Will brands click play on creating an e-athlete megastar in 2016? 23rd February, 2016

E-Sports are fast becoming more popular as both a competitor and spectator sport in the West, with Wembley Arena playing host to large events such as League of Legends and a dedicated e-gaming space currently being developed in Fulham.

Despite numerous stalwarts’ draconian views and attempts to undermine the credibility of the platform, veteran e-sports journalist Rod Breslau commented in a VICE interview that it continues to surpass expectations in revenue and attention. A once tight knit community now draws in hundreds of thousands of attendees to events (surpassing many traditional sporting contests), eager to see their team take home cash prizes to $18million (The International 2015).

Already USA and Korea have ‘appointed’ superstar players (Faker, NadeShot), with the success of KSI (he would be the first to point out he is not a ‘gamer’) in the UK when will mainstream brands see the e-sports as a credible, substantial marketing platform? Red Bull were the first major brand to act signing Dave ‘Walshy’ Walsh in 2006 however relatively few brands have followed. Venturing outside traditional endorsements to capitalise on the expanse of the platform, Red Bull developed training labs focusing on nurturing and developing the e-sports athletes of the future, cementing their position and long term commitment in the sport.

E-sports is growing in size year on year with significant growth expected in 2016. The platform is already producing talent, major events and games which are capable of building and capturing a loyal fan base of elusive millennials. These can be reached through numerous, non-traditional channels including online streams and development YouTube channels, to note Matt ‘NadeShot’ Haag has over one million YouTube subscribers who follow his daily gaming sessions.

Yet Europe has yet to find their e-sports star on the same pedestal as their Asian counterparts such as Sang-Hyeok Lee, who is constantly in discussions with native Chinese companies interested in partnering.

There are a number of parallels with the growth of sports marketing in the 1970’s and the e-gaming platform of today with brands viewing the platform with trepidation as opposed to optimism. Brands should look towards e-sports as an exciting platform to engage with their market using all of the crucial buzz words of content and media coverage of the industry today (in 2014 over 70 million hours of content was captured from League of Legends online, with the BBC streaming the 2015 contest live on their IPlayer and Sport platforms).

2016 is set to be a monumental year for the growth of the e-sports industry, with tournament prize pools reaching up to $20 million and huge strides pending in the Western market.  With new launches of multiplayer sensations (such as Overwatch, Battleborn) sponsors will have the ability to engage in real-time with the audience something which is rarely achieved through traditional sporting means.

For those brands who position themselves as ground-breakers E-sports offers the perfect challenge. The only question is, who will click play?


Long Live the King! Fast Food Brand Ambassadors Return Following Hiatus 7th September, 2015

Brand ambassadors have long been used by brands, however it is the return of a larger than life King that has drawn attention across the globe in recent months. Once over shadowed by the might of McDonalds’ Ronald McDonald character (named after former CEO and inventor of the wildly loved chicken nugget) the Burger King, King has returned!

Distinctive and instantly recognisable, standing at over 6 feet tall ‘The King’ has been sighted at various high profile events this summer including the 147th Belmont Stakes where he appeared with Triple Crown winning trainer Bob Bafferrt.

The King’s resurrection began at the start of the summer forming part of the entourage which escorted Floyd Mayweather to the ring during the ‘fight of the century’ against Manny Pacquiao in May this year.

Due to the furor of offenses and negative publicity following Floyd Mayweather in recent years, brands have been cautious to not align with the star; however reports have sited that Burger King purchased the rights for $1 million, becoming one of Mayweather’s first sponsors for some years (having topped the Sport Illustrated Fortune 50 athletes with $0 endorsement deals three times).

The mere sight of the brand ambassador in this setting created mass attention around Burger King. Social media interaction increased significantly creating over 1,343% growth interest for the brand. Yet not all interest was positive with many criticising Burger King for supporting the convicted domestic abuser across Twitter.

