Archive for the ‘Sponsorship consultancy’ category

Valuing Rugby World Cup 2015 Sponsorship: A 5-Step Guide to Sponsorship Event Measurement

It’s not long now until Rugby World Cup 2015 kicks-off and sponsors start to see a significant return on investment…

…at least that’s what they hope.

If you already know whether their event sponsorship endeavors will be likened to a World Cup win or group-stage knockout then you can stop reading now. Otherwise, this 5-step guide to sponsorship event measurement should help you understand how to deliver, measure and evaluate a high-ROI event sponsorship of any scale.

RWC Image 2

So, using Rugby World Cup 2015 as a case study, let’s outline an approach which could help…

RWC Partners Image

By the way, this guide brings to bear much of the thinking already shared in the Synergy Decisions white paper.

Step 1: Understand the Pathways to Value

In the context of event sponsorship and Rugby World Cup 2015, this means understanding that the event could deliver value through different Pathways. Brands like Canterbury and Heineken will have similar rights, but will be using them to deliver different objectives. The rights will drive different levels of value accordingly.

That said, let’s consider some of the Pathways through which Heineken could drive value:

  1. B2C Brand Awareness (e.g.pitch-side branding to reach a global audience via extensive TV coverage)
  2. B2B Hospitality (e.g. hosting and building relationships with trade contacts to increase listings in the on and off trade)
  3. Data Capture (e.g. recording fan contact details through at-event activations)
  4. Experiential (e.g. campaigns to connect with fans at the stadium)
  5. Pouring rights (e.g. increased sales at all 48 matches at the expense of competitors such as Guinness)

Heineken Experience

Step 2: Identify the Value Drivers for Each Pathway

This is crucial. Rugby World Cup 2015 sponsors must know which metrics influence how much value is being created within each specific pathway. Sponsors should ask whether their value drivers are, for example:

  1. Talking to business customers – If so, how many do we need in our hospitality suite at each match? Of the business clients who join, what share do we want to be “high” value? Of those who are “high” value, how many do we need to convert into sales?
  2. Data capture – If so, how many details do we need to collect at each match? How many are attending each match? What is the likelihood that a new contact converts to a sale? What is the value of that sale? How quickly do we need to follow up?
  3. Maximizing at-event sales – If so, how many sales do we need to make? Where can we sell at the ground and how many sales staff can we deploy? At what cost?
  4. Etc. … (In the interest of time I’ll refrain from listing the 30+ different Value Drivers we’ve worked on at Synergy over the last year, but you get the idea!)

The earlier brands map out these questions, the easier it’ll be to:

  • •  find where and how value could be created pre-campaign
  • •  change course and track progress during-campaign
  • •  evaluate performance post-campaign

Step 3: Build a Model

Having successfully navigated Step 2, it’s time to enter Excel and use the value drivers to create a model which helps us understand the value created within each Pathway. Let’s say that Heineken, for example, is trying to understand the Data Capture Pathway. The global beer brand’s model could be structured to make calculations using inputs like:

  • •  # matches at which we have experiential rights
  • •  # attendees (by match)
  • •  % attendees engaged in experiential
  • •  % attendees engaged who share data / contact details
  • •  % post-match contacts converted to sale
  • •  £ lifetime value of average contact converted to sale

Step 4: Find the Best Possible Inputs and Assumptions

With a strong Step 1, Step 2 and Step 3 in support, finding and measuring the metrics that matter should feel less like a scrum and more like a kick from under the posts. Whether it be through consumer surveys, brand trackers, data records on the ground, web analytics, or a combination of all of the above, the key to sponsorship measurement is inputs and assumptions you can adjust but believe in.

Dan Carter

With our Heineken / Data Capture example in mind, imagine that they have one pop-up activation per match. Heineken could then track performance through, for example, conducting consumer surveys at each of the 48 Rugby World Cup 2015 matches.

Step 5: Interrogate the Model

Once the detail is done and dusted, better decisions can be made more easily with the help of a user-friendly dashboard, which could look something like:


As any Rugby World Cup-winning team will tell you, most of the hard work is done before the main event. Tough questions are asked, different tactics tested and weights lifted before the Final event itself.

Likewise, sponsorship event measurement must be grounded in strategic analysis ahead of time, and a commitment made to analyse and gather the necessary data to find scenarios, sensitivities and breakeven points. With a clear sense of how to drive maximum value, CMOs and Sponsorship Managers alike can send staff out onto the marketing field-of-play confident their team will perform.


I hope you’ve enjoyed this quick guide on how to take a more structured approach to understanding the value of event sponsorship. If you’d like to talk in more detail feel free to email me at

By on July 14th, 2015

Tags: Measurement, Rightsholders, Rugby, Rugby World Cup, Sponsorship, Sponsorship Activation, Sponsorship asset valuation, Sponsorship consultancy, Sponsorship consultants, Sponsorship effectiveness, Sponsorship measurement, Sponsorship valuation, Sport, World Cup, World Cup Sponsorship

No comments

Rio 2016: Another Missed Opportunity For Brazilian Sports Marketing?

by Guilherme Guimarães

When Rio de Janeiro was bidding to host the 2016 Olympic and Paralympic Games, a big question mark from the market in awarding Brazil with a mega sporting event so soon after the football World Cup was the appetite for Games sponsorship of the Brazilian market. Many questioned the country’s ability to attract local partners for the Games in competition with the marketing appeal of Brazil’s national obsession – a point that the Rio bid team had to address in particular during the evaluation process.

