The State of Play Post COVID-19 How to navigate the return of sport & entertainment Summer 2020
onecore.ie/sponsorship | +353 1 649 6316 | What you need to know All sponsors are in full Recovery* mode, planning for the lifting of restrictions and building or pivoting sponsorship activation plans. These plans must seek to add value to the fan experience, now more than ever. The bulk of this report focuses on sport sponsors, with the fate of entertainment still a little unclear. However, many learnings are applicable to both sectors. Five key themes emerged from our conversations with Ireland’s leading sponsors and from in-depth fan research. We elaborate on each point below throughout the report.
1. A greater role for sponsorship emerges; for many brands, the absence of sponsorship activity in recent months was keenly felt across the business. But will the biggest winners be solicitors who specialise in sponsorship contracts? 2. The cluttered calendar; a dream for the fan, a nightmare for the sponsor - the battle of the bulging last quarter calendar will put pressure on all aspects of sponsorship activation, including the cost. 3. Budgets are under pressure; sponsors are emerging with more scrutiny on all spending. Some budgets have been spent on more urgent areas of need, they literally do not have the same budget to ‘play’ with. 4. Are fans genuinely as excited as expected? The impact of restrictions on the fan experience is dulling some of the expected excitement for the return to play. Understanding this unlocks the opportunity. 5. The holding pattern persists; even with return dates finally confirmed, some sponsors remain in a holding pattern, as their business still counts the cost of the crisis and the threat of a second wave looms. Jill Downey Managing Director *Core’s COVID-19 Planning Phases: Adaption, Reaction, Recovery About the research
The State of Play focuses on what lies ahead for sponsors for the remainder of 2020 and beyond. We spoke to several leading sponsors, collectively representing 10 of the top 20* sponsorships in the market. The sponsorships they manage cover a wide range of sport and entertainment assets, worth over €20 million in sponsorship fees^.
We assessed their level of preparedness for the return to action and we learned how they are pivoting their plans this year, to effectively activate their sponsorships. To adeptly activate you must understand fans and the nuances of fandom. Therefore, we also researched Irish sports fans, to find out exactly how they are feeling about the return to action**.
In the first of our COVID-19 sponsorship reports, published in March 2020, we concluded that the action-packed 12 months ahead (once restrictions were lifted) would be an opportunity for sponsors and rights holders to recoup lost momentum. This next phase of research sets out to examine The State of Play and to really test this theory; highlighting both the key concerns and the key opportunities that exist, as sport and limited forms of entertainment return around the country.
We hope you find our report useful and we welcome the opportunity to answer any questions you may have. In addition, if you would like to see more in-depth information on any element of the report, please email [email protected]. Noel Martyn
Intelligence Director *Core’s National Sponsorship Index & ^Core Sponsorship Tracker **Nationally representative sample, 1,000 Adults 18+ conducted from 18th – 31st June 2020 STRATEGIC PLAY In its absence, businesses recognised the importance of sponsorship for its brands The role of sponsorship as a strategic business and marketing tool has been reinforced in its absence. The majority of sponsors say sponsorship is more strategically important to their business This is a turning now, compared with before the pandemic. In addition, fans are recognising the sponsors’ important point for sponsors. role more than ever. Never before has Key challenges Key opportunities In the midst of a rush to get activation plans live, there is still In our first COVID-19 report (Mar 2020) we said sponsors their role been so not enough emphasis being placed on effectiveness who remain supportive of both the fan and the rights holder measurement. This is a golden chance to show the difference should reap the benefits in the long term. sponsorship makes to the marketing mix. Sponsors must be well understood & ready to capture this difference. Our research confirms this. The fans have a greater understanding of the role of the sponsor. They fully believe it embraced by all. The flip side is that it is difficult to miss what you don’t have. has a role to play, alongside other key stakeholders, in getting The ability to get new sponsorship deals over the line, in the sport back on track*. Fans too recognise the role sponsors short to medium term, will potentially be diminished. can play in enhancing their experience, especially under Unsurprisingly, the number of new sponsorship deals altered circumstances. completed this year has decreased^. Equally, new agile ways of working have strengthened Another issue which will impact resources going forward – relations between sponsors and rights holders. both time and money – is the contract. Going forward, Opportunities to pivot during the crisis have further sponsors will pay much more attention to their contracts and enhanced the strategic importance of the sponsorship to the all clauses. They should also gain a deeper understanding of business. Musgrave’s community based GAA partnership, the contracts in place between the broadcaster and the Club Together, is a stunning example of this in action. It is their rights holder. existing sponsorship with the GAA which enabled this important initiative to come to life and to be authentic.
