IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING

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1 THE LATEST ON, ARTS, AND MARKETING DECEMBER 7, CATEGORY UPDATE SMARTPHONE APPS GROW APPETITE FOR SPONSORSHIP Mobile apps increase use of sponsorship with properties large and small. Mobile apps are developing a taste for sponsorship. Mobile apps spanning business, lifestyle and other categories are increasingly using sponsorship to reach new audiences and personalize their brands. Recent deals span F1 teams, regional boat shows and pro sports teams. Ties include Shazam and the Manor Marussia F1 team; Dockwa and the Newport International Boat Show; and Tinder and the Urban Mudder obstacle course series. While mobile app companies are often light on cash, they can provide another valuable benefit: promotional support. Properties can use that support to promote new events, drive ticket sales and enhance the fan and spectator experience. Tinder, for example, helped launch the Urban Mudder obstacle course series via ads on the dating site platform. Users who connected with Urban Mudder were offered a discount registration to the series inaugural event in New York City. I think there is a ton of opportunity to align with smart phone apps for marketing and cross-promotions. I don t see a huge cash opportunity yet but it s a great way to drive awareness, reach and ticket sales, said Jon Martone, head of partnership sales with Tough Mudder, the owner of Urban Mudder. The sponsorship gave Tinder a platform to engage consumers and personalize its brand via a dance party and other on-site activities. Mobile apps don t have a lot of opportunities to physically interact with fans. Tough Mudder offers the opportunity to have an experiential activation and reach fans in a completely different way. Promotional support plays a key role in Shazam s partnership with Manor Marussia. The music identification service plans to leverage the sponsorship by offering F1 fans new ways to experience the sport via the second screen IEG, LLC. ALL RIGHTS RESERVED. 1

2 Shazam is one of the top-ten downloaded music apps in the world. We have a faithful following, and Formula One has the same type of passionate fan. We re seeing an intersection of technology and sport, and Shazam is the perfect way to experience both things, said James Pearson, Shazam vice president of global communications. Shazam, which kicked off the tie at last month s Etihad Airways Abu Dhabi Grand Prix, will serve as Manor s official music partner in the 2016 season. Mobile apps also are increasing their involvement at smaller events. Dockwa an app that is used to book boat mooring reservations and rentals sponsored lanyards at the Sept Newport International Boat Show to amplify its exhibitor status at the event. Dockwa paid a cash fee to the event and also provided lanyards. The lanyards were excellent quality and created quite the buzz. As Dockwa s audience is B2C and B2B their presence was known, said Gail Alofsin, director of corporate partnerships and community relations with the Newport Harbor Corp., which operates the boat show. Dockwa will return to the event as a sponsor in 2016, she added. THE TOP 15 SMARTPHONE APPS 2015 IEG, LLC. ALL RIGHTS RESERVED. 2

3 THE LATEST ON, ARTS, AND MARKETING DECEMBER 7, ENDURANCE DALLAS MARATHON POSTS DOUBLE-DIGIT INCREASE IN SPONSORSHIP REVENUE Marathon increases revenue by replacing off-the-shelf packages with tailored offerings. While it may have lost MetroPCS as its title sponsor, the Dallas Marathon is finding success with a less is more packaging strategy. The race organizer has posted a roughly 10 percent increase in sponsorship revenue over the past two years as a result of the strategy a number it expects to grow to 14 percent once it secures a new title sponsor. New sponsors of the Dec. 13 event include AT&T, Oscar insurance and Transamerica. The strategy is spearheaded by Patrick Byerly, a sponsorship vet who joined the marathon as president in September Below, four steps Byerly has taken to boost sponsorship revenue: Bigger, better, fewer packaging strategy. Looking to provide sponsors more value, the Dallas Marathon has adopted a less is more packaging strategy. The marathon currently works with roughly 14 corporate partners, down from 30 in I want to make sure we give each sponsor maximum exposure. We don t want them to get lost in a sea of logos. In addition providing more exposure, the strategy allows the marathon to work with each sponsor on activation programs that generate return on investment and return on objectives which in turn helps boost sponsor retention. We want to deliver for each sponsor and help grow their business. We have increased investments but decreased the number of partners. Tailored packages. As part of the less is more strategy the marathon has replaced gold, silver and bronze packages with offerings tailored to the needs of each sponsor IEG, LLC. ALL RIGHTS RESERVED. 3

