because it’s a mindset you have to get into.
a number of mergers and I’d love not to use the word sponsorship, but
acquisitions, before joining Why sponsorship is not better understood in you can’t get away from it. You can’t go into
Coke in 2002 and moving some businesses, I don’t know, but it deserves the marketplace and say I’m in Consumer
to Diageo in 2008. to have a better reputation. Which is why I’m still Relational Asset Marketing, or not yet at least.
as passionate as ever, and remain focussed on
what’s great about it, and what can be great about There’s no way we want people just to drink a
it in the future. When it works it’s phenomenal and pint of Guinness, we want the brand – and the
done properly it should be a great part of your mix. sponsorship experience - to be the enabler to
a deeper emotional connection.
The essence of sponsorship is ‘win win’. I
fundamentally believe in the value of partnership. My task here at Diageo is to continue to change
You seek out partnerships that add value the mindset, to go from sponsorship to relational
to both brand propositions. Partnership might asset management, then build the sort of rel-
sound a bit utopian but my view is that ationships which will drive value.
sponsorship is relational asset management,
which has to be driven by a need for that
relationship, otherwise you’d go and do it yourself.
4 Even if a brand drives an idea itself it needs a set
Courtesy of Orange Film
keld strudahl
Global Marketing Director at Carlsberg

My background is MBA, CBS Copenhagen and to make sure we benefit from the contracts,
a BA in the USA, various ad agencies, and so we’re driven by sales promotion activities.
Nielsen. Then Carlsberg offered me a position
as either brand manager or with responsibility But we need to get away from the nasty word of
for sponsorship. I thought sponsorship could be sponsorship, to come up with a different word. I
a good opportunity - although I was doubtful. don’t think that the word ‘sponsorship’ covers
So that’s how I ended up in this profession. what we do today. Yes, we buy the rights to
leverage a property but we also do so much
Keld is Global Marketing So I’ve been at Carlsberg since 1990 and had more. Sponsorship is about partnership and
Director at Carlsberg responsibility for many aspects of marketing, about creating with our help an experience for
where he develops new but sponsorship has always been my baby. The the stakeholders i.e. consumers, customers.
commercial functions CEO when I joined really wanted to profession-
within marketing to alise our approach. It was a challenge initially I fear there are only so many ‘interesting’ spon-
support Carlsberg’s to answer where sponsorship fits into the over- sorships left. The big ones get bigger and the
Global Marketing Strategy. all mix, but we won accep- small ones get smaller - it’s
Keld joined Carlsberg 16 tance eventually because we
when you give the very polarising. What I’d like
years ago working with were able to measure its agencies the freedom to to see is smaller properties
international brands and impact and to prove that create a campaign getting more professional and
marketing. sponsorship sold product. developing the confidence
similar in scope to our they can make a difference.
We’ve also been very critical
He has worked on some of of ourselves. We’ve done a sponsorship, they find it And for sponsors to be willing
the most prestigious Sports lot of weeding out over the very challenging to take smaller properties and
and Entertainment projects years, to find out that football develop them rather than
in the world including World and music work better than anything else for hang on to the big ones. I certainly admire
Cups in football, basketball, Carlsberg. And now we have people wanting Red Bull for that: they’ve shown you can take a
athletics and skiing. to join us because of our sponsorships. lot of smaller sponsorships, often quite strange
Before joining Carlsberg, activities, and make them work.
Keld Strudahl worked as a I’m particularly proud of our 2000 Euro campaign
consultant in the when we launched Part of the Game, as well as I’ve got a burning passion that sponsorship can
advertising industry. the approach we took to skiing. Not just about a make a difference in today’s world of fragmented
banner on a hillside or endorsing an athlete but, media. Do sponsorship right, find the right
taking our tagline, creating probably the best audience and sponsorship can make a big
après ski in the world. difference compared to traditional marketing.
You’re better off than running an advertising
Nowadays, we’re less involved with big creative campaign which people forget after two months.
campaigns. Creative campaigns get mixed And when you give the agencies the freedom
results. More and more we make sure we really to create a campaign similar in scope to our
express ourselves as ‘proud sponsor’. We don’t sponsorship, they find it very challenging.
5 need unique creative campaigns: we just need
Courtesy of Alejandro Perez
tony ponturo
Founder and CEO of Ponturo Management Group, LLC

Over the last few years we started to pick up The other implication of this selling mentality
something from our sponsorship research that is that the leagues and clubs came across as
said the consumer more than ever questions the greedy. The only message they were sen-
whole concept of Official Partnership. There was ding was, ‘I need money to pay the high cost of
a time when they felt that because a brand was business’, which was primarily driven by athletes’
the official mobile phone or the official beer of the salaries. They were saying that in order to keep
league, that it said something special about you. moving forward they need more and more
But now they realise that this was something that money. But their image is now out of tune with the
Tony Ponturo is the foun- was purchased. It doesn’t mean you are the best times. Now the whole community of sport is get-
der and CEO of Ponturo and that the league or team values you, but that ting a lesson in real economics, which is to say
Management Group, LLC; a you were just the guy who ponied up the money. they have to sustain themselves on a more realis-
consulting, management and This is troubling for rights-holders. tic basis. The days when they get by on the passi-
investment company in media,
there was a time when consumers.. on of sports are over
sports and entertainment. I think that the way and the whole sector
in which sponsor-felt that, because a brand was the officialis more accountable.
Previously he was President ship has been soldbeer, it said something special about youIf they come to
and CEO of Busch Media historically has dam- - now they realise you were just the guy sponsors and say
Group and the Vice President aged its reputation they want a 20-25%
of global media, sports and as a marketing tool.
who ponied up the money i n c r e a s e ,
entertainment marketing of The last five years has seen the demand for spon- because their costs are going up, it
Anheuser-Busch Inc. over- sorship and its price rise dramatically. It’s been will fall on deaf ears. Sponsors can’t raise their
seeing broadcast exclusives a very competitive environment: telecommunica- product prices like that, the consumer won‘t
in the Super Bowl, FIFA World tions companies grabbed sponsorship as a brand accept it.
Cup, USOC and Olympics building tool, the automotive sector kept on spen-
and negotiating the first Dale ding a great deal of money, there was beer compe- There has been little work done by the property
Earnhardt Jr NASCAR team tition and soft drink competition. Money was plenti- side to help brands use sport to form the basis
deal, Formula One and English ful all down the line. Sports properties particularly of a marketing strategy, other than saying,
Premier League sponsorships. at the top end didn’t have to put a great deal of ‘We want $30 million for the front of the shirt
effort into selling the sponsorships. They kept rai- because... well, just because’. That doesn’t work
sing the price and getting the money. That led to a anymore.
laziness being built into the culture, and that has
weakened the product. It also means the come
down is even harder as the market dries up.

6
Courtesy of Harold Hinson Photography
patrick nally
Principal of EMC2 Ltd.

The fundamentals of sports marketing were FIFA, UEFA and possibly the IOC, things are
laid down in the mid-1970s, and the same issue changing rapidly. Sponsors no longer want a
applies now as it did then, price still has packaged solution. They want bespoke, they
nothing to do with a quantifiable return. want brand connection. They want sophistica-
tion, they want measurement, they want social
Coca-Cola’s partnership with FIFA is where it responsibility, they want to be concerned about
all began. Until then Coke’s involvement with sustainability, education, heritage, living their
sport, like that of every other sponsor, had been ideals and being focused on corporate expen-
Patrick Nally has been widely at a local level as there was no central marketing diture. This is sport’s version of the ‘circle of
credited as the ‘Founding budget. When I went to Atlanta to offer Coke the life’, the sponsors want what we started with in
Father’ of sports marketing opportunity of a global package, this was new ter- the beginning, and they want sport to be ‘a
since he established West ritory. means of communication’,
Nally in the early 1970s.
the package concept is dying to achieve their own
Patrick was involved in This relationship created the global industry we bespoke goals and objectives, not just an off
the creation of the General know today. It meant that international federations the shelf package.
Association of International such as FIFA and the IOC were able to sell them-
Sports Federations, and has selves as truly global platforms. Coke was able The industry that has grown so fast over the past
worked closely with the to activate its marketing objectives globally using two decades is about to face its first big mid-life
International Olympic football to reach the world’s youth. The impact of crisis. How it responds is the story of the next
Committee since the 1970s. this shift in approach was hugely significant to the twenty years.
sports business we know today as the ceiling on
Today, Patrick is a specialist rights values that had been in place was lifted.
consultant and lectures on
sponsorship as a Touring The concept of the rights package grew from
Fellow of the World Academy this moment. Stadium advertising had been
of Sport. As the principal of controlled by television, the stadium owner or
ECM2 Ltd, Patrick is working anybody who felt like sticking something to a
with UNESCO on wall. No thought had been given to what was
programmes to attract sold in the stadium, as for the pouring of soft
private sector support. drinks, who cared? The Coca-Cola Company
did. They also cared that every one of their
global markets (all now paying for the rights to
the FIFA relationship) wanted to promote their
association with FIFA during the World Cup and
expected it to be exclusive – no Pepsi – in any
market. Every major rights-holder from the IOC
to the IAAF adopted this model, but like all new
developments it has a life cycle. My view is that
7 the package concept is dying; and outside of
Courtesy of Cop. FIFA
john luff
Founder of Sustainable Marketing

There is a real trend all away from the ‘how big Brands can’t get away with just slapping their
is your willy?’ sports sponsorships, the kind of logo on a couple of favourite activities, whether
nonsensical sponsorship that will always justify it’s charity or the arts. If people can look at what
coming under the spotlight because it’s not sus- you are doing and understand why you’re doing
tainable, not just from a green point of view, it, they will support it. Your employees need to be
but because it never made any sense. Former really engaged, and if I’m a customer can I get
wonder example, absolutely barking mad - involved with it. The BT global challenge was a
good example of this. 99% of the people who
Honda. Don’t try and retrofit your objectives. If you
John is the founder of want Formula One, do it, but don’t try and claim were involved weren’t sailors. There is absolu-
Sustainable Marketing, you are doing it because you want to be green, tely nothing wrong at all with good solid serious
helping organisations it’s barmy. marketing being used to raise the profile of your
promote their brand, brand. If you’re doing it, why not
corporate social Sponsorship is better placed rights-holders are... talk about it?
responsibility (CSR) and than any other marketing activity competing with...
sustainability credentials. to link everything together. Why
people who can offer There is a great deal of vested
Previously John was Head did you choose one particular interest in the status quo, things
of Global CSR and Head of charity or sponsorship over ano- community-based have gone well over the last 10
Global Brand for BT, leading ther? Why choose Spaces for engagement years, money has flown in. If you
BT’s sponsorship of the Sport over leukaemia or AIDS are a sponsorship manager or a
Global challenge. research? The answer is usually because it was director of sport in a governing body, that is the
John has also held senior the whim of a previous director. Or, if you just world which you inhabit, that is the contact base
roles in occupational give money to respond to the perception of you have, that’s the website you read, you won’t
psychology and consumers, it’s guilt money. That doesn’t work know any thing about other forms of sponsorship.
organisational development. anymore: it has to be driven by your core
He is an alumnus of the business, so it’s transparent. Many sports rights-holders are refusing to see
Prince of Wales Business and what’s happening; they’re in a state of denial, as
the Environment programme The first thing a client often does is show me though, if they keep shouting long enough, it will
and a Founding member of a list of good causes they want to support. somehow come right. And they will be blind-sided
the Superbrands CSR That isn’t a strategy, that’s a shopping list. The by the competition because the people they are
Advisory Panel. question has to be: why are you doing this? now competing with are those that can offer
community-based engagement, not charity but
opportunities for employee volunteer systems.
That is just more appealing than a chief executive
writing a cheque.

Formula One is not that cutting any more.

8
Courtesy of Mark Pepper
philippe le floc‘h
Marketing Director at UEFA

When executed correctly, sport sponsorship By doing so, UEFA and Heineken bring the UEFA
creates a win-win situation for the sponsor as Champions League to those areas of the world
well as the rights-holder. But this goes far beyond which are usually deprived of the best club football
the simple financial transaction in which the in the world. It’s amazing to see how popular foot-
rights-holder receives a certain amount of money ball and the UEFA Champions League is in these
and the sponsor receives a set of rights, which countries. Long lines of kids, each dressed in their
if all goes to plan, allows him to increase his sa- favorite team jersey, waiting sometimes for hours
les. It should be a win-win situation at a higher to have a picture taken with the trophy and feel
Philippe is Marketing Director level too, for the sport itself. It is important that the a bit closer to the best club football in the world.
at UEFA, overseeing TV and coming together of business and governing body
media content strategies and should enhance the sport, helping it to develop This is not a Heineken trophy tour but the tour
their implementation as well and grow. The expertise of the sponsor can play a is presented by Heineken. In that way Heineken
as providing brand key role in enhancing the profile of the sport and has understood that they are the facilitators of the
management and business by so doing, the sponsor will be associated with a initiative, they are bringing the UEFA Champions
research in-house services. better property, one which enjoys a higher profile. League to the fans, rather than attempting to be
Philippe joined UEFA as perceived as the owners of the competition, tro-
Senior Manager Marketing & A good example of this type of partnership phy or tour. In this way, the trophy tour is not seen
TV and in 2004 became approach can be seen in Heineken’s relationship as a commercial initiative and so Heineken links
Director of the Marketing with the UEFA Champions League. More spe- in a more credible way to the values of the trophy
Division, directly reporting to cifically, witness the collaboration between the and of the UEFA Champions League.
the UEFA General Secretary. governing body UEFA and sponsor Heineken in
Previously, Philippe worked organising and delivering the UEFA Champions
at ISL Marketing AG, a sports League trophy tour.
marketing agency whose sport sponsorship … should be a
partners included FIFA and Together with Heineken, the win-win situation at a higher level too,
UEFA; and at IMS, whose governing body takes the for the sport itself
clients included the IOC. UEFA Champions League
trophy to different parts of the world (outside
Europe). In 2007 this was Asia, in 2008 South
America and in 2009 the trophy travels to Africa.

