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Climbing Reaching New Heights With Olympic Spot

Shauna Coxsey, Tara Hayes, Matt Cousins and Nathan Phillips. Four names you’re probably not familiar with, but it might not be long before you are. All four are climbers and not just the best in Britain but some of the best in the world. With yesterday’s announcement from the International Olympic Committee (IOC) that climbing is to be one of five new sports added to the Olympic programme, they could be set to take Tokyo 2020 by storm.
The progression of climbing from a sport regarded for eccentrics and adventurers to one on the fringes of mainstream consciousness has been swift. Yet the reasons behind its incredible growth are as diverse as the sport itself and the IOC’s decision could be another leap forward.

Entering the Mainstream

Arguably it was two climbers, Tommy Caldwell and Kevin Jorgeson, who pushed climbing into the spotlight like never before, with their historic free climb of Yosemite’s El Capitan last year. Their epic 19 day ascent of the 3,000 metre Dawn Wall, drew media attention from around the world and made stars (if only reluctantly) of Caldwell and Jorgeson. Whilst the media’s gaze was only fleeting, it gave a unique look at a sport that has slowly been taking off around the world, particularly in the UK.According to the British Mountaineering Council the number of climbing walls in the UK has risen by over 100 in the last five years alone, with 350 public access walls listed in the BMC wall directory. The increase in walls is driven largely by an uptake of young people joining the sport, with the number of people taking part in the BMC Youth Climbing Series rising by 50% over the same period.

Technology, Technology, Technology

So the sport is a clearly a growing force but why and how has it become so, and more interestingly, how far can it go? The simple answer is technology. As with so many extreme sports new technology has allowed climbing to grow through improved equipment, providing a safer and more complete experience of a sport that inherently carries risk – without removing the thrill. Sport climbing is itself a descendant of the introduction of technology. Permanent anchors are secured to the rock face from which climbers can place protection to ensure survival from even the most eye watering falls.

The shift may appear to be a natural progression from the days of Royal Robbins placing steel pitons into the Yosemite cliffs, but the effect has been more wide-ranging. The improvements in rope, harnesses and other climbing gear has allowed the very best climbers to push the limits of what’s possible. The dynamic and occasionally terrifying nature of these new challenges has opened up the sport of climbing to a new thrill seeking audience, one that is looking to not only participate but create and consume as much content about the sport itself as possible.

Climbing Content

In 2006 film makers Josh Lowell and Peter Mortimer created the first Reel Rock film tour, taking a collection of short climbing films to live audiences all around the world. Now in its 11th year the tour has been a huge success and attracts sponsors such as The North Face, National Geographic and Petzl, highlighting the growing appetite for climbing content. It appears the sport has become as much about capturing the ascent, as the ascent itself. After all, if a tree falls in a forest and no one is around to hear it, does it make a sound?

It’s a question that a number of companies and brands are already looking to answer. Epic TV has been quick to provide a channel for the new band of climbers wishing to share their latest exploits, earning them not just an audience but an opportunity to create their own brand with which to attract sponsorship and turn professional. Climbers such as Alex Honnold and Sean McColl regularly share not just their climbing achievements, but their training regimes and other aspects of their lifestyle that hold as much interest to fans as the climbing.

So the sport is growing, with new stars, increasing brand presence and a highly engaged audience mostly made up of Generation Z and Millennials - surely then a place in the Olympics would be a positive next step for a sport on the rise? Yet there remain concerns, including those from professional climbers such as Adam Ondra, who feels the expected format of the competition may need to be amended to reward the more aesthetic aspects of the sport. It’s a concern that isn’t exclusive to climbing, with the much publicised trouble surrounding golf at this summer’s games proving that format is a difficult area to get right for even the biggest of mainstream sports.

Where Next?

Regardless of the concerns around format, it’s clear that climbing is entering another stage of its development and a place in the Olympics will act as validation to the thousands who compete in and watch the sport worldwide. It won’t be long before brands outside the outdoor and adventure space take notice and names such as Coxsey, Hayes, Cousins and Phillips move from the unknown to the everyday.

