As new event paradigms dawn, event sponsorship is dying, says Lively’s Mike White. Promoters and brands clinging to the traditional sponsor paradigm will be left in the dust.
Marketers have long turned to events as an advertising vehicle, for good reason. Event marketing is one of the most impactful channels for bringing a brand story to life. A study about the influence of events showed that 93% of consumers feel live events have a larger influence on them than television ads.
It makes sense. Events afford brands an opportunity to build brand awareness with consumers in controlled environments that leverage a shared community, a moment in time, and a unique experience. When executed well, exposure to engaged audiences correlates with brand lift from association with popular events and entertainers.
But while there’s no question about the efficacy of events, the live event paradigm is desperately in need of a modern refresh.
Traditional experiential balances competing objectives
The first issue to overcome is a misaligned incentive structure that’s baked into traditional event sponsorship. Consider the typical brand-promoter deal wherein brands and promoters have different respective objectives.
Promoters want to sell tickets and add revenue to their bottom lines. Brands want to sell their products and achieve ROI from their investment. Since events are costly to produce, they often capture a sizable chunk of an annual marketing budget and, therefore, are under intense scrutiny.
This brand-promoter paradigm doesn’t even consider the motivations of audiences to participate in a one-of-a-kind experience, or the aspirations and needs of the event’s entertainers. (All parties, crucially, want to build community. More on that later.)
A new event paradigm: from sponsorship to partnership
The last two decades of my career on the bleeding edge of live and hybrid event production have taught me a critical lesson: because of disparate objectives between brand, promoter, sponsor, and audience, it can be hard to orchestrate a positive experience for all parties.
This is why sponsorship needs to be put to rest and partnership needs to take its place.
Under a partnership dynamic, all stakeholders invest and align on goals, using the following 4 steps.
1. Shift the event objective
First, marketers need to refocus the event objective to one goal that all stakeholders have in common: community building.
The objective is to convert event audiences who are there for the event’s entertainment into an always-on community so that you can create conversation and grow relationships and engagement over time.
This should align key stakeholders around a measurable goal, and overcome potential pitfalls of different objectives.
2. Integrate technology
Today’s audiences occupy more than a physical space in time. At any given moment, they’re connected to multiple environments across digital touchpoints, including social media channels, mobile applications, and other communication and streaming platforms.
To lose sight of these digital spaces is an immense opportunity lost, since an audience’s engagement in the context of multiple channels can expand the footprint of an event while building a shared community for the event’s partners.
At Lively, we’re highly attuned to these touchpoints. We call them ‘experiential media ecosystems’. When stakeholders are intentional about these ecosystems, they become owned channels for communication and engagement that live well past the one-time event.
Not only does this allow brands to experience sustained gains, but inviting audiences into an owned community offers rich and actionable data that can help marketers iterate meaningfully on strategy.
3. Focus on authenticity
Looking at event execution as a partnership means all parties align on the audience they want to engage. Authentic engagements between creative, sponsor, and audience are essential to successful activation.
Once brands and creators align on audience and messaging, brands can and should relinquish control to creative to allow them to communicate with audiences in ways that resonate genuinely.
4. Grow and engage the community over time
Event promoters have traditionally pushed back against hybrid and other tech-enabled events because they fear that streaming live events might take away an incentive for an in-person ticket purchase.
Promoters need to evolve their thinking, because streaming can expand the reach of live events, engage new audiences, and create fomo.
The content shared at live events does not replace the in-person experience. Instead, when events are well-executed, it makes our peer groups want to attend the following year.
If all three parties can benefit from an owned event community, it allows the audience to be engaged far beyond the event in interesting and meaningful touchpoints.
More than ever, events are ripe marketing vehicles for brand marketers. Ensuring that stakeholders are aligned is the key to reaping the benefits of experiential activations. Integrating technology to build and engage a community that lasts beyond the event invites new audiences and fortifies event interest. Promoting the community alongside all stakeholders will ensure that event ROI is even more than the sum of its parts.
Nothing beats the thrill of watching live sporting events unfold. Those impossible acts, the surprise results and glorious victories – there is nothing else like it. Sport is emotional, it is engaging and it has the power to unify.
There is a huge global appetite for sport and, after the Covid-19 pandemic forced many spectator sports to shut down for much of 2020, fans became hungrier than ever for the excitement of live events.
While many rescheduled tent-pole sports events are due to take place over 2021, all eyes will be on the Tokyo Summer Olympics, set to launch on 23 July. Although organisers are working tirelessly to ensure the Games go ahead, there is still a real possibility that fans will be unable to attend in person.