With Adweek reporting The King created over a weeks’ worth of publicity for Burger King simply by appearing in coverage of the ring walk with Floyd Mayweather perhaps this is the first in line for the fast food ambassadors – beware the return of The King, Ronald, and The Colonel.


London 2012 Olympic Taekwondo champion named as Baku 2015 European Games ambassador 12th February, 2015

Slingshot Sponsorship’s client GB Taekwondo has just announced that Olympic Gold Medalist Jade Jones will be an international Athlete Ambassador for this summer’s inaugural Baku 2015 European Games.

Ms Jones became Great Britain’s first-ever Taekwondo gold medalist at London 2012, with victory in the 57kg weight division.

She also won silver at the 2011 World Taekwondo Championships in Gyeongju, South Korea, and picked up another silver medal at the 2014 European Taekwondo Championships in Baku, Azerbaijan, last May.

Mr Simon Clegg, Chief Operating Officer of Baku 2015, said: “To be able to name a reigning Olympic champion as a Baku 2015 ambassador is a fantastic achievement for the first European Games and a testament to the calibre of athletes that the event will attract.

“I am sure Jade will very much enjoy promoting the Games in Great Britain through her role as an international Athlete Ambassador, and we hope to see her give a memorable performance in Baku this summer.”

Baku 2015 international Athlete Ambassadors will represent their sports and feature in extensive marketing campaigns around the continent and on social media to promote the first European Games.

Ms Jones, 21, said: “I am very proud to have been named as a Baku 2015 Athlete Ambassador, and it will be an honour to help promote the Games. It is important for European athletes to have our own multi-sport event, and my aim is to become the first European Games Taekwondo champion.”

Mr Mark England, the British Olympic Association’s Chef de Mission for Baku 2015, said: “Jade’s participation as a Baku 2015 international Athlete Ambassador reflects British athletes’ enthusiasm for the European Games. Britain has a strong sporting tradition, and the Athlete Ambassador programme will help to generate interest and excitement in the country ahead of Baku 2015.”

Ms Jones joins French rhythmic gymnast Kseniya Moustafaeva, Denmark’s canoe sprinter René Holten Poulsen and Serbia’s Basketball 3×3 team of Dušan Domović Bulut, Marko Savic, Marko Zdero and Dejan Majstorovic as Baku 2015 international Athlete Ambassadors, with more to be announced in the near future.


“Enter At Your Own Peril” : Sponsor Association With Controversial Brand Ambassadors 23rd September, 2013

 

“The role of a brand ambassador – the brand ambassador is a marketing model that employs trusted, credible personalities to promote and give greater visibility to its brand products

It seems, historically, that sport and scandal have gone hand-in-hand. Over the past five years there have been multiple athletes in the upper echelons of their respected fields that have been subject to a public fall from grace. For the sponsor, the usual protocol will be to run for the hills, and withdraw any association with the respected star. However, there are some exceptions, and brands do, in some cases, stick by or re-invest in their asset – but under what circumstance and why?

Level Of Association

If the player is either an integral part of the sponsors make up, or headline star, then it makes the job of getting rid of them, and keeping to your marketing strategy a lot harder. Woods, of course, has been embezzled with the swoosh his entire career, this can also be said of Wayne Rooney. However Ryan Giggs has not been so fortunate, despite being held up as headline moral ambassador for his maturity, the star ended up being shunned by a number of his sponsors for a comparable offense to that of Rooney or Woods.

Bankability

The commercial revenue generated by any ambassador is integral to their credentials, and can play a significant role in the decision making process. In Woods and Rooney’s case, both EA games and Nike had complete product ranges centered on them, and commercially had too much to lose.

Sponsor’s market place

Accenture was Woods’s big loss in the aftermath of the scandal around his affair. The firm could not justify sporting a star whilst marketing themselves as a trusted Business Consultancy. Brands have ambassadors for a multitude of reasons, but they must be able to link their common values and business goals. In contrast, Alex Rodriguez, was still used by Guitar Hero in their adverts even after he admitted to taking banned substances. The business case for this was that Guitar Hero’s product was not affiliated with his sporting attributes, but his public personality.

