Category: Blog

E-Cigarettes – An ethical sponsor? 7th December, 2016

I’m sure by now everyone is familiar with the vaping phenomenon sweeping the globe and the E-Cigarette companies sprouting up at every corner. These are classed as a ‘healthy’ alternative to cigarettes and studies show both sides of the argument as to whether this is a true statement or not.

The large majority of rights holders, predominantly in the sporting sector, have a strict ‘No Tobacco’ sponsorship policy which is completely understandable. There is no link to tobacco and sporting performance and it is detrimental to the image of the club. Not to mention that any marketing of tobacco in the UK, and many countries around the world, is strictly prohibited.

However, E-Cigarettes and Vape brands are increasing their marketing and venturing into the sponsorship space as there are currently no laws in place saying they can’t.

St. Helens, the stalwart of English Rugby League, has recently announced its new Title and Stadium Naming Rights sponsor, leading e-cigarette brand ‘Totally Wicked’. Apart from the slightly odd naming of the stadium, which is now the ‘Totally Wicked Stadium’, it is interesting to see how the club has announced their new Title Sponsor.

In the press release St. Helens have said the e-cigarette brand contributes ‘not only financially, but also in supporting our wider health objectives’. They then go on to mention that they ‘have been able to create a supportive and vape friendly atmosphere at the club and believe the new deal will further their pioneering work by not only helping to raise awareness yet further of the damage smoking tobacco can do [but] also in deterring people from taking on the habit in the first place’.

It is proven E-Cigarettes are a much better alternative to smoking, but they are still addictive and contain nicotine. Whether you agree with this statement or not, it is interesting to see how from a PR perspective a controversial sponsor can be presented in a positive light.

The decision on whether a specific category of brand can become a sponsor or not is down to the rights holder or the governing body. In this case, St. Helens have simply secured a sponsor which will inject revenue into the club without breaking any rules, credit to them. It will, however, be interesting to see if more teams start to announce similar partnerships or if the league steps in to stop any similar controversial sponsors.

The Digital Value of Sponsorship 6th December, 2016

Rights holders need to begin realising the value digital can bring to their sponsorship packages. Due to the current lack of understanding around what constitutes a digital asset and how to incorporate this into a partnership, this will take a while.

Digital technology empowers rights holders. It allows them to understand who their audience is, where they spend their time and what they spend their money on. Some rights holders are using this digital understanding to improve fan engagement, but they’re not packaging and presenting it to brands in the correct way.

“I have an audience of 500,000” won’t wash. “We have an audience of 500,000; 75% Male, 65% between the ages of 40-60 and with an average income of £120,000” is where it should be – at a minimum. Communicating this to brands should be detailed and well thought out. Rights holders need to form ideas and strategies around how brands can access this audience intelligently rather than simply “I have an affluent male audience for you to target”.

Packaged creatively and informatively online audiences not only bolster an asset list but provide evidence and substance, rather than a vague reference point, that impacts a sponsorship far beyond the digital assets in discussion. Brands will invariably trust the rights holder more as they clearly have a good understanding of their fan base as well as the brands target audience.

The ROI can also be tracked far more accurately than before. There are now tangible click-by-click measurements such as how many fans bought a brands product, how many engagements content receives, how many fans entered a competition.

For example, rights holders can now offer feedback such as “our fans bought 500 of your products, and engaged with branded posts 4,000 times, giving you an ROI of 250% on a £50,000 investment”. Giving brands this accurate insight is invaluable and will be music to Marketing Directors’ ears.

These areas of measurement help identify the value of a partnership, its failures and successes. Meaning resources can be dedicated to improving areas of weakness, or focus on an entirely new partnership if the results prove to be that poor.

Brands are much more accustomed to the above way of thinking about digital. This is not rocket science, the above examples are simple yet worryingly foreign to the majority of rights holders. Those that adopt digital in the way it should be will attract more brands with far more exciting propositions than their logo focused counterparts – which is the name of the game right?

