Sponsorship With Euro 08 and the Olympic Games, 2008 is a dream year for sponsorship. This also raises questions, says expert Martin Platzer. Can the offer be too big? Will it result in overkill, confusion or even a hangover? "Neither," say the experts - if companies tackle their sponsorship in the right way. The sponsorship market in Switzerland is relatively small. With an estimated volume of 350 to 400 million francs - and simultaneous advertising expenditure of over 5 billion francs - 90 percent of expenditure is covered by 10 percent of sponsors. And these 10 percent are made up of 20 to 30 top sponsors.
Euro 08 in Switzerland and Austria will absorb more than 50 percent of the Swiss sponsorship volume in 2008, whether in the form of official sponsorships or ambush marketing campaigns. Sponsors who are not involved with this major event would therefore be well advised to postpone their commitments until the second half of the year. After all, Euro 08 is and will remain the main focus until the end of June. Other campaigns run the risk of getting lost in the hype.
New events have a hard timeWhat other events can survive alongside the one-off Euro 08? New sporting events and individual events in the cultural sector have a particularly difficult time, because anyone who sponsors efficiently today wants to do so in a sustainable way. In other words, they want to be more than just a situational presence and therefore integrate entire sports, series of events or already well-established events into their sponsorship strategy. One example of efficient and effective strategically anchored and long-term sports sponsorship is the commitment of Schweizer Mobiliar. The insurance company is positioning itself as a sponsor in the floorball environment and thus in a sport which, measured by the number of licensed players (29,000), is the number three team sport in Switzerland after football (230,000) and volleyball (30,000). With this commitment, Mobiliar is focusing its sports sponsorship on a broad base and wants to play a significant role in shaping the image of the floorball scene. For example, the National League A is now called the Swiss Mobiliar League, and the Swiss Cup is now called the Swiss Mobiliar Cup. Mobiliar is also the main sponsor of the Swiss national teams and all referees and is also involved in the youth sector.
At the same time, national sponsors in particular are becoming increasingly price-sensitive. Aware that the budget item for pure sponsorship must be doubled with at least an equal amount for accompanying measures in order to successfully implement a sponsorship, they are calculating very carefully, especially when continuing a commitment. For example, Swisscom is withdrawing from its name sponsorship of the Swiss Football Cup for cost reasons. When the main sponsor changes, the rights marketers also change.
Music for the young target groupIn addition to major sporting events, music in particular - and especially the big summer festivals - will receive a boost in 2008 and in the coming years. The reason for this can be found in the intensive presence of music in everyday life - especially among the young and affluent target groups of 14 to 49-year-olds: iPods and YouTube are part of the modern, trendy lifestyle in which many companies and products want to be perceived. The cultural and event sector also traditionally has a high share of the sponsorship market in Switzerland, not least due to the positioning of the telecoms and mobile phone industry.
A well-known example of this is the mobile phone provider Orange with its multi-year sponsorship of Orange Cinema (open-air cinema) and Orange Opera (partnership with the Zurich Opera House). The company has now also positioned itself with a younger, music-loving target group as a partner of the Swiss Music Award, which was presented for the first time in 2008. Cell phone manufacturer Nokia has also been active in the youth sector for some time and is involved in sponsoring music festivals such as the Nokia Greenfield Festival and Openair Frauenfeld, as well as being the main sponsor of Freestyle.ch, where the world's best snowboarders, freeskiers, FMXers and skateboarders will once again be performing the most daring tricks, flips and jumps on Zurich's Landiwiese this August.
Euro 08 or not, the requirements for organizers and sponsors alike are professionalism, experience, a network and consistent cost control. In addition to content and thematic evaluation, the extent to which a sponsorship commitment can and does contribute to the achievement of company-specific sponsorship and marketing objectives is also important.
Continuity is half the battleThis automatically results in an ever-increasing professionalization of corporate sponsorship activities. After all, even the best sponsorship that suits the company is useless if it is not professionally planned and implemented. Companies that plan their sponsorship strategically generally rely on continuous and long-term commitments. Ideally, depending on the focus and concentration of the sponsorship, Euro 08 has already been an issue there for some time - or not at all for appropriate reasons. So even in this sponsorship-intensive year, there will only be a hangover if sponsorship is used incorrectly or inconsistently.
Martin Platzer is the owner and CEO of MPM Sponsoring Consulting, based in Vienna and Zurich.