The PeRiodic Table – the Science of Sponsorship at Rio 2016

Getting an Olympic Games right is rare alchemy. The Road to Rio has been long and hard for athletes, organisers and sponsors alike. In the seven years since it won the bid to host the 2016 Olympic and Paralympic Games, the country has experienced more than its fair share of drama: rioting around #changebrazil, a FIFA World Cup meltdown against Germany, the spectre of political corruption and the tragic emergence of Zika.Is the country really ready for the Games? Can the infrastructure hold up? Will the doping scandal forever tarnish Rio’s moment in the sun?

These will all have been questions and concerns for the sponsors of Rio 2016 – the 59 different brands that make up the four partnership tiers of the Games represent a unique ecosystem that has helped ROCOG meet its $570m target for sponsorship revenue and played a key role in making Rio a reality.

While sponsorship is never an exact science, Synergy’s PeRiodic Table is an interactive graphic that allows you to explore a little more about each of the brands that are part of the Games. From sponsorship category to Twitter following, our interactive infographic – designed to be sorted and filtered as you see fit – provides the chance to discover some of the stories hidden beneath the surface of Rio 2016’s sponsorship landscape. Click here for the full table.

Heritage Matters: whilst the entire list of brands is typically sorted in alphabetical order, it’s notable that Coca-Cola sits before either Atos or Bridgestone in the TOP sponsor hierarchy. This is a quirk of Coke’s gift of rights: they will always be the first-mentioned brand in the IOC’s sponsorship recognition programme, acknowledging a relationship stretching back to 1928.

If You’ve Got It, Flaunt It: at time of publishing this, only 11 of the 46 brands with an active Twitter handle featured Rio 2016 marques on their profile. A potential missed opportunity for lager brand Skol, whose Twitter presence has perhaps the most overt Olympic theme, but lacks any actual recognition of its officialdom.

Missing The Tweet Spot: although it’s true that not every brand has to have a Twitter footprint, it’s interesting to note the official sponsors without a social presence, or those that have failed to build one ahead of the Games. For international brands with only a local relationship (anyone outside the TOP sponsor tier) like Nike, Nissan or Airbnb, the use of Brazil-focused feeds is also worth noting. While likely to be down to the IOC’s commercial restrictions around the use of social media, it will be interesting to see how many of the global Twitter handles end up giving a RT to their local market counterparts.

Toyota Revs Up For Tokyo: although the brand signed up as one of the IOC’s new TOP sponsors back in 2015, Nissan were already a Tier 1 sponsor of Rio 2016. This means Toyota can only talk about Rio in Japan (something Nissan cannot officially do), before turning their global attention to Tokyo 2020 following the conclusion of the current Games.

Necessity Is The Mother Of Investment: the outbreak of Zika not only created valid concern amongst athletes and spectators, but also led to the signing of OFF! – the Games first ever insect repellent partner. It probably depends on your level of cynicism whether you think this was to ensure a consistent quality control in terms of the level of safety provided to participants and attendees, or simply to head off commercial concerns around ambush of the category by unofficial brands.


Have a play with the various filters and sorting methods at the top of the screen, and see what stories you can unearth within the PeRiodic Table.

Rule 40 Guessing Game For Brazil’s Rio 2016 Athletes

Here in Brazil, as we reach 100 Days To Go to Rio 2016, the Games buzz is growing, albeit overshadowed by the ongoing political and economic crisis and the latest and most Games-related tragedy in Rio.

Giovane Gavio, two-time Olympic champion and first Brazilian to carry the Rio 2016 torch (Embed from Getty Images)

But day in and day out, Brazilian TV channels are broadcasting test events, qualification events and press conferences. The Olympic Torch Relay starts next week. And of course, Brazilian athletes all over the country are getting ready for the Games.

But on one important front, our athletes face massive uncertainty. While the USOC and their counterparts around the world have released their new Rule 40 positioning, the Brazilian Olympic Committee has yet to confirm its policy. Even by Brazilian standards, this is very late.