9
Courtesy of UEFA
paul meulendijk
Vice President, Head of Sponsorship for MasterCard Europe

Sponsorships work best when they are integ- Through our sponsorships and by working
rated with all the other marketing disciplines at with properties like The Champions League, we
a brand’s disposal. To do this effectively, the- can create these kinds of moments and
re needs to be a strong overarching theme that engage with our customers in a meaningful way;
allows the sponsorship to link through to areas bringing something special that allows them
such as advertising and direct marketing, and to benefit from our involvement as an
becomes a consistent line throughout everything organisation.
you do. If, on the other hand, sponsorships take
Paul Meulendijk is Vice place in a separate environment, it becomes During the UEFA EURO 2008 finals weekend, we
President, Head of Sponsor- a competition between the various marketing were able to offer another priceless experience to
ship for MasterCard Europe, disciplines within the company. a number of prizewinners from around the world:
overseeing the UEFA they were invited to meet our brand ambassador
sponsorships for Champions MasterCard’s sponsorships utilise the ‘Priceless’ - the former Italian referee Pierluigi Collina - who
League and Euro 2008 and campaign as an overarching theme, allowing was kind enough not only to meet and greet our
MasterCard’s European golf us to be more consistent and efficient in our prizewinners, but also to bring Roberto Rosetti,
sponsorships. communications across all there needs to be a strong the referee for the final, to
our properties: from the the meeting and introduce
Previously Paul was General UEFA Champions League
overarching theme that him to the winners.
Manager for Vicrea Solutions and Euro Championships allows the sponsorship to be-
in the Netherlands and before through to our golf, NBA come a consistent line throug- Sponsorship, used this
that Group Director, Brand and NFL properties. way, is not just a vehicle
hout everything you do
Management and Event Across each of these to promote the brand, but
Marketing for Nortel sponsorships we are constantly looking at the an opportunity to share moments with consumers
Networks. Over 13 years he return on objectives whilst simultaneously and to link very closely to our business to become
has held various Marketing seeking to bring priceless experiences to an integrated part of our marketing activity.
and Sales positions in the customers.
Netherlands, France,
Switzerland, and the USA. During the UEFA EURO 2008, Austria and
Switzerland offered, as one of the prizes through
MasterCard and supporting banks, the red and
yellow cards used by the match referees. We se-
cured these via UEFA and the prizewinners met
the referee of that evening’s match, who handed
over the cards they had used with their signatures
on them. In one instance, the referee even took off
his own shirt and signed it for the winner. The reci-
pient was flabbergasted. This is what priceless is
all about: things that money can’t buy.
10
Courtesy of MasterCard
richard w. pound
O.C., O.Q., Q.C., FCA. Partner at Stikeman Elliott law-firm

Visa’s partnership with the International Olym-When the dust settled, sponsors began telling
pic Committee was hugely successful and an us how hard it was to do business with the IOC
example of a transformational sponsorship. and the Olympic movement, because of the way
it was organised. Back then, before we developed
It started in the mid-1980s and at the time, the
idea that they would sponsor sport was sort of the TOP programme, a sponsor with the local
counter-intuitive, because Visa has such a Games organising committee would have to go to
complex business model. We first tried to sell every Olympic Committee in the world and make
the credit card category to American Express, a separate deal for the rights to use the rings in
Richard is partner at their territory. This was too expensive and time-
and they just laughed at us, turned us down flat,
Stikeman Elliott law-firm and consuming and just not worth it. This was the light
because of the price, and I guess they thought we
has been in Time Magazine’s would come crawling back. bulb moment and now the
100 most influential people Visa’s partnership with IOC’s economic model is far
in the world for his relentless The same thing happened the International Olympic healthier.
efforts to rid sport of perfor- with IBM. They said their Committee was hugely
mance- enhancing drugs. business was mainframe Think back to the 1980
transformational
computers, ‘We’re a business Moscow boycott, when 95%
Richard was founding to business organisation’, which is interesting gi- of our income was coming from one source:
Chairman of the World Anti- ven how the computer industry has developed. television. And in turn 95% of that revenue was
Doping Agency. In 2008, he from one country: the United States. We realised
received the Laureus ‘Spirit By contrast, Visa worked out how they could that we had all our eggs in one basket, and were
of Sport’ Prize for his work align their deep, deep consumer reach - dominated by the country that tried to wreck the
as head of WADA. He is a everybody has a Visa card - with the rights that games in 1980. We had to find other sources of
member of the IOC and a they bought. They were also one of the first income and get a better geographic balance.
director of the Vancouver companies to become a TOP partner, itself a Global companies began to see the benefits
Organising Committee landmark moment in the development of the they could accrue by being associated with the
for 2010. sponsorship industry. Olympics.

The Los Angeles Olympics in 1984 was financed


on the old model, but sowed the seeds for the de-
velopment of the TOP programme. In ’84, the Los
Angeles Organising Committee fell out with the
USOC when they signed up Fuji, which conflicted
with Kodak’s deal with the IOC sponsor. Kodak
had sponsored the Olympics for many years and
were in fact a sponsor of the 1896 Games, the first
Games of the modern era. But Kodak wouldn’t
step up to the plate financially in LA.

11
Courtesy of VISA
simon lowden
Chief Marketing Officer for Pepsi International

Pepsi’s overriding philosophy is to partner with Sponsorship properties have to think how they
‘People who’ rather than ‘Institutions that’. When can be a partner that contributes to the greater
applied to football it means we want to be involved good and unless you can demonstrably grow both
with players who do the stuff on the field, not with businesses why would anyone get involved with
FIFA or UEFA - the governing bodies can feel very you. FIFA and the IOC will struggle to continue to
cold somehow. bring in multi-million dollar sponsorships unless
they are prepared to be more of a partner with
The key to success lies in the activation, and their sponsors.
Simon is Chief Marketing by involving ourselves with players, we can
Officer for Pepsi International, activate into different parts of the world. It is this What institutions like FIFA deliver is a halo effect
developing, managing and human element which makes us feel warm and - overarching critical mass. But what do you
executing beverage cuddly towards a brand, rather than ‘Oh no, here really get? You can get blocked seats for a game
marketing strategies comes another corporate sponsorship’. The same and you get the FIFA logo on pack, and that’s
and programmes applies to music. We preferred to create the Pepsi about it. Then you can obviously pay to adverti-
around the world. Chart Show rather than sponsor an existing show se in the stadium and around the town. In Beijing
Previously he led the because it gave us the ability to work with great for the Olympics, Pepsi could not be seen in
International Marketing people and for them to grow with us. line of sight around the stadium, which is quite a
team on CSD brands powerful protection for Coke.
Pepsi, 7UP and Mirinda. Our relationship with David what institutions like FIFA deliver is a halo effect
Beckham ran from 1997 to
Simon first joined PepsiCo 2005, a time period over
- but what do you really get?
in 1996 as UK Marketing which he matured as a person and as a player, and But the research comes back that consumers
Director before moving into a was a great ambassador for us. We took him to think Pepsi is as much a sponsor of the World Cup
European assignment, and China and Thailand and got him involved in our as Coke. This is because the downside of a part-
then joining the international grassroots projects, so we gave kids from all over nership with a body like FIFA, UEFA or the IOC is
team in New York. He started China access to David Beckham and at the you get very little visibility. So unless you buy into
his career at Unilever. same time we made him famous there. the broadcast sponsorship, which is another load
of cash, nobody knows you’re there.
When it works well, something like that becomes
a very symbiotic relationship. It also means we
can have English players and Brazilian players
and Italian players, which makes it a very flexible
platform. Whether it’s Fabregas, Henry or
Beckham we will commit to making them famous
around the world, and making sure their shirt is
sold for Arsenal or whoever, in Bangkok and
Beijing. That partnership model is the way
forward, not just ‘we need two days of your
12 time for an advertising shoot’.
Courtesy of PepsiCo. Inc
simon pestridge
Marketing Director for Nike UK & Ireland

Sponsorship is not necessarily a word I would as- One of the sponsorships that’s touched me per-
sociate with what we do. sonally - it sounds biased - but it’s actually Nike’s
sponsorship of Lance Armstrong. As a lot of
Nike provides answers to problems facing companies were bailing from him when he was
athletes. The fact that we do this on a global scale, diagnosed, our folks stood by him. That’s what
with iconic individuals and teams, does not make a relationship is all about and I struggle to think
it sponsorship. On any level you look at it, we of anything else that comes close. But in terms
are innovating to improve athletic performance. of campaigns, I’m proudest of Nike’s Scorpion
Simon is Marketing We use our relationships with athletes all over Knockout in 2002, for the scale of what we achie-
Director for Nike UK and the world to eventually give any and every ved with an attitude that had never been seen
Ireland. He has worked at sportsperson competitive advantage. before.
Nike in marketing roles for
14 years - in Consumer
I’d argue that sponsoring I’d argue that sponsoring
Take someone like
Research, Public Relations Cristiano Ronaldo, events only allows you to have events only allows you
and Internal Communi- although there is ob- a coherent narrative with to have a coherent
cations, before starting viously a contractual consumers around that event narrative with consumers
in Brand Management in agreement between around that event. Being
2001, where he led the Nike and the player, the relationship is built on entrenched within the sport, which very, very
Football and Sport Culture Nike’s ability to help him to be better at what he few brands have the ability or right to achieve,
brand strategies for Nike does. If Cristiano wants a boot that will help him is the only way that you can have consistent
USA, then moving to get in front of a defender and be quicker to the ball dialogue with your consumers. Fortunately,
Australia as Marketing then we look to develop innovations that will solve Nike is a sports company and that gives us a
Director for Australia/NZ that problem. legitimate voice within sport 24/7.
and finally to his current
role, most recently At the same time, the learnings from his input and
overseeing the launch of feedback around product development helps us
Nike PhotoiD, the mobile finally develop an innovative and in many cases
campaign promoting its lightweight piece of sport’s design that is availa-
footwear. ble to the consumer. The loop closes when
consumers can reap the benefit, knowing that
world-class sportspeople have helped inform the
product that is available to them.

13
Courtesy of Nike
ade adepitan mbe
Paralympian basketball player

To me, sponsorship was always personal. I used For us, in London, Nike was a very aspirational
to sit with my mates and talk about wheelchair brand. By buying the trainers we were making
basketball and we would say, ‘Wouldn’t it be great a link to America and to the NBA and on to the
if we could afford to make a career out of this’. streets; we were saying that we wanted to do a
Even then we knew that the only way that was 360 degree dunk shot, just like him. His image
going to ever happen would be because of spon- reached out to different groups of people. I
sorship. remember we’d see white middle-aged dudes
wearing their white Nike Air Jordans with their
Ade was introduced to And the single most significant relationship to me suits, and look at each other as if to say, ‘how
wheelchair basketball and my friends was Michael Jordan and Nike. crazy is that?’. That was the genius of it, they hit
at the Stoke Mandeville Growing up in the 1980s, adidas was the label everybody, everyone bought into the idea.
Junior Games, and has now to have, and back then they were outselling Nike
represented Great Britain at two to one all over the world. The reason I wore It also had a profound effect on the image of
the Olympics in Athens and Nike was because of him. I saved my money for basketball. There had been stars before, like
Sydney as well as winning at months and months to get a pair of Air Jordans. Magic Johnson and Larry Bird, but Michael
the World Championships. They cost £100, a ridiculous price. Jordan took it worldwide. Now when you go
the reason I wore Nike around the world you can see
In 2005, Ade was awarded It wasn’t just the Nike tick we a Manchester United shirt or
an MBE for his contribution were buying, but the logo of
was because of him a David Beckham reference,
to disabled sport. He is well him flying through the air doing his 360 degree whether you’re in China or Africa. Ten years ago
known as a motivational dunk. To me that logo is as famous as the you could go to the same places and you would
speaker and an Ambassador McDonald’s golden arches. We recognized it see people in the number 23. I’ve been to South
for the NSPCC as well as a instantly. We bought his hats, the vest, the balls, America and South Africa and people are wea-
Patron for The Association everything. Most people only knew Michael ring Michael Jordan’s shirt. He is the blueprint for
of Wheelchair Children Jordan because of Nike, they saw him in the every personal endorsement sponsorship that
and Scope. adverts before they ever watched him play has followed.
basketball. I can’t think of any other athlete who
was so synonymous with a brand. The guy has
been retired over 10 years now and the two
names are still tied together.

14
Courtesy of blackplanet.com
david wheldon
Global Director of Brand, Vodafone Group

I’ve been Global Brand Director for Vodafone for These are tough times for rights-holders. Their
five years, but I started as an adman in the 80‘s expectations for rights fees are pretty steep.
at Saatchi and Saatchi, and then ran an agency But against a recessionary backdrop, sponsor-
at Lowe Howard Spink in the late 80‘s and early ship needs to work very hard to show marketing
90‘s. From 1993 to 1997, I was the Worldwide return on investment and some of the metrics
Director of Advertising for the Coca-Cola Com- aren’t quite what they could be. For the industry
pany where of course we did lots of advertising to thrive it needs to sharpen up its act. Measu-
for sponsorship properties. I certainly spent all ofrement in particular is important for me. I know
David is Global Director of the 80’s thinking sponsorship was a waste of mo- for example with every bone of my body that
Brand, Vodafone Group. Prior ney, a Chairman’s indulgence and not capable of Lewis Hamilton wearing a Vodafone cap and
to joining Vodafone, he held driving brand engagement, brand equity or all of suit branding creates a strong emotional conn-
senior positions on both those things I now know sponsorship to do very ection with Vodafone but it’s very difficult
sides of the marketing fence. powerfully. to show through the
Starting at Saatchi & Saat-
I’m a total convert to sponsorship metrics. We can show
chi, he was then appointed For a business like as a marketing platform and to the ROI, we can show
Managing Director of Lowe Vodafone which has drive engagement with the brand the Preference Created
Howard-Spink in London. He partly grown through but showing the emo-
later became Global Director acquisition globally, there’s nothing better for tional engagement is tougher.
and VP of Advertising for the building name awareness. Across borders it’s
Coca-Cola Company under more efficient at awareness generation than Sponsorship’s difficult to define. In short we look
the aegis of Sergio Zyman. advertising. Take Ghana for example, a new for the things that our customers are passiona-
David then returned to the market for us – awareness of Vodafone as a te about to indicate where we should think about
agency world as President brand already stood at over 50% before we even being involved. For instance, this leads us to be
of BBDO Europe and finally entered the market, and this can only come heavily involved in football, music, the Gaelic
arrived at Vodafone via WPP. from our sponsorship. games in Ireland, Aussie Rules football in Aust-
ralia etc.
I’m a total convert to sponsorship as a marketing
platform and to drive engagement with the Our Foundation runs a programme called World
brand. A lot of marketing agencies still under- of Difference which allows people to take a year
estimate the power of sponsorship which is off work and be paid to work with a charity they
unwise of them. What sponsorship gives you is really believe in and support. In the UK, this re-
a very very rich ability to touch your customers. mains totally separate from the Vodafone brand,
Coca-Cola’s sponsorship strategy goes back although it of course has some impact on consu-
to Woodruff, the original President. One of his mers. But in some countries, such as Romania,
famous lines was: ‘we need to be within our arms’ we’ll treat a programme like this as a sponsorship
reach of desire’, which drove both the distribution property and build marketing around it. In some
strategy and the sponsorship strategy. If you drill respects, we’d see the traditional domain of cor-
into Coke data, an awful lot of emotional engage- porate responsibility as being open to a sponsor-
15 ment with the brand has come from sponsorship. ship treatment.
Courtesy of Vodafone
richard crookes
Head of Corporate Brand Management at BASF SE

When I moved to Allianz, my role was initially to Having a clear positioning around our involvement
place Allianz in a global context with a corporate gave us more reason to talk to the media. Each
advertising campaign. I can’t talk in any official year we brought out a Safety Dictionary, and pro-
capacity about Allianz, so this is entirely personal duced high quality graphics with Allianz branding
opinion and memory. to explain the fascination of F1 safety technology,
which the media used.
I remember one day I took a call from Williams F1
regarding sponsorship, so we invited them in to The content you receive as a sponsor is generic,
Richard is Head of Corporate see what they had to say. Our perception of spon- so to drive particular image facets, we produced
Brand Management at BASF soring, at that point, went along familiar lines: you a TV programme for global broadcast in multiple
SE, responsible globally for stick a logo on a car, that car travels around the formats, an F1 lifestyle/technology show. Any ani-
brand strategy development world and a lot of people see the logo - or don’t. mations or footage we generated would carry the
and implementation across And that’s more or less the way we did it to start. Allianz logo, and each show would always contain
all businesses, building a The big learning for me was how the logo on the a particular safety story - the hazards related to
differentiating and relevant car is your entry to a world of amazing brand buil- specific tracks or conditions - embedding relevant
brand proposition. ding opportunities. messaging.

