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SBD/August 25, 2011/Marketing and SponsorshipPrint All
MillerCoors is extending its reach into college sports by striking deals with 23 schools, including blue-chippers like Arizona State, California, Clemson, Colorado, Penn State and Washington. Some of the schools represent renewals of deals that have been in place for years, while other schools either did not have a sponsor in the beer category or have switched from a competitor to MillerCoors. More schools are expected to come on board as the beer company adds to its list of sponsorships. MillerCoors is in the process of developing an integrated plan that includes heavy responsibility messaging, hospitality, tickets, media buys and point-of-sale materials for its retail partners. MillerCoors VP/Media & Marketing Jackie Woodward said the company still is working with the schools to determine how much of the advertising will be responsibility-based, but she said it will be a significant portion of the program. Among the restrictions is that MillerCoors cannot use school marks on its bottles, cans or any other packaging. The beer maker also cannot use actors to portray athletes or the likeness of an athlete in its promotional materials. “We have a very strong history of marketing to legal drinking-age consumers and we have a very strong commitment to the responsibility message,” Woodward said. “That’s integral to these deals.” The ad inventory for MillerCoors includes TV, radio, print and online. It can use school marks in those ads and on point-of-sale material. “We have been advertisers in college sports for many years,” Woodward said. “What you’re seeing is that we’re working with a broader responsibility platform, as well as marketing directly to alumni.”
WORTH MORE THAN $10M ANNUALLY: The contracts were brokered by IMG College and Learfield Sports, the two most prominent multimedia rights holders in the college space. MillerCoors was represented by its sports marketing agency, Genesco. Terms of the deal were not announced, but industry sources believe that combined they are worth in excess of $10M a year. MillerCoors says that the full cost for the college sponsorships is being covered by the brewer and will not be passed on to distributors. In addition to these school deals, MillerCoors has made a large media buy on FSN’s college broadcasts, as well as a promotional buy with the Pac-12. FSN represents Pac-12 Properties. MillerCoors will be running a series of 10-second vignettes featuring the Coors Light brand and a responsibility message on 175 games televised by the network. Co-branded MillerCoors and Pac-12 point-of-sale materials will be at retail throughout the conference’s footprint offering chances to win tickets to the Pac-12 football championship game. Five of the 23 schools in the MillerCoors portfolio are from the Pac-12.
Dollar General today announced a one-year sponsorship of NASCAR that will result in an in-store promotion around the Chase for the Sprint Cup at all 9,000 of its retail outlets. The company this weekend will unveil a "Race in to Win" sweepstakes that offers customers the chance to win more than 9,000 prizes highlighted by a trip to Las Vegas for NASCAR's championship celebration and a $250,000 giveaway. It is the first time a national retailer has run a promotion around the Chase. Dollar General plans to have "Race in to Win" promotional materials on its shelves, flyers and receipts. The in-store promotion will incorporate several of NASCAR's consumer-package-goods sponsors, such as Unilever, which will promote Hellman's; Coca-Cola, which will promote Powerade; and Kraft, which will promote Oreos. Dollar General will use driver Dale Earnhardt Jr., who has a relationship with Hellman's through his Nationwide Series team, as the face and voice of the program in stores, online and in radio advertisements. NASCAR partnered with Wal-Mart earlier this year, but that deal is non-exclusive and driven primarily by NASCAR merchandise sales. NASCAR worked with its retail program agency, Bulldawg Marketing, to put together the agreement. Dollar General does not have an agency and plans to manage the promotion internally.
Oregon State Lottery partners schools
for scratch-off ticket
FLORIDA GETS IN ON THE ACTION: The Florida Lottery yesterday announced a partnership with eight colleges in the state -- Central Florida, Florida, Florida A&M, Florida Atlantic, Florida International, Florida State, Miami and South Florida -- that will result in the Fan-tastic College Football Promotion. Participants who buy a lottery ticket for $10 or more will receive a voucher with a serial number that can be entered into a sweepstakes. Awards include $10,000, trips to a bowl game and team merchandise. The promo will last Aug. 29-Nov. 30 (Florida Lottery).