With the Games being staged in their home country, many of our athletes have been able to land lucrative personal sponsorships, with some having signed ten or more brands as partners. However, right now, the athletes and their brand partners don’t know what they will be able to do – or not do – to activate their sponsorships before and during the Games.

So with 100 days to go to Rio 2016 and counting, you can add to all the uncertainties about the Games those of the Brazilian athletes, their agents, and sponsors about Rule 40. Watch this space.

 

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

At 1000 Days To Go to Rio 2016, How Does Rio’s Sponsorship Programme Compare With London 2012?

With 1,000 days to go to Rio 2016 just gone, it’s interesting to compare the status of Rio’s domestic sponsorship programme with London 2012′s at the same point back in 2009.

What our research shows is, despite London 2012 being in the market at the nadir of the UK recession, and Rio being expected when it was awarded the Games to successfully leverage Brazil’s booming economy, at this stage Rio is a long way behind London in almost every respect.

 

 

 

 

 

 

 

 

This should come as no surprise. We’ve commented previously about how, after a stunning start in early 2011 with huge finance and telco category deals, Rio’s sponsorship sales programme has gradually stalled along with the Brazilian economy, and now faces big challenges given the ongoing protests, persistently negative PR about the Rio 2016 operation, Brazil’s economy, and Brazil’s ability to stage major – and even minor – events.

Revenue

Last week, in an interview with AP, Rio’s Chief Commercial Officer Renato Ciuchini revealed that the organisation was now targeting $1.3-$1.5 billion in domestic sponsorship revenue, and that $650m (£400m) has been raised to date.

By comparison, with 1,000 days to go to London 2012, we estimate that LOCOG had raised $894m (£552m) of its final total of $1.2 billion (£739m).

In other words, London had raised 75% of its final total, but Rio has raised only 50% of its minimum target and only 43% of its stretch target.

Deal Volume and Value

Rio is also well behind London in deal volume.

With 1,000 days to go London 2012 had closed 23 deals in 23 categories, whereas Rio has closed 10 deals in 8 categories (the Bradesco sponsorship covers both banking and insurance, and the telco category sponsorship was acquired by a joint bid by Embratel and Claro).

Conversely, Rio’s average category deal value, at $65m, is much higher than London’s $38.8m.

But on this point, Rio seems to be confident. Back in August, it slipped out an announcement that it had now sold 50% of its sponsorship packages, suggesting that it envisages doing only another ten deals.

If it sticks to this, Rio will have to average $85m for each deal to reach its stretch target of $1.5 billion, and $65m – its current average – to reach its minimum target.

As its current average is skewed by the huge Bradesco and Embratel-Claro deals, together worth $500m, the jury is very much out as to whether Rio can sustain this given the market challenges it now faces.

Tiers

Rio also lags behind London in all three of the tiers that modern Games Committees use to market their domestic sponsorships.

At the same point in the London 2012 cycle, LOCOG had sold and announced six of its seven Tier 1 sponsorships (BMW was announced a month later, in late November 2009) and six of its seven Tier 2 sponsorships (the seventh, Arcelor Mittal, was announced in March 2010).

In comparison, Rio has three in Tier 1 (finance, telco and automotive) and four in Tier 2 (professional services, beer, packaged foods and dairy products).

But what’s most striking is that whereas LOCOG had eleven Tier 3 deals in place with 1,000 days to go, Rio has only one, with Nike (although oddly, that deal has yet to be officially announced – the Nike logo just appeared on the partners section of the Rio 2016 website).

VIK

I’ve written before about how important value in kind (VIK) is to the Olympic sponsorship model and to Games budgets.

Because the Games are the world’s biggest and most complex peacetime operation, it takes far more to deliver them than pure cash. The Olympic sponsorship model is like a giant joint venture, with both the IOC and the local organising committee outsourcing critical products and services from sponsors, without which the Games couldn’t happen – and that’s why the majority of Games sponsorship in the modern era is delivered in the form of VIK.