Previously, he was Senior A lot of companies seem to get


a lot of companies… invest heavily in the
Manager for Allianz SE Brand stuck. They invest heavily platform, but forget the explanation of what
Communication, developing in the platform, but forget the that logo actually means in that context
the Allianz global brand explanation of what that logo
proposition and execution actually means in that context. Just because it’s Each part of the mix - car branding, spots, bumper
of the first global image stuck on the edge of a football pitch at the World branding, content, press - plays a different role,
campaign which resulted Cup doesn’t mean people know who you are, what and the value is in having a single global platform.
in Allianz entering a major you do or why they should even care about you.
long-term partnership with And all of that comes from the fact that we had a
BMW Williams F1. The best sponsorships demonstrate a credible logo on a car!
Richard began his career reason why the brand is involved. What we
in advertising at chose for Allianz at that time was safety. The Al-
DMB&B working with lianz Centre for Technology is frequently consul-
Procter and Gamble. ted by the automotive industry to assist with road
safety issues. Reducing accidents is not only so-
cially beneficial but commercially important. So
safety, at the highest technological level, was de-
monstrably relevant.

16
PepsiCo. Inc

Courtesy of Allianz
martin lindstrom
CEO and Chairman of LINDSTROM company, and Chairman of BUYOLOGY INC

The vast majority of sponsorship doesn’t work I’m very impressed by Marlboro’s ability to take
because it is aimed at the conscious part of the the core values of Formula One – sex, speed, in-
brain, which neuroscience tells us, accounts for novation, coolness - and apply them to a cigarette
no more than 15% of our cognitive capacity. We brand. An amazing achievement. On a personal
are bombarded with thousands of direct market- level I hate it, but professionally there is much to
ing messages a day, very few of which we are recommend.
able to take in, let alone process into changing
buying behaviour. We carried out experiments just showing a
Martin is a ‘brand futurist’, Formula One car, and people immediately craved
the CEO and Chairman of The communications industry spends its time cigarettes. What Marlboro have done is create a
LINDSTROM company, and measuring awareness and hoping that some huge number of what I call submergible compo-
Chairman of BUYOLOGY INC, value transfer takes place, something we have nents to their brand. They are sending indirect,
advising companies including never been able to prove. subconscious signals that
Nokia and McDonald’s. His Now we can, and I’m con-
I’m convinced that we will are talking to the brain
brand-building shows attract vinced that we will see the see the sponsorship model without explicitly telling it
800,000 people across the sponsorship model change change dramatically we are being sold to.
world. He has written five dramatically as a result.
books including ‘Buyology’. Sponsorship works when we are not really aware
Marketing people must realise it is not about plas- of the signals being sent: the messages get
In 1994 Martin formed BBDO tering your logo everywhere, it is about context, through because our guard is down not up. A For-
Interactive Europe, then BBDO and about embedding the message within the mula One car passing below me with no logo is
Interactive Asia which became narrative of the story being told, whether that is an example of this, and as a smoker it creates a
the largest internet solution a football match or a James Bond movie. Our re- craving, Pavlovian effect.
companies in their regions. search into this is extensive, and it tells us that
At thirty, Lindstrom was when a brand appears in a story at the wrong mo- When there are logos around, my rational mind
appointed global COO of ment, we don’t just ignore it, we delete it from our tells me I shouldn’t crave those things. Without the
British telecom Looksmart. mind, such is our irritation at being interrupted. logo my instinct kicks in and I want to smoke. The
Having a logo on the perimeter board is not worth evidence is mounting that the most powerful form
the money. Likewise, rights-holders must prove of sponsorship today is where you do not have a
they are about more than just awareness, which logo but you make up for this with submergible
is not so valuable as it was 20 years ago, when components of the brand.
the sponsorship model was built that still applies
today.

There are so many poor marketing people out the-


re who must now ask themselves, do we have an
emotional strategy? Do we have a subconscious
strategy? What kind of indirect signals do we want
17 to send?
Courtesy of Ferrari
dany bahar
Commercial & Brand Director of Ferrari S.p.A.

We sell sponsorship, but we certainly don’t think Sponsorship has always been a more intelligent
of ourselves as a rights-holder. Ferrari is a strong way to communicate your brand than simply
brand, and we don’t want to build our business on advertising. Sponsorship gives you a face, it
helping other people to strengthen their brands at gives brands the opportunity to show customers
our expense. If you look into our collaborations, what they stand for, to deliver reassurance and
they all reflect Ferrari’s DNA, production values, credibility. How well does Shell stand for high
design, style, attitude and technology. We’ve al- technology fuels without Ferrari? For a consumer,
ways been about manufacturing products and the message is easy to understand because the
Dany Bahar is Commercial racing so a partnership with Ferrari isn’t simply sponsorship demonstrates Shell competence;
& Brand Director of Ferrari about the logo. the high tech fuel for F1 brings benefits to the end
S.p.A. He began his career in consumer. F1 gives you the impression Shell fuel
finance in Switzerland. We don’t think of our sponsors as sponsors, we will do more for your car than the competition,
He worked for the Fritz think of them as strategic partners. Shell, AMD, more power. Where is the equivalent visual face
Kaiser Group before moving Bridgestone, Etihad, Acer: with most of them we for BP?
to Red Bull in 2003 where have collateral business relationships.
in addition to being given we sell sponsorship, but we Sponsorship in general
a broad operating canvas With Shell we started in the has evolved. In the past,
by the CEO, he was also
certainly don’t think of it was just advertising
1950’s. We celebrated to-
appointed a member of the gether in 2007 the 60th anni- ourselves as a rights-holder space, and didn’t require
executive management versary of our partnership. They really play a part much analysis, but now it’s much tighter in terms
board. Dany has experience in our organisation as a technology partner: we of deliverables, more tangible, more profession-
in promotion and have ten Shell engineers working here help-ing to al. I don’t believe that sponsorship as simple
sponsorship as well as in develop the F1 and road car engines and we pro- brand exposure is going to last for much lon-
sales and marketing. mote Shell in our own car marketing brochures. ger. In sport, it’s already down to the Olympics,
We have more than 25 people in house from Tata the World Cup, and maybe Euro. And honestly,
Consultancies, helping us become more efficient where’s the synergy between a car manufacturer
in road and F1 technology. and the Olympics? Sponsorship has to work
harder than that.
Our relationship with Puma is five years old. We
have a common understanding and we work very We choose partners where there’s genuine
closely. They’re a great company to deal with synergy, and we offer them a 360° partnership
and Puma has become a true strategic partner. with Ferrari, a stake in the Ferrari world, in our
They identified F1 as a core business and simply business. In F1, it’s about making participation
focused on it, whereas adidas and Nike didn’t sustainable. With development costs of £200m
think motor-racing could be a business for them. each year and £60-70m in sponsorship, who’s
going to pay the difference?

18
Courtesy of Ferrari
simon thompson
European Managing Director & Chief Marketing Officer of lastminute.com group

There’s a world of difference between a The key to a good sponsorship is the correlation
sponsorship and a partnership, as defined by a between the sponsor and the property, and the
shared commercial goal, whereas sponsorship selection process is key to this. You have to make
most of the time, is transference of money from sure that the consumer you’re aiming at and the
the brand owner to an event or property for a set audience for the property are exactly the same,
of rights. It’s interesting that when pushed, it takes and that the brand promise of the event and your
a while before I can come up with a really great product are perfectly aligned. You have to have
example of sponsorship. one very clear objective that both organisations
Simon is European Mana- can share. My experience tells me that achieving
ging Director & Chief Mar- But when Motorola launched a Dolce & Gabbana these aims is difficult, quite often because the
keting Officer of lastminute. phone, both brands marketed it through their own chief executive has got the hots for a particular
com group, Europe’s largest channels and it was great for both brands. The event. The problem for the sponsorship communi-
online travel and leisure partnership came about when Motorola’s mar- ty is that this is how they sell.
business. Previously he was keting team were at an event, showing off a new
Senior Director for Marketing product and the designers from Dolce & Gabbana To me the media value debate is at best inappro-
Europe at Motorola, helping saw the product, thought it was fantastic and wan-priate. You have to set objectives outside of that.
generate the greatest level of ted to turn it into their own. Fundamentally, whatever your target audience,
sales in Motorola’s history. you must have some very
From there on in it became the problem for the clear metrics and you have
Simon has received nu- a commercial partnership sponsorship community is to take a judgement that it is
merous Cannes Lions for which was endorsed from that this is how they sell going to be more effective in
outstanding creative work the very top of both organi- achieving these than some
and is ranked among the sations. The brand strategy of Motorola at that of the other channels available. Is it the only way
UK’s top marketers by time was to own the fashion phone category, you can get to that target audience?
Marketing and Campaign and by partnering with one of the big fashion
magazines. He is also a houses, it was a no-brainer. It got Motorola dis- The challenge for sponsorship is to be seen
senior member of the tribution into high street fashion stores and as a more strategic tool, I think it is still seen
Marketing Society. top end department stores. Let’s be honest, on the periphery of the decision-making
Selfridges and a Dolce & Gabbana retail store process, which is fundamentally wrong. The
is a better place to present a high-end fashion world is multi-channel and the consumer is
product than Carphone Warehouse. And it multi-channel and we have to find the most
worked commercially, the new distribution cost-effective and best way of getting to them.
network was incredibly profitable.

19
Courtesy of www.fommy.com
peter wells
Founder of Nilewide

As sponsorships become less effective, we’re One of the problems of sponsorship is that it
slowly thinking what sponsorship is all about, a gets confused with advertising. That’s the case
dimension which is essence rather than definition. with rugby when you get 23 ads around the
perimeter and that’s not sponsorship in any true
To me the key to sponsorship is that a sponsor sense, that’s just sales messaging. Sponsors,
can bring something to consumers which they if they’re able to understand, instead of forcing
wouldn’t have got otherwise. And by that I mean a false relationship between themselves and
that, instead of having something forced on them, the customer, can be a small but genuine part
Peter Wells is the founder of consumers will have a sense of ‘oh, that’s pret- of the relationships which matter.
Nilewide, providing detailed ty cool’. This is quite special because it changes
analysis of key strategic what sponsorship is about. At the highest level it’s An example of where sponsorship clearly works
issues as a set of useable often hard to see. AIG sponsoring Man U for ex- is where Red Bull will sponsor a big wave
tools for marketing ample. quest, bringing something
practitioners as well as instead of forcing a false to the group of people
guiding Nilewide’s global When you come to other relationship between interested in people being
success in its Australian and arts and sports events, themselves and the towed into 30’ or 50’ waves,
London offices. Peter has an they only exist because as opposed to what Quik-
MSc in Gene Technology sponsors make it possible.
customer, sponsors can be a ripabong sponsor. Or the
and a Masters in marketing. Marketers tend to think of small but genuine part of the product placement of an
people as consumers relationships which matter Omega watch, which is just
but in reality we’re trying to put your brand into
individuals active within different social groups, something which somebody watches.
and in reality brands don’t have much role
within most of that. Sponsorship aligns very I think the idea of rights-holders can hold back
clearly with the idea that marketing needs to fit what sponsorship is about. The key definition
inside people’s lives - that the conversations is about bringing something to people for which
and relationships which matter are people’s they’re grateful; and what you like and are pas-
conversations and relationships with each other, sionate about doesn’t have to be something that
not with a company or a brand. And the unique somebody else owns. Salomon can sponsor a
thing about sponsorship is that it can fit into tho- snowboard park, the real thing is that the kids are
se areas which are important to consumers. having a good time and the really important stuff
is what the kids are talking about.

20
Courtesy of Brenton Geach
david butler
Former Marketing Director for Honda Racing Formula 1

Sport is a universal language, like music, that the other, a part of the rebel troop that killed him;
can break boundaries, unite, create shared now both teaching tomorrow’s generation about
experience, harness passions and loyalties. reconciliation using a soccer ball on a soccer
pitch.
I’ve been privileged to meet social sporting
entrepreneurs from the edge of the Andes to None of the above are charities. As my friend
inner city Melbourne who are using sport to Flavio Pimente, who runs the world famous
Meniños do Morumbi programme in São Paolo
make positive change. It’s the stuff that soft drink
David was, until recently, the ads or sports clothes makers couldn’t dream of: told me: ‘this is my life project and I put every-
Marketing Director for changing and saving lives. body inside it.’ These are bus-
Honda Racing Formula
it’s the stuff that soft inesses, micro-programmes
1 where he coordinated Inspiring people like Matthew drink ads or sports that when joined together
Honda’s F1 marketing Spacie, whose Magic Bus clothes makers couldn’t create a hugely powerful
platforms, including programme gives homeless dream of: changing and force for change; an inspiring
Honda’s Earth Car initiative. children in India a chance to marketing and sponsorship
In the sports marketing and enjoy their birthright: child-
saving lives programme that literally
media industry for over 17 hood, rather than enslavement in factory labour changes the world and that brands and
years, David was previously or worse. And Luke Dowdney in Rio de Janeiro - sponsors should be falling over themselves to
Marketing Director for and now in Woolwich, East London - who created engage with.
Laureus and Head of Laure- a boxing and educational programme to lure  
us Sport for Good Foundati- children away from the drugs gangs and a While we struggle with the terminology and the
on and before that, Divisio- cycle of violence, prison and death. Scotty Lee, proliferation of articles and case studies grows
nal Director at Octagon. who drove the aid convoys to a besieged to try and work out whether it’s social marketing,
Whilst in Sydney, he trained Sarajevo bereft of penicillin or basic supplies, CSR, cause-related or something else, inspiring
as a boxer and is now a who now puts his UEFA Coaching Licence to social entrepreneurs are getting on with it and
trustee of ‘Fight for Peace’ in use creating Spirit of Soccer, a soccer prog- harnessing the true power of sport to change the
Woolwich, East London. ramme that teaches children in landmine world – maybe only one soccer pitch at a time, but
encrusted Bosnia and Cambodia that the most change it nonetheless.
important thing a footballer needs is not tactical
vision but legs. A soccer programme literally As sponsorship moves from billboards and
saving hundreds of lives through landmine athletes to experiential and fans; the evolution
awareness. continues. We are the lucky 1% of the world’s po-
pulation. Rather than ignore the rest of it, sport
And, perhaps most pertinently, two coaches, is a major catalyst and language that can reach
brought together by a sports and education and talk to everybody. Our issue is that we live
programme on an orange dustbowl soccer pitch in a world of many worlds – first and third. Rather
in Sierra Leone: one, whose twin had been shot than talk to ourselves, sport is one of the things
dead in front of him after his eyes had been burnt that reminds us that we all live in the same place.
21 out with the bottom of a burning plastic bottle;  
Courtesy of Vedran Knezevic
alain de botton
Writer of essayistic books and founder of The School of Life