Jersey sponsorship income for the 20 EPL clubs for the '11-12 season "has jumped almost 20 per cent" from $164.5M (all figures U.S.) to $192.5M, according to Alex Miller of the London INDEPENDENT. The $192.5M total "does not include any future sums that will accrue to Manchester United” from their deal with DHL to sponsor the team's training jerseys, which is valued at $16.5M per season. The sponsorship values have been “ratified by informed sources at each of the 20 clubs, among whom only one club -- Blackburn Rovers -- will see a year-on-year decline in shirt income" from $2.5M to $0 after the club donated the branding space on their kit to England's national charity. Thirteen of the other 19 clubs "have maintained the same levels as in 2010-2011, while six have registered increases.” Manchester City’s previous deal with Etihad Airways was worth $12.3M a year, but the new “record 10-year sponsorship deal" with Etihad sees a $20.5M increase to $32.8M a year. Man City, ManU and Liverpool are all now making at least $32.8M, or £20M, per year "from first-team shirt deals.” Aston Villa registered the “biggest leap" next to Man City by changing their $8.2M-a-year deal with FxPro to a $13.1M deal with the casino company Genting (London INDEPENDENT, 8/24).EPL CLUB SHIRT SPONSORSHIPS (All figures U.S.)
CLUB '10-11 SPONSORANNUAL VALUE '11-12 SPONSORANNUAL VALUE Manchester United Aon Corp.$32.6M Aon Corp.$32.6M Liverpool Standard Chartered$32.6M Standard Chartered$32.6M Manchester City Etihad Airways$12.2M Etihad Airways$32.6M Chelsea Samsung$22.5M Samsung$22.5M Tottenham Hotspur Autonomy$16.3M Autonomy^$16.3M Aston Villa FxPro$8.2M Genting$13.0M Arsenal Emirates Airlines$9.0M Emirates Airlines$9.0M Fulham FxPro$6.5M FxPro$6.5M Everton Chang Beer$4.2M Chang Beer$6.5M Newcastle United Northern Rock$4.1M Northern Rock$4.1M Wolverhampton Sportingbet$1.8M Sportingbet$1.8M West Bromwich Homeserve$1.2M Bodog Europe$1.8M Swansea City** n/an/a 32Red$1.8M Sunderland Tombola$1.6M Tombola$1.6M Stoke City Britannia$1.6M Britannia$1.6M Wigan 188Bet$1.1M 12Bet$1.6M Bolton 188Bet$1.2M 188Bet$1.2M Norwich City** n/an/a Aviva$569,855 Blackburn Crown Paints$2.4M Prince's Trust***---- West Ham United* SBOBET$2.8M n/an/a Birmingham City* F&C Investments$976,817 n/an/a Blackpool* Wonga$813,330 n/an/a Queens Park Rangers** n/an/a none^^----
NOTES: n/a = Not applicable. * = Team relegated following '10-11 season. ** = Team promoted to EPL following '10-11 season. *** = Shirt deal part of charity work. ^ = Autonomy's mobile platform -- Aurasma -- is being featured on Tottenham's shirts during the '11-12 season. ^^ = While QPR began the season without a shirt sponsor, it is widely speculated that new owner Tony Fernandes will put his company, AirAsia, on the shirts.
CBSSports.com execs said they are essentially sold out for the site's online advertising inventory for the upcoming fantasy football season, another indicator of spending and interest returning to the sector following the nearly five-month NFL lockout. Lead sponsors for CBSSports.com's fantasy football pages are Sprint, Subway and Volkswagen. The site is now pushing sponsors to other areas such as college fantasy football, news and other NFL content areas. Fantasy player registrations, meanwhile, are tracking slightly ahead of '10 for CBSSports.com, one of the industry's most dominant entities along with Yahoo, ESPN and NFL.com. "It's very encouraging. We basically signed up all the pent-up demand we had that was held back due to the lockout, and are now after new business and gaining additional market share," said CBSSports.com Senior VP & GM Jason Kint. "You never would want to go through [the lockout] and that stress level again, but I'm very excited about where we are now."