4 We don t offer a blanket set of benefits. We put together each partnership from scratch. Year-round marketing platforms. Looking to extend reach beyond a single event, the marathon has launched a handful of ancillary running events, all of which are designed to provide sponsors year-round reach. The marathon uses the events to drive traffic to sponsor businesses. That includes monthly runs to local restaurants, retail stores and other sponsor locations. Each event draws between 150 and 400 participants. The marathon does not charge an additional fee for the added exposure. One of the first things we communicate with each new sponsor is that as we grow, you grow. Each new sponsor becomes part of our organization. Cross-promotions with local sports teams. As part of its year-round marketing strategy the Dallas Marathon has created a race series in collaboration with the Dallas Mavericks, FC Dallas and Texas Rangers. The RunDallas Race Series features one race each quarter, culminating with the Dallas Marathon in December. Runners who participate in all four races receive a special medal. The marathon uses the running series in part to reach new audiences. A sports team may talk to someone who goes to the gym, but has never thought about running in a 5K. The race series helps make people more comfortable about approaching a marathon or half marathon IEG, LLC. ALL RIGHTS RESERVED. 4

5 THE LATEST ON, ARTS, AND MARKETING DECEMBER 7, TELECOMMUNICATIONS PORTFOLIO OVERVIEWS OF THE FOUR MAJOR U.S. WIRELESS SERVICE PROVIDERS AT&T, Verizon and T-Mobile increase activity while Sprint keeps spending flat. Continuing a trend seen over the past fiveplus years, Sprint Corp. is holding a line on new sponsorship spending amid increased activity in the telecommunications category. Sprint spent an estimated $75 million to $80 million in 2014, the same as AT&T the category s largest spender increased its sponsorship spend by $5 million to $10 million from 2013 to 2014, while Verizon upped its budget by an estimated $10 million. T-Mobile increased its sponsorship spend an estimated $5 million. Where Telecommunications Companies Spend Money 87% 5% 4% 2015 IEG, LLC. ALL RIGHTS RESERVED. 5

6 PORTFOLIO OVERVIEWS OF THE FOUR MAJOR U.S. WIRELESS SERVICE PROVIDERS AT&T Estimated 2014 U.S. Sponsorship Spend: $185M-$190M 2013 Spend: $175M-$180M Major U.S. Partnerships NCAA AT&T Pebble Beach Pro-Am College Football Playoff New York Yankees AT&T Stadium Sponsorship Portfolio By Spend/Activity 86% ARTS 5 ARTS 8% 5% 5% 12% 4% 7% 17% Verizon Estimated 2014 U.S. Sponsorship Spend: $120M-$125M 2013 Spend: $110M-$115M Major U.S. Partnerships National Football League Verizon IndyCar Series MetLife Stadium New England Patriots Penske Racingtelecom breakdown by SPEND / ACTIVITY Sponsorship Portfolio By Spend/Activity 92% 57% ARTS 1 15% 4% IEG, LLC. ALL RIGHTS RESERVED. 6

7 Sprint Estimated 2014 U.S. Sponsorship Spend: $75M-$80M 2013 Spend: $75M-$80M Major U.S. Partnerships NASCAR Sprint Cup Series Sprint Center, Kansas City National Basketball Association International Speedway Corp. WNBA Sponsorship Portfolio By Spend/Activity 95% 2% 76% ARTS 8% 6% 6% T-Mobile Estimated 2014 U.S. Sponsorship Spend: $40M-$45M 2013 Spend: $35M-$40M Major U.S. Partnerships Major League Baseball SFX Entertainment Sponsorship Portfolio By Spend/Activity 87% 37% 4% 1 30% 29% 2015 IEG, LLC. ALL RIGHTS RESERVED. 7

8 ABOUT IEG AND ESP PROPERTIES IEG has shaped and defined sponsorship over three decades. It is the globally recognized source for industry insights, trends, training and events via sponsorship.com, its annual conference, online publications, trend reports, surveys and webinars. IEG is part of ESP Properties, a WPP company. As a commercial and creative advisor for rightsholders, ESP Properties helps organizations unlock greater value from their audiences and brand partnerships. Our consulting team assesses and advises how to grow the value of rightsholders commercial programs. We do this through a full range of services across data, digital and content development to better understand audiences and create more relevant ways to engage with them. This provides brand partners with new ways to connect with communities of fans and followers, growing the potential value of commercial partnerships. Our sales team provides partnership strategy and sales representation to the world s most active sponsors, within and beyond the WPP network of brand clients. Through WPP we have extensive contacts and deep insights into what it takes to create successful partnerships. INSIGHTS EVALUATION GUIDANCE IEG LEADS THE WAY IN SPONSORSHIP ANALYSIS, INSIGHT, VALUATION & MEASUREMENT WWW. SPONSORSHIP.COM For more information about IEG and the sponsorshp industry, please visit or call IEG, LLC. ALL RIGHTS RESERVED. 8