As such, all of Rio’s sponsorships to date will have included an element of VIK – some (Embratel-Claro, Nissan, Ernst & Young, Nike) more than others.

But the fact that Rio 2016 has done so few deals at this stage compared to London 2012, particularly at the Tier 3 level which is always heavily VIK-based, means that right now it is having to do two things with important budget, cashflow and delivery implications.

Rio 2016 must be paying cash for vital products and services which Games committees normally use VIK deals to finance, which means that its cashflow and overall budget must be incredibly strained. And it must also have had to delay sourcing other key products and services, with inevitable consequences for its operations and deadlines.

Conclusions

Let me be really clear that, for certain types of business situations, and certain brand categories, Rio 2016 has enormous potential for brands in Brazil.

But right now, Rio 2016 is a sponsorship price-taker rather than price-setter in Brazil. Brands have three very good reasons to be wary about investing, and to exert downward pressure on price.

1. The spectre of a Government bailout looms over Rio’s budget even if it reaches its stretch sponsorship target, as a Rio 2016 spokesman recently admitted to AP. If that happens, there’s little doubt that would see the anti-FIFA protests become anti-Rio 2016 protests, which would be a disaster for the IOC, the Games, and of course the Games’ sponsors.

For an in-depth look at the marketing and sponsorship implications of the anti-FIFA protests, our Brazil team’s blog from June this year is a must-read and includes that point.

2. The IOC’s Gerhard Heiberg had this to say in the same AP piece on Rio 2016:

“I know that some sponsors are waiting to see how things are going to be at the World Cup. Will it be a success? Will it be chaotic? If people feel things are going to be very good for the games, it’s easier to get the sponsors. If people feel things are not going to be 100 percent, they will hold back on the Olympics. First they want to see what’s going to happen with the World Cup.”

Absolutely spot-on – and brave of Mr Heiberg to say so. We are aware of a wide range of name brands in Brazil, who would otherwise be primed to become Rio 2016 sponsors, who are adopting a ‘wait and see’ attitude until after the World Cup.

3. The potential value of Rio 2016 to a brand is inexorably dropping. There’s already less than three years to go until the Rio Games, and every day that passes reduces the potential value to a brand – especially when you consider that, given the Brazilian consumers’ overwhelming preference for football and therefore the World Cup, the first half of 2014 is arguably, for an Olympic sponsor in Brazil, a write-off.

 

#ChangeBrazil: The Implications For Brands & Sponsorship

by Bruno Scartozzoni and Guilherme Guimarães

As Tom Jobim, the great Brazilian musician and composer said, “Brazil is not for beginners”.

When Brazil entered the new democratic period in the mid 1980s, it started to change quickly. Fernando Henrique Cardoso, the intellectual president from the social democrat party, took control of hyperinflation, opened the Brazilian economy, reduced government participation in the economy and started important reforms in order to rationalize the state. This was essential to the next phase, when Lula, the charismatic president from the labour party, created all kinds of social programs, giving power of purchase to poor people for the first time in Brazil’s history.

These elements awoke the Brazilian internal market of people hungry for consumption, and, in simple words, that’s the reason why the 2008 global crisis didn’t hit Brazil as hard as it did the rest of the world. And then, suddenly, Brazil was on everybody’s radar, for successful World Cup and Olympics bids.

 

Now comes the bad part of this story.

Despite the economic progress of the last 20 years, our politicians did not achieve other important goals desired by Brazilians.

In contrast to our status as the sixth biggest economy in the world, our public services, especially health, education and security, are at the opposite end of the scale. Add to this corruption scandals with no prosecutions and one of the most unequal distributions of wealth in the world and you have the full picture.

The Protests

On 3 June a small leftist group called MPL – Movimento Passe Livre (Free Transport Movement) – which campaigns for free public transport in Brazil’s cities, started protests when the new São Paulo mayor announced a R$0,20 (US$0,09) raise in bus, subway and train ticket prices. To start with, most of the population didn’t care less about it, but each day the campaigners managed to congregate more and more people.

