Sponsorship Essentials: March Madness Edition!
It’s March and that means one thing: March Madness baby! Not only is this an exciting time for the 64 teams vying for their spot as champion, but corporations and companies are also vying for the top spot in sponsorship. Given that the 2017 NCAA March Madness tournament was the most watched in 24 years, paired with record-setting digital consumption, this competition for sponsorship means more than ever. It may be only the beginning, but here are our Final Four predictions for the 2018 NCAA’s March Madness Tournament: Sponsorship Edition.
By: Claire Lingley
It’s March and that means one thing: March Madness baby! Not only is this an exciting time for the 64 teams vying for their spot as champion, but corporations and companies are also vying for the top spot in sponsorship. Given that the 2017 NCAA March Madness tournament was the most watched in 24 years, paired with record-setting digital consumption, this competition for sponsorship means more than ever. It may be only the beginning, but here are our Final Four predictions for the 2018 NCAA’s March Madness Tournament: Sponsorship Edition.
Capital One, AT&T, and Coca-Cola: As the three top tier corporate sponsors, aptly named the “Champion” sponsors, March Madness viewers will see hundreds upon hundreds of their commercials throughout this tournament (my personal favourite featured here, can't go wrong with Samuel L Jackson crooning on your TV), paired with their name and logo branded throughout week. From “Capital One’s NCAA March Madness Bracket Challenge” to Coca Cola’s “Sip. Scan. Score. Your way to March Madness” it is no question that these corporations will stand at the forefront of March Madness sponsorships.
Nike: This year, 44 of the 64 teams will be decked out in head-to-toe Nike branded uniforms. If my calculations are correct, the chances that the actual Final Four and furthermore, the crowning champ themselves, will be showing off that swoosh is looking pretty good!
Google Cloud: Now known as “The Official Cloud of the NCAA”. The end of last year saw the formation of an exciting new multi-year partnership between Google Cloud and the NCAA; NCAA’s 80+ years of historical and play-by-play-data, from 90 championships and 24 sports, is now being held and run on the Google Cloud Platform. This is a big deal for colleges and universities, athletic teams, and fan bases alike, as they now have access to this data in ways unlike ever before. With an estimated 40 million Americans filling out brackets, and probably most* of them doing so using some sort of data and analytics, it is no surprise that this year’s March Madness will serve as the perfect platform to show off this new partnership.
Buick: As a long time partner of the NCAA for quite some time now, Buick is stepping up its game when it comes to this year’s March Madness tournament. Not only will it offer it’s vehicle owners a free month of its AT&T-provided embedded 4G LTE data, allowing fans to access both the men’s and women’s championship games throughout the tournament, but it is also showcasing a new special NCAA Tournament app where Buick owners can listen to live audio feeds from various games playing throughout the month.
With sponsorship spending on college athletics excepted to reach a total of $1.24 billion in the 2017-2018 season, a 4.5% increase over 2017, and the overall sports sponsor spend in 2018 expected to rise 4.9% versus last year, the sponsorship industry shows no sign of slowing down. And while we seem to be seeing the same companies and corporations over and over dominating sponsorships in the big tournaments, just as every one knows in March Madness, you can never rule out the underdogs: case in point, UMBC defeating number one seed Virginia this weekend.
Hope everyone enjoys this year’s March Madness! I’ll be joining what I’m sure are the hundreds of thousands of people who saw their chances of winning their own office’s March Madness Bracket Challenge going down the drain with Virginia’s loss. Here's looking at next year to clench that win!
Sponsorship Essentials: Featured Deal of the Week
In this week's "Sponsorship Essentials: Featured Deal of the Week", we're looking at the unprecedented deal struck between the University of Southern California and United Airlines. Announced at the end of January, United Airlines purchased the naming rights for the Los Angeles Memorial Coliseum for $69 million over 16 years. This is a monumental deal, and we want to know what you think!
By: Claire Lingley
The Los Angeles Memorial Coliseum is no longer! Instead, say hello to the United Airlines Memorial Coliseum, coming in August 2019. In late January, the University of Southern California announced the exciting and unprecedented deal: United Airlines purchased the Naming Rights to the Coliseum for $69 million over 16 years.
This deal is important for two reasons. Firstly, the LA Memorial Coliseum is one of the sports world’s most beloved historic landmarks. Built in 1921, it was originally commissioned as a memorial to WWI Veterans, and in 1923, the USC Trojans played, and won, their first game against Pomona College. It is an iconoclast structure, and LA embraces it as a part of its history and culture. When it comes to naming rights, a structure with such history and such rich cultural relevance can be a challenge. Not only does USC have to ensure that this deal is right for their community, but it has the opinion of the entire city of LA, as well as arguably the entire sports world, to contend with. Let’s be honest, some people simply don’t like change, and this is a big one.