Less than a month after adidas introduced the uniform New Zealand's national rugby team will wear in the Rugby World Cup, a controversy has "begun to build, bringing the vociferous passions of sports fans into conflict with the financial logic of a multinational company," according to Jonathan Hutchison of the N.Y. TIMES. Fans in New Zealand "discovered that the shirts were being sold online in the United States for about half the local price," and in the U.K. "for only slightly more than the United States price." Local news outlets "questioned why New Zealanders were being asked by Adidas ... to pay so much more than consumers in other countries for the official shirt of their own team." A few days "after the initial outcry, the furor escalated when news outlets reported that Adidas had told Internet retailers selling to international markets to remove New Zealand from their delivery options." The company "has since apologized for that decision and withdrawn the instruction, saying it had intended only to protect New Zealand retailers." Still, the "level of national outrage rose further." adidas met with retailers "but refused to reduce its wholesale price." Hutchison notes the controversy "does not appear to have hurt Adidas’s revenue in the short term." But New Zealand-based sporting goods retailer Rebel Sport Managing Dir Rod Duke indicated that "many customers had said they were planning to cover up the Adidas logos on their All Blacks jerseys." For adidas, the incident has become a "lesson in the risks of associating a corporate brand with a national obsession." The company said that it "had canceled a corporate event scheduled for Aug. 11 in light of the public relations predicament and removed branding from six company vehicles after staff members received threats and gestures from members of the public." David Huggett, adidas' country Manager for New Zealand, said, "We poorly handled the outpouring of concern from fans about the price" (N.Y. TIMES, 8/25).
TECH CRUNCH: IBM has signed a "multimillion-pound deal" in the U.K. to sponsor ITV's coverage of the Rugby World Cup, which will be played in New Zealand from Sept. 9-Oct. 23. ITV will broadcast "each match live followed by an hour-long highlights programme." IBM’s multimedia sponsorship "includes a presence on air, online and on mobile platforms." The sponsorship "was negotiated by Mindshare" (CAMPAIGNLIVE.co.uk, 8/25).
CBSSPORTS.com’s Pete Pistone reported NASCAR's "Silly Season" so far "has been nothing more than ‘Snoring Season’ with not much else announced for 2012 driver, team and sponsor line-ups.” Clint Bowyer “would like nothing more than to extend his contract with Richard Childress Racing,” but the reported “hold-up is around finding necessary sponsorship for the RCR No. 33 entry, which will lose General Mills at the end of this season.” Steven Wallace’s Nationwide Series sponsor 5-Hour Energy “continues to be in the mix as a potential replacement but right now there is no agreement.” David Ragan is facing the "same scenario” with sponsor UPS. Matt Kenseth’s ride is “without a full-time commitment” for next season and Carl Edwards “doesn’t have a complete season worth of funding for his car.” Aflac is “expected back in a limited role but the Michigan garage area was rampant with rumors Home Depot, who reportedly coveted having Edwards as its spokesperson had made the move to Joe Gibbs Racing, might find its way” to Edwards’ No. 99 car. Pistone noted The Home Depot management watched “arch rival Lowe’s grab the spotlight for five years with Jimmie Johnson’s title runs,” and “some restlessness within Home Depot’s corporate offices would be more than understandable.” Meanwhile, Pistone noted the “possibility of Red Bull staying in NASCAR, either with a new team or with another organization, remains alive.” Still, sources said that the “longer time passes the less likely the company inking a sponsorship-only deal becomes” (CBSSPORTS.com, 8/24).
