Latest Thinking from IEG
IEG’s sponsorship experts provide unique perspective on the latest industry developments, news and trends. These posts will make you think, challenge conventional wisdom, give you new ideas, and spark discussion.
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Valuing “Can’t Buy” Hospitality Can be Tricky – Part One of a Three-Part Series
Of all of the categories of tangible benefits (both measured and non-measured) that I come across, valuing “can’t buy” hospitality, unique access opportunities or interactive/highly integrated benefits are some of the hardest tangible benefits to value. Of course, these also happen to be some of the most valuable pieces of a sponsorship package.
Initially, I wanted to address all of these types of benefits in one blog but I quickly realized that there is too much information to cover, so I am going to do a three-part series and the first part will concentrate on VIP or “can’t buy” hospitality. Even for my blogs, this one is a little long, but I think that if you can stick with it, there is some really valuable information here (maybe too much).
Filed under: associations, automotive, beer, cause marketing, destination/tourism, events, government/municipal, music, nonprofit, pro sports, soft drink, sports, valuation, arts
The Resurgence of the Auto Category
While the auto category has taken a major hit this year, recent activity seems to indicate the industry may be coming back to life.
One early indicator: The return of ride-and-drive programs.
For example, Lexus last weekend hosted test drive events at Old Fisherman’s Wharf and other locations in Monterey, Calif.
“We’re seeing a resurgence in the auto category after pretty much nothing in the first two quarters,” said Beth Schnitzer, executive vice president for the California Partnership Marketing Group, which executed the program.
Other recent initiatives include:
Filed under: automotive, branded entertainment, destination/tourism, entertainment, events, how to get sponsorship, activation
The Power of Nostalgia and What is Old is New Again
What is it about nostalgia that is so engaging and why do brands that have successfully captured it stir up such an emotional response? Additionally, what are some current examples and what is the role of nostalgia in sponsorship?
I don’t quite understand it, but consumers (me included) seem to respond to almost anything that is reminiscent of earlier times in their lives, and strangely enough, people often have a fondness for decades that occurred before their birth (think Kenley Collins from “Project Runway” and her fascination with fashion from the 40’s and 50’s).
In fact, although most of us were not alive during the Great Depression, the 1930’s depression era is currently in vogue as we experience our own modern day economic uncertainty. Apparently, especially in times of turmoil, there is comfort in the familiar.
Filed under: automotive, entertainment, music, olympics, sports, activation
Good News/Bad News for Sponsorship
Some good news for sponsorship: Compared to other forms of marketing, brand sponsorship experienced the greatest increase in levels of trust in the two years since the last Nielsen Global Online Consumer Survey of more than 25,000 Internet consumers from 50 countries. A full 64 percent of consumers surveyed in April said they trust brand sponsorship, up from 49 percent in April 2007.
Latin American consumers are most trusting of brand sponsorships, with 81 percent of both Colombians and Venezuelans, and 79 percent of Brazilians, trusting brand sponsorships. U.S. consumers came in 12th, with 72 percent trusting brand sponsorships. Sponsorships held the least sway among Swedes (33 percent), Latvians (36 percent) and Finns (38 percent).
Latin Americans appear to bring their positive feelings about sponsorship with them to the U.S. IEG research reveals that Latino consumers are among the most responsive audiences to sponsorship.
Filed under: evaluation, financial services, research, sponsorship measurement, sponsorship ROI, automotive
Is GM's Bankruptcy The Death Knell For R*Works?
With General Motors filing for bankruptcy today, one has to wonder about the fate of GM R*Works, the automaker’s dedicated promotions and event planning agency owned by the Interpublic Group of Companies.
To be sure, the automaker has significantly reduced its sponsorship activity over the past several years, dropping the U.S. Committee Olympic, pro sports teams and a number of other properties, leaving the agency with little to do.
But the agency continues to sign new deals on behalf of its client. Case in point: R*Works recently inked a new partnership with Baltimore, Md.’s Artscape festival on behalf of the Saab brand. The Swedish import replaces Saturn, which sponsored the festival last year. GM has announced plans to sell both brands.
So what’s the fate of R*Works? Will the agency continue to exist, albeit in a smaller form to accommodate a slimmed-down GM? Stay tuned.
Filed under: automotive, agency
How Deeply Will Local Properties Feel The Loss of Almost 2,000 Car Dealers?
The vast majority of the nearly 2,000 Chrysler and GM dealerships set adrift this week by the automakers are expected to cease operations completely over the next year or so. (Some will stay in business selling other manufacturer’s cars.)
The effect of these closures will be felt by grassroots properties that once looked to auto dealers as reliable sources of local sponsorships. However, the impact will not be pronounced. Here’s why: 1) Many of these dealers were not in the best of shape and had already cut back on nontraditional marketing expenditures; and 2) many of them were in locations that are served by other dealers—often larger and more successful ones—who are more likely to already be on a local property’s sponsor roster.
Filed under: local, selling, automotive
Civic Tour Out, Music Fests in for Honda
We hear American Honda will announce new sponsorships tomorrow morning.
Specifically, Honda will be replacing its long-running Civic Tour, in which it backed a summer concert tour of a notable band, with ties to the Lollapalooza and Austin City Limits festivals scheduled for August and October, respectively. Honda’s “eco-partner status” will include integrated green activities, hybrid vehicle displays and the giveaway of a 2010 Insight at each event.
Filed under: entertainment, music, automotive