The Engagement – Virtual Reality and Sponsorship 1st December, 2016

Virtual reality has now become a reality in the way we consume and play sports. It has come a long way since Nintendo’s foray into it, albeit briefly, during the 90’s with the release of their Virtual Boy console. Despite the name, there is one thing that Virtual Boy was not, and that’s virtual reality. The system was conceived during a period of fascination with VR and although being a failure, it could be said that Nintendo were the pioneers of VR… credit where credit is due.

The ATP Tour Finals staged at The O2 in London 2 weeks ago is the sport’s biggest indication yet that they are taking necessary steps to prepare themselves for the future, with tennis fans given an introduction to the future of sports spectating. Virtual reality pods stood alongside a multifaceted broadcast operation and taken note of the mass of cameras including, the Spidercam and ultra-slow motion cameras capable of capturing the flex and movement of each muscle. Inside the pods, fans were able to use the newly-launched PlayStation VR and its tracking camera and handheld controller to give fans a deeper look inside tennis and reinventing the sport spectating experience.

Sponsors jump on this technology as they can provide fans with never before seen experiences, such as becoming their favourite athlete with POV or taking them into the middle of the action from the comfort of their own home While it is early days, we expect to see sponsored messaging tailored specifically to the individual wearing the headset, allowing for much more targeted marketing that current networks cannot achieve broadcasting to the masses.

The use of VR has seen brands open up a whole new channel of engagement. In 2014 Jaguar partnered with IBM to develop a VR experience allowing consumers to choose the model, make, colour and features of their favourite Jaguar. Consumers were even able to hope inside the car to check out interior features with a 360-degree view, and to make real-time changes all through the use of a headset. Jaguar have had such success with the use of VR, that they built on their technology with Andy Murray as part of the #FeelWimbledon Campaign, providing a Centre Court experience to feel the atmosphere while hitting the winning shot as Andy Murray.

The biggest asset VR has is its story telling power, taking users on a journey to breathe life into the brand is one of the main components of a content marketing approach and encourages the target market to develop a personal connection with a brand. The opportunities are endless for platforms to provide an immersive experience for users to gain a life-like experience, Moto GP could use this approach providing fans the thrill of riding a race spec bike in excess of 300 Kilometres per hour around Silverstone. It is this type of experience that engages someone on a deeper level, something that product distribution or branding simply can’t tap into.

While it is impossible to predict the future and whether VR will play a vital role in our daily lives, one thing can be said for sure, brands will continue to deliver unique and innovative experiences to engage with consumers and connect with them in ways never seen before.

Our Top 4 Tips for Uncovering Sponsorship Assets 11th July, 2018

Over the years we have helped countless rights holders and sponsors come together effectively to great mutual benefit. However, that road isn’t always as smooth as it should be – particularly when it comes to sponsorship assets.

There have been many instances where we have witnessed rights holders only offering basic assets to potential sponsors, as opposed to its full armoury of options. Most commonly this translates into a focus around a logo and whilst this still does hold importance to a would-be sponsor, to get real value out of a partnership it is crucially important to ensure all potential assets are made available.

Allow us to put this into context for you. Imagine a fully-stocked supermarket that only sells items in the very first aisle to customers and blocks off the rest of the store. This will inevitably reduce the supermarket’s revenue and narrow the customer’s shopping potential. The same logic applies in the world of sponsorship.

The major problem with only offering some of the potential assets to a sponsor is that it’s impossible to know exactly what a brand requires to make the most of their sponsorship when reaching out before qualifying the lead.

As you may imagine, the chances of understanding exactly what a sponsor desires is increased simply by doing your homework and regular research, but there is still no better way to truly understand a brand’s approach than by speaking with them directly.

However, it is admittedly difficult to uncover all possible assets without previous sponsorship knowledge when you’re fully immersed in your own day-to-day tasks. So Slingshot is here to help with our top four quick tips for uncovering sponsorship assets…

1) Get into the brand’s mindset
Figure out exactly why a brand would want to be a sponsor and work out what you can specifically offer them that they’d simply be unable to get elsewhere.

2) Brainstorm with colleagues
Never tackle this sponsorship conundrum on your own! The more minds the better because, as with any ideas session, everyone thinks differently – which can be key to thinking outside of the box and uncovering assets which aren’t just a bog standard logo placement.