Secondly, this is a big deal. And I mean big as in, largest in college sports history. At $69 million, this naming rights deal supports the stadium’s $270 million upgrade that is due to happen ahead of the 2028 Summer Olympics, hosted by LA. That money will go a long way for these renovations, and USC is adamant that the changes will continue to honour the Coliseum’s original architectural integrity, (while also providing the customer with the most elevated experience possible). Supervisor Mark Ridley-Thomas, a member of the Coliseum Commission, says, "Through this restoration project, USC continues to demonstrate its responsible stewardship of the stadium. With support from United Airlines, USC is ushering in a modern era for this historic landmark and preserving its legacy for generations to come”.
This may be the first deal of this magnitude within the collegiate sports world, but it is certainly not the last. Here at BWA we want to know what you think.
· What’s the best way for United Airlines to activate on this partnership and enhance their customer experience?
· Do customers just need to learn to accept change, and stop with the complaining? Or should properties respect the history that comes with them?
· How can properties and companies, like USC and United Airlines in this case, work together in order to persuade the public that this partnership is beneficial for the students, the alumni, and the community as a whole?
· Does this affect your opinion of United Airlines and/or USC and the Coliseum?
Comment below, or email us at lingley.claire@bonhamwills.com to get your thoughts published on our website!
Sponsorship Essentials Part 2: Q&A with Dan Dillon, CMO of Arizona State University
Dan Dillon is the CMO of Arizona State University with an extensive marketing background in the restaurant and consumer world. In Part 2 of “Sponsorship Essentials”, he speaks towards how he got his start, his experience in this industry, and how ASU is changing the way collegiate properties look at branding and sponsorship. With ASU, it’s not merely a transaction, but a deeper partnership. Looking at the way ASU’s branding and marketing is going, other universities may want to follow suit.
By: Claire Lingley
Dan Dillon is the CMO of Arizona State University with an extensive marketing background in the restaurant and consumer world. In Part 2 of “Sponsorship Essentials”, he speaks towards how he got his start, his experience in this industry, and how ASU is changing the way collegiate properties look at branding and sponsorship. With ASU, it’s not merely a transaction, but a deeper partnership. Looking at the way ASU’s branding and marketing is going, other universities may want to follow suit.
Q: I understand you got your start in the restaurant/consumer side of the industry. What drew you to the academic world?
A: The opportunity at ASU was a unique opportunity. I don’t know if I was as intrigued by the industry as I was intrigued by what’s going on here at ASU, the role that marketing could play, and the role that brand management needed to play in terms of the overall mission of what is trying to be accomplished here. I was persuaded by President Crow (ASU President), that marketing could be a difference maker for the university, that it could add value, and that what he wanted to build was the capacity to do brand management, which is something that wasn’t currently here and available for the university, and quite frankly isn’t prevalent in a lot of universities.
It was the opportunity to do something different, to build something that didn’t exist, and to try and add value to a university that felt like it needed marketing to help it get where it wanted to be.
Q: What is it about your experience in the restaurant and consumer industry that made President Crow approach you, and has helped you in your position at ASU?
A: The principles of marketing apply regardless of sector. In the case of what my background has that was interesting to President Crow was a lot of variety, so with that variety, there was a belief that I could draw on that experience to solve unique problems at the university, despite not having higher-ed experience. Quite frankly, the problems that we were trying to solve, or the main issues and opportunities that existed at the university, were getting awareness of, and credit for, a lot of what was going on here in a way that defined the brand, the reputation of the brand, and the quality of the brand. That’s marketing. That’s generally trying to impact people’s perceptions of a brand in order to have some favourable outcome.
Enrolling, applying, donating, buying tickets or advocating for the brand or participating in events; those are all outcomes that are impacted by marketing and branding. I think President Crow just looked at my background, and because of the number of categories and sectors I had been in, felt that I had enough of experience to drive those types of favourable outcomes here at the university.
Q: Speaking towards that, you led the creation of the ASU Enterprise Marketing Hub. Can you speak a little bit towards that? What are your goals with it heading into the New Year and beyond?
A: I arrived at ASU in 2013. There wasn’t an enterprise marketing hub function; there wasn’t a centralized marketing department. There were over 400 people with marketing or communications in their title not reporting into one area, not taking direction from one area, but if we were going to operate as we decided we were, as a branded house, not a house of brands, then it was necessary for somebody to manage the branded house, and that’s ASU.