Some of the most worthwhile of human enterpri- I take comfort from the way that many of my
ses don’t make money. They are of enormous va- greatest heroes in literature had sponsors. After
lue to the species, but can’t pay their way unaided. all, no one could make a living from selling books
We are used to thinking that anything that is really until the end of the nineteenth century. Marcel
necessary must be capable of being harnessed Proust was sponsored by his dad throughout his
to a business model, but that simply isn’t true. life. On the one hand, you could think that he was
Subsidy is an essential part of so many things we a spoilt dilletante. On the other hand, the few
think of as valuable, not least, raising children (the million pounds he cost his father were some of
Alain is a writer of essayistic greatest subsidy of all is that which parents give the best spent millions in the history of humanity.
books, described as a to their kids).
‘philosophy of everyday life’.  In a time when people love to be pragmatic and
He’s written on love, travel, So in principle, sponsorship is both necessary hard-headed, let’s remember that sponsorship
architecture and literature with and noble. To sponsor something is to recognise fills vital gaps in our society, between what we re-
bestsellers in 30 countries. that one has more money than one needs and ally love and what can generate money. Of course
hoarding it would be immoral when there are so sponsors want glory, and want to maximise their
Alain founded The School of many worthwhile causes out there. Sometimes, brand exposure, but let them: it is their wisdom
Life, dedicated to a new vision people knock sponsors as being interested in to seek glamour in the most noble of places. The
of education. He also helps their own glory, but how nice that they should in world will be a sadder planet when the wealthy
run a production company: the first place have decided to pin their hopes for and large corporations stop wanting to associate
Seneca Productions. glory on noble projects (rather themselves with the many impor-
than blowing the money on a par-
sponsorship is both tant things which don’t make any
Alain gained global ty, for example). necessary and noble money.
recognition with How Proust
can change your life. I have been consistently sponsored in my life.
First, by my parents, then by the state university
system, finally, in my working life, at different
points, by commercial organisations. I have lost
certain publishers quite large sums of money.
They would consider the money to have been
destroyed in unwise investments. I prefer to think
that, semi-consciously, these large corporations
did a bit of sponsorship. I have made a number
of television programmes with Channel 4. These
programmes lost the channel money, but the
channel decided to make them anyway, for
reasons of prestige, because they believed in the
concept more than they believed in generating
hard cash.
22
Courtesy of Topfoto
philip o’brien
Director of UNICEF’s global Private Fundraising and Partnerships Division

About ten years ago, when UNICEF was working Our partnership with Pampers is not without its
with the World Bank in Bangladesh, we spent critics. The audience fit is perfect and the relation-
a while to consider whether our time was best ship has delivered very tangible benefits for both
spent lobbying for money to fund our own pro- parties, including raising more than 150 million
grammes, or working with the Bank to help vaccines to protect mothers and babies against te-
it spend its money in ways which were more tanus, but as an organisation with an international
beneficial for kids. We came to the conclusion membership, scope and presence, our members
to work with the Bank and the outcome was the question whether they really want to see UNICEF
Philip is Director of Private redesign of some of its programmes, to ensure its associated with cause-related marketing. So,
Fundraising and Partner- support for nutrition extended beyond ensuring although there’s more that we could explore with
ships Division, The United people have enough food to include basic P&G, we’re still evaluating the impact on our brand
Nations Children’s Fund health services and oppor- equity.
(UNICEF). He has served tunities for mothers to obtain
partnership isn’t always
with UNICEF for 20 years; greater access to care and about fundraising. In our With Barcelona’s member-
including as UN Coordinator, support for their kids. case, more and more, it’s ship-based ownership struc-
Operation Lifeline Sudan in
about what’s best for kids ture, it was an instinctive fit
the Southern Sector as well Partnership isn’t always about for UNICEF, as we didn’t have
as directly contributing to fundraising. In our case, more and more, it’s about to worry about issues of commercialisation. And
new programming approa- what’s best for kids and that’s a mindset change with the previous Chairman’s desire to position
ches between UNICEF and we’re still driving. We’ve invested in the capabili- Barcelona as ‘more than just a club’, we offered
the World Bank. ties to manage these relationships, to help us go them the ‘more’ he was looking for - a well known
round to the other side of the table to see what’s global brand, highly respected in Spain, with a
Philip began his career in in it for our partners. There has to be a recognition mandate that is unequalled.
commercial banking before that we both see the world through different eyes,
joining Concern Worldwide, but, providing you have a partner who is genuinely The word sponsorship is not one we would find
becoming Country Director interested in your work, there is usually a meeting in our lexicon. It has its own sector-specific me-
in Tanzania and Bangladesh, place. aning, but sponsorship also suggests a degree of
then joining UNICEF as Chief control, by the sponsor, which we couldn’t allow.
of Health and Nutrition in the UNICEF is driven by a set of ethical principles to
Bangladesh Office. protect the rights of children. We need to main-
tain our impartiality and independence at all times
For info on UNICEF Corpo- and so do not endorse any company, product or
rate Alliances, contact Jussi service.
Ojutkangas on
jojutkangas@unicef.org

23
Courtesy of UNICEF
andy walsh
General Manager of FC United of Manchester

Football fans tend to have an uneasy relationship That balance needs to be redressed. I’ve been to
with sponsors, who tend to be an easy target for away games with Manchester United when many
their discontent. This is unfortunate because in of the people standing around me know very
many cases clubs, or whole sports, would not little about the team or the players.
exist if it weren’t for the money sponsors provide.
The passion of the crowd has also diminished be-
But I have a problem when commercial interests cause younger people who generate a lot of the
overtake those of the organisation and its suppor- atmosphere can’t afford to get in. The average
Andy is General Manager ters, which is sadly all too often the case. It’s how age of a fan in the Premier League is around 42.
of FC United of Manchester, the revenues are used that causes me the gre- That is not good for the future of the game.We talk
a fan-owned football club atest concern because often they’re used just to a lot about the corporatisation of the game and
formed by disenchanted and line the pockets of a few people running the clubs we are critical of the suits who turn up at matches;
disenfranchised Manchester or leagues. That’s not the fault of sponsors, it’s the you go along to a football match to be involved
United fans. The club has fault of those who are charged with looking after in the atmosphere and to contribute to it, not just
over 2,000 members and has the long-term future of the game. I don’t blame the stand there and absorb it.
won successive promotions. corporate sector, I blame those running the sport.
What has happened
Andy is a fervent campaig- Football sponsorship money football sponsorship money since the advent of the
ner for fan involvement in should be used for team should be used for team Premier League is that
football clubs. As Chair of building, community work building, community work football has been taken
the Independent Manchester and to subsidise entry further and further up-
United Supporters’ Associ- prices to make sure the sport
and to subsidise entry prices market, deliberately so. It
ation, he led the successful remains accessible to as wide an audience as was the marketing strategy of the Premier
campaign to stop the possible. The escalating ticket prices show that League in their Blueprint for Football report, to
takeover of Manchester this isn’t the case, and there is a resentment from take the game to people with the greater dis-
United by BSkyB. some supporters toward people who know little posable income, and to socially engineer out
about their sport obtaining tickets from corporate those people they thought were more trouble
sponsors, while those people who’ve supported than they were worth. And they are the same
the sport over many years are left outside. people who are creating atmosphere in the
That resentment tends to fester. stadium. To many fans, sponsors are the public
face of that strategy.
Corporate sponsors want to be part of the
passion and atmosphere that is generated by
a crowd at a football match. But if you cram the
stadium full of corporate visitors and squeeze
out the ordinary supporters, that passion is lost.

24
Courtesy of Mick Dean
lesa ukman
Chairman and CEO of Altis marketing LLC

My first job after college was in the Mayor’s office Red Bull is another success brand, built on a
in Chicago, helping deliver campaign promises, DNA of action sports and entertainment. Dietrich
which included backing for the Chicago Blues Mateschitz really recognises that sponsorship is
Festival. But the money ran out so I began to more than marketing. It wasn’t, ‘We’re going to do
ring corporations to ask for their support and fell this for three months’; it was, ‘This is what we are
in love with the idea of sponsorship – as a way as a company and we’re embedding this into our
for companies to do good, do good business and brand’. You don’t see this often in big companies
make cities better. The social side of sponsorship because they’re all run by committees. It’s not that
Lesa is the co-founder of has always been a hook for me but it’s really about it can’t happen, but you need such a big visionary.
IEG. She works directly with whatever the public loves. A football team in the
sponsor and property clients UK, an elephant festival in Thailand – the type of Action sports have done a lot of interesting things
of IEG’s Advisory Services property is irrelevant. - when you’re so niche, you have to be creative.
and Research groups and Motorola partnered with Burton and they created
is IEG’s primary product At the end of the day, it’s about connecting with a co-branded line of snowboard jackets, pre-
development director, also people emotionally. If you can enhance what peo- wired for mobile phones to make it easy to use
responsible for the content ple care about, make the experience better, dif- on the slopes. It was never going to be a business
and focus of IEG’s Annual ferent, more accessible, the halo you earn takes model - but what it did for Motorola was take
Sponsorship Conference. you into different territory, an emotional territory their brand into snowboard and surf stores, not
where a name on a signboard is not going to take as a commodity but as an insider. It took their
Prior to establishing IEG with you. For 20 years the NFL and FIFA have been business to a different place.
her brother Jon Ukman, she asking to come and talk at the conference - but
worked in the Mayor’s Office what do they really have sponsorship needs to get out from the narrow
of Special Events for the City to teach?
of Chicago. In 2000 she was perspective of marketing departments
inducted into the Interna- Sponsorship needs to get out from the narrow
tional Festivals & Events perspective of marketing departments. The idea
Association/Miller Brewing of doing sponsorship for something bigger is what
Company Hall of Fame. excites me. I always regret we never managed to
get Anita Roddick over to our conference because
she was a visionary and built campaigning into
the DNA of the brand. And led the way for brands
like Ben and Jerry’s and Patagonia.

25
Courtesy
Courtesy The
ofof Body Shop
Tennisclub International
Weissenhof E.V
marc gobé
President of Emotional Branding LLC, designer, photographer, filmmaker and author

Our world is turning upside down. From a con- Sponsors exist in a new environment, where time
sumer perspective the Babyboomers, whose is more valuable than money, people acquire
generation influenced everything we have known fewer material goods and prefer to live better
for the past 40 years, are being replaced by Gen lives. Cause marketing is not just a logo on a
X and Y, who just don’t look at the world or brands charity event, it means brands having to stand
the same way as the well-off shopping -hungry for something bigger. These emotional trends
Babyboomers. are the most potent ideas in branding today and
define how we have to see marketing: through
Designer, photographer, film- The consumer-driven economy is being replaced the eyes of people in a consumer democracy.
maker, respected author and by a values-driven one and the way people spend Emotional Branding is about doing more with less
sought-after public speaker their money will change fundamentally. People by humanising brands, predicting the end of the
Marc Gobé focuses are concerned about their environment, tired of consumer world as we know it and encouraging
on connecting brands obtrusive advertising and want to relate to brands brands to be truthful and responsible.
emotionally with people. that are trustworthy. In short they want a ‘real’
emotional con- cause marketing is not just a logo on a charity event,
He is President of Emotional nection.
Branding LLC, an experimental
it means brands having to stand for something bigger
think tank with clients A shining example of what I mean is the com- But the signs are that there is a long way to go.
like Unilever; he’s also munication platform and brand-building by the The advertising and sponsorship industry is
Co-Founder and former Barack Obama presidential campaign, which still stuck in ‘more is better’, pushing unwanted
Co-President of Desgrippes reached out to the hearts of the American people messages and silly guerilla tactics. Sponsorship
Gobé worldwide. – a grassroots movement linked to a powerful can surely be more than Pepsi trying to own the
web-driven integration of different media. Obama inauguration, a tactic that failed and
Marc champions the role of disgusted people.
design and creative The web will become the primal force in market-
collaboration in successful ing, and communities will form around common I am always amazed by how much people love
brand innovation that taps needs, and new sets of shared values. Running brands and how much the branding industry is so
into human emotion, and has in parallel to this trend is the end of the era of big out of step with the emotional reality of the mar-
twice been elected one of the advertising budgets, and communication in ketplace. Time to step up for gen ‘xY’ in a new
most influential designers in general will be less intrusive and more respect- emotional economy.
retail by DDI magazine. ful of people’s privacy and intelligence. The task
of today’s marketers is to create products that
surprise, entertain and appeal to the senses. My
belief is that products that are welcomed in
people’s lives are what makes advertising work
- not the other way around. This elevates
products from commodity status to being able
to stimulate people’s emotions – and build
26 brands faster and more cost-effectively.
Courtesy of Brooke Medlin
dave stewart
singer, songwriter, producer, creative

Annie and I never accepted any sponsorship My little business creates anything from mobile
through our career, but that was a different games to TV shows to music and distributes it
time. At that moment we were kind of naïve and in completely novel ways; which creates another
wanted to keep our songs and performances model for how people can do it. We’re launching
and everything in the purest form, so you didn’t a mobile game soon with Nokia, with music by a
see brands slapped across our performances, completely new artist, on 30 million cellphones.
Pepsi above our heads, as we did ‘Don’t mess Advertising and sponsorship are integral to this
with the missionary man’, say. new model. I’ve got a few powerful ideas about
Dave has achieved over 75 the future of advertising or sponsorship. In fact,
million album sales as one As I went into the 90s, I realised more and more I created a word – sponsor-bility. So you go to a
half of the Eurythmics with that we might as well be accepting sponsorship little fish ‘n’ chip shop, and say to them ‘Do you
Annie Lennox, honoured in because the big record companies are just like realise you have sponsor-bility? You’re paying
1999 with a Lifetime any other busin- £12K a year in
Achievement Award at the
you pay £12k pa advertising in your local advertising in
ess, like sponsors,
Brits. He is renowned for but the worst ones paper - for the same money you could your local paper
his huge contribution to because they take sponsor the download of the new album and you could
charity through music, all your rights. by Errors and become the most famous have sponsored
including staging the When it comes to the download of
Nelson Mandela AIDS sponsorship, say
fish ‘n’ chip shop in the world the new album by
concert that went live to by a brand like Burberry, as an artist, why isn’t Errors and become the most famous fish ‘n’
over a billion people. that as cool as being sponsored by EMI, when chip shop in the world’.
With Microsoft co-founder EMI make everything from school clothing to
Paul Allen, Dave created sonic radar systems? Nylon magazine has just taken on the Plastis-
‘The Hospital’, a multi media cines, a Parisian group. 21 year old girls from
creative centre. He also set So when I started to explore the parameters Paris – they sound like a rock band but dress
up the media company of how the entertainment industry works, I un- in great stuff. It’s a blurry line because Nylon’s
‘Weapons of Mass derstood very quickly that the web was go- releasing a record under their own label, but
Entertainment’ and, in 2008, ing to break the old model, totally, not just it’s a great fit, they’re benefiting equally and
was made Advisor to Nokia. music, but the entire way business works. that’s the idea behind sponsorship.

There are a million people running around claim-


ing they’ve got the ‘new way’ but there isn’t a
‘new way’. Everyone keeps thinking that the
future is standing still, in one place like, but it’s
liquid. You can’t write a business model for it.

