Sponsorship Outside the Airline Industry
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Sponsorship is a big business. Myriad brands in myriad industries spend cumulative billions every year.
It’s an industry where massive, global names such as Pepsi, Coca-Cola and Anheuser Busch have each spent hundreds of millions in recent years to sponsor everything from music festivals to sports teams to competitions around the world.
But according to Independent Evaluation Group (IEG), which has been tracking global sponsorship trends for the past 29 years, sponsorship growth is falling short of industry projections. Last year, North American spending grew 4.5 percent, well below the 5.5 percent growth IEG had forecast last January. Similarly, worldwide spending increased 3.9 percent in 2013, below IEG’s projection of 4.2 percent.
Global sponsorship spending may still be projected to reach a whopping $55.3 billion in 2014, but it’s growing at a slower rate than it once was.
So, what’s going on? While sponsorship may be more effective at reaching some consumers than traditional media, social media networks and viral digital campaigns have emerged in recent years as an extremely effective way for brands to target and interact with younger consumers.
Still, some brands are finding ways to get the most out of sponsorship and digital marketing trends by marrying the best of both strategies.
Johnnie Walker is a good example. The whiskey maker’s deal with McLaren Formula 1 evolved beyond the traditional on-car advertisement to include exclusive, behind-the-scenes video content that Johnnie Walker shares with consumers through social media.
Similarly, MasterCard is leveraging its partnership with singer Justin Timberlake to reward select fans who participate in the credit card company’s “Priceless Surprises” social media campaign.
“The items and experiences we use for surprises are largely built out of our sponsorship assets,” explains Mike Tasevski, MasterCard Canada’s vice president of account management.
Airlines are also leveraging new digital trends to extend their brands. In 2012, Delta Air Lines used Instagram for its sponsorship of the New York Rangers’ hockey team by selecting six popular users on the mobile app to share pictures from the game.
And for other brands, such as Wells Fargo’s sponsorship of a top-caliber PGA Tour event in Charlotte and TD Bank’s sponsorship of the Boston Bruins’ home rink, it’s been as simple as shifting ticket giveaways and engagement to social media. All in all, the integration of social media with corporate sponsorship has given brands the opportunity to leverage both ends of the rink.