Ultimately, despite the expectations raised by Rio’s big first deals with Bradesco and Embratel-Claro, Rio 2016 didn’t keep pace with London 2012 in signing sponsors and is way behind Tokyo 2020. With Brazil’s economy in crisis and the Petrobras scandal raging, Rio 2016 could hardly have a tougher sell, but their PR remains upbeat and rumours of last-minute sponsorships occasionally surface.

As Brazilians know, when it comes to Rio 2016, sponsorship deals are not the only things being left to the last minute. And we are not talking about stadium construction, transport infrastructure and airport expansion. We have yet to see consistent, innovative, bold in-country activation from Rio 2016′s sponsors, which is puzzling, since it’s really difficult to generate meaningful ROI from something as big as an Olympic sponsorship in just one year (or less) of activation.

Who’s been active?

In short, very few.

The most active Rio 2016 sponsors to date are Bradesco and Nissan, who have both run Olympic-themed ads.

Bradesco is using its various sponsorships of Olympic sports to launch a series of events named the BRA Challenges, that use the correspondence of the first three letters of the bank’s and the country‘s name to create a sense of backing for Team Brazil.




 The coincidence is also being extensively explored in a series of ads such as this:

Nissan also made some noise right after signing as Rio 2016′s official automotive partner, launching its team of athletes. However, after using Usain Bolt’s visit to Brazil to leverage its Olympic and Paralympic association, Nissan has done little beyond this very generic ad:

Correios (the Brazilian government-owned post office) joined the line up of sponsors this year, but despite being late to the party has already released Rio 2016′s official stamps, as well as this ad:

 Another missed opportunity?

Originally seen as a turning point for the Brazilian sports marketing industry, it seems Rio 2016, like the FIFA World Cup, will see another potentially game-changing opportunity come and go. Instead, Brazilian sports marketing has become famous yet again in recent weeks for all the wrong reasons.

Sponsorship in Brazil is still all about rights acquisition rather than strategic marketing. Activation remains limited in concept, creativity and execution, and Rio 2016′s local sponsors are following this path.

Recently, the results of the first ticket ballot were released. Again, no Brazilian brands were prominently active. Today it’s Olympic Day and the One Year To Go mark is fast approaching. Will we see more Brazilian sponsors finally step up to the mark? Only time will tell. But let’s hope so.

Guilherme is the founder and General Manager of Ativa Esporte, the Brazilian sports marketing consultancy which is Synergy’s partner in Brazil.

By on June 23rd, 2015

Tags: Brazil 2014, Default, London 2012, London 2012 sponsorship, Olympic sponsorship, Olympic sponsorship consultants, Paralympic Sponsorship, Paralympics, Rio 2016, Rio 2016 Sponsorship, Rio 2016 Sponsorship Consultants, Sponsorship consultancy, Tokyo 2020, World Cup, World Cup Sponsorship, World Cup Sponsorship Consultants

No comments

Sponsorship Valuation: Standing up for the Sponsors  

Sponsorship valuation is driven by rightsholders. The simple fact is that they tend to be the ones paying for the analysis, and whoever pays the piper calls the tune.

It makes complete sense for the rightsholders to be leading this particular charge. They have sponsorship properties to create and sell. They not only need to know where to price them but also need to be able to justify that price during the sales process.

A whole industry has grown around this proposition. In fact, just yesterday ESP Properties, a new “super-agency” born out of IEG, GroupM and Two Circles was formed to focus on exactly this. They will be taking the fight to IMG, CAA, Wasserman, Repucom and the many others who all have their sights trained firmly on this space.

There is no doubt that these are all great agencies doing some pretty sophisticated things to help rightsholders better understand and maximise the amount of money they can command for their sponsorship properties on the open market. Because, at the end of the day, the value of a sponsorship property from the rightsholder’s perspective is the same as the value of a house: it is worth what someone is willing to pay for it…and you only need one party to be willing to pay that. Effectively that means that rightsholder consultants are like estate agents, helping the rightsholders determine the “list price” based on market benchmarks and the property’s features (rights) and helping them find a buyer.

Estate agents boards offer property in Brighton

But in this rush to help the rightsholders monetise their properties, who is helping brands understand the value of their sponsorship, independently and without any conflicts of interest?

This is particularly important, because, as we argued in our Synergy Decisions White Paper, a sponsorship does have a real, economic value to the sponsor: the increase in the company’s value as a result of increased revenue or decrease costs.  But this value is entirely contextual of the sponsor and their activation campaign.

To put it bluntly, the exact same sponsorship property with the same basic rights would have a completely different value to Coca-Cola, McDonald’s, P&G, Samsung, Panasonic, Visa, Toyota, Bridgestone, Omega, GE, Dow, Atos.  That’s because each of those companies has different business models, audiences, products, routes-to-market, marketing channels, purchase drivers and competitive environments.