27
Courtesy of Nylon Mag
david aaker
Vice Chairman of Prophet

Sponsorship offers unique advantages in brand But perhaps the most significant thing that spon-
building. sorship can do is inject energy into the brand, We
can define this in several ways: involvement with
Whereas advertising is intrusive and is clearly a the customer, how interesting you are and how
paid message overtly attempting to persuade or much buzz you create. If you make a boring pro-
change attitudes, a sponsorship can become part duct like insurance, nobody is going to talk about
of people’s lives. Advertising is good at communi- you, so the opportunity is to attach your brand
cating attributes and functional benefits. Yet most with something that has this buzz, a World Cup or
David A. Aaker is Vice- strong brands go beyond to provide emotional and an Olympics for example.
Chairman of Prophet (www. self-expressive benefits, to have a personality,
prophet.com), Professor and to differentiate on intangible attributes. Spon- The problem for sponsors is that there is a shor-
Emeritus the Haas School of sorship can be very effective at extending brands tage of good events with which to associate,
Business, UC Berkeley, and beyond attributes since they develop associations so creating their own makes good sense if you
executive advisor to Dentsu. that add depth, richness and a contemporary feel can do it well. It me-
Named as one of the top five to the brand and the ans you don’t raise
most important marketing/
sponsorship can develop the fees every year and
brand-customer relati-
business gurus in 2007, he onship. associations that add depth, can ensure that the
is a recognised authority on richness and a contemporary event fits perfectly with
brand strategy having won The primary goal of a feel to the brand and the brand- your other marketing
three career awards sponsorship is usually programmes. The Avon
for contributions to the to create exposure for
customer relationship Walk for Breast Can-
science of marketing. He has the brand and to develop cer is an interesting example. Although it is or-
published over 100 articles associations. However, there are four other ganised by the Avon Foundation and supported
and 14 books translated into brand-building benefits that can be very relevant by Reebok and Genetech, it has carried the
18 languages including his to the selection and evaluation of sponsorships. Avon brand for 18 years, raised $550 million for
latest, ‘Spanning Silos: the A sponsorship can mobilise the organisation breast cancer research, and continues to grow.
New CMO Imperative.’ for brand building, particularly one that has
difficulty spanning organisational silos and Successful sponsorships, such as VISA’s spon-
provide an event experience to customers con- sorship of the Olympics, have a long term
necting the brand to the event/customer bond. It horizon, measured in decades instead of years.
also provides the opportunity for firm executives It takes time to build up an association and
to interact in a social relationship with those leverage that association. The biggest failure in
affecting their business, such as retail executives. sponsorship is to view it as a short term, one-
shot relationship with a property. The sponsor-
ship should become part of the brand’s narrative
and reflect its core values.

28
Courtesy of Avon
sally hancock
Director of London 2012 partnership and Group Sponsorship for Lloyds TSB

The Race for Life, for Cancer Research UK, is an We make ridiculous assumptions as an indus-
incredibly strong property for its sponsors. It’s es- try about the ability of sport to reach women.
tablished itself as the premium running event for Clever sponsorship activity looks at things that
women and is absolutely grounded in issues that matter to women and does it in an appropriate
affect women. There is nothing quite like it: as a way. Quite often the message we get back from
charitable event that raises awareness of the issu- research into this, says: ‘do something that
es, the charity itself and its partners, it’s excellent. benefits my kids or do something that benefits
the community in which they live’.
Sally is Director of London Linked to this, I was always very impressed with
2012 partnership and Group the work of Avon Cosmetics related to Break- Often these things are over-commercialised and
Sponsorship for Lloyds TSB. through Breast Cancer. For a long time they we turn off from those messages very quickly.
were tied up with Fashion Targets Breast Cancer It’s wrong to commercialise that emotion but
Previously, Sally was the which was a really clever way of getting a non- without the commercial partners they couldn’t
founder and Chief Executive retail cosmetics brand into retail, raising huge have made it work in the same way, and it
of Redmandarin, the sums of money and enabling a dialogue bet- wouldn’t raise the sums it does for Cancer
international sponsorship ween the brand and women. For Research. But it’s the emotional power I see
consultancy company an activity that from a rights coming from the Race
considered thought point of view was relatively
there are an awful lot of of Life that makes it
leaders in sponsorship; low-cost, the benefit to sponsorships which are special. I haven’t seen
whose clients include Avon was huge, as it was entirely misdirected when it in many other spon-
Philips, Sony Ericsson to the charity. It was a good women are the target audience sorships.
and SABMiller. model of a pro-
Previously, Sally was VP per partnership. It identified an issue that
Strategic Planning affects thousands of women and was
at Octagon. done in a sympathetic and appropriate way.

It demonstrated one of the truisms of spon-


sorship, which is to identify the things that are
of passionate interest to your customer base.
There are an awful lot of sponsorships which are
entirely misdirected when women are the target
audience. This is a problem, and an opportunity.
A huge proportion of sponsorship is directed
at men. Yet from a consumer point of view that
doesn’t make sense. It may be that women are
more accommodating of above the line messa-
ges, but I think we could be far cleverer in the way
we use sponsorship to reach a female audience.
29
Courtesy of Cancer Research UK
giles gibbons
Founding partner and CEO of Good Business

Corporate responsibility in its current form has But simply putting your logo onto something
not seen a downturn of the sort we are about feels incredibly unsophisticated now, and is seen
to experience, and my sense is that this will through by most consumers. If you really want
put a spotlight on much of the pretty sloppy to gain engagement and support you need to go
thinking that currently sits under the CR umbrella. so much further and offer much more experien-
As in other areas of business, the economic tial activation around your sponsorship. The old,
downturn will push corporate responsibility into inevitable question relating to sponsorship is how
focusing on those things that really matter. many eyeballs are on your logo. The vast majo-
Giles is a founding partner rity of charity or social responsibility properties
and CEO of Good Business, Society as a whole is looking to business to be cannot match sport in terms of the mass audience
one of Europe’s leading more responsible, but what this means has it delivers, for example, a UEFA Champions
Corporate Responsibility changed. It used to mean giving the money to League. But what it can deliver is a much stronger
Consultancies. a charity to do something on your behalf, which value-driven engagement of targeted individuals,
Giles started at Cadbury was a nice thing to do, but on big issues like so the experience it offers is a much deeper one.
Schweppes, before moving climate change companies
to Saatchi & Saatchi, need to be responsible
companies must take that I would class the London
managing domestic and inter- themselves rather than just further step and question Marathon as a social
national marketing handing money over to a what it is we really need sponsorship rather than a
campaigns as well as third party. For this reason sporting one. Compare how
sponsorship to do
helping create M&C Saatchi CR sponsorship hasn’t engaged the runners and
in 1995. He then started Good actually grown as quickly as it might have in the their families are with the event sponsor Flora,
Business with Steve Hilton, last five years, even though the need to be more and now Virgin. It’s a hell of a lot deeper in
advising companies inclu- responsible has grown a great deal. terms of the relationship between a brand and
ding McDonalds and Coca- its audience, than if they are simply seeing Ford
Cola. He also co-authored As organisations start to get their head around branding at the Champions League.
‘Good Business – managing their core responsibility, growing it
Your World Needs You’. strategically and profitably, then there might Now more than ever, companies must take that
be a new opportunity for the sponsorship of further step and question what it is we really
charitable and social amenities. need sponsorship to do. The answer is often
not those things that cost millions and millions
of pounds, but those that provide a deeper
relationship with the consumer.

30
Courtesy of onEdition
prof. simon chadwick
Chair in Sport Business Strategy & Marketing at Coventry University, Director of CIBS.

When I was young I had three great passions: sumption itself. For organisations, this means
football, motorsport and cycling. I would read understanding how to create a sense of com-
countless magazines and watch as much televi- munity, identity and association amongst often
sion as I could in order to catch a glimpse of the highly disparate individuals who may be spread
latest race or game. As a result, I was constant- across large geographic areas.
ly exposed to a flow of seemingly exotic names,
colours and images about which I knew absolu- The problem is, while data and digital marketers
tely nothing: Haribo, Carrera, Ariston, Systeme forge ahead, many sponsors seem still to be
Professor Simon Chadwick is U, Brembo, Ceramica Ragno and Belga are stuck in the slow lane and too many still have a
Chair in Sport Business just some of the hundreds of names that I could transaction mentality: pay-for-the-space; place
Strategy and Marketing at probably recall without too much fuss. I never the logo. However, there is evidence that some
Coventry University, where he bought the products - I never actually knew what sponsors are starting to think in a new way using
is also Director of CIBS. the products were! - but my brand recall was it as a form of relationship marketing. The future
At Leeds University exceptional. It still is today. growth of sponsor-
Chadwick gained a PhD in Hence, when I had a son the future growth of sponsorship ship may rely on
sponsorship in football. He is of my own, who would may rely on whether sponsors whether sponsors
now the world’s first professor ask me to buy sweets for can become social networkers can become social
in sport business strategy. him, I instantly recognised networkers in their
in their own right own right, can be one
Haribo: sponsors of Giles Villeneuve du-
His research interests are ring his heyday at Ferrari in the late 1970s of the techno-savvy crowd, and can provide
based around sport and early 1980s. The question is, is the experiences that will never be forgotten by
marketing and sport durability of my brand recall, and the length of time consumers.
business strategy and he has before my ultimate purchase of a Haribo product,
published almost 600 books, typical or not? Irrespective of the answer, it says Can they truly engage with their customers such
papers, articles and reports on something about the power of sponsorship. that these people become brand ambassadors
sport and marketing.   through their actions as well as through their
But now sponsorship faces some big challenges words? We shall see.
to the way in which it has traditionally functioned.
The rise of new media and social networking
are changing how people relate to one another,
and to the marketing communications messa-
ges they are exposed to everyday. At the same
time, as product consumption becomes ever
more homogeneous, people are seeking exciting,
sometimes risky ways through which they can
add ‘buzz’ to what they buy, eat, drink or wear.
This need is, to an extent, bound up in the desire
of increasing numbers to enjoy the ‘experience’
31 of consumption, rather than merely the con-
Courtesy of Haribo France
mark earls
HERDmeister

When I first visited Olafur Eliasson’s The Weather gly, the Series enhances our interactions with
Project at London’s Tate Modern back in 2003, I each other through the quality of the content
remember thinking how delighted the artist must and the ingenuity of its presentation. Who can
be to have so many people engaging so directly forget Carsten Höller’s slides from ‘06/7 and
in the experience of his art - one small child next the glee with which humans of all ages flopped
to me insisted on taking his clothes off, so con- out of the bottom, having experienced what the
vinced was he that he and his family were now on artist calls their own personal ‘inner spectacle’.
some sun-drenched beach. But I suspect that the
Mark is a recovering sponsors of the series, Unilever, were even more Third, it’s clear there is no short-term opportu-
adperson who now writes delighted: their long-running support of commis- nism behind the plan: this has been a significant
and talks and works sions for the huge space of the Turbine hall has commitment over many years, with many different
independently under the been an excellent example of how sponsorship artists, so many participating visitors and so many
banner of HERD Consulting, might evolve into a more powerful tool in the next Unilever staff members interacting with each
helping people and few years. other.
organisations and their colla-
the Unilever Series provides what
borators come to terms with First, it illustrates how leading edge marketers are calling The future of marke-
our social or HERD nature. sponsorship can work a ‘social object’, that is, something ting is not about do-
inside and outside the around which people can interact ing things to people,
His latest book ‘HERD’ has company: it’s not merely but about providing
won much applause, being a matter of the board
with each other means for them to in-
described ‘like Malcolm inviting a few investors and advisors to the teract with each other: to create experiences and
Gladwell on Speed’ and ‘an opening and then hoping that the public will be interactions that touch their fundamentally social
essential guide to the new grateful for the patronage. Indeed, the efforts by or ‘HERD’ selves. Sponsorship can and - I belie-
media landscape’. Unilever to use the investment as a springboard ve - should be a big part of this but to do so it
Prior to HERD Mark held for a massive internal cultural change have been has to drop the cliché and rights-obsession that
senior positions at Ogilvy rightly rewarded by the Arts sponsorship world. dominates current discussions and recognise that
Group Worldwide and the to be effective the sponsor has to do more than
radical creative Second, it demonstrates how sponsorship can badge stuff.
co-operative St Luke’s. be so much more than ‘badging’, ‘association-
building’ or ‘messaging’: The Unilever Series
provides what leading-edge marketers are
calling a ‘social object’. That is, something around
which people can interact with each other - which
is what people really want to do, rather than in-
teract with brands and businesses. Most tellin-

32
Courtesy of Tate Photography Marcus Leith/Andrew Dunkley
norman jay mbe
DJ

The first thing to say is no organised entertain- of media: for example our film and music shows
ment can exist without the corporate dollar, and have for many years been played on Virgin Atlan-
anyone who thinks otherwise is an idiot. That tic flights. When Sony launched its Vaio laptops,
doesn’t mean you have to relinquish creative con- they came to us for blogs and podcasts and all
trol, or sell your integrity. that stuff.

We are not asking for something for nothing


There are relationships to be had with the right
but a culture of mutual respect. ‘You’re a beer
brand, which allows you to grow creatively. My
Norman is one of Britain’s memories of working with Budweiser was that company, I won’t tell you how to sell your beer
most celebrated DJs; the here were some fantastic people who gave us so don’t tell me how to run my Carnival!’ In the
first DJ to receive an MBE States corporate money doesn’t go into dance
complete creative freedom, a term which is of-
for ‘services to music and music, full stop. When it does, it’s a beer company
ten misunderstood by brands, who think you are
DJ’ing’. He was DJ at the saying,
being precious, but as an artist you can never ‘here’s a few crates’
Obama Inauguration parties compromise on that. which is not my idea of
and the official tour for the we are not asking for sponsorship – I’m a teetotaler
late James Brown. We have a firmly establish- something for nothing but for one thing.
ed brand name of our own, a culture of mutual respect
Norman’s credits include Good Times, and each year There is a worrying percepti-
Mick Jagger’s 50th birthday play a big free gig at the Notting Hill Carnival, on I’m picking up that dance music has had its day
party and the Big Chill 10th which attracts a lot of young trendy advertising as a commercial property and that brands are mo-
anniversary and he returns types who are there in their own time and who get ving on to something else. This could be devasta-
every year to head up the it on a fundamental level. But then they have to go ting as most events are small and without a sponsor
Good Times party at the back to the office and sell the idea to their clients, they won’t take place, it is as stark as that.
Notting Hill Carnival, who tend to be more conservative. Added to the economic conditions we’re facing
recently celebrating his means we could be pissing in the wind.
25th anniversary there. The risk is that when something goes wrong at the
carnival, which is a free event attracting thousands
of people, it often gets used by the powers that be
to denigrate the whole thing, for their own political
reasons. Unlike a sports event we have no control
over the bigger picture. What we do have is a de-
mocratic and popular event hitting a demographic
of opinion formers and fashionistas.