3) Travel the customer journey
Remember that sponsors ultimately want access to your audience. So travelling through the customer journey and understanding all possible touchpoints a sponsor can utilise to engage with your audience will showcase multiple key assets.

4) Check out the competition
Last but not least, try and get hold of your competitor’s sponsorship proposals to see what they are offering and how it differs to you. It may just spark a new idea or illustrate ways for you to improve your own platform for sponsors both now and in the future.

Case Study: Outlook Festival Knowledge Area

Back in 2015, we utilised our expertise of uncovering sponsorship assets to continue pushing the boundaries of the traditional festival model. We created something which added to the consumer experience and attracted brand integration at the Outlook Festival.

Named the Knowledge Arena, it was here we created workshops led by artists where guests could create their own music at the festival. This forward-thinking rights holder maintained focus on the consumer, leading to greater engagement and sparking brands’ interest in being involved with connecting to the audience in a deeper, more meaningful way.

Key takeaways

Any rights holders looking for sponsorship must think strategically before approaching a brand. Think carefully about the plethora of assets you can offer, particularly ones which resonate with certain target brands.

Once all assets have been uncovered, the goal then becomes ensuring these are effectively and aesthetically communicated in the best way possible to potential sponsors – and at the right price.

Disruption? Stop it. 28th November, 2016

Those who know me well know that I am easily swayed out of the office with the promise of good wine and sponsorship chat. Not only am I geeky like that (I could quite literally talk about sponsorship for days), I think it’s a crucial part of working in an industry that is shifting so quickly – you really need to know what is going on, how other people are navigating through what they deem is engagement with their clients, what challenges they have and how they are overcoming them. I find these chats both motivating and relatable.

Except when it comes to disruption.

Don’t get me wrong, we all love Uber. And yes, we all wish we came up with the Stratosphere idea. But to continue waxing lyrical with the ‘disrupt or die’ mentality is not progressive, nor very helpful. Equally when you consider Uber was just an idea to solve a problem – and not generated from a think tank. To expect entire organisations to fundamentally stop their day jobs to begin to disrupt is not feasible. To expect entire organisations to fully fund external consultants to come into their business to figure out how to disrupt them without an understanding of how that disruption will drive their bottom line is even more ridiculous.

I do believe in the value of disruption – but disruption with a purpose, and within the constraints of real life challenges.

Furthermore, in order to disrupt and have the mental capacity to begin to think about disrupting there needs to be space, time and most importantly a motivation. I often say that innovation is borne out of necessity, but to innovate before it becomes necessary is the holy grail. In order to achieve this, I believe that inspiration and capacity building through a shift in mind-set in stages is much more realistic and practical. Empowering and collaborating in small areas of the business and building from there. This isn’t typically how most people identify or recognise disruption. However, I think if you looked a little harder, you’d find it is happening – even in industries as stagnant as sport sponsorship.

#Ad Spells Fear for Brands 24th November, 2016

Use of celebrity endorsements on social media have arguably become one of, if not the most craved sponsorship asset for many millennial-focused brands. Whether it be sport stars, pop stars, or people just famous for being famous, the upper echelon of these role models has such power and influence over society, and brands have benefited hugely from alignments since the social boom.

With certain role models boasting multi-million figures in terms of followers it’s easy to understand why brands are happy to pay out such significant fees to these influencers for product endorsements on social platforms such as YouTube, Twitter and Instagram, and it has proved a winning tactic dating back to the 1760’s where Wedgwood, producers of pottery and chinaware, used royal endorsements – in a time of divine right you can only imagine the influence that had on society.

The power of having someone you admire and look up to endorse a certain product or service is unquestionable, yet brands understand that to fully maximise the commercial potential there is a need to develop a stronger, longer term association with their chosen influencer so that all endorsements come across as authentic. Hence why brands decide to strike up sponsorship arrangements, partly because it is cost effective but also to change the perceptions of these influencers from a celebrity endorser to more of a brand ambassador.

Through sponsorship, brands can purchase rights to access these influencers across a variety of platforms creating a much stronger connection with the ambassador, which resonates better with the influencers’ audience. Within the terms of such sponsorship agreements, brands will add in exclusivity clauses effectively banning the ambassador from promoting a rival brand whilst contracted, again adding to the illusion that the millionaire role model really does shop at H&M!

