Adding Value
CMA, New York City And GM Strike Accord That Is Music To Each Partner’s Ears
New deal demonstrates how properties and host markets can team up to share benefits, sell sponsorships.
4/25/05: The new three-way partnership between the City of New York, the Country Music Assn. and General Motors Corp. offers food for thought for other property and municipal marketers.
Overall, it should prompt properties and their host markets to review their relationships with each other–or establish a connection if none exists–to explore untapped synergies that could be used to attract more sponsors.
The deal’s primary benefits for CMA are assistance from the New York City Marketing Development Corp. in selling sponsorship to the CMA Awards and the ability to tap city assets for sponsor activation programs. The city gains access to the host of benefits offered by the property for use in its own marketing and to leverage with potential corporate partners.
That combination persuaded GM’s Chevrolet Motor Division to sign a major sponsorship earlier this month. Although Chevy has had a low-level presence with the CMA Awards for the past 13 years, the new deal greatly expands the automaker’s role. “New York’s involvement definitely made the deal more attractive,” said Chevrolet communications manager Noreen Pratscher.
In addition to sponsoring the November awards show at Madison Square Garden, Chevy also will become official automotive sponsor of June’s CMA Music Festival in Nashville, and will relaunch and expand its Chevrolet Rock & Roll Tour as the Chevy Music Tour, including 10 country acts in the 34-week concert series that visits state fairs, NASCAR races and Chevy dealerships. The tour will promote both the awards and New York City.
The automaker will take advantage of the city’s involvement by bringing its Chevy Lane mobile marketing program to Union Square Park for three days of free concerts and interactive vehicle displays around the September announcement of the CMA Award nominations.
NYC Marketing also will provide Chevy with permitting assistance for a vehicle parade and for shooting photos for the second annual Chevy Country Music Calendar, which this year will feature country performers in front of iconic New York landmarks.
Why The Deal Works Well For Property, City
CMA decided two years ago to move its awards show to the Big Apple from Nashville, following a meeting with NYC Big Events, the city agency responsible for attracting, creating and working with high-profile events. While the CMA at first viewed the move as “a one-year marketing stunt,” said vice president of strategic marketing, Rick Murray, the partnership grew with the involvement of NYC Marketing, the city’s office responsible for the $166-million deal with Snapple Beverage Group and other corporate partnerships.
“NYC Marketing essentially became an extension of our sales force,” said Murray. “Also, this partnership allows us to do things with New York’s assets that we couldn’t have done on our own.”
For example, NYC Marketing will assist CMA Awards sponsors with activation. The department has committed to working with CMA sponsors on a series of public and private events to be held the week prior to the awards show and will be a one-stop shop for permits and other logistical assistance.
From NYC Marketing’s point of view, the deal is a way to promote tourism at little cost, said Jim Donofrio, senior vice president of sales and sponsorships.
He noted that the country shows on Chevy’s music tour will feature New York City tourism promotions and the truck caravan carrying the tour will be branded “Follow me to the CMA Awards in NYC.”
Chevy also will tag print and online advertising with a CMA Awards/New York City message and will buy outdoor media in the metropolitan area as the event approaches, according to Pratscher.
“In the past, the city might have paid to attract an event like this. With this deal, we can bring a big event to the city at no cost,” Donofrio said, noting that the city projects the CMA Awards will have an economic impact of more than $30 million.
He equated the deal with the recent agreement NYC Marketing signed with A&E Television Networks’ The History Channel, a $19.5 million partnership that includes $15 million worth of New York City tourism promotion on the cable network over the next three years.
NYC Marketing plans to use the CMA partnership as a model for future deals, Donofrio said. While it will continue to pursue large deals along the lines of Snapple’s official partnership with the city, it also will seek more modest partnerships and those that involve third parties. “This is a new model for generating new streams of revenue,” he said.
CMA and NYC Marketing have signed Wm. Wrigley Jr. Co.’s Creme Savers hard candy brand. Creme Savers will run a consumer sweepstakes in conjunction with the awards.
Sources
Country Music Assoc., Tel: 615/244-2840
General Motors Corp., Tel: 313/556-5000
NYC Marketing Development Corp., Tel: 646/587-5600