A few weeks ago @JimAndrews_IEG IEG’s Jim Andrews wrote in his blog—a must read of insights into the sponsorship and branding business—about the impact of Social Media on sponsorship. Jim, who I consider a good marketer and a better friend, and I exchanged some emails on the subject. I have thought more about the impact and thought I would share.
The fascinating part of Social Media on sponsorship is that ironically it may actually drive shorter deals, lower rights fees and even lessen the reason for sponsorship. Why? If, for examples AMICA Insurance as a sponsor the Boston Celtics gains access to season ticket lists or names via on site promotions. If AMICA does a good job of engaging consumers, starts a two way conversation via blogs, Facebook, managed content newsletters and a continued dialogue ensues.. AMICA has a few choices when their deal concludes 1) Our social platform worked well and we want to lasso further Basketball fan/ consumers 2) we already have the access we need, we can email or tweet Basketball fans without the need for sponsorship. The conversation is unfolding… and we are really a sponsor of that
I believe it will be closer to #2) what is the impact? Due to Social Media, I believe sponsorship deals will continue, but will shorten to two or three year deals. Shorter deals are an issue for properties (category too closely affiliated with first mover brand, energy and resources to sell a new partner etc.) The bigger issue is that the value of X Category may drop as the initial sponsor in the category has already developed social media access and owned a conversation with the consumer/fan.
My recommendation for Brands? I would recommend thinking not for your brand..But think like your competitors.. What would they do?
Dan
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