However, recently the Advertising Standards Agency (ASA) have been clamping down on this clear attempt by brands to subtly influence society – the 21^st century version of subliminal messaging. ASA have stated that “if content is an advertisement, it should be obviously identifiable to consumers using the hashtag #ad” and there have already been several high-profile cases whereby brands and celebrities have been reprimanded.

Although this seems like a small formality to add onto the end of a Tweet, Instagram post or vlog, brands now need to ensure that this clause is written into contracts to avoid hefty fines. In addition to this extra bit of housekeeping, the hashtag has the capability to cause a much bigger problem for brands. These two letters have the potential to completely spoil the illusion for consumers and ruin the authenticity that a brand may have invested in for years. Therefore, it will be interesting to see how brands look to counter and gloss over this in future.

Is Quantity or Quality More Important in Football Sponsorship? 27th June, 2018

Whether it’s Arsenal’s sleeve sponsorship deal with Rwanda’s tourist board or Manchester City’s sizzling hook-up with Tinder, the sheer quantity of football team sponsors has exploded in recent years.

You don’t have to think too far back to a time when clubs would have been more than happy to simply enjoy commercial ties with a kit supplier for team equipment, with a major sponsor’s logo splashed across the front.

However, in the age of globalisation, sports organisations – and their potential partners – see sponsorship as an enabler of expansion. This allows both clubs and brands to reach millions of potential new fans and consumers wherever they’re based, while of course remaining a key way to drive revenues.

Who is making the most of these opportunities?

Manchester United perfectly embody this renewed approach to sport sponsorship. Already a global brand with fans and non-fans alike, in recent years the Red Devils have aggressively pursued sponsorships and commercial partnerships from less traditional industries across the globe.

For example, United’s Integrated Telecommunications Partners are split up by region. This means that they have separate sponsors in many different territories, such as STC (Saudi Arabia), TM (Malaysia) and others in Hong Kong, Azerbaijan, Bahrain, Kuwait, Nigeria and Ghana. This approach allows the club to maximise potential revenue in just one specific industry.

More obscure sponsors include Japan’s Nissin Foods, who are Manchester United’s official global noodle partner (yes, really). Malaysian brand Kansai are proudly the official paint partner of the club, while in May 2018 United extended its deal with Chinese company MLILY to be their official mattress and pillow provider. These are all in addition to more traditional financial and motor companies who are considered part of their 22 “global partners”.

What are the positives and negatives of this?

Quite understandably, the main argument for this proliferation of brand sponsorships is that it boosts clubs’ coffers whilst also raising its profile in less traditional markets. In time, this expanded fanbase will generate future income thanks to merchandise sales and so forth. Meanwhile, sponsor brands benefit from increased exposure and its allegiance with a successful, popular club.

However, this explosion in sponsorships can also have a negative impact if not handled correctly. The sheer amount of sponsors a club could attract can dilute their image of exclusivity and prestige, which prospective sponsors may view as a drawback to any potential involvement. Such a multinational and seemingly unselective approach to sponsorships could also erode the identity that years of success and history have helped to create.

So what does the future look like?

There is an argument for clubs to reconsider this approach and focus on fewer, more focused and appropriate brands. This could result in greater bargaining power for clubs as they take back some of the feeling of exclusivity they have gifted away – albeit at a profit, of course.

With the 2018 Premier League television deal worth over £4.5bn – a somewhat surprising drop of around £500m on the previous deal in 2015 – there is an indication that the vast sums from this vital revenue source may have peaked. Clubs will be buoyed, then, that brands are showing no signs of being put off by the prospect of teams retaining more and more sponsors.

Although if the trend continues on the current path, there may come a day when less in considered more in the world of football sponsorship.

The rise of eSports – From on the pitch to behind to the screen 17th November, 2016

By 2019, the eSports industry is expected to hit $1.23 billion in value according to SuperData reports. Considering electronic sports was not considered a legitimate form of organised competition over the past 10 years, the industry is growing at an alarming rate.

ESports is growing 38% in viewership and 42% in revenue year on year. The reason for its success in such a short space of time resides in its platform being incredibly accessible and inclusive. Regardless of size, age, gender or disability no individual is denied access of taking part, therefore the potential for the industry to develop in scale is limitless.