Further, the exact same property would be worth a different amount to the same brand depending on how effectively they activated it. For example, I don’t think it’s too controversial to say that the London Cycle Hire scheme could have been worth far more to Barclays (and no doubt will be worth far more to Santander) had they done more with it.

The challenge for brands is to determine the economic value their sponsorship does or could create. And this requires a completely different approach to the one that rightsholders use – one like Synergy Decisions.

By on May 20th, 2015

Tags: Default, Rightsholders, Sponsorship, Sponsorship consultancy, Sponsorship consultants, Sponsorship effectiveness, Sponsorship measurement, Sponsorship valuation, Synergy

No comments

Synergy named Agency of The Year at BT Sport Industry Awards

Synergy was named Sport Agency of the Year last night at the BT Sport Industry Awards in London, receiving the coveted accolade – the top honour in the UK sports sponsorship industry – in front of an audience of 1,750 of sport’s most influential names at the largest and most prestigious event of its type in Europe.

Synergy took the award after a stunning 2014, which saw the agency post impressive financial results, deliver innovative campaigns for clients around the world, and win a raft of new business, including Accenture, Aviva and Canterbury. The judges reserved particular praise for Synergy’s vibrant culture, creativity and industry-leading investment in its people.

Synergy CEO Tim Crow was joined on stage at Battersea Evolution by Synergy’s Chief Strategy Officer Carsten Thode to collect the Agency of The Year trophy from Rugby World Cup-winning former England winger Jason Robinson and ex-Wales and British & Irish Lion Shane Williams.

Read Sport Industry Group’s summary of the event here and see the full list of winners here.

By on May 1st, 2015

Tags: Awards, Sponsorship, Sponsorship consultancy, Sponsorship consultants, Synergy

No comments

Bloodmarketing: is Red the new Black?

Back in summer 2012, the sponsorship industry witnessed a seminal CSR activation by Hemoba, a Brazilian blood bank and Brazilian football club Vitória, with their ‘My Blood is Red & Black’ campaign. Synergy’s colleagues in Brazil wrote about the activity at the time in their review of the year, picking it out for special praise.

As a quick reminder for anyone unaware of the activity (so that’s probably just … ), the concept revolved around the insight that people in Brazil only give blood when inspired to do so by someone they really care about. So who better to donate for than the club you love?

From this singular insight the club created a clear, cute and well-intentioned campaign, the centre-piece of which saw the red of Vitória’s famous red and black shirts leeched white. As fans committed to blood banks across Bahia State, the club shirts steadily regained their iconic colour.

Again, you can’t argue with the results for Hemoba – who marked an increase in donations of 46% – or Vitória itself, as there has scarcely been a more appropriate example of fans giving their blood, sweat and tears for their team shirt.

So why mention this again?

Well, because last week it was announced that anyone giving blood (okay, anyone in Denmark, in a prescribed location, at a defined time…) would be given a copy of the new PlayStation 4 game, Bloodborne.

With multiple rave reviews, and a RRP of £49.99 (or around 500 Danish Krone), there’s little question this represents a good deal. Even Danes not able to make the donation session on March 23rd in Copenhagen were still encouraged to sign up to give blood, as those that add ‘PS4′ after their name on the GivBlod donor list, have the chance to win a PlayStation 4 console.

Why target gamers? GivBlod have established that there is currently a shortage of male blood in Denmark, so used what they considered a traditionally male platform to incentivise action.

Why Bloodborne? Well, the hemoglobic connection was probably too good to miss, plus it’s a game with a PEGI rating of 16, meaning if you’re buying it, there’s a chance you meet the 17 years-and-over legal age to give blood in Denmark.

With largely positive (if a little quippy) feedback from the online community, it suggests that PlayStation and GivBlod are on to something here.

Question will be whether they use this mechanic to engage more broadly than the stereotypical male gamer demographic, particularly since in Denmark this passion point is actually not quite as definitively XY as assumed (although PS4 ownership might be).

Danish Gamers Source: ISFE, 2012

Moreover, if looking at the Europe-wide statistics, it’s clear that female gamers are in fact becoming more and more prominent.

ESA 2014


In the wake of #Gamergate, it’s all the more important that advertisers, brands and associated stakeholders consider the wider gamer demographics as a relevant group to engage.

Regardless, it’s unlikely that this is the last we’ll see of consumer incentivisation meeting a product launch beyond the initial Danish blood test.

By on March 30th, 2015

Tags: Advertising, Default, Football, Football Sponsorship, Gaming, Sponsorship consultancy

No comments

Will this be Rugby’s Perfect Moment?

Back in September 2014, a year out from Rugby World Cup 2015, Synergy gathered a panel of experts at the top of The Shard, with an audience of sports sponsorship glitterati, to debate whether the upcoming tournament would be ‘Rugby’s Perfect Moment’. Could this be the year for rugby to break free from the pack to establish itself as the number two UK sport? Could 2015 be a catalyst to super-charge rugby’s international expansion?

With a panel including Brett Gosper, CEO of World Rugby; Damian Hopley, CEO of the Rugby Players’ Association; and Rose Beaumont, Senior Vice President and Group Head of Communications of Rugby World Cup Worldwide Partner MasterCard, it may come as no surprise that the debate was how, not if, this year would be ‘Rugby’s Perfect Moment’. But what underpins such confidence that 2015 could step change rugby’s profile, in the UK and beyond?