The Offense

The line with which most brands have consistently taken when suspending contracts, has been when the ambassador’s actions directly affect the relationship they have with the respected brand’s promotional attributes. In the case of Drugs there has been a 100% termination rate in sport. However, in the case of Kate Moss and the fashion industry, the offence was taken very differently. Although she did lose substantial contracts, Moss managed to retain seven, and go on to re-build her career, something which has never been seen on such a scale in sport.

There is no doubt that trust in ambassadors has publically waned, as such, there has been a shift in how brands market their ambassadors. Recent campaigns by brands such as Nike illustrate that the focus is now upon empowering the consumer, rather than showboating the skills of an untouchable star. Even in fashion, couture designers are collaborating with high street fashion chains to bring their products to a consumer level. This shift undoubtedly showcases ambassadors but does much to bring the star or garment to the consumers level, retaining brand loyalty, which is essential in a very fickle market place.

It’s the end product that matters

As the quote above states, ambassadors uphold the values of the product they promote, and being the lucrative tool which they are, brands will do anything to protect them. However no one is bigger than the brand and on a case-by-case basis, the outcome of each offense is dictated by the relationship between the star and the value of the product they endorse.

Michael Jordan: The Original Brand Ambassador! 25th February, 2013

On February 17th 2013 Michael Jordan, one of sport’s great personalities, turned 50. Not only is ‘Mike’ a sports legend but also the face of arguably the most successful brand endorsement deal of all time. Due to the recent headlines involving sports stars such as Oscar Pistorius and Lance Armstrong the value of brand ambassadors is being questioned more than ever (see Mark Mylam’s blog). Michael Jordan’s sponsorship deal with Nike however, proves what kind of positive impact such an agreement can have for both the brand and the celebrity. Let’s recap this incomparable success story:

“The 1984 Olympics was Michael Jordan’s coming out party” describes his agent David Falk. Up until this point Michael Jordan had not even played a single game in the NBA and yet at the time top three major basketball shoe brands Adidas, Converse and Nike were after him. Before his NBA career even started Jordan already knew who he wanted to partner with – Adidas. The German sports brand and Converse were the leading shoe suppliers for the NBA stars in the mid and late 80’s. Michael Jordan himself had never worn any Nike basketball shoes before and was convinced by the quality of Adidas’ products but the first brand that Michael Jordan met with was Converse. During this pitch Jordan mentioned his worries about the endorsement deals that Converse already had in place with superstars like Magic Johnson or Larry Bird and asked: “With all these stars, where do I fit into the conversation?” John O’Neil, the president of Converse, took that question and replied: “We’ll treat you like all our other superstars.” This is obviously not the answer that the upcoming star wanted to hear and the $100,000 per year that Converse offered him could not change his mind either.

The next invitation that Michael Jordan received was from Nike, however he was not interested in what they had to tell him and declined this invitation at first. In the end it was Jordan’s mother who convinced him to at least listen to what Nike had to offer so he took the plane and the rest, as they say, is history. Nike  decided to spend all of its marketing budget on Jordan and offered him a five-year deal worth $500,000 annually plus royalties; five times as much as any other NBA superstar was receiving at the time. It wasn’t only the sound of the money that made Nike suddenly attractive to Jordan: Nike offered Jordan his own signature shoe line. This is the kind of special treatment that Converse didn’t offer Michael and as a result they were out of the running.

However Adidas was still in the race – Jordan’s “favourite shoe”. If Adidas could have matched what Nike put on the table then Michael would have teamed up with the German brand. However Adidas missed out on this opportunity and this mistake became known as one of the worst business decisions in the last 50 years. “They didn’t feel it was worth it,” said Jordan. “Which in hindsight is perfect for me, because it made my decision much easier. And I ended up with Nike, and it became a great relationship.”