The turning point came on June 13, when policemen treated the protesters with disproportionate force, which triggered the population to use the R$0.20 increase as a symbol for something much bigger. It started to represent the poor public services, corrupt politicians, and the threat of hyper inflation. And just like the Occupy Movement and the Arab Spring, social media played a crucial role in scaling the protests and the protest ecosystem: suddenly politics became the only subject that mattered on Facebook and Twitter, which is really new for Brazil.

Coincidentally (or not) it all peaked at the beginning of the 2013 FIFA Confederations Cup.

For some time Brazilians had been saying in a resigned way ‘Imagina na Copa’, meaning ‘If it’s this bad now, imagine what it will be like during the World Cup’. Looking back, with the benefit of hindsight, it’s not surprising this grew into the protests.

The cost of the new and re-built World Cup stadiums had steadily risen from initial estimates and is more than the last three World Cups combined. They are being paid for by public money, in contrast to the promise, when Brazil won the right to stage the World Cup, that they would be privately funded. Add to that that other improvements linked to the World Cup and promised by government like new subway lines will not be ready by 2014, together with the poor reputations of the CBF and FIFA, and you have a time bomb.

It exploded on June 17, with protests in every major Brazilian city, which are now happening every day and night. In the streets and on social media, people started saying Brazil not only wants stadiums, but also health and education to “FIFA standards”.

 

It’s difficult to predict how and when #ChangeBrazil will end. Ticket raises are being cancelled by the minute, and the President has promised new infrastructure investment and a referendum on political reform, but people are going to the streets anyway. It’s the biggest social movement in the country’s recent history, and probably the first one above party political interests. As the population is claiming, it is democratic, mostly peaceful (until now) and beautiful!

The most visible impact of the protests on brands is that some of the protests’ most-used slogans have been adapted from recent brand campaigns.

Johnnie Walker’s ‘O Gigande Acordou’ (‘The giant is awake’) campaign showed the famous Sugar Loaf Mountain standing up and walking. The line was a reference to Brazilians’ commonly-held view that Brazil is a giant sleeping eternally.

Fiat used ‘Vem Pa Rua’ (‘Come To The Streets’) as its line in a football-themed campaign to ambush the Confederations Cup (they are not FIFA sponsors).

And Vick, the cough drops brand, were also trying to hijack the Confederation Cup, by promoting the hashtag #chupaessa (#suckthis) on Twitter.

As soon as the protests started, people h-jacked these brand slogans, all of which became part of the movement, used in placards on the streets, and on Facebook and Twitter.

There are also examples of brands actively using #ChangeBrazil in their communication.

In fact, almost everyone is doing something about it on Facebook, most of them being more conservative, with generic patriotic posts.

Stores near Paulista Avenue, the epicenter of #ChangeBrazil, are using the movement’s elements in their displays. Store owners said that they are trying to engage with the moment and avoid looting.

However, the most interesting #ChangeBrazil ‘activation’ so far has been by Spoleto, a big Italian fast food chain from Grupo Trigo, who license Domino’s Pizza in Brazil. They released a manifesto on their Facebook fanpage, basically saying that they would be opening that space for political discussion, and any brand activation would would be ceased for a week.

 

The discussion in advertising forums is about the possibility of brands taking a clear stand. Should they? Fiat thought it was better to leave the conversation and ended their campaign ‘as planned’ on June 22. Spoleto went the other way.

It will be interesting as well to see which way Brahma will go. The beer brand, which is a World Cup sponsor, was one of the few sponsors meaningfully activating the World Cup association in Brazil, and the only one positioning itself around discussions of the World Cup being good or bad for the country. Last year they released a very emotional and positive campaign telling Brazilians to care less about problems and imagine the party that will take place in 2014. It was a bold move, and divided public opinion.

Will they stand for this message after #ChangeBrazil? It’s another question impossible to predict, but they could broaden the optimistic message. “Imagine the party. Imagine a new (better) country.”