A Solid Set Piece

As a globally relevant spectacle, the Rugby World Cup (RWC) is on an upward trajectory, with each tournament surpassing its previous incarnation. The 2011 tournament in New Zealand may have been less commercially lucrative, with small stadia forcing ticket sales down 40% on 2007 and some pretty unfriendly match scheduling as far as European broadcasters were concerned, but it didn’t stop World Rugby continuing to tout their showpiece event as the world’s 3rd biggest tournament. There is no debate on the top two – the Olympic Games and FIFA World Cup are pre-eminent in terms of interest and media coverage – but many a rightsholder makes claim to the final podium position.

What is Rugby World Cup’s argument over the likes of the F1 Championship, the Champions League, the European Football Championship, the Ryder Cup and the NFL? ‘It is the third biggest global event of an international flavour,’ claims Gosper, citing the number of participating unions, the TV footprint, cumulative TV audience of 4bn, and ticket sales. While many observers, including Synergy’s CEO Tim Crow, have raised eyebrows at such pronouncements, there is no doubt that the platform for growth is strong. RWC 2015 will produce an estimated 20,000 hours of coverage, broadcast in over 200 territories, to over 800 million homes. A return to the commercial epicentre of global rugby means the 2015 edition is set to be the biggest yet.

An Expansive Game Plan

From such a proven set-piece, rugby has the opportunity to reach hitherto untouched communities and audiences. From a UK perspective, the challenge for tournament organisers England Rugby 2015 (ER2015), and longer-term for the RFU, is to help rugby expand from the traditional heartlands and engage a new audience, who will not only be captivated during the tournament, but will stick with the sport once the big show has packed up and moved on, destination Japan 2019. The dreaded L-word: legacy.

But first the nation needs to be in thrall to tournament itself. And if you want a playbook for capturing the public imagination, it doesn’t get much more compelling than London 2012. Who better to implement that blueprint than the LOCOG team – including Chief Executive Debbie Jevans and Director of Comms Jo Manning-Cooper – who have been parachuted into the ER2015 organising committee? From ‘The Pack’ of 6,000 volunteers (RWC’s ‘Games Makers’) to the 100-day Domestic Trophy Tour (there is no Torch to ‘relay’ when it comes to rugby), the London 2012 tactics are being redeployed to give the tournament more geographic and demographic reach.

Arguably the RWC has an in-built advantage. Whereas the Olympics and Paralympics were London (or at least South-East) specific, each over within a couple of weeks, RWC 2015 is a six-week tournament, played out across 13 venues in 11 cities nationwide. Not only will host cities share the 48 matches, their staging agreements include commitments to deliver Fanzones, where the ticket-less can watch matches on big screens, participate in various rugby experiences and sponsor activations, and feel part of the tournament.

The intention is clear: a genuinely inclusive and national tournament. As Gosper comments, ‘London enhanced the Olympic brand. I’m hoping the same will be true of England 2015 for the RWC brand.’ ER2015’s stated ambition to make the UK a ‘rugby nation’ in 2015 – seemingly shared by Visit England – began with Stuart Lancaster starting Newcastle’s firework display and unveiling a RWC 2015 logo on the Tyne Bridge, and will continue through Olympic-esque countdown milestones, such as ‘100 days to go’ and the launch of the Domestic Trophy tour on June 10th.

A Big Scrum

The ER2015 marketing approach is clear, but what about the consumer appetite? With over five million ticket applications during the first 17-day sales window – the highest demand for any RWC to date – and approaching two million tickets sold, initial signs are good. While ER2015 are still ‘expecting’ complete sell-outs across all matches, the over-supply of Millennium Stadium matches looks to be a minor miscalculation. It remains to be seen whether the frenzy for tickets – aptly echoed in ER2015’s ‘world’s largest scrum’ PR stunt to launch the ticket drive – has brought in a new audience. Regardless of the ultimate make-up and volume of tournament spectators, that prerequisite for successful sporting competitions – packed stadia – is guaranteed, and RWC 2015 will be the most attended RWC ever.

Bums on seats are essential not just for the spectator experience, but also for how the spectacle translates to pubs and homes across the nation via ITV’s coverage. RWC is a lucrative asset for the broadcaster. A 30-second TV ad spot in an England pool match is likely to set you back £100,000, with the price escalating the further Stuart Lancaster’s men progress in the tournament. ITV will be hoping the host nation advance to the latter stages, so audiences are closer to the 15.8m who tuned in for the England v South Africa Final in 2007, than the 7.6m who watched the England v France Quarter-Final in 2011 – both England’s final (and most watched) games in the respective tournaments.

It appears that ITV’s money men are planning for success. As a barometer of consumer interest, the reports that RWC will bump X-Factor from its sacred Saturday night slot suggest change is in the air. This is reinforced by Repucom analysis, which suggests that the proportion of people in the UK interested in rugby is set to jump from 35% to over 46% in 2015. That would translate to an extra five million rugby fans in the UK. Quite a surge in interest, and a mouth-watering opportunity for rugby sponsors.