Source: ^Core Sponsorship Tracker & *Core Research Nat Rep Survey, June 2020. Our view
The opportunity for sponsorship is clear. It was missed, it is valued and its strategic importance was universally confirmed or strengthened since the crisis. This is the chance to nail return on investment and to get closer still to the fan.
There is also a clear mandate from fans to sponsors to step into the breach as sport returns, to help sporting organisations in this new environment, to help fans acclimatise to the new way of consuming sport and to maintain the sponsorship commitments they have made.
To what extent do you agree or disagree with the following statements All sports fans (any agree)
72% 67% 62% 55%
Sponsors have an Sponsors have a duty to Sponsors have an I would think negatively important role to play in help sports organisations important role to play in about a sponsor if it ended helping sporting events as sport returns helping fan enjoyment as its sponsorship as sport Karen Doyle happen again sport returns returns Client Director Source: Core Research Nat Rep Survey, June 2020 CLUTTERED CALENDAR The 2020 sporting calendar for the second half of the year is unlike any other
Lorem ipsum 2020 Post-COVID19 Calendar Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
GAA: All Ireland Hurling Championship
GAA: All Ireland Football Championship
GAA: Allianz National League
GAA: AIB Club Champ/ County Club Champ
Liberty Camogie Championship
TG4 Ladies Football Championship
Soccer: Premier League 2019/2020 2019/2020 2020/2021
Soccer: UEFA Champions League 2019/2020 2020/2021
Soccer: International European Qualifiers
Soccer: UEFA Euro 2020 2021
Soccer: SSE Airtricity League of Ireland
Rugby: Guinness Six Nations
Rugby: Autumn International Tournament
Rugby: Heineken Champions Cup 2019/2020 2019/2020 20/21
Rugby: Guinness Pro14 2019/2020 19/20 2020/21
Other: The Olympics 2021
P U RC M Other: Golf Majors G S 2021
Other: Tennis Grand Slams AUS US FRE
T L V K D H Other: Athletics or Major Runs & Races O N I
D I E CH RA G L Other: Horse Racing R D D The 2020 sporting calendar is unlike any other, with many of the paused or postponed sporting events now taking place in the last 3-4 months of the year. This poses a unique challenge for Survival of the sponsors, many of whom are accustomed to competing for fan attention with a much smaller set of suitors. fittest is now the name of the Key challenges Key opportunities Usually, the sporting calendar is pretty evenly distributed Expected pressure on TV budgets set aside for sponsor across major sports, e.g. GAA, Football and Rugby. However, activation may provide an opportunity for brands to embrace game. as the amended 2020 sporting calendar illustrates on the innovative ways to activate using digital channels, virtual previous page, many major events are stacked on top of each reality and AI - especially while fans will be at home and other. How will sponsors stand out among the noise? looking to be entertained. This deluge of sport is a dream for the sports fan but a We have already seen a move to digital channels for sponsor nightmare for a brand’s share of voice. For example, normally activation during lockdown. In this important period while while the GAA championships are live, rugby sponsors are we wait for sporting action to resume, sponsors minds may quiet. Now, many of these brands will be fighting for the turn to digital even more, in particular to social media. same airtime and activation space – vying for the attention of very similar cohorts. Paradoxically, a return to simple “old fashioned” methods such as competitions and promotions will add value to the For the broadcast scheduler there is also the challenge of fan stuck at home missing their match day ritual. fitting in all live sport. The casualties here are likely to be underage, women’s or niche sports. Big commercial deals are There is an opportunity for brands to support broadcasters set to be prioritised over other agendas such as balance and to get more sport to air by looking at other broadcast diversity. channels, days of the week and by delivering more meaningful content outside of the action itself. Our view
Brands such as AIG, SSE Airtricity, Vodafone and Heineken pivoted their sponsorship activation plans to digital during lockdown with smart executions. While An Post used a timely children’s supplement in print and live online events to keep their sponsorship of the An Post Irish Book Awards relevant and engaging. Brands that are now in planning mode for the last third of the year can return to digital with data and learnings to apply. They will build on this awareness rather than start afresh.
