ieg sponsorship report€¦ · ieg sponsorship report restaurant pizza hut serves up large slice of...

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IEG SPONSORSHIP REPORT

MOTORSPORTS

GLOBAL MOTORSPORTS SPENDING TO TOTAL $5.75 BILLION IN 2017 Motorsports spending remains tepid, but new F1 ownership could revive interest.

Global spending on motorsports sanctioning bodies, teams and tracks is expected to total $5.75 billion in 2017, up 3.1 percent from 2016, per IEG research.

Pressured by ongoing uncertainties in the wake of Brexit, the Donald Trump election and other geopolitical matters, the increase lags IEG’s projected 4.5 percent increase in overall global sponsorship spending.

2017 marks a time of change for the motorsports industry at both the national and international levels. That includes Monster Energy replacing Sprint as title sponsor of NASCAR’s premier series and Liberty Media Corp.’s acquisition of Formula 1, a move that is expected to breathe new life into the global motorsports property.

GLOBAL MOTORSPORTS SPONSORSHIP SPENDING

With deals at the sanctioning body, team and track levels, Toyota Motor North America Inc. was the biggest spender in NASCAR during the 2016 season. The company spent 7.6 times more on the sport than the average of all NASCAR sponsors.

TOP SPENDERS IN NASCAR Toyota spends 7.6 times more on NASCAR than the average of all sponsors.

Construction materials, soft drink, food, telecom and chemicals are the top five most active non-endemic categories sponsoring NASCAR.

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IEG SPONSORSHIP REPORTTHE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING

JANUARY 30, 2017



MOST ACTIVE CATEGORIES SPONSORING NASCAR

Automobile manufacturers are 6.9 times more likely to sponsor NASCAR than the average of all sponsors.

MOST ACTIVE CATEGORIES SPONSORING NASCAR—CAR ENTITLEMENT

Eight percent of NASCAR Sprint Cup Series cars have a primary sponsor in the building and home improvement category.

MOST ACTIVE CATEGORIES SPONSORING NASCAR—RACE ENTITLEMENT

Twenty percent of NASCAR Sprint Cup Series races are titled by a sponsor in the automotive category.

Red Bull is by far the biggest spender in Formula 1. The energy drink company spent 26.1 times more on the motorsports series than the average of all F1 sponsors.

Marlboro is the second most active sponsor (17.9) followed by Pirelli (17.4) in third.



TOP SPENDERS IN FORMULA 1

Red Bull spends 26.1 times more on Formula 1 than the average of all sponsors.

Sports apparel (4.1) is the most active non-endemic category sponsoring F1 followed by alcoholic beverages (2.6) and telecommunications (2.4).

MOST ACTIVE CATEGORIES SPONSORING FORMULA 1

Automobile manufacturers are 4.6 times more likely to sponsor Formula 1 than the average of all categories.

While sports apparel is the most active non-endemic category, the non-alcoholic beverage category is the biggest spender. Non-alcoholic beverages spend 5.1 times more on F1 than the average category.

TOP CATEGORY SPENDERS IN F1

Automotive brands spend 6.4 times more on Formula 1 than the average category.



RESTAURANT

PIZZA HUT SERVES UP LARGE SLICE OF THE NCAA Social media affords year-round activation platform.

Pizza Hut has taken a bigger bite of the NCAA than other corporate partners, as least as far as activation is concerned.

While most NCAA corporate partners activate around the NCAA’s crown jewel—the Division 1 Men’s Basketball Championship—the Yum! Brands, Inc. subsidiary is taking a broader approach to its sponsorship.

The restaurant chain, which announced a multiyear partnership with the NCAA in late 2016, is activating the tie with a social media campaign around the majority of the governing body’s 32 D1 championships.

The linchpin of the program is Jason Zone Fisher, the “Pizza Hut All-American.” Fisher won the title as part of a nationwide search that offered one winner the opportunity to attend and create content from all D1 championships.

The campaign includes the Men’s Basketball Tournament as well as cross-country, water polo and other lower-profile finals.