Forward Drive

Back to the ‘L’ word, and rugby’s chances of harnessing the heightened consumer interest to create a sustainable, long-term increase in followers and participants. The RFU palpably failed to capitalise on England’s RWC triumph in 2003, so what should they do differently this time? Perhaps best not to follow the Olympic blueprint on this one, according to Tim Crow: ‘The London 2012 Olympic legacy ultimately became a toxic subject. People never fully understood why the money was being spent. We want the aftermath for the Rugby World Cup to be really impactful. And I’m not sure we’re completely there yet on explaining what the event’s legacy is meant to be.’

The RFU is talking a good game. Planning started three years out, focused on building capacity and increasing participation: £10m to be invested in facilities; over £1m in newly qualified coaches and referees; £500,000 in recruiting lapsed players. Perhaps the most interesting initiatives are those spreading the gospel to new audiences – the All Schools programme aiming to bring rugby union into 750 state schools by 2019, and investment in touch rugby as a more accessible entry point to the game. The money and programmes are there, but much depends on England’s on-pitch performance providing the requisite inspiration for a new generation. Failure to emerge from the group of death could have huge ramifications on the future of the game in England.

Foreign Muscle

Beyond the UK, the Rugby World Cup Trophy Tour – a global procession of the Webb Ellis Cup delivered in partnership with RWC Worldwide partners Land Rover and DHL – is helping to foster international anticipation. In 2014 it made its way across 10 countries, from the core rugby nations of Australia, Fiji, Argentina, and South Africa to burgeoning rugby hotspots such as China and the UAE. The sport is already breaking free of its heartlands and growing at a significant rate. In the US, while participation in baseball and basketball fell between 2008 and 2013 (14.5% and 9.3% respectively), rugby participation grew 81%, more than any other sport, according to the Sports & Fitness Industry Association. Indeed, in 2008 the top 10 countries in terms of rugby participation were the usual suspects – the RBS 6 Nations and Rugby Championship nations. By 2010, the top 10 included the United States, plus Japan and Sri Lanka.

The RWC is the commercial catalyst for the game globally, and World Rugby’s profits from each tournament are invested in the growth of the game through initiatives such as their ‘Get Into Rugby’ programme. But a very different dynamic, and slightly different sport, are responsible for creating a ‘perfect moment’ for rugby globally. The biggest surge in participation materialised when the International Olympic Committee voted to add Rugby Sevens for the 2016 and 2020 Summer Games. A shorter format, more accessible for new fans and players alike, and with a greater chance of success for smaller, less affluent rugby federations such as Fiji and Kenya. The growth of Sevens, and its involvement at Rio 2016, are arguably the most significant factors in rugby’s international development. It remains to be seen how compatible the two forms of the game remain. The tension between Test Match cricket and T20 could well be replicated in rugby as players become short-form specialists and younger fans gravitate to the festival nature of a Sevens event. For the time being, rugby’s global icons will remain in the 15-a-side game, with RWC its pinnacle.

A Deft Sidestep

RWC 2015 is on track to be a record-breaking tournament on every measure. Commercial success is all but guaranteed, and the tournament organisers have 2015 largely to themselves as they look to build anticipation. The Ashes will take the limelight for a while, but will also help to stoke the fire of traditional England–Aussie rivalry, ahead of the Pool A showdown at Twickenham on October 3rd. The global game is in rude health, fuelled by Olympic dreams, and will continue its expansion east with Japan 2019 on the horizon. But the real test will be whether RWC 2015 grabs hold of a new audience and pulls them into rugby’s embrace for good. Sponsors have a massive role to play in taking the rugby message beyond traditional audiences. Brand activation around the 2011 tournament was relatively underwhelming, and it will be interesting to see how many RWC and National team sponsors step up to the plate this year.

So, Rugby’s Perfect Moment? Well, as Stephen Jones, The Sunday Times’ rugby correspondent, pointed out at the top of the Shard, if rugby was meant to be perfect they would be using a round ball. Imperfect maybe, given how much rests on the shoulders of a team scuppered at the previous tournament by mystery blondes and dwarf tossing, but undoubtedly Rugby’s Biggest Moment.

Tom’s blog comes from Synergy’s Now, New & Next sponsorship outlook for 2015, which can be viewed in full here.

By on March 18th, 2015

Tags: 6 Nations, Experiential marketing, RBS 6 Nations, Rugby, Rugby World Cup, Sponsorship, Sponsorship Activation, Sponsorship consultancy, Synergy

No comments

ESports: It’s in the Game

Banana, Fenrir and ppd. No, that’s not a profound spellcheck error, but actually three superstar players who, as part of separate teams, competed for $10.1m in prize funds at a single tournament earlier this year. To make a comparison, this is only 19% less than what UEFA paid out to Real Madrid for winning La Décima in 2014.

Unlike Bale, Benzema and Cristiano Ronaldo, however, you probably haven’t heard of them, their teams or even the sport they play. They won their money playing Dota 2, an online multiplayer battle arena game, think digital chess combined with fantasy gaming, and they represent top members of the growing eSports community.

