As a longtime admirer of the deal, I was really pleased to see O2 pick up both the Leading-Edge and Brand Extension awards for The O2 at last week’s Marketing Society Awards for Excellence. Overdue industry recognition for one of the truly great sponsorships, which has been a triumph of conception and execution. 

Many aspects of The O2 are familiar. The visionary, genuine partnership between sponsor and rights owner AEG; the consequent transformation of the derided Millennium Dome (against all precedent) into a world-leading entertainment venue; the integration of the asset into O2′s overall marketing strategy; and its key role in driving customer retention via priority ticket access and brand experience.

However, there are two less well-known aspects of The O2 deal that I like above all.  

First, the fact that it was the antithesis of the ‘Chairman’s whim’ decision-making which - despite what detractors of sponsorship would have you believe - has been the exception rather than the rule for many years. The O2 marketers had to make and remake the concept to their – unsurprisingly – highly sceptical Board three times before it was finally approved.

Second, that it’s delivered – and demonstrated that it has delivered – genuine, significant brand and business ROI in spades.

An econometric model developed to look at impact on customer loyalty [showed] an immediate but lasting impact on churn amongst the whole customer base…Without taking into account [acquisitions], the model has calculated a ROI of 26:1 by the end of 2008. Within 5 years we expect to achieve an ROI of 80:1.

(source: O2/VCCP Marketing Society Award submission paper) 

By Tim Crow on June 15th, 2009

Tags: Default, Naming Rights, Sponsorship

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