Taking The Sponsorship Bull By The Horns For Non-Endemic Partners
BY ADAM GROSSMAN
One of the most common issues in sponsorship today is that properties / rights holders (teams, leagues, events, athletes, etc.) for non-traditional sports want to attract non-endemic partners. Conversely, non-endemic partners want to determine if they should sponsor new properties to generate lifts in meeting their revenue and brand goals.
The solution to this problem is fit and communicating fit through data. More specifically, what is a property’s value in helping a sponsor reach the right people in the right way at the right time to generate lifts in sales and engagement. Right people, way, and time will differ for each company but the process should be consistent. More specifically, is the property putting the company in the best position to achieve success to be “right.”
The Professional Bull Riders (PBR) has accomplished this goal. A recent study by the organization showed, “58% of PBR fans have made a brand purchase from a company in the past year because it sponsors [PBR].” PBR tagged Cooper Tires in the Tweet announcing this news and that is probably not by accident.
PBR has multiple national endemic sponsors including Wrangler, Boot Barn, and Priefert (rodeo and ranch equipment). For the organization to continue to grow its sponsorship revenue, however, it needs to demonstrate that it can drive sales for companies like Cooper Tires.
The organization’s study shows that a majority of fans are making purchasing decisions because a company sponsors PBR. Maximizing the probability of sales lift (i.e. working with an organization that drives purchasing behavior through positive brand associations) makes it easier for a company like Cooper Tires to become a sponsor of the PBR.
The PBR’s partnership with Monster Energy is further proof that non-endemic sponsors can benefit from a relationship with the organization. In a separate study, the PBR found that “12% of US population and 20% of PBR fans consume energy drinks; 49% of PBR fans are likely to buy [Monster Energy].”
Once again, the PBR is clearly articulating the way it drives value for its partner’s customers. In this case, Monster has a clear and credible rationale for its partnership with the PBR. It puts the organization in front of people that are not only more likely to buy energy drinks but also are likely to buy the specific brand.
The common factor in both of these studies is data. In particular, the PBR is using data to eliminate economic asymmetric risk for non-endemic corporate partners. What does this mean in English? Monster is a good example of this concept. Its partnership with the PBR fits in well with other relationships with NASCAR and UFC from a brand perspective. It can more easily see the PBR’s activation and measure the alignment with its brand goals.
However, how can Monster be confident that it is maximizing its probability of generating revenue through a PBR sponsorship? By communicating clear, tangible economic results specific to these companies, the PBR is enabling partners like Monster to eliminate this risk. It is providing statistical evidence that Monster (or Cooper Tires) can generate top-line revenue growth by partnering with the organization.
B6A’s Partnership Scoreboard is designed to specifically to help our clients communicate these types of insights. Our machine learning platforms and proprietary valuation models aggregate and analyze information from multiple channels to show specific companies how they achieve value from specific partnership opportunities. Our dashboard puts the data in language that buyers and sellers of sports sponsorship can clearly understand to make strategic decisions. By eliminating the asymmetric risk in sponsorship, B6A products enables properties and companies to maximize revenue growth and brand engagement.