For brands, this presents the challenge of connecting with fans without them being physically in the stadium. However, it also creates new opportunities for brands to engage fans at home and enhance their mobile and digital experience.
Without a doubt, it will be a different experience for sports fans, but new viewing patterns and behaviours were already evolving. Live sports broadcasting is being disrupted by digital devices and online platforms, meaning it is no longer a linear TV experience.
This change was already apparent in the viewing figures for the 2016 Summer Games in Rio de Janeiro, where 3.2 billion people watched on a combination of TV and digital devices. Today, according to the research firm GlobalWebIndex’s (GWI) data from Q3 2020, 54% of global sports fans watch coverage or highlights online.
Digital viewing for the Olympics Games has been soaring since Beijing in 2008. According to e-Marketer’s Sports OTT Landscape report from January 2019, it was expected to hit new heights in 2020 with video views predicted to top 3.5bn. TV views were projected at around the 3bn mark.
Fans are also taking their conversations online as highlighted by GWI (Q3 2020) showing that two-thirds of sports fan use social media while watching TV. With duel-screening now almost universal, brands should note that mobile sports consumption is increasing multi-faceted. According to Facebook data, there are 700 million sports fans on Facebook and 400 million fans on Instagram.
The 2016 Summer Games in Rio also demonstrated how the behaviour of sports fans is changing. Facebook saw 1.5bn interactions during the games from 277 million unique users, while Instagram registered 916m interactions from 131 million unique users. The last Football World Cup generated 5.3bn interactions.
More than half of viewers are also chatting with friends via platforms such as WhatsApp sharing key sporting moments, while a third is reading the news, playing games or searching for products related to what they are watching. What does this mean for marketers, particularly sponsors?
Sports sponsorship has long been big business for brands, offering a vast, often international, reach, and a culturally relevant audience. According to the research and data company Kantar, sports sponsorship will account for 10% of all global advertising spend in 2021, hitting nearly $50bn.
Tracking the performance of those campaigns and measuring success has always proved tricky for brands. At the same time, sponsorship properties have often only been available on long-term contracts. It is no surprise then that Kantar research also found that 44% of marketers believe sponsorship is the least understood media channel in terms of return on investment.
However, digital and online platforms, such as Facebook and Instagram, are turning the sponsorship model on its head. The opportunities for bespoke content and agile and trackable campaigns allow brands to target their campaigns more accurately and assess their success more quickly.
Andy Childs of Facebook’s Central Europe Connection Planning unit explains: “Sports sponsorship is in transition, with brands all vying for consumer share of mind and share of wallet. With our platform and analytics, Facebook and Instagram offer brands a unique opportunity to grow – to reach mass audiences, enhance the fan experience, trigger relevant purchases and importantly measure the business impact of sport sponsorship.“
It means not only are brands seeking shorter, more targeted sponsorship opportunities than are the market norm, but there are more ways for non-sponsoring brands to get involved in tent-pole sporting events.
With more opportunities for brands to get involved in the 2021 Summer Games, the need for creative campaigns that cut through the noise will be more critical than ever. To do this, marketers should consider these creative thought starters:
Amplify brand association
A brand should develop a meaningful link with its chosen sports event among its audience, and cut through the clutter by demonstrating its interest and reason for getting involved with the sport. Where fans are aware of the link between sponsor and property, there is a 30% uplift in commercial effects compared to where fans are unaware of the correct linkage.*
It is vital to identify a different emotional space to other sponsors, particularly close competitors, while also targeting a broad audience with content such as snackable video. Use in-stream advertising to build a stronger association.
Enhance the fan experience
To reinforce the connection between the brand and the event, offer fans something exclusive or innovative that enriches and deepens that emotional connection. Where fans are aware of the linkage and further believe that there is benefit to the property and to the fan experience (arising from the sponsorship), there is a 71% uplift in commercial effects.*
Meanwhile, offer fans a 24/7 experience through branded content and increase relevance through contextual and geo-targeting. Sponsors can also seek to augment and gamify sports consumption.
Trigger consumption opportunities
The third way to grow with sports is through sales – generating a commercial return is the most important overall objective for sponsors or non-sponsors alike. The best way is to Integrate a brand’s product or service into the fabric or experience of the event. By focusing on products connected to an event that are a natural fit or can be enjoyed during the event. Campaigns should promote relevant products or services at relevant moments, including athlete participation, home matches or weather triggers. This strategy will help improve understanding of sports event ROI.
The whole sports community from the fans and sportspeople, athletes and teams through to leagues and associations, media and influencers to advertisers and brands have all embraced this brave new world of sports. It is an evolution that has the potential to enrich the experience for everyone.
