Vol. 15, May 2005
Celebrating 20 Years: 1985-2005
“You can’t build a
reputation on what you are going to do.”
--Henry Ford
Founded in the summer of 1985, Joyce Julius and
Associates has been measuring and evaluating sponsorship dating back to the days
when NASCAR was considered a regional sport and the local television
newscast was your best chance to get caught up
on the scores.
Since then, the concept of sponsorship has evolved into a respected
marketing function,
with larger budgets and higher return expectations every year.
The primary goal of Joyce Julius from day one has been to deliver independent research in the areas of sponsorship and promotions, and 20 years later, we have not wavered from that original approach. As we take a moment to reflect on this milestone, we would also like to take this opportunity to thank everyone who has supported us over the years. Recent Sports Business Journal ad
From our original clients, such as Robert Bosch Corporation and Valvoline, to name a few, to some of our more recent additions like U.S. Coast Guard and Pacific Cycle—it continues to be a pleasure providing assistance in the area of sponsorship research. We strongly believe our personalized approach, coupled with a staff of dedicated research pros, has led to our longevity and will enable us to expand upon our leadership role within the industry in the years to come.
“With the majority of our research staff having been with us for more than five years, and in some cases 10 and 15 years, our hands-on knowledge of the industry is a true strength of our organization,” says Senior Executive Vice President, Cindy Shevrovich.
As we set our sights on another 20 years of service to the world of sponsorship (a.k.a. promotions, product integration, partnerships, traditional advertising alternatives, etc.), we look forward with great anticipation to new innovations we are currently developing that will provide even greater resources and options to our valued clients. As always, we appreciate any feedback, and we would welcome the opportunity to hear from you.
Premier Events Yield Varying
Television Exposure Results
Recently, Joyce Julius and Associates examined arguably the top four US sporting event telecasts kicking off 2005 – in chronological order, the Super Bowl, Daytona 500, NCAA Men’s Basketball Championship and The Masters. While all enjoyed a rich tradition, viewership increases and competitive outcomes, sponsorship opportunities among these crown jewels of sport were all over the map this year.
For
the sake of an interesting, if not completely scientific, comparison, our
research staff measured the in-broadcast
exposure received by ALLTEL,
the Jacksonville stadium entitlement sponsor of Super Bowl XXXIX, along
with Daytona 500 winner Jeff Gordon’s primary sponsor DuPont, the
halftime sponsor 
of CBS’ NCAA Men’s Basketball Championship game—Cingular--and
Nike’s exposure stemming from Tiger
Woods’ eventual playoff
victory during the dramatic final round of The Masters.
What quickly became apparent was the wide-ranging levels of commitment on the parts of the sponsors, which featured four uniquely different approaches to sponsorship, and not surprisingly, four differing results.
During the Fox broadcast of the Super Bowl early last February, ALLTEL managed just 26 seconds of clear, in-focus exposure time throughout the game portion of the telecast, with all of the exposure stemming from random shots of the stadium in which the brand’s signs were visible. When compared to the record setting commercial cost for the telecast ($2.4 million per 30 seconds), ALLTEL drew $2,080,000 of comparable exposure value.
A few weeks later, Fox once again took center stage with coverage of NASCAR’s Daytona 500. Gordon’s triumph enabled long-time sponsor DuPont to net $9.4 million of exposure value, thanks to a slew of sources emblazoned with the brand’s logo collecting 15 minutes, seven seconds of on-screen time, in addition to three mentions of DuPont by Gordon and the announcers.
CBS’ primetime telecast of the NCAA Men’s Basketball championship game from St. Louis paid off handsomely for Cingular, to the tune of $5 million. A whopping 17 in-broadcast mentions of the halftime sponsor, one minute, along with 31 seconds of on-camera time, accounted for Cingular's successful showing.
Finally, CBS’ Sunday afternoon showdown between Woods and Chris DiMarco during April’s telecast of The Masters, saw three Nike entities—Nike, Nike One Platinum Ball and Tiger Woods Collection—collect a combined $10,824,000 from 30:04 of clear, in-focus exposure time.
Nike The Masters CBS $10.8 Million
DuPont Daytona 500 Fox $9.4 Million
Cingular NCAA B’ball. CBS $5.0 Million
ALLTEL Super Bowl Fox $2.1 Million
Motorsports Sponsorship
Defying any type of sophomore jinx, Nextel
saw its in-broadcast exposure value rise 37% through the first six races
of the 2005 Cup Series compared to last season. Increased on-screen time
stemming from running order graphics during the Fox telecasts has been the
largest single contributor to Nextel’s increased exposure.