We quickly came to the conclusion that trying to centralize the marketing intake and getting everybody to listen to one leader or report into one area was culturally going to be difficult to implement. Rather than to go down that path of a command and control approach, we went with a more consulting approach.
We created the Enterprise Marketing Hub as an internal marketing agency that would provide a select set of services and consulting advice on how to manage and build brands at the school level, and the same time, with the belief that in doing that, we could start to manage and control a little bit more of the look and feel and projection of the ASU brand. If you were a unit and wanted access to that in the form of research or financial resources, or creative resources, or tools that were being used at the enterprise level, then you had to agree to follow some governance and follow some guidance, and that’s a franchised model. You’ve got the benefit of being a part of a larger organization, but in return, you have to follow and adhere to some guidelines and principles that we were trying to put into place.
The Enterprise Marketing hub has continued to evolve into a stronger unit because of this franchised model approach.
Q: Have you experienced difficulty in convincing outside brands joining in to invest in the University outside of the traditional Athletics-focused sponsorship?
A: We’ve changed the model to more of a partnership model. Sponsors, yes, they get the ability to brand physical assets or put signs up in our stadiums, but we’ve also made ourselves more accessible from other areas of interest other than just building brand awareness through signage.
So in talking to Adidas, or Coke, or Starbucks, or Mayo, or all these different brands that we are partnering with, what we’re offering is a deeper relationship than just a transaction, whereby you give us a sponsorship check and we give you a certain amount of signage in our athletics venues. Instead, we are co-founding research and giving these brands access to either our alumni or our students in ways that are beneficial for them in that they drive their revenue, or drive their brand perceptions, or drive their brand awareness.
We’ve got ways and assets that are not just about logos on billboards or logos on signs, they are much more sophisticated marketing tools and tactics that we are making available. And that’s a change in the way that we are approaching sponsorships and partnerships, in that we are trying to build a deeper relationship that isn’t just a transactional one or isn’t just about the more traditional, “Name this building; Name this stadium; Put your name on this sign up here” type stuff, because what we’re finding is that the need of these bigger brands that have large budgets is not necessarily brand awareness.
You know, Coke putting their logo up all over the stadium doesn’t really help them that much. What helps them is the ability to create experiences that drive affinity. Allowing them to create events, and to sponsor events, and to participate with our students and alumni in a unique, memorable, engaging way, provides much more benefit to Coke, both in brand affinity and ultimately revenue, than just putting their logo up on our scoreboard.
Q: Speaking of that, the ASU-Starbucks partnership, that seems like a really unique relationship, can you give me a short history of how that came to be?
A: It’s pretty simple and I think it goes to the university and the leadership’s propensity to be innovative and creative and solve problems. Really simply, President Michael Crow and Howard Schultz were at a foundation gathering that they both are board members on. In the course of conversation, Howard explained that Starbucks had 150,000+ baristas and over half had started post secondary education but not completed it. Howard and President Crow both agreed that completing a college degree would not only help the individual but also Starbucks.
President Crow gathered a group of us at the university and said, “Okay, how are we going to design a program that enables Starbucks to be able to offer this?”
His desire was to offer the opportunity to get a college degree for free, as long as you’re an employee at Starbucks working more than 20 hours a week, and so we designed a program in such a way that Starbucks could afford to offer that benefit to their employees, and their employees could get high quality degree options available online and be able to complete their degree. In the beginning, it was complete their degree, and we since have evolved to actually obtain a degree. Even if you haven’t started, even if you’re a first-time freshman, you still can take advantage of that benefit: as long as you are working 20 hours a week at Starbucks, you can take an ASU-Online program, enter your degree and obtain it.
Q: Going to switch gears just a little bit here, what is the best piece of advice that you’ve ever received?
A: Early, early, early on in my career, it was get as much different experience as you can and in as many different places, brands, and companies. Don’t ever say no to opportunities. Fundamentally, this was unique advice at a time where people were starting at companies and staying for 30 years. Getting a lot of experience at a lot of different places, or getting to a place that offers you a lot of experiences, doesn’t necessarily mean that you have to move companies, but it’s important to seek out those opportunities so that later in life you’ve got a wide variety of experiences to draw from to help solve problems and create opportunities.
Later in your career, you’re going to be as successful as your experiences that got you there.
Q: If you could have dinner with one person, dead or alive, who would it be?
A: That’s a tough one. You know it’s funny, my wife would say this, I am not star struck or enamoured by individuals per say, I find a lot of people really very interesting in very unique ways, but if I had the opportunity to have dinner with anybody, and it sounds really silly, I’d rather go out to dinner with my dad than someone I don’t know. Primarily, because I find him to be more interesting than a lot of people who I go out to dinner with.
Dad, if you are reading this, I’d say the same thing!