Even when fans are allowed to return to live sports events, online platforms and brands will continue to enhance and build on that experience. The potential, the reach and the creativity that online platforms can offer are only beginning to be realised.
* Professor Tony Meenaghan, Jamie Macken and Mark Nolan, Core Ireland, 2018
Rather than bundle social video into sponsorship deals, Premier League clubs want to carve out its commercial value to convince sponsors to pay more for that engagement.
The modern-day newsfeed is as stuffed with posts from wannabe stars and celebrity spats as it is with videos from training grounds and changing rooms. Yet many of those creating this content aren’t sure of its commercial worth as it becomes increasingly hard to ignore how much more exposure football teams can get on social media compared to TV.
But because it’s tricky to track the value a brand gets on social, it’s arguably been massively undervalued. No commercial chief can point to half a million Facebook views and say ‘that’s just helped secure my new partnership deal’ when measurement is so blunt. On the other hand, many would ask ‘what’s the cost of not doing it?’
Hundreds of millions in the case of Real Madrid’s Cristiano Ronaldo, whose social media accounts generated an eye-bulging $500m in value for Nike last year according to sponsorship analytics company Hookit.
While Ronaldo isn’t a club, he is a media owner like the Real Madrid team he plays for and, just like his employers, the Portuguese forward knows that content and platforms he owns are in high demand. The world’s most prolific athlete on social media had one post last year that was worth $5.8m after it racked up 1.7m ‘likes’ and nearly 13,000 comments due its timing with Portugal’s Euro 2016 victory.
Ronaldo’s post was worth $5.8m after racking up 1.7m ‘likes’
Valuations like these are frequent as they are rooted in the old media equivalency rules of sponsorship. Hookit’s methodology uses average number of impressions per interaction to come up with a monetary value when really sponsors want a clearer way to compare social media posts with TV inventory. What the likes of Hookit do prove, however, is just how much teams could be missing in the media valuations they currently conduct – especially as brands demand sharper measurement from all parts of the marketing mix.
“Some clubs are not doing it [measuring social video] right and those who aren’t need to change the way they are approaching brands,” says Jean-Pierre Diernaz, vice-president of marketing at Nissan Europe. The car maker, which sponsors Manchester City and the Uefa Champions League among others, sees a potential in a fast spinning sports industry and yet is perturbed by what it deems is an unwillingness to fix what has become a largely inefficient market.
The social video sports revolution
Pound-busting TV deals pushed the 20 top-flight English teams to post record revenues of £3.6bn between 2015 and 2016 and yet they still struggled to make a profit. Collectively, Premier League clubs made a pre-tax loss of £110m, according to Deloitte, stressing the need for additional revenue streams at a time when many commercial bosses are yet to properly monetise their online fanbases.
“Every club has a certain number of fans but what is important is those who are actively engaging with the club,” continues Diernaz. ”The clubs need to be actively showing on the platforms that here is the value. If you look at the top 20 YouTubers in the world they are getting a lot of business with what they are doing so why would you not be operating the same as a football club. It’s clearly a strategy that would accelerate this for clubs.”
Several Premier League clubs are wise to the opportunity, resolving to give brands what they want in the hope of extracting more money from sponsorships. When City Football Group’s (CFG) commercial boss Tom Glick says he can see a time when social video could help his team renegotiate deals, he’s actually talking about a point when he and his team understand the market value of every post and the revenues they generate.
Numbers like that could come in handy if City were to try to convince Nike to top the £60m a season, 15-year deal with Chelsea when it comes to renegotiations. A club like Manchester City could potentially command tens of millions in media value on TV coverage alone. Add social into a mix and that could significantly inflate the media value of said sponsorship deal. Placements that were once thought useless on TV such as those at the club’s training ground could be worth more to a sponsor looking to reach the growing number of younger fans who aren’t only concerned with what their club does on match days.
Training ground placements could prove valuable to City, with fans concerned with the club beyond match day
“Often what’s holding social video back is it is generally wrapped into a larger sponsorship deal which can undervalue what that media represents because its not pulled out or compared with other formats – like display advertising – that might be getting sold… to me social video is more valuable than a display ad on a club’s website and yet in many cases these things are not necessarily being valued in the same way,” suggests Gareth Capon, the chief executive at social video production business Grabyo.
“If you’re a training ground sponsor then you don’t get much TV presence on game day, it’s more the main kit and headline sponsors,” he continues. “But now with social video you suddenly have all these assets where fans who want to know what’s happening with their club each day get to see your brand and those posts are shared all around the world. That’s a real change and the value for that media is not well understood… but once it starts to get compared with traditional TV advertising or and other forms of advertising, or at least it’s valued as a component of an overall sponsors package, then I think its value will rocket.”