The Jordan brand was born (with the jumpman logo appearing in 1987). Since 1984 Nike’s subsidiary coproduced 27 basketball shoes with Michael Jordan. Last year, the U.S. Jordan Brand sneaker business alone had $1.25 billion in wholesale revenue. Although Michael Jordan himself isn’t playing anymore there are still active NBA players (Carmelo Anthony, Blake Griffin, Chris Paul etc.) acting as Air Jordan ambassadors and supporting the brand’s huge success within the basketball industry. Whereas in the mid and late 80’s Converse and adidas were dominating the U.S. basketball shoe market, 30 years later it is the Jordan brand that is controlling 58% of it, followed by its parent company Nike (34%), adidas (5.5%), Reebok (1.6%) and Under Armour (0.6%).

Michael Jordan himself is still earning more than $80 million per year through corporate sponsorship deals and the majority of this income is related to his partnership with Nike. The current details of this deal are a well kept secret but royalties now generate more than $60 million annually for MJ, according to a Forbes article.

You can buy yourself a lot of nice Birthday presents with that amount of money – Congratulations Michael! But also, congratulations Nike!

Are Brand Ambassadors Really Worth It? 25th October, 2012

This month we’ve witnessed an end to one of the longest running and high-profile brand endorsements of all time –Nike’s sponsorship of Lance Armstrong, the shamed cyclist and denounced Livestrong founder. Inevitably there’s been a flurry of media activity since Nike unceremoniously ditched Armstrong; some quarters questioning Nike’s moral integrity (having stood by Woods, Vick and Bryant in the past); others praising the sportswear giant’s knack of only sticking by those with ‘come-back-ability’; and one journalist even going as far to put the drop in Nike’s share price down to the whole debacle.

My questions is – given the recent controversy surrounding  brand ambassadors like Armstrong and John Terry – are these egotistical mega-stars really worth the investment from a sponsor’s perspective?

The answer, in my opinion, lies with the sponsor’s brand values.  As long as the respective sportsman or sportswoman is representing the brand and its values correctly, then there can be little complaint.  For ease, let’s take Nike, whose principal reason for spending almost $800 million dollars per annum on individual endorsements is to associate the Nike Swoosh with the sporting elite; whose success has been achieved through years of hard work, dedication and natural talent.  Essentially, as long as its ambassadors are excelling in their chosen discipline, be that on the pitch, on the golf-course or on the track, they are promoting the Nike brand how they are supposed to.   Tiger Woods cheated on his wife; Michael Vick held pitbull-fights at his home (!?) and Kobe Bryant has a long list of offences that most would agree are far worse than doping, yet none of these wrongdoings directly impacted on their ability to drive a golf ball 350 yards, run a 50 yard touchdown or score 80+ points per game respectively.  For all of their wrongdoings they still represented Nike’s brand values.

In contrast, Armstrong’s doping completely shattered the illusion that he was this super-human machine whose achievements were entirely down to his dedication and intense training. As Laura Ries, an Atlanta-based marketing consultant says, “Nike is about ‘just doing it’ and that doesn’t mean drugs. It means hard work and ethics. And this flew in the face of it.”  Furthermore, his doping charge removed any thought that the clothing and equipment supplied by Nike had any impact on Armstrong’s competitive edge – we have been left with no false impressions as to what gave Lance his competitive advantage.

Whilst Nike will continue to represent the cream of the sporting elite (Rory McIlroy has reportedly been offered a ten-year £15 million per annum deal to replace Armstrong), it’s likely that certain brands will follow Red Bull in focussing on less famous athletes and increasing spend on activation. The energy drink has been hugely successful over the years in getting great market exposure and engagement through lesser known sportsmen and women – whether that be through taking BMXing to the next level, hosting the world cliff-diving championships or throwing the previously unheard of Felix Baumgartner towards earth from space.  Obviously these types of endorsements tend to suit the more extreme brands, but perhaps the Armstrong incident will encourage sponsors to see if their money might be better spent on endorsing the Felix Baumgartner’s of the sporting world, acting as the bridge for success from grass roots level to the pinnacle of their ambassadors’ careers.