ESports is a catchall phrase for what is essentially competitive computer gaming: organised tournaments, put on either by game producers, game players or independent bodies. The range of competitive games is, as you’d expect, huge, but they mostly fit within competitive categories; from the lesser-known computer-based multiplayer games, such as League of Legends and the aforementioned Dota 2, to major console gaming titles such as Call of Duty and the EA Sports FIFA Series.

ESports have long been part of gaming culture, but as this generation of tech-savvy gamers has grown up with high-speed Internet in conjunction with the growth of free-to-use video stream sites, such as YouTube and Twitch, the growth of the competition and consumption elements of eSports has sky-rocketed. We spoke with Kyle Bautista, General Manager of compLexity Gaming – one of the world leaders in competitive gaming – who told us: ‘Players and teams have been competing in these games for decades, but the problem was being able to expose a large enough audience to them to get people to know they existed, let alone sustain any substantial growth. The biggest contributor to the growth of eSports is likely Twitch and other livestreaming services.’

Following its growth in 2014, which saw its number of visitors surge by 513% from 371m to 1.9bn, Twitch was purchased by Amazon, and whilst the parent company’s influence has so far been minor, Twitch’s recent purchase of the company ‘Good Game’ – which manages eSports teams ‘Evil Geniuses’ and ‘Alliance’ and also curates eSports tournaments – suggests that Twitch is looking to integrate itself even further into eSports culture.

Amazon will be hoping to replicate Google’s success with YouTube (which sees successful content creators having their streams and videos sponsored by advertisers) on Twitch as a long-term monetisation programme. The advertising streaming option is beneficial as it promotes both great content creation from its users, as they receive a cut of the money, but also encourage brands to spend their valuable ad money on successful channels. To make Twitch as accessible as possible for brands, however, it has to rely on its predicted growth coming to fruition and provide detailed audience segmentation for brands to tap into.

Unlike traditional sports, whose history lies within live events and then TV or radio broadcast, eSports have grown out of an Internet-connected audience and their users exist almost exclusively online. Where big sporting rightsholders have been catching up with new Internet consumption habits, eSports were moulded by them and will continue to grow because of them. It’s unlikely that those habits are going to break, with Vice President of eSports at Riot Games Dustin Beck describing eSports fans as ‘a generation who aren’t consuming their content on TV’, going on to describe TV as ‘not a goal or a priority’.

These changing habits reflect the wider change in content consumption in the Western world: the same access of high Internet speeds that spawned the success of eSports also created a Netflix generation who watch what they want, when they want and on the platform of their choosing. In the future, as this generation matures, the consumption rates of eSports will continue to grow: it already surpasses the likes of NBA Finals and the MLB World Series in viewing figures.

The average eSports fan consumes 10.5 hours of content a week compared to traditional sports fans who watch 7.5 hours a week. Furthermore according to IHS, eSports video will bring in $300m in online advertising revenue alone in 2017, with consumption of eSports to double in size to 6.5bn.

Whilst the access to and usage of Internet-enabled devices has had a major part in the growth of eSports, so has the public perception of gaming as both a pastime and art form. Corporations such as Sony, Microsoft and Nintendo have helped power a global growth in console gaming, popularising a wealth of highly intelligent and beautifully designed games.

This, in conjunction with the proliferation of home PCs, has helped make gaming, as a mainstream activity, become more socially acceptable. As growth in ownership of powerful devices such as smart phones, tablets and consoles continues, so will the perception of gaming itself. For the masses, eSports still represent a niche corner of the more acceptable scene. As growth continues, however, this is likely to become a more widely accessed sporting event.

Where previously the sponsorship of eSports has been dominated by endemic brands such as Alienware – whose activations have been mostly restricted to logos on apparel and a few sponsored streams – we’re now seeing the likes of Coca-Cola, Red Bull and American Express stepping into the space and bringing their unrivalled sponsorship experience to the fore.

Coca-Cola has a large following on its @CokeESports Twitter account, delivering both a Millennial-focused platform for Coke Zero, alongside a few simple activations such as printing out fans’ League of Legends characters on bottles and cans at tournaments.

Meanwhile, American Express released personalised debit cards for fans, citing the hard to reach Millennial demographic being the exact reason for their sponsorship. ESports for these brands offer unique opportunities to access a global consumer audience, mostly Millennial, who are bypassing traditional advertising routes. For Bautista, these big brands create an entirely new proposition for eSports: ‘The addition of someone like a Coca-Cola, a MasterCard, or Nissan certainly brings a higher level of expectation to an event or team, but it also opens up more doors. The ability of a blue-chip company to create an extensive and innovative interaction between their world-renowned product and their targeted audience is what makes the non-endemic sponsors so exciting.’

It is debatable, however, how both the non-gaming public, Media and Government would welcome heavy brand investment in a move towards more sedentary ‘sporting’ activities. Here in the UK, the Government pushes a number of healthy living initiatives, notably Change4Life which encourages movement, whilst stories about the apparent ‘obesity crisis’ are never far away from the news.

Meanwhile, to the concern of many, sedentary gaming activity appears to be on the rise. A recent study by Nielsen revealed that on average US gamers play for 6.3 hours a week, an increase of over one hour since 2011; moreover a UK Government briefing reported that 55% of English boys play video games for two hours or more every day. Overly heavy brand sponsorship of this sedentary activity, therefore, has a certain risk factor; with the wrong PR and communications angle, it could have a negative impact on the brand’s relationship with both stakeholder groups. The latter especially might lead to a reduction in brand perception metrics, in particular trust.

