Sponsorship & motorsport - the smart combination

Résumé du document

Advertising is invading our life. Ads are everywhere: in the subway, in newspapers, on bus shelters etc. With all this clutter, the creative work behind the ad is often the only way to make it stand out of the mass and be retained (under the condition the message is clear enough). Media communication is dominating but faces a severe crisis which makes sponsorship the new trend with a 25% growth over the last 3 years according to the International Event Group. It has significantly matured over the last 15 years and accounts for an average 91% of firms' communication budgets in France (2,6 billion for the year 2005 to contrast with 29 billion spent on advertising). Moreover, sponsorship is perceived has a highly cost effective way to communicate. Contrary to classic advertising, which is principally meant to sell, sponsorship allows the brand to associate itself with the values of an event, a team or a star thus increasing its brand image along with its awareness. The gain may be seen as abstract but shows real impact not only on sales but on a very broad range of activities. To achieve a good ROI however, the sponsor needs to be thoroughly selected. Since he will be expected to represent and foster the values the brand wanted to express, the smallest mistake may result in unwanted associations which will be highly damaging for the sponsor. This memoire will primarily focus on the sport side of sponsorship since it represents 80% of the total sponsorship market (commonly admitted number due to the difficulty to come out with precise figures). To understand the business stakes of sponsorship and answer our problematic we will first determine the different kinds of sponsorship. Who is sponsoring? In what area? With what tools? For what effects? Then, we will find out the place of sponsorship as a channel of communication by comparing its advantages and disadvantages to another Famous French football player, Zinedine Zidane, in front of a wall of sponsors during a press conference media vehicle. Sponsorship is the relationship between a sponsor and a property, in which the sponsor pays a cash or in-kind fee in return for access to the exploit-able commercial potential associated with the property. (IEG, 2001). Sponsorship dates back from the Antiquity with the idea of patronage. It continued during the Renaissance where the aristocracy and the Church patronized many artists in the hope that some of their glory would spring back on the generous giver. This is the premise of sponsorship: paying to associate itself with the success of someone. The first commercial usage of sponsorship appeared in 1861. The British food company Spiers and Ponds sponsored the British cricket team in Australia thus earning a ROI of 11,000£.

Extraits

[...] This could be for annual trade show, a press launch of a new product, opening a new office or outlet, or even an internal event such as a sales conference. The races or specially organised events can bring customers into even closer contact, passenger rides in the racecar, track driving events, even whole corporate competitive events can be part of overall partnership programme. 21/ CONCLUSION Sponsorship is like a Swiss army knife: it can do many things at a cheap price. Less subject to clutter than other medium, it helps a firm changes or improves its image thanks to values transfer. [...]

[...] Team: Sponsorizing a team is a choice made by many companies with 29% of the deals in 2005. How can we explain that passion? First, a team is composed of many members which can considerably increase the frequency the sponsor will be seen. Then, a team may count several stars among its rank that can represent the brand and transfer their values to it. Finally, contrary to a single personality, a team is less subject to hazardous decisions and counter-performances of one person (Marie-José Perec at the Sydney Olympic Games in 2000 for example)7. [...]

[...] The championship runs in 7 weekends with 2 races of one hour each and confronts crew of 2 pilots. Very disputed in 2007, this competition aligns an impressive shelf of different brands of famous cars all together on track and teams worthy of International GT. The richness of the shelf committed (an average of 50 cars each year and 7 different brands), the diversity of drivers countries), the launched starts and the compulsory change of pilots at halfway promise a great and exciting spectacle. [...]

[...] Comparing sponsorship to other media vehicles Please note that we compared sponsorship (bellow the line) to classic above the line medium here. Internet, movies, text messages, iPod etc Are not taken into account either because of their marginality or their support role. Advantages - Pervasive of households are equipped) - Creative impact (convergence of color, sights, sound and music) induces a good memorization of the message 8 - Cost-effective (net CPM : - Hold attention (average household consumes +17h daily) - Some targeting is possible (men on sports programs etc ) - Intrusive Limitations - Costly (production, time and time purchased) - Limited targeting options - Ads slowly decreasing in length but not their price - Fleeting image - Clutter - Zapping induces limited attention Broadcast Magazines - Targeted (demographically and geographically) - Reproduction quality - Creative flexibility (pop-ups, inserts etc ) - Long-life spam - Prestige - Consumer receptivity and involvement - Services (researches) - Credible and positive environment - Cost - Limited reach/frequency - Long lead-time - Clutter Newspapers - Extension penetration of households read a daily newspaper) - Flexibility - Geographic targeting - Reader acceptance and involvement - Services offered - Poor reproduction quality - Short life - Broad reach - Clutter - Much of the news is not new to readers - Limited selectivity Out-of-home - Pervasive - Reach/frequency - Geographic flexibility - Generate awareness - Continuity - Production capabilities - Wasted coverage (everybody is not concerned by the ad) - Limited message space - Measurement problems - Clutter - Wearout 8 CPM (Cost Per Thousand): The cost to deliver an ad message to a thousand people. [...]

[...] Retrieved October from La Tribune Website: http://www.latribune.fr Le Journal du Net. (n.d.). Sponsoring sportif : les points clefs des contrats. Retrieved October from Le Jounal du Net Website: http://www.journaldunet.com/juridique/juridique030527.shtml Lesa Ukman. (1999). IEG's Complete Guide to Sponsorship. 23/23 L'internaute. (2006, March). Les 15 sports les plus pratiqués en France. Retrieved March from L'internaute Website: http://www.linternaute.com/sport/classement/les-sports-les-plus-pratiques-enfrance.shtml Oboulo. (n.d.). Le sponsoring sportif. Retrieved October from Oboulo Website: http:// /expose/sponsoring-sportif.html Oboulo. [...]