SETTLING THE SUIT: SCENEDAILY.com’s Bob Pockrass reported driver Elliott Sadler and Richard Petty Motorsports “have settled a lawsuit filed by Sadler against his former team.” Sadler’s attorney, John Buric, said that the settlement terms “are confidential.” Sadler “claimed in court documents that his former team was withholding a payment to him because it accused him of influencing Hunt Brothers Pizza to leave RPM and sponsor him at Kevin Harvick Inc.” The lawsuit was “against the new ownership group of RPM, which was sold by the Gillett family to Richard Petty and two investors last November” (SCENEDAILY.com, 8/24).
HAMMERING IT HOME: Irwin Industrial Tools VP/Marketing Curt Rahilly said that the company’s NASCAR sponsorship “has been a big part of putting Irwin’s brand ‘on the map.’” In Tennessee, Jeff Bobo noted Irwin’s product awareness “has tripled” since the company became involved in the sport eight years ago. The company last year “switched from season-long NASCAR driver sponsorship" to a "multiyear sponsorship contract exclusively for the August Bristol Cup night race.” Rahilly said that the company “gets more bang for its buck sponsoring one specific race per year than sponsoring a single driver for 36 races” (Kingsport TIMES-NEWS, 8/24).
NOTES: The Toyota Camry “will pace the 2012 Daytona 500 -- the first time a foreign automaker will enjoy the honor in The Great American Race.” Since Toyota entered NASCAR in ’07, its cars “have paced stock car events at 11 tracks that host” NASCAR Sprint Cup Series events (Daytona Beach NEWS-JOURNAL, 8/24)….Chevy and Road America announced a marketing partnership that will make the Chevrolet the Official Vehicle of the track. Road America will also bring back the Corvette Bridge with plans to hold a rededication ceremony on Aug. 21 (Road America).
ADWEEK's Anthony Crupi reported ad space for college football broadcasts is "selling faster than ever," and the "biggest windfall has been at ESPN." ESPN President of Customer Marketing & Sales Ed Erhardt is close to "being out of sale with the Saturday night broadcast package, 'ESPN College Football' on ABC." Spots in the primetime college games "cost $100,000 a pop." In addition, Erhardt said, "We have very little inventory left in the BCS. A lot of the baby bowls and BCS games move really fast because there are so many season-long deals. A lot of postseason inventory is baked-in." Crupi noted "auto dollars are driving the college football market, as are beer and insurance," but movie dollars also are "pouring in, especially in the December and January games" (ADWEEK.com, 8/24).
DIAMOND IN THE ROUGH: The PGA Tour FedExCup Playoffs began today with the first round of The Barclays, and Barclays CEO Bob Diamond said sponsoring the event is an "opportunity for us to spend time with our customers and clients." Diamond: "It’s a good event, it helps in our overall branding of Barclays in the U.S.” The bank is sponsoring the tourney through '16 (“Closing Bell,” CNBC, 8/24). Meanwhile, Diamond said what golfer Phil Mickelson, who endorses Barclays, has been "able to do as we have tried to build our brand here in the U.S., in terms of representing Barclays and spending time with our clients and customers, has been fantastic." Diamond: "He brings out the best of the game of golf" ("Golf Central," Golf Channel, 8/24).
ENERGY BOOST: Chesapeake Energy has renewed its deal to title sponsor the Capital Classic, a basketball doubleheader between West Virginia Univ. and Marshall Univ., "for $50,000 annually over five years." That is up $10,000 per season "over the past five years" of the deal (Charleston DAILY MAIL, 8/24)....The Blue Jackets have signed a multiyear extension of their partnership with Columbia Gas. The Columbus-based company is an original corporate partner of the NHL club (Blue Jackets).
GRAMMAR SCHOOL: Old Navy is "reprinting thousands of college T-shirts to correct an embarrassing error." The shirts for dozens of schools that debut this month were missing the necessary apostrophe in "Let's" (L.A. TIMES, 8/25). NBC’s Natalie Morales noted students "are flocking to Yahoo to mock Old Navy’s new college T-shirt that flunked basic grammar” ("Today,” NBC, 8/25). TIME.com's Allison Berry writes under the header, "Old Navy's Grammar Gets Sent To The Back Of The Class" (TIME.com, 8/25).