“Most companies sign up for March Madness. We wanted to take a unique twist and activate at every Division 1 national championship,” said Courtney Moscovic, Pizza Hut manager of PR and partnerships.

Pizza Hut looks to create fun, viral content at each event.

The pizza purveyor activated the Men’s Cross Country Championship with a competition that compared how long it took Fisher to make and deliver a pizza with the time it took Internet sensation Noah Droddy to run a 5K. The competition was announced by retired NBA player Shane Battier.

Pizza Hut also activated the event with free pizza, a drumline and a billboard touting an official proclamation from the mayor of the host city, Terre Haute, Ind., to rename the town Terre Hut in honor of Pizza Hut and the Cross Country Championship.

Pizza Hut leveraged last month’s Men’s Water Polo championship with a Facebook Live promotion that offered free pizza for a year for people who could correctly guess how well Fisher would do with difficult water polo skills.The promotion has thus far received more than 17,000 views.

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Fisher distributes the content on his Twitter and Instagram (@PHAllAmerican) channels.

Pizza Hut also is activating the sponsorship in restaurants. The company has given franchisees a “sponsorship playbook” with NCAA logos for point-of-purchase displays, radio ads and other local activation.

The playbook also offers guidance on sponsoring regional NCAA championships. That includes a list of games, where they are located, how to engage team members and activation ideas.

Roughly 94 percent of Pizza Hut’s 6,200 restaurants are franchised.

The NCAA represents Pizza Hut’s only national sponsorship. The company sponsors a handful of pro sports teams in Dallas—the location of its corporate headquarters—while franchisees spearhead deals in local markets.

WHERE PIZZA COMPANIES SPEND MONEY

MOST ACTIVE SPONSORS IN THE PIZZA CATEGORY



SPONSOR PROFILE

HOW DELOITTE IS USING SPONSORSHIP TO SHOWCASE DIGITAL EXPERTISE Restaurant chain leverages NCAA with year-round social media campaign.

Deloitte is taking another look at sponsorship. The professional services firm has partnered with the U.S. Tennis Association to promote “Look Again,” an advertising campaign designed to promote Deloitte’s offerings beyond tax, finance and other advisory services the company is historically known for. “We’ve been around for 140 years, but there are a bunch of areas where we work, industries we serve and services we provide that people don’t know about,” said Pete Giorgio, a principal with Deloitte’s sports consulting practice. That includes helping clients enhance their digital capabilities. Deloitte will use the USTA as a proof point on how it can help sports organizations and other businesses navigate the digital waters. The company is helping the National Governing Body revamp its enterprise digital technology and build its grassroots digital capabilities, with the goal of driving participation in the sport of tennis. “We don’t want to just slap our name on something. It’s about telling a joint story of growing the sport of tennis, bringing in more youth and shepherding the USTA in the digital space.” The USTA has been a client of Deloitte’s for the past year, said Giorgio, who runs Deloitte’s sports consulting group. “As the two organizations got to learn more about each other, it became clear there were a lot of ways we could help each other out. There was an opportunity for a true partnership where we can leverage each other’s strengths to further our individual goals and the broader goal of bringing more kids into the game.” The multifaceted partnership includes the US Open, US Open Wheelchair Competition and the U.S. Davis Cup and Fed Cup teams. The sponsorship includes branding on the warmup jackets for the Davis Cup and Fed Cup teams. Deloitte will also use the partnership for client entertainment, said Giorgio, noting that the company has previously hosted clients at the US Open.

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Deloitte uses its partnership with U.S. Golf Association in a similar manner. The company—which inked a multiyear sponsorship with the USGA in early 2016—uses the partnership as a case study to show how it helps foster collaboration and innovation between the USGA, state and regional golf associations and clubs and facilities. In addition to its professional services work with USGA, Deloitte supports USGA initiatives and championships including programs that celebrate volunteerism and promote inclusion and innovation. Deloitte has worked with the USGA since 2014, said Giorgio. In addition to overseeing Deloitte’s sports consulting group, Giorgio helps run the company’s team that manages and activates sponsorship. “We think the connections between the two are important.” Other Deloitte sponsorships include the U.S. Olympic Committee, USA Rugby, US Equestrian and US Speedskating. The company also sponsors marathons, orchestras, science museums and other properties at the local level. WHERE DELOITTE SPENDS MONEY



SPONSOR PROFILE

JUST WHAT THE DOCTOR ORDERED: BAYER PARTNERS WITH BIG TEN Athletic conference uses audience research to make the case for multiyear partnership.

