Message Segmentation in Sponsorship

One Message Doesn't Fit All

While evaluating a sponsorship opportunity, many a marketer makes a fatal error before deciding whether or not to make a usually significant investment. The marketer looks at the snapshot of fan or attendee demographics—provided by the property—and if the profile of the average fan matches that of the company's target audience, the marketer is more likely to invest in the sponsorship.

The problem is that the property's fans don't fall into just one demographic pile. A strategy of "broadstroke messaging" may result in a lower return on investment, or worse, damage to the sponsor's brand.

Effectively segmenting brand activities does not mean providing one's best customers with pro-am spots at the golf tour stop title sponsored by one's company. That's a customer activity. Effectiveness comes in the form of targeting different groups with messages and activities specific to different brands, products or services.

In some cases, on-site segmentation is easier than in others. For example, due to the seating layout at a horse track, an outdoor equipment sponsor of a thoroughbred racing league can touch unique groups on-site with targeted product messages. The sponsor can connect with general admission audiences in the picnic area and grandstand with lawn and garden equipment demonstrations, coupon distribution,and giveaways. Fans in upscale dining areas, who may own larger properties or estates, could receive product videos financing information or affinity marketing offers. And finally, occupants of the owners' boxes—who own large horse farms and use heavier equipment—might be invited to a private pre-race reception where relationship managers can work the room.

For a financial services sponsor of a major pro sports team, segmenting brand activities may prove to be more challenging. Frequently, financial services firms are provided with signage, tickets, ATM placement and media as part of sponsorship packages. Activation may be limited to player appearances at bank branches and a credit-card application kiosk on the concourse. Sign up and get a free, commemorative T-shirt is an often-used ploy. But do you really want consumers to think of your brand as the one hawking free T-shirts? Not likely. If the team agrees to share fan or attendee information, the sponsor's brokerage arm or asset management group can efficiently provide activities such as on-site investment seminars and the distribution of analyst's reports. And, why not offer exclusive hospitality areas for corporate suite holders to meet with the M&A or investment banking group?

Sponsors should be even more careful not to alienate consumers through broadstroke brand or product messaging. An automobile sponsor may want to display its newest luxury car at the entrance to a venue. The fan who can afford only the lowest priced ticket may react positively and aspire to purchase such a car down the road. However, he won't be exposed to cars in his price range, so there's no pull to bring him into the showroom. Even worse, that fan may think the sponsor is completely out of touch with his reality and may decide to never consider the sponsor's lower-priced models.

The sponsor would realize bigger returns with "chauffeur teams" cruising outer lots and providing rides to the venue. The chauffeurs can induce fans to visit showrooms through targeted pitches and coupons redeemable at dealerships for exclusive items or tickets.

What about the internal benefits of segmenting brand messaging through sponsorship? By showing that a sponsorship can benefit multiple brands under the corporate umbrella, a brand manager doesn't have to shoulder all of the costs associated with the fee and activation. Even beyond protecting individual brand budgets, by spreading the sponsorship investment across brands and focusing activation on multiple audiences, companies face a better chance of successfully finding their sponsorships resonate with at least some of their target audience.

Remember, signing a rights deal is just the beginning of an effective sponsorship program. On-site brand message segmentation that offers a more personalized brand experience for the fan is the key to a successful, measurable marketing activity for the sponsor.

Ethan Green March 17 2003
Vice President North America
Redmandarin