ESPN2’s
in-car camera simulcast of the Indy Racing League IndyCar Series’ opener
from Miami actually produced nearly twice as much cumulative on-screen
time for sponsors (8:38:33 versus 4:41:23) than the traditional telecast
airing on ESPN. When also
factoring in the verbal mentions and the advertising costs for each
telecast, the in-car show led to $7.9 million of comparable value, while
sponsors shared $9.8 million during the standard broadcast.
The hype surrounding the debut of the new “retro”-styled Ford
Mustang GT streetcar has also spilled into the motorsports arena
following the model’s successful introduction into the 2005 Grand-Am Cup
Series. Two Grand-Sport
division victories in as many races this season have paid dividends in
exposing the new car to the viewing public.
During the first Speed Channel telecast of the season from Daytona
International Speedway, the Mustang GT appeared on-screen for 4:37 and was
mentioned 81 times (more than
any other sponsor) for a comparable value yield of $54,350.
The car brand’s impressive figures carried over to California
Speedway, as telecasts devoted to the event generated a further 13:00 of
in-focus time, 261 verbal references and $56,500.
The $110,850 of exposure value has placed Mustang GT among the top
monitored sponsors in the series, an impressive debut by any standard.
Thanks to Bobby Labonte’s
penchant for promoting stars of the country music industry, artists from
Nashville now have another place to turn to promote their new albums.
In two recent stops on the 2005 NASCAR Craftsman Truck
Series tour, Labonte put in a strong performance, coming in a close second
in Atlanta and winning in Martinsville (garnering him a victory in all
three of NASCAR’s major series) and in both races his Chevy Silverado
was adorned with the name and likeness of two hot acts on the country
music scene: Phil Vassar and the group Trick Pony.
During Labonte’s run in Atlanta, the Phil Vassar logo was
monitored for 2:24, and during his run on the tight confines of
Martinsville Speedway, Trick Pony received 2:48 of on-screen time.
When factoring in mentions for both acts, aligning forces with Nextel
Cup regular Labonte as he moonlights in the Truck Series has earned the
country music performers an average of $39,000 of comparable exposure
value thus far in 2005.
The switch this year from Spike TV to NBC for
Champ Car’s crown jewel the Long Beach Grand Prix, proved profitable for
the race’s entitlement sponsor Toyota.
The auto brand saw its in-broadcast exposure value rise by some
400% to more than $1 million during this year’s telecast. The carmaker has reaped all this exposure success despite not
fielding a car in the series since 2002.
The
battle is on in the 2005 American Le Mans Series among tire manufacturers
seeking exposure. Through
telecasts of the first two events, Pirelli ($1,740,800), Michelin
($1,435,425) and Yokohama Tires ($994,550) occupied three of the
top four spots among the series' leading team sponsors in terms of
in-broadcast television exposure value.
With six of the first nine
NASCAR Busch Series events featuring a presenting sponsor, the
grouping has collectively appeared on screen for more than seven hours,
leading to some $22 million of exposure value when compared to the
respective costs of 30-second commercials during event broadcasts.
By comparison, in those six races, title sponsors claimed $7
million. The presenting sponsors’ dual role as team sponsor has
helped to account for the disparity in exposure value.
The first two races of the 2005 ARCA RE/MAX Series saw the total
amount of in-broadcast time for series title sponsor RE/MAX International
rise more than 30 minutes compared with the same period a season ago.
Through four telecasts – two airings each – of the Advance
Discount Auto Parts 200 from Daytona International Speedway and the PFG
Lester 150 from Nashville Superspeedway, the real estate giant’s
logo has appeared clearly and in focus for a combined total of three
hours, 44 minutes, eight seconds (3:44:08).
This total on-screen time represents an increase of 38 minutes, 42
seconds (38:42) for RE/MAX International over last year’s total
(3:05:26) through the same number of telecasts.
AFL's National Success Beneficial
to Chicago Rush Franchise
With a broadcast network deal solidly in place
with NBC, the addition of Fox Sports Net providing a national cable
presence this year, and the first ever neutral-site ArenaBowl championship
game slated for Las Vegas this June, the Arena Football League as a whole
has made tremendous progress the last few years.
Recently, Joyce Julius and Associates had the opportunity to chat with Dave McClamroch, Corporate Sales Manager with the Chicago Rush, to gain perspective on the league’s sponsorship offerings from the team standpoint.
Has there been any reaction regarding the ArenaBowl being held in Las Vegas this June from your corporate partners?