There are even signs to suggest that the world of eSports is taking over the traditional sporting industry. Twitch, the world’s leading video platform and community for eSports gamer’s, hosts more than 45 million users every month to broadcast, watch and chat. With data recorded by Twitch analysts, the average audience member of this platform spends 120 minutes a day tuning into this channel, which is only marginally less than the average person watches TV in the UK.

Sport is typically associated with athletic ability, however now that we are progressing to a more digital age, the way we perceive and participate in sport is altering. This is having a substantial effect on younger generations, who are now becoming heavily integrated with the use of technology and gaming. Since 2013 85% of children in households aged 8 to 15 owned a gaming console. With technological influence growing stronger, a new world of organised competition is emerging within the ‘sporting’ sector.

The rise of eSports has opened up numerous opportunities for participants as they find themselves with the chance to become professionals. Like all professional competitors, eSports athletes require time to train and develop their skills. Sponsorship acts as the foundation to sustain themselves as professional athletes, allowing them to commit their time and resource in becoming the best in the world!

With organised events celebrating competitions and leagues, eSports gaming stars can be earning up to 6 figures in sponsorships in addition to prize money, competing in sold out stadiums of up to 45,000 fans plus.

Global brands such as INTEL, IGN, YouTube, Google, Microsoft and Coca Cola have already seized the opportunity to sponsor eSports platforms, creating sustainable partnerships, and driving revenue and awareness to a key audience. Brands within a variety of differentiating sectors are now seeking to sink their teeth into this industry.

In the next coming decade, eSports is expected to be televised in every household. Brands world-wide are pursing early sponsorship contracts with eSports properties before markets become saturated and grow increasingly harder to access. The prospect of eSports taking over traditional forms of sport, in both participation and industry value is becoming reality.

Support the Startups Supporting You 16th November, 2016

Investing in innovation and entrepreneurship is necessary for any business to not only grow and evolve, but ultimately to survive. Becoming complacent and ignoring advances in your field can leave you left in the wake of competitors that mould themselves to adapt with changes in technology.

Given that it is not always possible to rely on your internal team for innovation many companies are recognising the need to invest in startups with new and fresh ideas. Not only does this foster creativity and innovation under their brand but it also is a way to stay ahead of the curve when it comes to advances in their industry.

One company that has seen the need to foster talent early is Nestlé who have developed their own platform to actively invest in startups. Nestlé HENRi was created with the objectives to enhance quality of life, contribute to a healthier future, tackle global issues and make genuine positive effects for millions across the world. Not only is this socially constructive for Nestlé’s brand but it also has proven benefits for sales and engagement with Nestlé products.

For example, through partnering with the startup Blippar, Nestlé have since been able to unlock new levels of engagement with their customers for both Milo & Nesquik products in an untested AR territory. Without opening themselves up to external ideas and investing in start-ups, this would not have been possible.

It’s not too late!

For companies that do not have the resources to set up projects of this scale, there are alternative ways to invest in start-ups & innovation. Slingshot is currently working with Extreme Tech Challenge (XTC), the world’s largest startup competition supported by Sir Richard Branson, Bill Tai (Twitter) and Jim Breyer (Facebook). XTC gives brands an opportunity to sit beside some of the world’s most influential business leaders, while ensuring that they are the first to have access to all new ideas & technology that this competition uncovers.

XTC gives brands the chance to integrate their entire suite of services throughout key events at the XTC Semi-Finals held at the Consumer Electronics Show in Las Vegas in January reaching over 170,000 tech savvy enthusiasts, and the XTC Finals taking place on Necker Island in February 2017.

Anchor judge of the program, Sir Richard Branson, sees the event as an opportunity to uncover untapped ideas and technology, “we are hunting for people and ideas that can literally change the world!”

Sponsor involvement is still available for the 2016/2017 XTC program. Sponsoring enables your businesses to align to a category specific to your industry, not only allowing your business to judge the entrants but also positioning you as an influencer among the best in global business. If you’d like to hear more information about partnership opportunities we have available, please contact Hayley Williams at [email protected].

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