 

 

FIFA, Big Sport and The Protests

As #ChangeBrazil is partly a reaction to the government’s astronomic spending on the World Cup, many in the international media have questioned Brazilians’ attitude to the World Cup (especially) and the Olympics.

In fact, most Brazilians don’t think the World Cup and the Olympics are the problem. Most dreamed about hosting a World Cup again, and the Olympics are welcome too. Winning the bids is a proof that the world is finally taking us seriously, and it’s very nice for everyone’s ego!

The problem is how the events were ‘sold’ to the Brazilian public, the reality of our infrastructure versus the huge spending on the World Cup, and, as David Owen wrote recently, the evident complacency of FIFA and ‘Big Sport’.

As probably everyone in the world knows now, FIFA has got its PR strategy totally wrong in Brazil, notably when Sepp Blatter told protestors that they should not link their grievances to football, whilst at the same time Neymar was so visibly supporting the protests, and Paolo Andre, the former Corinthians player, recalled that football had been used as a tool of mass control in the past, but now it was the people’s turn to use sport to call attention to their demands.

From here, it’s difficult to see how FIFA can recover its image in Brazil in time for the World Cup, which obviously has big implications for all the FIFA sponsors, who’ll now need to re-think their activation strategies in Brazil.

#ChangeBrazil: 10 Action Points For Brands & Sponsorship

 

 

 

1. Brazil’s sense of its identity is changing very fast, and more than ever before, brands – both Brazilian and international – will need to listen to consumers and re-think their positioning and messaging. Brazilian values have always been attached to happiness, being easygoing, hard-working and, of course, the ultimate clichés: samba, beaches and football. This kind of thing still reflects what Brazil is, but June 2013 has changed it, evolved it, and made it much more complex.2. An example is what’s happening now. People still care about the performance of the Brazilian team in the Confederations Cup, but conversations in bars are split between football and politics, and this is new, very new.

3. Now it’s clear that Brazilians are deeply concerned about social issues, which means that brands will need to increase their CSR efforts, especially if they are going to try to wave the Brazilian flag . Those that already have strong CSR credentials have a big advantage: those that don’t have to move very, very fast to have permission to do business in Brazil, let alone marketing.

4. There is lots of white space to integrate sports with CSR in Brazil. We expect to see a big increase in sponsorship of social development programmes and Paralympic sports, for example, but there’s plenty of room in other causes too.

5. CSR campaigns don’t need to be dull. As we wrote recently, there have been some amazing campaigns fusing sport and CSR in Brazil in the last year or so, one of which recently won one of the top awards in Cannes.

6. Celebrities who are out of touch with #ChangeBrazil are a real risk for brands. The untouchables Pele and Ronaldo lost huge credibility with Brazilians after poorly chosen words about the protests – although to be fair Ronaldo’s were said in 2011. Conversely, others such as David Luiz, Dani Alves, and volleyball player Bruno Resende are in the ascendant after stating they were worried about their performance, but that they were proud and concerned about the Brazilians on the streets.

7. Naming rights sponsorship has started to gain momentum this year and looks likely to keep growing. But brands will be wary of the downsides of associating themselves with ‘FIFA’ stadiums, especially the three potential white elephants in Brasília, Cuiaba and Manaus.

8. Brazilians have discovered social media, especially Facebook and Twitter, as the modern Agora, and that has huge implications and opportunities for brands in Brazil, who activate sponsorships very little in social channels compared to traditional media, especially TV.

9. FIFA sponsors will need to work harder than anybody, but especially in social as their fanpages are suffering daily attacks by consumers.

10. Olympic sponsors have a big advantage. They can watch and learn from FIFA sponsors’ efforts next year, and adapt accordingly for Rio 2016. But how long will it be before the protests turn their attention from World Cup budgets and FIFA to Rio 2016′s budgets and the IOC?

 

Bruno and Guilherme are partners at Ativa Esporte, the Brazilian sports marketing consultancy which is Synergy’s partner in Brazil.