Platform Exclusivity: An Idea Whose Time Has Come
Posted: 8/31/2010 9:59:54 AM by
Jim Andrews | with 0 comments
One concept that I’ve seen properties begin to adopt lately, and which could become a larger sponsorship sales trend, is platform exclusivity. The idea is that only one corporate partner is permitted to activate in a specified channel or manner, e.g., mobile-device marketing, in-store retail promotions, use of video content, ticket giveaways, etc.
Platform exclusivity has legs because in many cases it meets the needs of both rightsholder and sponsor, particularly in those instances when sponsors don’t require category exclusivity but still want a feeling of ownership and also separation from their competitors. The first time I came across the idea was a few years ago when the beer companies—particularly Miller and A-B—starting balking at the high price tags for exclusive deals with pro sports teams and worked with those properties to carve out platform, and in some cases sales channel, exclusivity.
For properties, not only does platform exclusivity allow multiple sales in categories previously limited to one partner, but also it reduces clutter for all sponsors and has real potential for improving sponsors’ results from their now exclusive activation programs, both of which increase the chances of renewal.
Whether this approach is right for a particular property will depend upon multiple characteristics and market position, and certainly for any rightsholder going down this path there are lots of details to negotiate to carve out different platform territories and avoid—as much as possible—overlap and conflicts, but for many the effort will likely prove worth it.
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Filed under: assets, negotiating, packaging, selling, trends, activation