Admittedly it is true that major sporting events, such as the FIFA World Cup or the Olympics, are often watched in sedentary (and arguably unhealthy) environments at homes and pubs. However, the key difference is that these traditional events have the potential to inspire movement (in children especially); Coca-Cola GB, for example gave away one million footballs during the 2014 FIFA World Cup, and McDonald’s, as a sponsor of the Home Nation FAs, are heavily involved in the grassroots game. ESports, on the other hand, lacks an obvious link to promote physical activity, over just simply inspiring more consumption of gaming and sedentary spectating. Sponsors, therefore, will have to work hard to come up with creative solutions if they are to fully justify their sponsorship with some important stakeholders.

Another point for consideration for brands must also be the perceived danger of video games on the psyche of young people. Over the past few years there has been a great deal of debate over the link between violent video gaming and real life aggression. Although Twitch users have to be aged 13+, and there are barriers (such as age gates and profanity filters) to underage consumption of adult-themed material and language, this is by no means foolproof. While the argument hasn’t been proved, the perception alone could damage a brand’s image; especially if the brand involved directly appeals to children and teens in other areas of their marketing.

(Source: Newzoo)

ESports are the future, the next big sporting phenomenon set to eclipse some traditional properties in the coming years. 2015 has the potential to mark a dramatic shift in the sponsorship landscape, which provides a ripe opportunity for global brands to speak to millions of young people worldwide. It is a truly global platform that levels the playing field by taking no account of geo-political sensitivities.

Already, some big players are getting involved – Amazon’s purchase of Twitch TV is a sign of things to come – and more are sure to join the party in 2015. Now is the time, if done both sensitively and with due regard given to the dangers of encouraging sedentary behaviour, for brands to become synonymous with eSports before the wave crests.

Christian’s blog comes from Synergy’s Now, New & Next sponsorship outlook for 2015, which can be viewed in full here.

By on February 26th, 2015

Tags: Default, Gaming, Innovation, Olympic sports, Red Bull, Sponsorship consultancy, Sport, Television audiences, YouTube

No comments

Now, New & Next 2015

From one of marketing’s Dark Arts to sometime cornerstone of brand activity, sponsorship has changed a great deal over the past three decades for Synergy.

We’re seeing more brands identifying the value sponsorship can deliver across their particular mix of marketing channels; more rightsholders grasping what it really means to work in partnership with commercial organisations; and, consequently, more varied and vibrant engagement points with consumers.

And, make no mistake, it is these very consumers who are central to everything we do. Sponsorship is about understanding, aligning and interacting with people’s passions to help bring to life that elusive brand promise – the actions that speak so much louder than words.

There’s no surprise, therefore, that many of the pieces in this year’s Now, New & Next focus on the impact of today’s fulcrum generation: Millennials. Much feted, and regularly discussed, and with good reason for sponsors – after all, these are the people whose beliefs, passions and priorities are shaping the world we live in and the sponsorship industry of tomorrow.

This is a generation that will change everything – more empowered, more empathetic, and yet with the potential to be more ambivalent to brands than any before them.

This is a generation for whom newness is part and parcel of everyday life – but for whom innovation without utility breeds suspicion.

This is a generation whose passions are central to both self-expression and self-fulfilment, the gateways to the experiences they hold dearer than possessions themselves.

This is a generation where it’s not just the value but the values of a brand that matter…and nowhere is a brand’s interaction with these consumers more evident than through sponsorship.

See the report here.

We hope you find this year’s #NowNewNext a thought-provoking read.

By on January 30th, 2015

Tags: Consultancy, Engine, Film, Gaming, Innovation, Sponsorship, Sponsorship Activation, Sponsorship consultancy, Sport, Synergy

No comments

Should Sponsors Resist Contractual Activation Guarantees?

In modern sponsorship, success is most frequently characterised as being about win-win partnerships, where both sponsor and rights holder benefit from the shared value created – in other words, the synergies – by activation at scale. When this happens in the UK, it’s usually the result of the sponsor delivering on a generally non-contractual commitment to activate.

However, at Synergy, we work on sponsorship contracts with rights holders around the world, and it’s not uncommon to see contractual activation guarantees, particularly in the US. These can take several forms, including guaranteed activation spends, ‘activation pots’ (where the brand can choose from a menu of items provided by the rights holder) and/or  activation commitments, such as leveraging on-pack to a minimum scale or dictating mandatory markets to activate within.

There is further complexity when rights holders dictate the channels that sponsors must use as part of their media buy. This typically takes the form of minimum media spend with the official broadcast partner, as part of a wider deal between the broadcaster and the rights holder. And in the latest potential evolution, the NBA is exploring mandating jersey sponsors, as part of any deals brokered in the future, to spending guarantees with its broadcast partners Turner and ESPN. Although terms of this are still very much under consideration, it is in response to fears from the broadcasters that brands with jersey sponsorships won’t need to buy as much of their media.  Of course it is not directly comparable, but imagine if Chevrolet, Emirates, Standard Chartered or Samsung were contractually obliged to buy a minimum number of commercial spots on Sky as part of their Premier League shirt sponsorship deals.

