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A Sponsorship Category Update 1 Evolving Sponsorship Priorities in the Auto Category sponsorship.com AUTOS A SPONSORSHIP CATEGORY UPDATE www.sponsorship.com 1 EVOLVING SPONSORSHIP PRIORITIES IN THE AUTO CATEGORY FEW CATEGORIES ARE UNDERGOING MORE DISRUPTION Automakers are responding. General Motors and BMW both THAN THE AUTO INDUSTRY. launched car share services in 2016 (Maven and ReachNow, respectively), while Ford purchased Chariot, a San Francisco-based That disruption is driven by the following four factors, each of crowdsourced shuttle service. which is forcing automobile manufacturers to reevaluate their business strategies, and, by extension, their marketing and Electric vehicles represent another major emphasis. Government sponsorship tactics. regulations on gasoline and diesel vehicles, lower battery costs and an expanding infrastructure are driving increased demand for electric • The growing popularity of ride share and ride-hailing services vehicles, particularly in urban markets. • The mainstream adoption of electric vehicles • The emergence of fully autonomous vehicles McKinsey expects the share of electrified vehicles to range from ten • The rise of connected cars percent to 50 percent of all new vehicle sales by 2030. Those trends are having a major impact on the products and These and other marketplace shifts are forcing automakers to services auto companies are bringing to market today and in the reevaluate how they use sponsorship, with a focus on promoting future. shared services, electric vehicles, and demonstrating leadership in the new world of mobility. An overarching theme: More focus on shared mobility. Legacy Hot Buttons New Hot Buttons More people are using car share and ride share services, and that is putting pressure on new car sales. McKinsey & Co. expects • Promote new vehicles • Promote car share services global car sales to slow to two percent annual growth by 2030, • Gain test drives • Showcase electrified vehicles down from the average 3.6 percent seen over the last five years. • Drive showroom traffic • Promote status as mobility • Reach new audiences solutions provider The management consulting firm expects shared vehicles to • Support brand positioning • Demonstrate how different forms promote brand refresh of transportation can work represent up to one out of ten cars sold in 2030 and one out of together three cars sold by 2050. • Reward existing customers • Promote leadership in the new world of mobility www.sponsorship.com 2 THE BIGGEST SPENDERS IN THE AUTO CATEGORY WHAT AUTOMAKERS SPONSOR (DEALS) Companies spending more than $15 million in 2016 COMPANY AMOUNT Ford Motor Co $175M-$180M Toyota Motor Sales U.S.A., Inc. $165M-$170M General Motors Co. $145M-$150M Hyundai Motor Co. $85M-$90M Mercedes-Benz USA, LLC $55M-$60M American Honda Motor Co. $40M-$45M Kia Motors America, Inc. $35M-$40M Nissan Motor Co. $35M-$40M BMW of North America, LLC $25M-$30M FCA US LLC $20M-$25M Volkswagen AG $20M-$25M THE MOST ACTIVE COMPANIES IN THE AUTO CATEGORY (DEALS) Twenty percent of properties with a sponsor in the auto category report a sponsorship with Toyota. www.sponsorship.com 3 HOW FORD IS USING SPONSORSHIP TO DEMONSTRATE LEADERSHIP IN SHARED MOBILITY AS NOTED, THE GROWING POPULARITY OF SHARED VEHICLES IS HAVING A MAJOR IMPACT ON HOW AUTOMAKERS USE SPONSORSHIP AND WHAT PROPERTIES THEY SPONSOR. Just ask Ford Motor Co. And the company is signing new sponsorships in support of the services. The automaker is using new and existing sponsorships, alongside traditional media, to promote its leadership in shared mobility. Ford became title sponsor of the San Francisco Bay Area bike share service (Ford GoBike) in 2016 to demonstrate leadership in the bike Ford ran a TV spot during the 2017 Super Bowl that highlighted share space and gain insights into how consumers use bike sharing as how it is using bike sharing, car sharing and electric vehicles to part of their daily commute. help consumers “go further.” Ford used the ad to show what transportation will look like in the future and how different forms of The automaker’s support has allowed the service to expand from transportation can work together. 