With its proposed $66 billion acquisition of seed maker Monsanto as a backdrop, Bayer is expanding its sponsorship portfolio in the U.S. market. The German life sciences giant has signed a multiyear partnership with the Big Ten Conference to promote STEM education and its healthcare and agricultural science businesses. The sponsorship does not currently include an official designation. While Bayer AG is an active sponsor in Germany—with a focus on properties located near its global headquarters in Leverkusen (Bayer 04 Leverkusen soccer team, BayArena, etc.)—the company’s U.S. division has kept a fairly low presence on the sponsorship scene over the past few years. The Big Ten approached Bayer as part of its sales strategy to prospect companies based in its marketing footprint. Bayer’s U.S. subsidiary is located in New Jersey, part of the conference’s eastern expansion. The initial meeting revealed an interest in promoting STEM education and the company’s involvement in the healthcare and agricultural industries, prompting the Big Ten to take a deeper dive into students and alumni of its member schools. The strategy paid off: The research showed that Big Ten schools produce nearly 20 percent of graduates with a Ph.D. in science and that six out of the top ten agriculture producing states are located within the Big Ten footprint. “We combined the STEM piece and the agriculture piece, and Bayer saw a nice fit,” said Scott Bailey, general manager of Learfield Sports’ Big Ten Sports Properties, the Big Ten’s multimedia rights holder. The sponsorship affords branding at Big Ten Championship events starting with the NCAA Division 1 Men’s Basketball Championship. The partnership also includes digital inventory as well as a scholarship, award or other soon-to-be-determined platform centered on STEM education.

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Uses New York Red Bulls For Local Service Initiatives Bayer in 2015 announced a multiyear sponsorship with the New York Red Bulls, a partnership that is largely centered on community involvement. Bayer’s U.S. headquarters is located in Whippany, N.J., roughly 20 miles from Red Bull Arena in Harrison, N.J. Over the past two years Bayer has sponsored Red Bulls’ community outreach efforts in commemoration of the Sept. 11, 2001 terrorist attacks. The events have focused on cleaning parks throughout New York and New Jersey, a platform that plays up Bayer’s agricultural and sustainability message. Bayer may sponsor a military appreciation night in 2017, although it has not been confirmed, said Amy Scheer, New York Red Bulls’ chief commercial officer. The partnership involves designation as the Red Bulls’ official life science partner. The designation includes the pain relief, allergy relief, vitamins and crop protection categories.



ABOUT IEG AND ESP PROPERTIES

IEG has shaped and defined sponsorship over three decades. It is the globally recognized source for industry insights, trends, training and events via sponsorship.com, its annual conference, online publications, trend reports, surveys and webinars.

IEG is part of ESP Properties, a WPP company. As a commercial and creative advisor for rightsholders, ESP Properties helps organizations unlock greater value from their audiences and brand partnerships.

Our consulting team assesses and advises how to grow the value of rightsholders’ commercial programs. We do this through a full range of services across data, digital and content development to better understand audiences and create more relevant ways to engage with them. This provides brand partners with new ways to connect with communities of fans and followers, growing the potential value of commercial partnerships.

Our sales team provides partnership strategy and sales representation to the world’s most active sponsors, within and beyond the WPP network of brand clients. Through WPP we have extensive contacts and deep insights into what it takes to create successful partnerships.

For more information about IEG and the sponsorship industry, please visit www.sponsorship.com, www.espglobal.com, or call +1 312 944 1727.

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ieg sponsorship report€¦ · ieg sponsorship report restaurant pizza hut serves up large slice of...

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