Being able to quantify the value of social media
Southampton, like City, have made strides in recent years to move away from being so reliant on broadcast, focusing on depth of engagement rather than mass exposure. WPP-owned sports marketing agency Two Circles is helping it make the transition, which is very much a work in progress. “It’s about how best to value the video so we’re not only doing it in a traditional sense,” says James Kennedy, Southampton FC’s head of marketing. “We’re going down much more of an impression-based route as oppose to a sales route.”
This means partnerships aren’t typically signed off with an agreed number of tweets and database blasts to feign brand activation. Rather, Southampton are focused less on selling price and impressions and much more on delivering engagement and value.
“The ‘impression-based route’ is about understanding a brand’s target audience and helping them reach this group (in a targeted, cost efficient way) across the club’s entire digital network – web, email and social,” adds Kennedy. “So while achieving mass brand exposure and positive affinity is one objective, Saints can help brands develop campaigns to achieve specific objectives because they can segment their entire digital fanbase.”
Methods like this are heavily reliant on equivalent media value measurement. In the case of Southampton, the club argues that it doesn’t apply an “equivalent” media value in the traditional sense. However, because they – along with Two Circles – eschew inflated media values, they have a more consistent benchmark for a marketer to compare the impact of a campaign with buying the media space elsewhere.
Southampton FC’s marketers have become smarter as to how they use their owned media to generate commercial value
Simply put, what Southampton et al are using involves reach and frequency measures of signage to determine the value of sponsors exposure. These are calculated in differing ways and to varying degrees of sophistication but every measure – or impression – is ascribed an equivalent media value that a marketer can compare with paid for advertising. Hence, the underlying assumption for any brand tracking social video this way is it keeps their sponsorship rooted in the value of logo exposure as well as brand equity.
“The way content is valued is media equivalency so if Chevrolet wanted to buy ad space from TV for millions of people then how much would that cost versus being on the front of the Manchester United jersey… it’s exactly the same premise for how we [Nielsen Sports] value digital and social content,” says Max Barnett, global head of digital at Nielsen Sports. The measurement firm is readying a product it claims brings social media and traditional media valuation together for the first time, meaning for every minute of brand exposure data collected, an average of 5,000 data points are input to algorithms to calculate qualitative and valuation based outputs. While similar tools exist, Barnett hopes Nielsen’s own alternative becomes a unified measurement of sponsorship across all media channels.
“We’re seeing more clients’ commercial teams target 15% to 20% share of media value through digital and social” he continues. “If you have declining TV audiences then that’s a really important gap to fill. The audiences are more than likely not leaving, but consuming the content in a different way. Likewise, you could see brands selecting properties with a more significant social footprint to align to their wider marketing channel objective. Could we also see brands go after digital and social assets in the not too distant future? That depends on how rights holders want to package and promote.”
Is it time for football clubs to think like media owners
Some Premier League bosses hope to do this using social metrics such as earned impressions, shares and followers. The Drum understands a number of commercial bosses have at least considered the possibility of adopting a cost per engagement as a new standard in ROI measurement. While these talks are yet to materialise into anything beyond speculation, that they are even happening is vindication enough of social video’s potential value.
Putting a price on social video has been a thorny subject for some time and it was a challenge we have been seeking to shine more light on with our research report series,” says Michael Litman, founder and chief executive at Burst Insights. For example, the social analytics firm found that of the top 20 best performing videos across each social video platform from last season only Manchester United and Chelsea saw exposure value within the set reach over 31m. Arsenal ranked third, Liverpool FC fourth, Manchester City were in fifth place and Tottenham Hotspur rounded out the top six.
“This shows that for example Arsenal are overachieving on social video performance versus actual player performance on the pitch,” adds Litman. “Spurs fans on the flip-side I think will prefer to be nearer the top of the table in real life. I think we will see in time real world performance, correlating more closely with digital performance as the clubs become more akin to global media broadcasters in their own rights.”
Sports sponsorship has become a new game stuck with old rules. No longer is it enough for rights holders to give sponsors the most media for their money. Instead, sponsors want to know how the rights they’re buying add value to their brands, a shift that’s forcing the likes of Manchester City and Southampton FC to behave more like media owners.
The global success of the top six [Premier League] clubs generates a constant demand for sponsorship assets,” says Tom McDonnell, chief executive at digital fan interaction specialists Monterosa. “Brands are looking for end-to-end solutions that entertain and engage. It’s not enough to count a ‘view’, which could be fleeting, but to also consider interaction and active conversation. If a club provides better assets via social video with proven engagement and interaction, it differentiates the club’s offering and that hits the bottom line.”