We are now beginning to see more and more of these type of clauses creep into contracts in the UK. So, what are the benefits and disadvantages to rights holder and sponsor?

It is easy to see the benefit to rights holders of being contractually guaranteed an active sponsor, who will take on the financial burden of promoting the asset, thereby increasing its visibility and value.

Contractual terms also protect rights holders at the end of longer deals, when it is not unusual for sponsors’ interest in activation to wane.

It is less easy to see the wins from the sponsors’ perspective. By being forced down certain paths, sponsors have less choice and flexibility on how they activate their sponsorship.

A minimum spend in itself could also be construed as counterproductive, as spend levels are not necessarily a proxy for reach or efficiency of messaging. Digital and Social in particular, can be highly targeted, with less wastage than channels such as Out of Home or TV, and are generally considered to be more cost efficient. If activated smartly, sponsorships can be leveraged on a tight budget.

Dictating a minimum spend in broadcast can also limit a brand’s ability to activate creatively across other channels, with budget tied up in costly media buys. It can also be strongly argued that brands know their own audiences and how to interact with them better than anyone, so are best placed to select their media strategy.

As Tim Crow suggested recently in his blog on the IOC’s Agenda 2020, imposing geographical obligations is equally unpalatable for sponsors. The IOC is contemplating this to stimulate local activation by TOPs, and whilst National Organising Committees naturally want to see these global brands activate at scale in their territories, sponsors have their business priorities across the globe, which demand the focus of their marketing budgets.

In truth, it is a very fine line between ensuring that partners are, and remain, active and simply trusting them to activate effectively. Rights holders will argue that they are simply safeguarding themselves against being used as a media buy, with little incremental benefit to themselves. The balance needs to be found where clauses are included with contracts to ensure that this doesn’t unduly restrict sponsors’ freedom of choice.


By on January 15th, 2015

Tags: Advertising, Barclays Premier League, Basketball, Brand marketing, Football Sponsorship, Innovation, IOC, Manchester United, Olympic sponsorship, Olympic sponsorship consultants, Sponsorship, Sponsorship Activation, Sponsorship consultancy, Sponsorship consultants, Synergy

No comments

The Portfolio Puzzle

As tennis’ top 8 prepare to close out the year at the Barclays ATP World Tour Finals in November, Djokovic, Nadal and the like will almost certainly review what went well (and what didn’t) in 2014. Some training sessions will be tweaked, others trashed. Either way, you can guarantee each player understands his portfolio of shots and how he’ll deploy them next year.

Can the same be said for brands and their sponsorship portfolios?

More often than not, no. Sponsorship resource allocation is often an ad-hoc process, and the perfect portfolio remains elusive. This is not surprising. The universe of assets to choose from – puzzle pieces to join together and realize a sponsorship strategy – is overwhelmingly large. Furthermore, different contracts expire at different times – the puzzle pieces are constantly moving. Achieving the perfect portfolio is tough, pinning it down is near impossible.

So what can we do? I’d recommend a portfolio review.

One example of a company who has conducted a sponsorship review is Barclays. In December 2013, the bank assessed whether its asset portfolio – which includes the Barclays Premier League, Barclays ATP World Finals, and the Barclays Cycle Hire scheme in London – was delivering on its sponsorship strategy. And clearly, it’s driving some big decisions.

In May 2014, the BBC reported that Barclays will not renew their £40m-a-year deal with the Premier League in 2016. Furthermore, Barclays has passed up the opportunity to extend its £5.5m-a-year sponsorship of the London Cycle Hire Scheme in 2015.

So, how might Barclays have gone about their strategic review? Well, we’d hope it went something like this:

1. Set objective, value-based criteria

2. Evaluate assets against this criteria

3. Decide which assets to retain vs. replace accordingly

It follows that sound criteria and evaluation are a pre-requisite to sound decisions. But what does this mean in practice, and how is it applied?

First, decision criteria must be set. These should be both qualitative (e.g. fit with brand values) and quantitative (e.g. maximum annual rights and activation cost we are willing to pay, minimum return on investment). Either way, decisions must be grounded in value.

Second, all assets should be evaluated and compared across chosen criteria. The hypothetical example below demonstrates what this might look like:

Figure 1. Example Portfolio Decision Process

Under such hypothetical criteria, Assets 2 and 5 do not make the cut. Deciding to drop them from the portfolio would mean Brand Y management can search out more attractive property across the sponsorship landscape.

Just as tennis’ top 8 review their game and adjust their portfolio of shots year-in year-out, deciding where to allocate sponsorship resources should be an annual process. And just as these players need to work harder to improve, the better they get, brands must put more effort into solving the portfolio puzzle.

The message for brands – put portfolio on the agenda for 2015.

By on October 27th, 2014

Tags: Barclays Premier League, Measurement, Sponsorship, Sponsorship asset valuation, Sponsorship consultancy, Sponsorship measurement, Sponsorship valuation

No comments


How To Find Us

What We Do
Our Work
Engine Group Office
60 Great Portland Street
Tel: +44 (0) 203 128 6800
Fax: +44 (0) 203 128 6837

 Find us on Google maps