If you ask industry experts or observers of sport to identify the greatest ever sport marketing innovation, it is reasonable to assume the resultant list would consist of the usual suspects: probably something executed by Red Bull, Nike, or Real Madrid; or perhaps one of the many Mark McCormack-inspired sport marketing initiatives. Such innovations are often iconic, era-defining, sometimes signifying major paradigm shifts in sport marketing thought or practice.
For me, Red Bull is my personal favourite sports marketing innovation; the brand is a phenomenon that has changed the landscape of sport. From its X-Fighters, to Travis Pastrana jumping Long Beach Harbour in a Subaru, to the company’s Flugtag air racing series, the brand has become the sport, and the sport has become the brand. What started out with an Austrian guy buying the right to manufacture a drink that already existed (a natural drink from Thailand that was thought to have stamina-enhancing properties) has become a sporting empire that either defines the sports in which it is present, or else successfully competes in sports where other brands also have a presence. In either case, Red Bull has popularised or developed sports that meet the needs of a rapidly changing marketplace, but it has also brought a sense of excitement and daring to other sports in which it is involved.

Yet profound sport marketing innovations are not necessarily the most obvious, big, bold, global, Red Bull-type statements that touch all of us in some way. Rather, they are sometimes small, subtle changes that affect how sport is staged and played, how it is consumed, and whether it is a success. Alternatively, they are the result of close alliances between different sporting stakeholders that somehow affect peoples’ lives or behaviour: no less significant than Galacticos-era Real Madrid, and with effects equally as ground-breaking as Nike’s Air Jordans.
In this context, it is worthwhile differentiating between sport marketing and marketing through sport. At the heart of sport marketing is what economists call ‘the uncertainty of outcome hypothesis’. In other words, the core product in sport and what gives that product its strength is unpredictability: not knowing who will win a competitive contest between the individuals or teams involved. As such, any development that has promoted uncertainty has to be deemed as being a sport marketing innovation, whether it is a small amendment to the rules, a change in competition format, or the restructuring of a league. Within these parameters, the introduction of the Indian Premier League and the 1992 restructuring of the UEFA Champions League both merit being labelled as major sport marketing innovations in the way they changed the nature of the product and competition. So too, the rule changes that truncated Michael Schumacher’s dominance of Formula 1; at a time when the sport’s popularity was dwindling rapidly, changes to key regulations re-introduced a sense of competitive balance into the sport which in turn boosted its commercial attractiveness and its appeal amongst fans, while strengthening the core product.

The way in which marketing through sport also leads to innovation has resulted in some unheralded but very important developments. In 1977, Jean-Pierre Jabouille competitively drove a spluttering Renault F1 car for the first time in the British Grand Prix. This was the first ever F1 race for a car powered by a turbo engine; thirty years later and the use of turbo engines in road cars is now widespread. In this case, the innovativeness has come in terms of technological advancement, diffusion of knowledge, product development and enhanced vehicle performance. Such developments are evident too in yacht racing; a decade or so ago, Ericsson used sponsorship of the sport to trial, develop and promote its new GPS technology. Meanwhile Marlboro, through a 25-year association with the McLaren F1 team, reinforced its macho brand image through a relationship that was described as the equivalent of a royal divorce when it ended. Hawaiian Tropic has often used promotional give-aways, handing out sun-tan lotion, towels and hats to NFL fans at games held in the sun, enabling product sampling and building consumer goodwill. And the advent of giant video screens has helped transform the atmosphere in stadiums across the world by providing a better viewing experience, delivering high quality information, and promoting new forms of camaraderie amongst fans. Not to say the new opportunities it has provided to advertisers. The lists of such ‘small’ things that have gone on to become big, even if we have not always noticed them, have clearly been immense in several cases.

When I witnessed a move involving Roberto Carlos, David Beckham and Zinedine Zidane, playing in a game at the Bernabeu, it was something that will live with me for a long time: sport marketing innovation at its height, my very own Galactico experience, one which was immensely pleasurable. Yet whenever I take my turbo-diesel powered car on a long journey down the motorway, it is hard to believe that a French sports-car driver tagging along at the back of an F1 field is having just as important an impact on my daily life. Sport marketing innovation does indeed come in many forms, often starting small and ending up becoming something big.
Professor Simon Chadwick is Chair in Sport Business Strategy & Marketing and Director of the Centre for the International Business of Sport (CIBS) at Coventry University Business School. Follow him on Twitter: @Prof_Chadwick
By Synergy on November 12th, 2010
Tags: David Beckham, Default, Football Sponsorship, Formula 1, Indian Premier League, New Product Development, Sponsorship, Synergy, UEFA Champions League