On top of this there is the personal endorse-


ment route – we live in the era of the superstar
DJ, who can take a sponsor from MixMag to
the Sunday Times magazine and generate great,
33 original content that can be used across all forms
Courtesy of Anheuser-Busch
patric verrone
Television writer, attorney, and President of the Writers Guild of America, West

For as long as television has existed, it has sur- There is a commonly held belief that there is a
vived as a medium based on advertiser support business need for product integration.  Viewers
and sponsorship.  From the days of Texaco Star are using technology to speed through and get
Theater through a lifetime of 30 second ad spots away from commercials.  So producers and the
to season premieres of TV shows presented networks are resorting to other means to give vie-
‘commercial free’ by a single sponsor, television wers what they clearly are trying to get away from.
has relied on advertising revenue to produce and And they are using writers and actors to do it.
distribute entertainment and information.
Patric is a television writer, This has become an issue of artistic integrity. 
attorney, and President of Recently, the television industry has developed a Like most writers, I don’t use lavender-scented
the Writers Guild of America, new form of promotion.  It involves the incorpora- body wash with lanolin, and I don’t want to be
West. In 2008 he led the tion of products into the storytelling, characters, forced to write it into a script to help sell it.  Yet
successful writers strike and dialogue of the programming itself.  It goes TV networks are forcing writers to incorporate
over internet writing by several names including ‘Branded Entertain- cars, power tools, potato chips,
contracts that attracted world- ment’, ‘Embedded Advertising’, and ‘Product soda, and body wash into scripts. 
wide attention.  Integration’. It is necessary Similarly, actors on these
like most writers, I don’t use shows have become
to distinguish between tra-
Over 22 years, Patric has ditional product placement lavender-scented body wash pitchmen for these
written for hit shows and product integration. with lanolin, and I don’t want products whether they
including The Tonight Show Product placement is the to be forced to write it into a want to be publicly
and Futurama. He has won two use of real commercial associated with
Emmys as well as being products as props on a
script to help sell it  them, whether
listed 75th in Time Magazine’s TV show to add authenticity. Product integration they’ve been paid for such a commer-
2008 ‘Most Influential People takes product placement to a new level by cial endorsement, and whether they have
in the World’.  accepting payment to weave commercial conflicting relationships with competing brands.
products into the storylines, character arcs, and
even jokes in a TV show. Product integration is more than a concern for wri-
ters and actors.  It is also a concern for the public. 
It is one thing to have a certain brand of bottled Integrating commercials into shows has created a
water on the kitchen table as the sitcom family form of stealth advertising, fooling the viewer into
talks about junior’s special problem this week.  thinking they are not watching an ad. 
It is something altogether different to make Can the television medium survive sitcommer-
the writers write and the actors act scripted cials and dramertisements?  There is a limit to
lines that extol the crisp refreshing goodness audience willingness to be ‘sold to’. Viewers
of that water and to convince the wacky flocking to new media (through internet streaming
next door neighbor, who happens to be a pro- and downloads) seem very willing to reject pro-
fessional water salesman in this episode, duction integration and to literally ‘pull the plug’.
to stock and sell the product. 
34
Courtesy of BskyB Stills
malcom gerrie
Founder and CEO of Whizz Kid Entertainment

In terms of sponsor-funded programming, we’re In fact, brands can really help…editorially as


all working in a fast changing environment where they bring a huge amount of power to the table.
the regulations are moving to accommodate the Clients such as Nokia for example, carry enor-
objectives of brands. There is no question that mous clout in the music business. Editorially I
this is the way it must go. can get a better product because I get better
talent. If I ring Sting or Take That or Girls Aloud
The model is becoming increasingly sophisti- and am able to say that not only are they go-
cated, and the television programme is often ing to be on Channel 4, but also on 1 billion
Malcolm is founder and CEO just the shop window, with the engine being its handsets worldwide, it’s a potent argument.
of Whizz Kid Entertainment, mobile and online platforms. The secret of a good
a progressive multi-media marriage between the brand and a television My abiding memory of sponsorship is of the Brit
production company programme is to get as accurate as possible a Awards, sponsored by MasterCard. We had Mi-
specialising in entertainment brief from the brand itself, not the agencies. chael Jackson flying into the UK to do a one off
and event programming. There must be no dilution of the basic idea live performance with a cast of thousands, perfor-
before the producer gets involved. ming Earth Song at Earls
Malcolm’s early credits the criticism of branded Court. MasterCard flew
include The Tube, The White My experience has been
content usually comes from in all of their senior exe-
Room and The Three Tenors. that the brand lets you get cutives with the big clients
He was also the creative drive on with it, almost without an old-fashioned point of view they wanted to impress.
behind Initial producing exception. As long as the idea is good at the What happens? Jarvis Cocker decides to jump
The Brit Awards and beginning and you involve them in some of the out of the crowd and invade the stage, gets locked
The Orange BAFTAs. bigger decisions and ground rules are estab- up by the police and it makes the front page of
lished in terms of who has creative control. every newspaper in the world the next day.
Malcolm pioneered advertiser
-funded programming and in The threat to editorial control is one of percepti- Imagine the conversation had with the sponsor
2000 he was inducted onto on rather than reality, and the criticism of bran- the following day. At first everybody was freaked
The Music Manager’s Forum ded content usually comes from an old-fashioned but once they put it into perspective and calmed
British Music Roll of Honour. point of view that says, if you get into bed with down, they realised they were involved in te-
a brand it’s going to assume control of the levision history in the making, nobody got hurt
relationship and what you put on the screen. and by the way have you seen the ratings? The
But that’s like saying that if you buy a certain clients went from very wrinkled brows to big
type of motor car it will force you to drive in a smiles within the space of 24 hours.
certain way. No it doesn’t.

35
Courtesy of YouTube
nic couchman
Co-founder and Senior Partner of Couchman and Harrington Associates

The rise of player power has been driven in England just happens to have the most powerful
part by sponsors: people relate to people, not league in the world but the UK is just one small
institutions, and sponsor brands increasingly market. Two thirds of the players, many of the
understand this. Signage and hospitality are, club owners and managers and the majority of the
comparatively, dull, boring and these days audience is foreign, and a substantial amount of
ubiquitous. Sponsors need to bring their asso- global media revenue comes from overseas. That
ciation with events to life by using the heroes fact is key to understanding the notion of player
of the sport. This in turn has brought greater power in football. These players are global stars,
Nic is co-founder and Senior recognition of an individual’s commercial power. on posters and television programmes in Malay-
Partner of Couchman and sia, Singapore or India, selling product in coun-
Harrington Associates, Stars of golf and tennis have always had to tries thousands of miles away.
regarded as the leading understand their own commercial rights because
specialist sports law they were essentially freelance, self-employed But without institutions such as leagues and
practice in the country. people who were free agents to a large extent. clubs and without matches to participate in,
Nic began a sports law But the whole concept of player power has now supported by broadcasters, they wouldn’t have
apprenticeship at Townleys, moved into team sports in a very significant way. that platform, that market.
going on to become a
partner and Head of From a legal point of view the question has been: It is not just in the multi-billion dollar global
Intellectual Property, with who owns or controls the players’ ‘image right’ - soccer market where the talent is making its
clients including the IOC the institution or the individual? That is a struggle commercial presence felt. A particular interest
and Coca-Cola. that will go on for some time.
people relate to people, of mine is pro surfing, where
Nic has developed a the top athletes are waking
particular interest in the Twenty years ago the football not institutions up to their commercial poten-
image rights of sports club told the player what to do, a master - ser- tial as a collective, and have formed their own
personalities and pioneered vant relationship that has changed fundamentally. entirely athlete-owned association, the World
this developing area, Laws supporting free agency have proliferated Pro Surfers, to create and implement group
working with Wayne Rooney and players have generally become more tuned sponsorship initiatives.
and the World Pro Surfers in to what their commercial potential and entitle-
association. ments might be. Sport has been a fully-fledged business for only
twenty five years or so and it is rather early to
The development of image rights was in part a re- judge if the rise in player power has ‘peaked’ or
sponse to the influx of European players into the will continue its upward trajectory. The growth
Premier League. In France, Germany, Italy and of celebrity culture generally shows no sign of
Spain there has always been a greater legal re- abating, however, and the global soap opera of
cognition of the right of an individual to control the sport continues to produce its heroes and villains.
commercial exploitation of their personality. It is a reasonable bet that player power still has a
long way to go.

36
Courtesy of Quiksilver
wayne rabbit bartholomew
1978 World Champion Surfer and former President of the Association of Surf Professionals

Surfing has never done very well in terms of non So I was World Champion and barely getting by.
endemic sponsors. A lot of the corporate world None of my generation made any money. Then
still doesn’t get it because they don’t walk the talk Tom Carroll and Tom Curren walked in with
– and, if you don’t surf, it’s nearly impossible to get million dollar contracts and if I finished in the top
surfing. They still see surfing as Gidget and the five for eight years nowadays, I’d be worth tens of
Beach Boys. A lot of corporates use surf imagery, millions. But we had the satisfaction of laying the
but if you brand something badly, it’s so clear to foundation for what pro surfing is today. We were
surfers that it’s phoney, and next minute there’s paid no money, but we got to ride on un-crowded
Rabbit’s journey in surfing a rejection. And you could say the surf industry’s waves.
began in 1967. Crowned shunned the outside
World Champion in 1978,
if you brand something badly, it’s so clear to
world as well. They don’t
he placed top five for eight take to non endemics surfers that it’s phoney, and next minute there’s
consecutive years and came very well. a rejection
within a whisker of regaining My first clear impression of sponsorship was
the title in 1983. Rabbit’s If a big whale turned up and threw $10m at the in 1978. I had a manager, Ken Brown, and we
biography, Bustin down the ASP, I’m sure it would be taken seriously. But with ended up securing one of the first non surf
door, tells the story of the $2-3m, it wouldn’t. The surf brands don’t like the industry sponsorships with Smirnoff. The deal
birth of pro’ surfing; and fit with brands they see as totally uncool, they see was worth $20K and I had to go round the
was turned into a cinematic it as a dilution of their brand value. And they domi- world in a white suit - the man in white was their
documentary in 2008. nate in so many categories, there’s not a lot they image. And I remember one board meeting in
Rabbit recently resigned as don’t make now. Sydney, standing in front of them to pitch. Surf-
President of the Association ing certainly didn’t have an image conducive to
of Surf Professionals, a posi- For me personally the surf industry was like a sponsorship at the time. So this gentleman said
tion he held for ten years, to cottage industry in the 70s, and my experience to me, my son plays rugby in the winter and
develop a new environmental wasn’t that great. The rules were quite primitive, he’s a surf lifeguard in the summer. Why should
business venture. for example, you had to wear different shorts for we give money to you, a surfer? That made me
each contest. At Pipeline you’d wear Offshore, realise exactly what we were facing.
in Hawaii OP, a hopeless situation for personal
sponsorship. I’d get fined $1000 at every event For me personally, Nike is by far the most suc-
for wearing my own sponsor’s shorts. And in cessful sponsor - Tiger Woods, Roger Federer, all
those days, you had to finish 3rd in a world series the big names of international sport, starting with
event just to win $1200. This went on for years. Michael Jordan. It’s amazing how they do it.

37
Courtesy of Dick Hoole
ross rebagliati
Director of Snowboard and Ski Operations for the resort Kelowna Mountain

Snowboarding was under the radar until it was After I won the Olympic gold medal I got some
accepted into the 1998 Olympics in Nagano, bigger corporate sponsors but the controversy
Japan. Up until that point it was the wild west. surrounding my being stripped of the gold snuffed
From a sponsorship point of view a few board them out fairly quick. I tested positive for mariju-
companies would give you free stuff, but there ana, but it was second-hand smoke. This whole
wasn’t the corporate culture that has grown up controversy came up for no reason at all, I didn’t
around the sport today. break any rules.

Ross is Director of Snowboard As athletes, all we wanted was to get a sponsor I hated the fact that the relationships I’d built up
and Ski Operations for the who would pay for us to be able to travel and over a long period of time - and in their minds
resort Kelowna Mountain in compete, but unless you were in the top five in they were taking a risk on an extreme sports
British Columbia. He is also the world, you’d be lucky to find any company athlete - disintegrated within minutes. They just
the founder of the Rebagliati who would talk to you. Most turned a cold shoulder to
Alpine Snowboard Training of my personal sponsors
the relationships I’d built up me. As it turned out I en-
Academy – where students were European because over a long period of time… ded up becoming super
receive World Cup standard 90% of the World Cup disintegrated within minutes famous around the world
training. Circuit took place in Europe. because of the contro-
The sponsor who really helped me was F2, they versy, but saying goodbye to a seven figure
A professional snowboarder, saw how potentially significant the sport was Nike contract was not an easy thing to do. They
Ross’ wins include the 1996 becoming before many of the others. In Europe dropped me so quickly. There they were with
World Cup; at the 1998 Winter snowboarding was accepted much more readily me at the awards ceremony when I got my me-
Olympics Ross won the than it was in North America, and even then dal. The next day when the controversy hit I
first ever gold medal for the freestyle side of the sport brought in more never heard from them again, after a 10 year
snowboarding. In 2005 he money than the racing. The take-up of computer relationship. They ended all communication.
was inducted into the British games really pushed the freestyle guys’ profiles, It was hard not to take that personally because
Columbia Sports Hall of Fame. with Tony Hawk leading the way. I was at the peak of my career, I won a gold
medal and within 24 hours I was in a Japanese
Now I’m 38 years old, I’m in the market to buy jail. And although I went through the Court of
a Porsche or a Rolex. All these young kids who Arbitration and got my medal back, it was too late.
grew up snowboarding and skateboarding have
got kids now, and we‘re the ones buying the
BMWs, mutual funds, pensions or real estate.

38
Courtesy of F2 Snowboards
faris yakob
EVP, Chief Technology Strategist at McCann Erickson New York

And now a word from our patrons….