Others such as Electric Ireland, SuperValu and AIB have used TV in different ways to continue telling their sponsorship stories. Credit is due to the media owners who have adapted quickly and looked beyond the ad spot to enable deeper connections. Electric Ireland’s Darkness into Light campaign for Pieta, in partnership with RTÉ, stands out for me – especially in light of the significant challenges they faced with COVID-19.
Survival of the fittest is the name of the game now. It’s not necessarily the sponsors who shout the loudest who will emerge as winners, but those who build awareness ahead of others, seek the space away from the clutter and who innovatively tap into the nation’s fandom levels.
Sean Rea Head of Media Sponsorship BUDGET PRESSURE With TV as the leading activation medium for sponsorship, cost control is a major headache in Q4 At a time when it feels like budgetary pressures are coming from all angles and every cost is under the spotlight, the timing of the condensed sporting calendar is far from ideal, as media costs Amidst the significantly increase from September. This will no doubt bring challenges but also opportunities. battle for media & for mental Key challenges Key opportunities A key concern is the cost of media in Q4 and in particular TV We saw earlier that more than half of sports fans would airtime. September – November is the most expensive time think negatively about a brand if they pulled their availability, to advertise on TV. For example, a GAA sponsor with a TV sponsorship at this time. They agree a sponsor has an campaign will now pay almost double for their TV spot in important role to play as sport returns. So, fans should see there is a November than in July. See page 13 for more details. sponsorship campaigns as a timely demonstration of the brands commitment (see page 5). The challenge facing some sponsors is, will the increase in premium on fan spend be justified in what will be a more cluttered This can generate goodwill which is an important component environment? For others, they simply don’t have the budget of sponsorship effectiveness. Brands who garner goodwill to spend and this may impact on the effective frequency of typically see uplifts in key brand metrics, as confirmed by connections. their campaign message. The National Sponsorship Index*. Patient sponsors expected that their sponsorship exposure Another opportunity lies in thinking differently. Sponsors value would eventually be delivered this year. The reality is and agencies will need to become more creative than ever to that some tournaments and events have had to progress ensure they are delivering value from reduced budgets. This with altered formats or more condensed seasons. This, in could mean activating in less expensive channels but addition to the cluttered calendar, will see some exposure delivering impact through creative executions. values being diminished. More than ever, the use of brand ambassadors has proven to be a valuable means of activating sponsorships. With considerable social following, some stars are media channels in their own right.
*For more information on the National Sponsorship Index, please contact Core Sponsorship Sarah Geoghegan Senior Client Manager Our view
The cost of 100 adult 25-44 TV ratings on RTÉ in November is 87.7% higher than the cost for the exact same viewer in July, even after client discounts are applied. Budgets are already under pressure, so sponsors and their agencies should work with media owners who are hungry for their investment and will deliver more bang for their activation buck.
Most fans will experience their favourite passions through a screen this year, missing out on all the rituals that go along with the live game experience. Sponsors and agencies that find ways to fill the void and activate creatively will win the battle for attention. AIB’s “The Toughest Summer” campaign ticks all these boxes for me.
Source: RTÉ rate card & Core Investment estimates FEED THE HYPE Understanding how fans are feeling is the key to unlocking the opportunity for sponsors
Photo: MCFC Editorial, mancity.com As sports around the world return to some form of normality, fans are divided into two groups; those who are eager for a return, albeit behind closed doors, and those who are less excited for a The majority of return to play. If sponsors can execute activation strategies correctly, there is significant opportunity to garner goodwill in either scenario. fans are excited though some Key challenges Key opportunities Of those fans not excited for the return of sport, there Overall, the excitement of sports fans for its return is appears to be two clear driving factors. palpable, with (on average) 70% excited for their favourite are not. For sport to return. For sports such as soccer and horseracing, consumption of which is largely through TV broadcasts, fans claim they did The excitement of soccer fans is highest, which is perhaps sponsors there not miss the sport as much as they expected. unsurprising given that the Premier League return was imminent and the season was suspended at a time when is opportunity However, there is a different answer when we ask fans of many competitions were reaching their conclusions. This is sports such as hurling, rugby, ladies football and camogie. in contrast to all Gaelic games, where the most high profile Among these fans, whose interaction with their sports come tournaments, e.g. the All Ireland Championships had not yet in both camps. more regularly through attending games, they feel the thrown in and are deferred until October. We anticipate this experience will be diminished when their sport returns excitement will build as we get closer to action. behind closed doors. This is dulling their excitement. These fans, whose excitement has been maintained Both of these answers point to an opportunity for sponsors, throughout one of the biggest disruptions to the global rights holders and broadcasters alike to engage these fans, sporting calendar since WW2, will be receptive to activity to remind them why they love their sport in the first place which adds to their anticipation and to the enjoyment of and to enhance the watching-from-home experience to make their passion points. it as interactive and immersive as possible.