McClamroch: The response has all been positive. As everyone will start to see this June, the ArenaBowl will become an extraordinary annual event that extends far beyond the championship game. With Las Vegas secured as the home of the ArenaBowl Weekend for three years, it allows every team to plan accordingly and provide elements of hospitality that they have never before had access to. The AFL should be commended for the work they have done in securing this. It’s always nice to be able to include a trip to Las Vegas into a partnership. If we are fortunate enough to make it there, and to play for a championship, we want our partners to share in that once in a lifetime experience.
In terms of corporate sponsorship, how has
NBC’s, and more recently FSN’s, coverage made an impact with your
sponsors?
McClamroch: The impact of the increased exposure cannot be overstated. Internally we have always known what an electrifying sport Arena Football is, but there are still millions of sports fans that have not been exposed to the game. With the increased exposure comes a much higher and more diverse viewership, allowing us to partner with companies that have more of a national reach as many of our games are broadcast to over 50% of the country.
Does fielding a competitive team in a large
market give the Chicago Rush any advantages, in terms of television
coverage, etc.?
McClamroch: The fact that we play in a top market certainly helps. However, our on-field success and loyal fan base are vital. We have the best fans in the AFL and their support makes our arena one of the loudest in the league. For our fans every game is big, regardless of the team we are playing. It’s fun to watch a game on TV with that type of environment. Additionally, I think there are some natural rivalries that exist with Chicago and some other markets that make for compelling TV.
What types of unique advantages can you offer a
sponsor that the local NBA or MLB teams
cannot? Are those the types
of organizations who you are battling for sponsorship dollars, or is it
more a question of sponsoring versus not sponsoring?
McClamroch:
Accessibility and flexibility are the keys.
There are certain things we can do at a local level that many NBA
or MLB teams cannot. For
instance, our players are more accessible. After every game, win or lose, our players and coaches are
out on the field signing autographs for the fans.
In addition, they are out at least once a week at various events in
the community. It helps us
create a real bond between our players and our sponsors and fans. I’m
just not sure you can get that with the other local teams.
Secondly, we pride ourselves in our flexibility.
We offer partnership packages at all levels and that are not
prepackaged. This allows us
to create multi-layered partnerships that cater to our partner’s needs
and that more importantly can adapt midseason to changing marketing
objectives. In our mind, our
partnership agreements are living documents meant to evolve throughout the
term.
All of the other teams in Chicago and events such as concerts and plays are seen as competition for sponsor dollars. But this by no means precludes partners from partnering with multiple teams. In fact, we believe our partners should be involved with other Chicago teams because it only helps our partner’s ultimate objective. It also shows their commitment to sports in Chicago, which helps solidify our relationship.
What type of support do you receive from the League?
McClamroch: The AFL does a fantastic job of helping out the local teams in providing the tools necessary for teams to succeed. Some leagues may look at their league office with a “Big Brother” mentality. The AFL embraces a more level relationship. The AFL is always willing to work with each team in acquiring new partnerships. The AFL is not a competitor to the teams when it comes to selling partnerships as much as a facilitator in building relationships that help all the parties involved. Furthermore, they have fostered an open environment in which teams share ideas and contacts with one another. For instance, if we have a partner in Chicago that wants to tap into the Dallas market, we will do our best to make that connection. For a league to succeed through the years, all the teams need to look out for each other. The AFL stresses this constantly.
Are your sponsors demanding more return for their
investment than in the past? Is there anything you have added in the last
few years to help deliver more?
McClamroch: The key to a successful partnership is to constantly find new ways to enhance a partner’s objectives and increase their ROI. With true partnerships there is going to be a grace period of trial and error at times. However, ultimately, if we fail to provide an ROI as a property, we are failing our partners and do not deserve their business.
One of our focuses in the last couple of years has been creating new pieces of inventory for our partners to benefit from. For instance, due to the extraordinary coverage on NBC, we realized the player bench areas were shown constantly throughout the broadcasts. As a result we made signage available on the glass behind the bench. The result has been phenomenal with increased exposure beyond what we had envisioned.
Are there any significant trends that are, or
will be, impacting AFL sponsorship on the local level?
McClamroch: You bet. AFL attendance in Chicago and league-wide is at an all-time high and continues to see growth every season. In addition, more AFL games are broadcast on network TV than any other league except the NFL. As a result more sports fans are being exposed to Arena Football each year. Adding to this is a trend that tells us that AFL fans are more willing to try, switch or be loyal to our sponsors’ products than any other professional sports league. That is a very powerful stat for partners. This is especially promising, considering that compared to the NFL, NASCAR and MLB, the AFL is still in its infancy. The 2006 season will only be its 20th season. If you look at where those leagues were at after 20 years and where they are now, I think its safe to say the AFL has a very bright future ahead. Our sponsors are beginning to realize the potential of this league and how impactful their messages can be.
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