When the age of mass media dawned, before Today, brands provide patronage, but often
advertising entered its fabled golden age in the forget it’s not just their money that should be evi-
late 50s and 60s, sponsorship was advertising. dent. When we think of sponsorships, we tend
Radio created a mass audience, homogenizing to think of events or properties. Inherent in the
cultural output, creating superstars, and adverti- word is the idea that the event being sponsored
sers wanted in. Direct commercial interruption – exists exogenous to the brand – otherwise it
is a brand event, not a sponsored one. The
advertising – was felt to be too intrusive, so brands
Faris is EVP, Chief Techno- instead owned and controlled the content itself, patronage should be fitting. Let’s call this
logy Strategist at McCann indicated by the names: Champion Spark Plug strategic coherence. The Vans Warped Tour
Erickson New York, striving Hour, The Voice of Firestone. Advertising agen- makes sense – skate brand for skater music.
to better integrate brands, cies created them, as they later did for television.However it can also be used to create relevance:
people and technology. Sprite sponsoring the X-Games establishes,
Previously he spent 5 years Content was created to aggregate certain kinds rather than reinforces, Sprite’s positioning. But
as the ‘Digital Ninja’ at com- of audiences to sell certain kinds of products. beyond that, a patronage property should be
munication strategy shop The relationship changed – networks wanted treated with respect, and the brand’s involvement
Naked Communications. control of the content, and advertisers found it should demonstrate its taste, its point of view. It
increasingly expensive should reflect the
Faris’ ‘Talent Imitates, to underwrite shows
the brand’s involvement should role of the brand
Genius Steals’ blog was themselves. Thus, spot demonstrate its point of view… in the world and
placed by Campaign in their advertising, a model reflect the role of the brand in the its customers’
top ten advertising blogs in taken from magazines, lives – adding to
world and its customers’ lives
the UK and is currently the was born. the experience if
number 2 advertising appropriate, remaining discrete if not. When
planning blog in the world. Sponsorship as we think of it today has a much Pabst Blue Ribbon sponsored Bike messenger
He was also named a older heritage. Ancient Athenians would put up parties and events it did not slap banners over
Campaign ‘Face to Watch’ the funding for cultural and sporting events to everything, it was simply supporting a culture that
in January 2008. make them accessible to the common man. In re- had championed its beer.
turn they would get their name in stone. Royalty
and aristocracy would provide patronage, for In almost every arena of culture, brand involve-
a combination of altruistic and image rea- ment is now present and necessary. Decrying
sons, that allowed art to be created and events the commercialization of culture is pointless
for the masses to happen. The nature of this – someone has to pay for it, especially if it is to
commercial relationship was culturally defined – reach larger audiences. Instead, as brand
it was never a simple commercial transaction. It collaborators, we should all endeavor to ensure
was, for want of a better word, subtler than simply brand patronage demonstrates intelligence as
sticking your name on something. A patron’s so- well as assets.
phistication and grace were reflected in how the
39 patronage would manifest.
Courtesy of Ane Jens/Vans
charlie hiscocks
Group Director of Brand Communications at SABMiller plc

I don’t like the word sponsorship, I prefer strate- The nature of influence and persuasion is
gic alliance. Sponsorship rings of handing over changing with the dramatic changes in tech-
cash and logos being splattered on things, of nology. In terms of messaging and content the
corporate largesse and patronage and just role of brands is also changing. In the future the
buying exposure. The best of sponsorship is a great brands will be built on a simple compelling
lot more sophisticated than that, and more to truth, but will also share a common interest
do with mutual benefit. with their public, forming exclusive alliances,
which may be large or small in scope, in which
Charlie Hiscocks is Group Great strategic alliances like these require part- they can work together with partners to achieve
Director of Brand Commu- nership between brand and the rights owner. their individual and collective objectives.
nications at SABMiller plc, But some of the big sports organisations are
currently the second largest incredibly arrogant, and often the start point The O2 is a tremendous example of an alliance
brewer in the world with of the conversation is ‘we have the availability with the venue owner / operator, which is being
more than 70 breweries in to take on a shirt sponsor and the price is this used as both a strategic and commercial tool. It
45+ markets and c US$20 much money’. That isn’t a strategic alliance. clearly has a strong branding element but it is the
billion of annual sales.
punters... can smell ego and lack added customer
Too many rights sellers are service dimensi-
Before joining SABMiller only interested in the rights of integrity from a million paces on that has been
Charlie had 19 years’ fee. The good ones can see beyond the cheque, laid across the top that I think is most impressive:
experience in agencies, but in the beer business we get a lot of properties priority booking for their customers, internal staff
including JWT, BBH and who tell us, we’re willing to entertain offers and incentives, entertaining clients. It is very relevant
Ogilvy. His last agency job you have three weeks to put together your bid. for a phone operator to be able to take advantage
was as a co-founder of That’s not the right start point: if you’re prepared of mobile ticketing. And it works because, similar
Tempus Partners. to pay us we might be prepared to carry your to the work that Red Bull does, the partnership is
logo, and by the way you can sell beer in our the brand brought to life. I’m not an O2 customer,
Charlie is married with ground. our company scheme is with another provider. But
three children. I’d like to be.
The punters understand the rules of the game.
They can smell ego and lack of integrity from
a million paces and likewise they can sense
authenticity and transparency. They don’t buy in
to the idea that just because a sponsor is paying
they should turn around and love them for it.

40
Courtesy of The O2
defining sponsorship

So where to start?

The only definition that’s readily available is from TV rights, naming rights, image rights, usage
the European Sponsorship Association and this rights, pouring rights, all have to be defined and
paints a compelling picture: rights, exchanged for understood. The ability to leverage partner assets
money, delivering value for brands. is an essential and defining component of spon-
  sorship. But rights have become the tail wagging
‘Any commercial agreement by which a sponsor, the dog. Sponsorship’s claim to fame is the scale
for the mutual benefit of the sponsor and spon- of rights payments. The cost of branding Man U’s
sored party, contractually provides financing or shirt, the Ferrari F1 team, Dubai’s new airport or
other support in order to establish an associ- David Beckham’s new haircut is what drives co-
ation between the sponsor’s image, brands or verage. The sponsorship economy.
products and a sponsorship property in return  
for rights to promote this This definition of sponsor-
association and/or for this definition of sponsorship ship is the model as defi-
the granting of certain is the model as defined by the ned by the rights-sellers,
agreed direct or indirect who have a vested inte-
rights-sellers
benefits.’ rest in the corporate world
  continuing to believe that sponsorship resides
Sounds legal. Mutual benefit, financing or other exclusively in the unsurpassable rights of the
support, rights, association, direct or indirect be- top and middle tier properties. The World Cup,
nefits. Champion’s League, the Olympics and F1 down-
  wards.
But the drafting sucks.  
  And it’s incredibly limited – and limiting. Not only
The same definition applies equally well to licen- does it fail to define sponsorship definitively, it
sing. Or product placement. Or, for that matter, a misses the essence of sponsorship, the essence
straight media buy. The definition itself reveals which, if managed well, makes sponsorship so
much of our way of thinking about sponsorship, unique and powerful.
especially the lynchpin of ‘rights’. Rights, ex-  
changed for money, deliver value for sponsors. So let’s shoot for something better. A priori, as it
Precisely the paradigm for selling sponsorship. were.

41
sponsor: rights-holder?

The first given in any sponsorship is a relation-  The term rights-holder loses even more shape
ship, a relationship between two parties. Although when we consider that most brands possess an
the definition talks of sponsor and sponsored par- equivalent, or stronger set of rights than most
ty, as an industry we tend to call them sponsor rights-holders. As Peter Franklin points out, Coke
and rights-holder. is serving over a billi-
  a rights-holder, intrinsically, is anyone on portions of its
If, for the time in possession of any sort of IP or ‘rights’, products every
being, we assume day and its rights
the word sponsor
which includes NGOs, community-based extend into rela-
is a placeholder initiatives, governments, media owners, tionships, media
for a brand, what you, me and pretty well anything, and commer-
exactly is a rights- cially valuable IP
including other brands. in every country
holder? Classically,
we’re talking about a sporting organisation such on the planet.
as FIFA or a cultural institution such as the Berlin  
Philharmonic. But a rights-holder, intrinsically, is And conversely, rights-holders are brands as well,
anyone in possession of any sort of IP or ‘rights’, although, when it comes to consumer franchise,
which includes NGOs, community-based initiati- most sporting organisations don’t even register on
ves, governments, media owners, you, me and the same scale as the brand brands.
pretty well anything, including other brands.  
So brands are automatically rights-holders – and
When Simon Thompson talks of a partnership rights-holders are of necessity brands. Where
between Motorola and D&G, both very strong does that leave us?
brands, he’s clearly talking of a relationship which  
is very different from the average sponsorship. In principle, partners.
But back in the late 90s, when Vans were mana-
ging their Triple Crown series – surf, BMX, moto
X, skate etc – they were the rights-holder in an
extensive web of brand relationships. Ferrari’s
partnership with Shell goes back 50 years. The
only question relevant to fans is not: which one is
the rights-holder, but: how good is my experience
of these partnerships?
the relationship

But if we accept that rights-holders are brands Although a power differential will often exist,
and brands are rights-holders, need that funda- at a brand-to-brand or brand-to-cause level,
mentally affect the sponsor – rights-holder dyna- partnership is more genuinely the paradigm,
mic that exists in most sponsorships? The implicit but the sponsor – rights-holder relationship has
configuration of one partner (the brand) needing long been fraught. Peter Wells even argues that
to derive benefits; and the other partner (the ‘rights-holders get in the way’…
rights-holder) providing the solution.  
  the industry has been configured for Despite positive in-
Absolutely. The very tentions - Phillipe
term rights-holder
a sponsor to ‘provide financing’ Le Floc’h talks of
implies a buyer-seller relationship, but the truth Heineken’s UCL trophy tour as an example of
is, the relationship does not need to involve partnership at work and many brand contributors
money, providing it’s reciprocally beneficial. describe sponsorship clearly in terms of partne-
Rights-holders intrinsically need precisely the ring - for most rights-holders, the idea of partner-
same things a brand does: brand equity, customer ship doesn’t really extend beyond money plus.
franchise, revenue. Although the industry  
has been configured for a sponsor to ‘provide The idea of a cashless association which builds
financing’ to a sponsored party, this is neither a rights-holder proposition is ... a rarity. When
a contingent, nor a defining characteristic. Barcelona FC put Unicef on its shirt, and Honda
  put the earth on its car, both were significant in
I remember pitching to McDonalds back in the the sense of rights-holders actively attempting to
late 80s, on behalf of a not for profit. Even then, build their brands. Regardless of execution, both
I was told, quite bluntly, that McDonalds ow- acts represent progressive thinking.
ned more media than I could ever offer and  
that I would be lucky not to have to pay them to Conversely, many brands fail to commit, in ear-
sponsor me. At the time it seemed the height of nest, to sponsorship. Rights fees are swallowed
arrogance, but of course it was true. Rights fees like a bitter pill, sweetened by the assumption that
are the big attraction of sponsorship, but for any the rights will work their magic.
rights-holder genuinely interested in developing a  
property, it is not necessarily the most important Either way, everyone loses, because the relation-
contribution: brand media, association, promotion ship only has meaning if viewed through the eyes
and IP can be of significantly greater value. of the consumer.
 
genuine value-add

The relationship has to deliver genuine value- So the relationship has to add genuine value in
add for consumers. Both parties carry a respon- consumers’ perceptions for it to fulfil its potential
sibility to manage consumer touchpoints with - the old truism with a new vigour. After all, the
a sponsorship and both parties are judged on brand is modelling its vision of consumers. If the-
the experience. Both parties need to be able to re is no real value to the sponsor’s presence, the
lay legitimate claim to enhancing the consumer brand is modelling itself as superfluous, disenga-
experience. In order to deliver against brand ged, impersonal, aloof, take your pick.
potential, any sponsor, reverting briefly to that  
terminology, has to do something worthwhile. Optimally, the sponsor will have a genuine role
  to play and products
Funding some events the brand is modelling its vision or services will be an
or institutions can be of consumers - if there is no real integrated element of
worthwhile in its own value to the sponsor’s presence, the experience. As
right. The sponsors of Peter Franklin says
the Globe in London,
the brand is modelling itself as for Coca-Cola: ‘there
for example, deserve superfluous, disengaged, has to be a particular
thanks and loyalty in impersonal, aloof, take your pick role for us to play.. so-
the Faris Yakob / Alain mething… unique for
de Botton sense of having provided beneficent us ….to triangulate between our brand and the
patronage. However, despite every fan survey passion consumers have for the property’. Failing
conducted by the validation industry on behalf that, the sponsor can still demonstrate its values
of rights-holders, which consistently report that in the way it interacts with consumers. Sorry, peo-
consumers prefer brand marketing spend to be ple.
invested into sponsorship than other marketing
activity - the gratitude model of sponsorship It’s easy for activation to remain token, tinkering
is largely a thing of the past. Tony Ponturo around the edges rather than fundamentally
shares that Budweiser’s own research shows addressing consumer experience. For brands
clear consumer resistance to badging. which ignore this fundamental truth, sponsorship
  is likely to be damaging.
For major financial entities such as Man U or  
FIFA, sponsor investment is at best an irrelevan- Because the very heart of sponsorship is about
ce for consumers. Andy Walsh argues for a clear the brand.
fan benefit from sponsor funding and his position  
is well put. That’s not to say he’s necessarily right
in how sponsor revenue should be deployed, but
he represents a legitimate consumer perspective
about how sponsorship revenue should be used.
And increasing rights-holder profitability is not
one of those uses.
brand play

At the heart of sponsorship has to be a brand play. text, every action in a sponsorship context amp-
lifies the brand dimension. In Martin Lindstrom’s
The slow tide of contemporary brand awareness words: sponsorship works when we are not aware
which began in the 80s continues to rise, and is of the signals being sent.
still infiltrating even B2B sectors which stubbornly  
resisted the brand concept; and with that the un- It is part of the fallacy of the power of associati-
derstanding that every single thing you do as a on that the values of the rights-holder rub off on
brand is an expression of your values. the brand. The sponsorship industry has always
  talked of ‘brand value transfer’ flowing towards
Branding agencies help businesses to develop the brand, but this is only a part of the story.
a clear brand proposition, and ensure coherent Vodafone’s association with Lewis Hamilton only
branding, internally and externally, through lan- works because Vodafone walks and talks like a
guage, imagery, product, customer relations, world leader. There is undoubtedly value transfer
employee relations, everything, because, from a from Lewis Hamilton, but only if Vodafone acts like
holistic brand perspective, everything counts. Vodafone. If 3 were the sponsor, Lewis Hamilton’s
  image would be the poorer. The sponsor is pri-
The same applies marily responsible for
to sponsorship. it is part of the fallacy of the power of the brand take-out by
Sponsorship offers association that the values of the consumers.
brands the oppor- rights-holder rub off on the brand   
tunity to model their As Kevin Roberts
values and promise in a fresh context. But it’s not puts it: what does women’s tennis bring to Sony
just the property that carries the brand. It’s the Ericsson in terms of involvement and enrichment
tone of voice, the production values, the promoti- or happiness or purpose to the base proposition?
onal mechanics, the activation concepts, the par-
ticipation mechanisms, the relationship gradient It continues to surprise us that brands can labour
with consumers, everything. over carefully and expensively crafted brand pro-
mises and customer propositions, which they ap-
Strategic sponsorship takes businesses into are- ply coherently through traditional media. And yet,
as of life far removed from their norm. When Te- when they come to sponsorship, they sign off a
lefonica sponsors the Davis Cup, it’s because it rough value fit and a logo.
wants to create an alternative strand of dialogue  
with consumers. The reason it exposes itself in an
alien environment is because this change of con-
text offers the potential for greater prominence
for its values, allowing consumers to appraise the
brand afresh. Stripped from a commercial con-
value fit

Values offer an essential filter for platform and For most brands whose products are not genu-
property selection, of course: you don’t sponsor inely integrated into the delivery of Formula 1 –
an individual if you’re about teamwork, obviously. most of them – there is limited communications
  potential. If you win, it says: we’re a leader. If you
But in our experience, the industry still applies don’t, it says: we’ve got a lot of money. Enough
a very loose model of alignment between brand to burn.
and rights-holder values, with fairly superficial  
profiling exercises calling out alignment, typically ‘Priceless’ is an example of where this is heading.
against generic values such as dynamic, passio- The sense of priceless in MasterCard’s above the
nate, professional, flexible etc. line is different from that in Mastercard’s sponsor-
  ships, but at least
any brand entering into sponsorship the sponsorships
These exercises
typically also focus should only do so if it is absolutely verbally support the
single mindedly clear that the association is capable of brand proposition,
on the ‘positive’ carrying either the brand proposition which can be used
associations, ig- to create parame-
noring the value
itself, or a close derivative ters for activation.
dimensions of an association which aren’t quite For the consumer, it is possible to see priceless
so positive. Vodafone understands that, in order running through all brand comms.
to communicate leadership, coming second is not  
an option. ‘Red Bull gives you wings’ is even better: the
tagline clearly shapes the DNA of all sponsorship,
Leaving to one side the basic criticism that the from local to global.
generic adjectives of the sort often used in these  
exercises are insufficient to really define a But that same easy-fit mentality that’s applied to
brand; and the disbelief that so many brands values also gets applied to audience.
still hope to differentiate themselves by using
such generic values - simple value alignment
is not the end-point.
 