Source: Core Research Nat Rep Survey, June 2020 The majority of fans are excited for sport to Fan excitement Reasons for not being excited return, though 28% 34% 36% 29% some are not.34% 36% 31% 24% 35% 46% 21% 34% 35% There43% is
49% 43% 42% opportunity37% in 34% 38% 38% 36% 39% 35% 31% 29% both24% camps21% for Ladies Camogie Rugby Fans Gaelic Hurling Soccer Horseracing Ladies Camogie Rugby Fans Gaelic Hurling Soccer Horseracing FootballsponsorsFans Football Fans Fans Fans Football Fans Football Fans Fans Fans Fans Fans Fans Fans Very Excited Excited Experience not the same Didn't miss the sport as much as I thought I would
Source: Core Research Nat Rep Survey, June 2020. Our view
Sporting bodies and rights holders have led the way in bringing fans closer to the action, with fan walls, piped crowd noise and a range of digital activations. Sponsors too will be keen to engage with fans who have been eagerly awaiting the return of sport; it is perhaps a unique opportunity to interact with a receptive body of fans at their most engaged.
However, sponsors would be well served to not dismiss the cohort of supporters who, for a variety of reasons, are less excited by a return to play behind closed doors. These fans still have passion which can be engaged; the execution may just have to be more creative to reignite that fire of fandom.
Phil Greene Photo: MCFC Editorial, mancity.com Client Manager HOLDING PATTERN Sponsorship activation plans are struggling to get into gear as fear of another COVID-19 wave looms On a scale of 1 to 10, Irish sponsors rate their level of preparedness for the return to play at an average of 6.3*. As sport and entertainment returns, it’s fair to say many Irish sponsors are yet to Nimble & get into gear. For some, kick-off or throw-in is still some time away. For others, there are many plans ready to fit many potential scenarios. committed sponsors will Key challenges Key opportunities Some brands are still counting the cost of the pandemic to Brands that have demonstrated their ability to be nimble their business. Budgets are on hold, have been redeployed, during the lockdown should reap the rewards when they have the edge cut or reduced. Maximising these budgets is the focus both increase their presence further, giving them the edge. They for the brand and their agencies. will build on their awareness, connections to the fan and the goodwill their support generated at a difficult time. when activity However, while scenario planning might be necessary, it puts further stress on time and budgets. Having agency teams Brands should build activation strategies and creative resumes. work on multiple versions of plans is a costly business. This executions which do not solely rely on the context of sport continues to eat into activation spends. returning. This way their activity will not be held back by any further restrictions. There is still the threat of a second COVID-19 wave, and no activity is guaranteed. This makes it difficult to signoff Some sponsors and rights holders have tested and learned generous activation budgets. Uncertainty does not facilitate together during the crisis. This has fostered better ways of clear decision making in any business and sponsorship is no working, more understanding and more imaginative ideas. exception. All of this can be built on in the future. Even global brands, like their Irish counterparts, have had to be content with activations living primarily on social media - a route to market which has been beset by its own challenges this summer.
*As of the end of June 2020 Colm Roche Senior Client Manager
Our view
There are many challenges ahead as sponsors enter the Recovery phase of this pandemic, not least the threat of a second wave of the virus. They take the form of altered fan experiences, condensed calendars, reduced budgets, higher costs and amended activation strategies, as documented throughout the report.
This is a time when absence definitely wont make the fans heart grow fonder. Uncertainty will hurt best laid plans and activations which depend solely on play could be off target if another lockdown occurs. Now is the time for clear decision making, for brave and bold activation plans which can live whether or not a ball is kicked or struck.
Most of all, these plans must have deep fan understanding very much at the heart. About Core We are Ireland’s largest marketing communications company, collaborating across 9 practices, providing services in sponsorship, strategy, research, investment, media, creative, learning, data and recruitment.
For more information onecore.ie +353 1 649 6316