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Marketing and Sponsorship

Sports Sponsorships Relying More On Results-Based Models

Brands including A-B InBev are adopting a "new sponsorship model, under which teams, leagues and other so-called rights holders get paid more if they reach certain goals," representing a "sea change in the world of sports sponsorships," according to E.J. Schultz of AD AGE. Marketers are putting "more scrutiny on sports deals once powered by access to tickets or traditional media buys like TV, radio and billboards aimed at coveted male audiences." For "most big brands, simple awareness no longer cuts it, because those audiences can be found in less expensive ways, like through targeted digital media, which does not come with multimillion-dollar sponsorship fees." Engine Shop CEO Brian Gordon said, "Ten years ago, it was guys and sports. Well, guys are everywhere now." Televised sports "remain a ratings behemoth," though some "troubling signs are on the horizon." What is "more worrisome is the graying of sports audiences." A-B InBev U.S. VP/Marketing Marcel Marcondes: "TV viewership is down, venue attendance is down. For us as brand builders, it's much more challenging to grab consumers' attention." Still, the "sports sponsorship industry remains healthy" (ADAGE.com, 6/25).

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