Any brand entering into sponsorship should only
do so if it is absolutely clear that the association
is capable of carrying either the brand proposition
itself, or a close derivative.
passion?

In the clichéd sales parlance of sponsorship, we’re There aren’t enough subject-specific passionate
talking … passion. Passionate fans… of tennis, of people in the world to uphold the sponsorship
footie, of F1. Salivating at the opportunity to buy model. Sailing in the UK, for example, claims a
sponsor products. Passion became the buzzword lifetime participation audience of 11% - that is,
of the 90s and still hasn’t disappeared. Passion people who at one time in their lives have tried
is implicitly what all fans feel about their favourite sailing. The percentage of Britons regularly
sport / team / personality. And ‘passion drivers’ is sailing stands at 0.2%.
how Octagon frames its insight into the emotional The percentage of people who care enough
world of the fan. about sailing to be prepared to pay for sailing
  news stands at less than 0.01%.
But the sales rhetoric is often the most passion-
ate part. Again, it’s not difficult to understand why So, unless you’re selling yachts, 1% of this
the word is so popularly linked to sponsorship - it’s market is worth two thirds of diddly squat.
another part of the sales paradigm. The promise  
that, through your sponsorship, you are going to Octagon’s passion drivers’ contribution is to
claim the undivided loyalty of fans has been im- acknowledge that consumers, people, have dif-
plicit from the early days. And it’s always been ferent kinds of relationships with their interests.
nonsense. sponsorship is not a shortcut to passion But the passion
  driver framework
Fans of course
- sponsorship is a shortcut to relevance is misleading.
can be passionate but, by and large, they’re the It suggests a line of passion running through all
ones you avoid. The impact of Michael Jordan on these diverse audiences, which really isn’t there.
Ade Adepitan is impressive, but unusual. People As passion. Sponsorship is not a shortcut to
aren’t passionate about many things. You might passion. Sponsorship is a shortcut to relevance.
be truly passionate about your football club  
but, boy, are you an exception. And if you’re  
not in a majority as a footie fan, you’re going  
to feel even lonelier if you’re passionate about
tennis. Let alone women’s tennis.

The truth is, passion percentages don’t add up.


no, relevance

The challenge brands face, as Peter Wells iden- Sponsorship offers a route to relevance by permit-
tifies, is to ensure their relevance to consumers. ting an alternative entry point into the consumer’s
Some brands, such as Apple, manage this world, where the brand has another opportunity
through their product offering. Some brands, such to showcase itself and its values: ‘a contemporary
as Pot Noodle, manage this through attitude. feel’, in the words of David Aaker.
Many businesses are visibly attempting to main- An entry point apart from product. Because
tain their relevance at the moment by addressing even when brands are brave enough to
their green credentials. conduct brand-led ATL, product is never too far
  away. And, as Martin
Every four years, sponsorship offers a route to Lindstrom points out,
the World Cup is relevance by permitting an consumer perceptions
incredibly relevant. alternative entry point into the are filtered and tainted
And the great thing by the proximity of the
about the World Cup
consumer’s world, where the sell.
is that it’s growing brand has another opportunity to  
more relevant. As showcase itself and its values It’s the eternal struggle
society becomes of brands to remain
more secular, the World Cup is occupying the relevant. But many sports actually have
space that religious festivals used to fill. Regard- limited relevance. Content based on subject
less of how passionately you feel about football, matter which has greater social and emotional
you can’t fail to notice the holiday mood that relevance to consumers often offers brands
covers the entire globe. more opportunities to interact with consumers
  on common ground.
As individualism, as an ideal, reaches its apogee,  
we’re fascinated as a society by the insights Which is why the vision of contributors such
we’re fed into the lives of celebrities; and the as John Luff, David Butler, Giles Gibbons and
individual – as Simon Lowden and Nic Couchman Patrick Nally, surely one of the elders of the
argue – can offer broader relevance than most industry, will surely come to pass. This vision
organisations. of brands committing to projects of social and
  community relevance aligns with the thoughts
of Marc Gobé, Charlie Hiscocks and Sally
Hancock, around the close identification of brands
and audience interests. And when Kevin Roberts
quotes David Ogilvy, and talks of fans being tre-
ated like morons, instead of people, he’s making
precisely the same point.
 
evaluation, validation

The Coke paradigm of sponsorship, according Media value is just the worst offender in the bat-
to Steve Cumming, is relationships and assets: tery of validation techniques. Worst because, for
sponsorship facilitates relationships and pro- most brands, logo exposure per se brings mar-
vides assets, which offer brands additional ginal benefit; and because the emphasis EAV
benefit: TV exposure, pouring rights, customer places on logo exposure obscures the value of
data, CRM content, relationship-building opp- emotional connection.
ortunities and much, much more.  
  We have worked with the econometrics teams of
David Wheldon gives a very clear example of why enough businesses now to be able to demonst-
the TV exposure which accompanies a few spon- rate a clear link between revenue – be that ac-
sorships can be extremely valuable: for any brand quisition, retention, uplift – and sponsorship to
entering into new markets, sponsorship can gene- know that clear, transparent evaluation is possi-
rate exceptional levels of awareness. ble. There are only two obstacles: lack of data,
  most sponsorship evaluations and laziness. Tirelessly
But the essence of spon- curious, it’s difficult for us
sorship is not based on
are exercises in validation to conceive of a business
TV exposure, or assets. It’s based on relevance, too lazy to explore the impact of its marketing.
and Kevin Roberts’ evaluation challenge to the
industry, although it’s not new, remains very Vodafone track preference and ROI. Carlsberg
pertinent. It’s not about eyeballs. measure direct sales. The point is, measurement
  is possible. And the correlation is generally
Most sponsorship evaluations are exercises in positive. Sometimes surprisingly so.
validation. Most of the evaluation reports we’ve  
seen applied to our clients’ sponsorships don’t
even distinguish between business objectives
and campaign objectives. How well did we ma-
nage the campaign versus what contribution did
the campaign actually make to the business?
Obviously, it’s the client’s choice if they want to
use such data to validate their marketing invest-
ment. But the price for keeping evaluation such
a comfortable exercise can only be a loss of
integrity and credibility, a failure to learn and a
waste of investment.
 
sponsorship content

How then do we describe the actual stuff of an overarching theme, in the context of Master-
sponsorship? Much sports sponsorship is event- Card, Priceless is intended to be the underlying IP
led, but a refresher of Naomi Klein’s ‘No Logo’ which defines sponsorship content and activation.
reminds us that absolutely anything can be  
sponsored, so ‘form’ is not a starting point. So where does that IP stop and start? John Luff,
  Giles Gibbons, David Butler and Lesa Ukman all
We could talk in terms of content. Content is po- talk of sponsorship from a different perspective:
pular at the moment: branded content, user ge- sponsorship which has broader community
nerated content, exclusive content, the variations relevance, sponsorship which does good. Is this
are endless. But we’re not talking downloadable sponsorship or corporate
digital imagery or sound, sponsorship IP can range from responsibility? From a
not even AFP. Instead, business perspective, CR
a tangible commercial property and sponsorship often sit
we’re talking within the
context created by Peter such as the Olympic Games; in offices at opposite ends
Wells and Mark Earls: a brand promise brought alive of the building.
anything which stimu- through sponsored assets; to  
lates social content, an The Body Shop’s campaign
a simple proposition;
interesting conversation. against domestic violence,
  and everything in between back in the mid ‘90s, is an
It’s an analogy which many content-hungry interesting case study: a campaign created by The
brands should bear in mind. You could be Body Shop, it co-opted NGOs around the world to
mistaken for thinking that some brands have raise a subject skirted at the time even by
changed their business model into content- government, and demonstrated very deep con-
ownership. Unless they have, the value of sumer insight – as well as immense brand confi-
content is no more and no less than to enable dence. Remember ‘No advertising’?
conversations with customers.  
  This would typically be labelled corporate re-
The term IP is perhaps less confusing. Sponsor- sponsibility, but in every respect it behaves like
ship IP can range from a tangible commercial sponsorship – based on partnership, relevance,
property such as the Olympic Games, to a simple shared assets, consumer engagement and more.
proposition; such as Nike’s Joga Bonito; and  
everything in between.  The point is: sponsorship is truly platform-neutral.

When Steve Cumming talks of IP in the context


of Diageo, he cites Johnny Walker’s keep walking
and anti-drink-driving activities, both differentia-
ting IP positions. When Paul Meulendijk talks of
two cheers

Redmandarin has always prided itself on being, Along with Keld Strudahl, Charlie Hiscocks and
not advocates for sponsorship, but advocates for Steve Cumming, we feel the word sponsorship
good sponsorship. Good sponsorship, we believe, itself creates bad associations. Ironic. Ironic that
has the potential to build brands and drive marke- we’ve collectively mismanaged the sponsorship
ting programmes. brand. The industry is repeatedly subject to the
  charge of being profligate, unaccountable and
And we’re not alone. A goodly number of contribu- whimsical.
tors – from the brand side – are passionate about  
sponsorship. Curiously enough, they’re all ex-ad- Blunt denial is not the answer: we have to ask our-
vertising, and their marketing evolution all follows selves why these associations exist.
a similar pattern: from cynic to zealot.  
  If we, the sponsorship
Trying to separate a goodly number of contributors industry, are going to
out the perception are passionate about sponsorship achieve the recogni-
of brands such as tion for sponsorship
- curiously enough, they’re all it deserves, we need
Vodafone, Coca-Cola,
Pepsi and Carlsberg ex-advertising and their marketing to lobby for higher
from their sponsorship evolution follows a similar pattern: standards of cor-
is impossible, it’s porate governance.
from cynic to zealot
played such a fund- Who ultimately can
amental role in communicating the brands. authorise sponsorship? And what is the process
Take a look at Interbrand’s top 100 global required to ensure sponsorship is a strategic
brands and try again. And some sponsorship investment?
are genuinely business-transformational: ass-  
ociation with the IOC helped elevate Visa We need to acknowledge that some sponsor-
and Samsung into global superbrands. ship – as much as advertising, sales promotion,
  DM – can be bad, wasteful, and profligate. Keld
Denial of sponsorship’s potential is to deny a pow- Strudahl’s stance of constant self-criticism is a
erful marketing tool, and in some ways, an entire path to self-awareness, something which spon-
approach to marketing. sorship can run dangerously short of.
 
But this is only two cheers for sponsorship.  
 
new model?

Patrick Nally leads the way again, with his clarity:activate, assuming the association buys you
the traditional, packaged rights model of sponsor- the right to activate. The new model is earn the
ship is dying. association, recognising that all that spon-
  sorship can provide – potentially – is a reason to
The new model already exists of course. And has believe. It is always the responsibility of the
done for many years. sponsor to deliver against that reason to
believe. The new model of sponsorship works
Red Bull proved beyond doubt that a clear posi- harder.
tioning, a clear identification with audience and  
attitude can grow a brand sufficiently to build a As Marc Gobé hammers home – it’s all about
strong franchise. Quiksilver, Billabong, Ripcurl credibility, nothing else. And for all of Red Bull’s
and O’Neill did it in the 60s. Sony Playstation did blatant self-promotion, its insight into the sports
the same in the mid 90s. The Body Shop did it for and their audiences always safeguarded more
20 years. Nike has long than enough credibility
the new model is earn the for the brand.
been exploring IP.
    association, recognising that all
• a tight proposition for that sponsorship can provide –
all events potentially – is a reason to believe But the real ‘new model’
is far bigger.
• partnering the sports (often in the form of the
leading exponents, rather than the governing Sponsorship is far from being just a channel, and
bodies), to create events which have always been it‘s more than a discipline. It‘s a mindset, an ap-
absolutely on the pulse of the sport proach to marketing in its own right.

• amazing audience insight, understanding the Intrinsically integrated, multi-channel, content-


aspirations of the stars of these new sports and led, engaging 3-dimensionally with consumers to
helping to translate them into reality, creating a build brand engagement.
vastly enhanced experience for fans
No wonder advertising‘s always been nervous.
• media exposure which assumed fragmentation
from the outset and built itself, gradually, on truly
unique visual content

• multiple small properties, run to a culturally well-


defined DNA, with brand-owned events
generally starting small scale, low risk, trialling
new styles and disciplines
The old model is to buy an association and
towards re-definition

The old definition is increasingly ill-fitting, a me-


mory, not a vision for the industry. It’s time for a
new one.

Or, at least, the discussion.


 
For Redmandarin, sponsorship is a model for It applies equally to the great history of sponsor-
integrated marketing which: ship deals: Coca-Cola and the IOC, Shell and
  Ferrari, Horst Dassler and the creation of FIFA
• deploys the organisational assets of two or rights; as it does to the new era of brand-led
more partners sponsorships: Red Bull’s Flugtag / air race, Nike’s
• offers brands the opportunity to model their Joga Bonita.
promise and values in areas of social  
and/or emotional relevance Is this so very far from the ESA definition quoted
• has as its primary focus the deepening of at the beginning? Is this all just nitpicking? Yes
relationships with consumers and no. The basic ingredients of sponsorship
  can’t change: what’s important is the emphasis
Perfect? No. But for us, it feels much closer to the and priority given to each. This is bolognese with
mark. The emphasis feels right. more meat and less tomatoes. More Caffe Nero,
and less Starbucks. The nature, the intent and the
focus of the relationship are more important than
the number of partners, and what the transactio-
sponsorship is a model nal component of their relationship might (or might
for integrated marketing not) be.

This definition is based on our attempt to discern


what lies at the absolute heart of sponsorship. Of
good sponsorship, in other words. There are plen-
ty of deals which fit the old definition better than
this one.

We just don’t think they live up to the promise of


strategic.

shaun.whatling@redmandarin.com
Published London, 2009
Copyright ©2009 Redmandarin Ltd.
All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system or transmitted in any
form or by any means, electronic, mechanical, photocopying,
recording, scanning or otherwise, except under the terms of
the Copyright, Designs and Patents Act 1988.
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made Redmandarin what it is.
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Huge thanks to our fabulous designer,
AlexisBainger@gmail.com and to Alice,
for helping pull this all together.
Redmandarin’s proposition is simple: we provide strategic and creative counsel
to businesses who want Board level confidence that sponsorship will make a
measurable, targeted and direct contribution to specified corporate objectives.
We offer solutions to the fundamental challenges of sponsorship:

• what role could and should sponsorship play?


• what does effective governance look like?
• what is the real value of an opportunity?
• how do we establish the business case for sponsorship?
• how do we optimise value and demonstrate cost-effectiveness?
• how do we truly integrate within the business?
• how do we structure sponsorship within the global business?
• how do we guarantee success?

www.redmandarin.com

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