700 to 7,000 bicycles, add new docking stations and move into new neighborhoods. “It’s not just car share or ride share; it’s a combination of our core products and other evolving services depending on where you live Ford also uses sponsorship to reach thought leaders in urban and your lifestyle. We wanted to bring that story to life,” said Dave transportation. The automaker hosted a session at the 2017 North Rivers, Ford brand marketing content manager. American International Auto Show on the “City of Tomorrow,” the company’s initiative to address gridlock, pollution and other issues Like other automakers, Ford sees significant profits in new facing cities as they prepare for the future. transportation technology. The company expects to generate 20 percent margins on connected vehicles, mobility services and Ford invited city mayors, urban planners and other thought leaders other transportation solutions, prompting it to position itself as an “grappling with issues of congestion and how a company like automobile and mobility company. Ford can help with ride sharing, bike sharing and other modes of transportation,” Rivers said. Ford investments in mobility services include FordPass–a one-stop app consumers can use to start their cars, find parking, schedule The issue is pressing: Three-quarters of the world’s population service and access vehicle content–and Chariot, the crowdsourced will soon occupy just 30 major cities, according to Ford executive shuttle service. chairman William Clay Ford Jr. www.sponsorship.com 4 Products in Toyota’s sustainable mobility solutions portfolio include Shared Mobility And Sponsorship: Five Takeaways the Mirai, a hydrogen fuel-cell vehicle; the i-Road, a three-wheeled electric-powered “personal mobility vehicle,” and Winglet, a personal • Automakers are increasingly using sponsorship to promote transport assistance robot. their status as automobile and mobility companies In addition to the IOC, Toyota has received exclusivity in the • Auto companies are using sponsorship to promote mobility category as part of new and/or expanded deals with four leadership in shared mobility domestic National Governing Bodies: U.S. Figure Skating, US Ski & Snowboard, US Speedskating and USA Hockey. • Rightsholders need to offer new benefits to accommodate evolving marketing priorities Toyota partnered with the NGBs to support its involvement with the 2018 Winter Olympic Games in PyeongChang, South Korea, the first • Automakers are increasingly looking for exclusivity in the Olympic Games under its IOC pact. mobility category With mobility covering cars, trucks and potentially everything else • Properties must be careful not to leave money on the table related to transportation, some properties may be hesitant to give when negotiating exclusivity up such a broad designation. Some of those categories may be salable on their own, potentially depriving properties of sponsorship revenue. New Mobility Solutions Drive New Category Designation The National Football League, for example, works with two New transportation options aren’t just impacting how auto companies in the auto category: Ford (official truck) and Hyundai companies sponsor. They also are impacting what designation (official cars and SUVs). Ride share, car share and other new and/or they look for. emerging transportation options also potentially represent discrete Toyota Motor Corp.’s global partnership with the International sponsorship categories. Olympic Committee grants the company status as official mobility partner. The category includes vehicles, mobility services and mobility solutions. Toyota will provide the Games with sustainable mobility solutions, including intelligent transportation systems, urban traffic systems and vehicle-to-vehicle communications systems. Sustainability is a key pillar in the Olympic Agenda 2020, the IOC’s strategic roadmap for the future of the Olympic movement. www.sponsorship.com 5 CAR SHARE BRANDS SOURCE OF NEW SPONSORSHIP ACTIVITY become a member–as well as a 10-foot-by-10-foot tent experience that allows the company to activate in multiple cities at once. Automobile manufacturers are increasingly launching car share services, and nearly every company is using sponsorship to promote Markets: Maven currently operates in 17 cities, their car share brand. including Ann Arbor, Mich.; Baltimore; Boston; Chicago; Denver; Detroit; Orlando, Fla.; and Washington, D.C. General Motors and BMW both launched car share services in 2016 (Maven and ReachNow, respectively), while Daimler AG’s car2go Sponsorships: Camp Flog Gnaw, Los Angeles; service has been in the U.S. market since 2010. (General Motors Co.) Downtown LA Film Festival; Famous Food Festival, New York City; Taste of 3 Cities food truck festival, Ford acquired Chariot, the San Francisco-based company that Baltimore; Truckeroo food festival, Washington, D.C.; Renegade Craft Fairs, Detroit and San Francisco. operates a crowdsourced shuttle service in 2016, while Cadillac this year launched BOOK by Cadillac, a subscription-based on-demand Markets: Austin, Texas; Columbus, Ohio; Denver; New concierge service. York City; Portland, Ore.; and Washington, D.C. The new entities—many of which operate as start-ups within their Sponsorships/influencers: BRIC! Celebrate Brooklyn! parent companies—use sponsorship to build visibility, educate (Daimler AG) Festival; Seattle Food Festival; Osheaga music festival; consumers about what one-way
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