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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 , 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 ; consumers about what one-way car sharing is and gain new Unbox Therapy; Motoki Maxted. members. Cities: Brooklyn, N.Y.; Portland, Ore.; and Seattle Car share companies focus on music festivals, food truck fests, curated flea markets and other properites that draw urban-centric (BMW) Sponsorships: Upstream Music Fest + Summit Millennials, a demographic that, for example, accounts for 80 percent of Maven reservations, a factor General Motors uses to build preference among young consumers. Car Share And Sponsorship: Three Takeaways

Maven has sponsored more than 20 events this year, with a focus on • Shared mobility has created new brands and new sponsorship music festivals. Ties include Boston Calling, Detroit MoPop, Mamby opportunities on the Beach (Chicago) and Electric Zoo, Full Moon and Elements in • Car share companies focus on events that draw urban New York City. Millennials • Relevant properties with existing sponsors in the auto category Maven’s on-site presence varies from event to event. It includes a should look to integrate their car share service into the 30-foot-by-20-foot pop-up lounge at major events–where consumers partnership can learn about Maven, download the Maven app and sign up to

www.sponsorship.com 6 ELECTRIC VEHICLES SPARK NEW SPONSORSHIPS The automaker leveraged the sponsorship in the following ways: SALES OF ELECTRIC VEHICLES ARE SURGING, AND THAT IS CREATING NEW SPONSORSHIP SALES OPPORTUNITIES FOR • A #RoadToCoachella social media promotion that gave consumers RIGHTSHOLDERS. the opportunity to win a festival pass by documenting their preparation for the festival and their journey to the Coachella Valley Nearly every automaker is hopping on the electric car bandwagon. • A three-minute video on the BMW YouTube channel that BMW, Daimler and Volkswagen plan to launch more than 100 new highlighted the “Road to Coachella” and the BMW i8 hybrid electric electrified vehicles by 2025, while Renault-Nissan-Mitsubishi plans to sports car produce 12 new electric models by 2022 and make electric cars 30 percent of its overall output. • A cobranded BMW i8 in the BMW i Brand Lounge in the festival’s VIP area Even Porsche is getting into the act. The company this month announced plans to produce an all-electric car designed to compete BMW also is using existing sponsorships to promote its electrified directly with Tesla. vehicles. The automaker gave attendees a sneak peek at the BMW i8 at the BMW Championship PGA Tour golf tournament and provided And companies are signing new sponsorships to promote the shuttle service in other electric vehicles. vehicles.

BMW sponsored the Coachella music festival this year on behalf of Electric Vehicles And Sponsorship: Five Takeaways its BMW i3 electric vehicle and BMW X5 40e iPerformance plug-in hybrid. • Electrified vehicles represent a key growth market for automakers The sponsorship represents a first for BMW’s sponsorship program. Although it sponsors symphony orchestras around the world, • Automakers are signing new sponsorships on behalf of Coachella marked its first music festival partnership. BMW used the electric vehicles sponsorship to promote the “open minded, creative and inspiring” • Electric vehicle manufacturers target urban tech-forward positioning of the BMW i sub-brand. consumers • Properties should offer activation platforms that showcase leadership in electric vehicle technology • Properties with existing auto sponsors should try to integrate electric vehicles into the sponsorship

www.sponsorship.com 7 Autonomous Vehicles Open The Door To New Sponsorship Opportunities Fully autonomous vehicles may soon become a reality, and their impact on sponsorship may be enormous. Autonomous Vehicles And Sponsorship: Three Takeaways McKinsey expects fully autonomous vehicles to be commercially available after 2020. In the meantime, advanced driver-assistance • Sponsorship is an ideal platform for automobile systems will play a key role in preparing consumers, regulators, manufacturers to showcase and demonstrate autonomous consumers and corporations for the medium-term reality of cars vehicles and how they provide value to consumers taking control from drivers. • Auto manufacturers can use sponsorship to discuss safety The advent of self-driving cars could also open the door to new issues, consumer understanding and pricing sponsorship opportunities with companies that build and maintain • The emergence of autonomous vehicles creates new hardware and software for the vehicles, as well as safety features, sponsorship opportunities with software companies, connectivity and infotainment options in both autonomous and driver- insurance and other categories driven vehicles.

www.sponsorship.com 8 AUTO SPONSORS

PORTFOLIOS AND ACTIVATION OVERVIEWS OF WHERE FORD SPENDS MONEY (NUMBER OF DEALS) THE FIVE BIGGEST SPENDERS FORD MOTOR CO. Estimated 2016 Sponsorship Spend: $175M-$180M Estimated 2015 Sponsorship Spend: $155M-$160M Top Properties In Terms Of Spending:

• National Football League • AT&T Stadium/Dallas Cowboys • Wood Brothers Racing

Ford Motor Co. replaced Toyota Motor Sales U.S.A., Inc. as the Row series. biggest spender in the auto category in 2016, according to IEG The deals build on a portfolio that includes long-running research. sponsorships of the Built Ford Tough Professional Bull Riders Series The primary reason: Ford’s multi-million-dollar sponsorship with the and Susan G. Komen. National Football League. The deal, as well as a few others, helped Ford uses the sponsorships to establish a dialogue with consumers, increase the automaker’s sponsorship spend an estimated $20 million demonstrate shared values and bring fans closer to their favorite in 2016 to the $175-million-to-$180-million-range. passions. While Ford is the biggest spender in the auto category, the company The automaker uses the Ford Front Row concert series to bring music is the second-most active sponsor in terms of number of deals. fans closer to their favorite artists through exclusive content and the Thirteen percent of properties with a sponsor in the auto category opportunity to attend intimate performances. report a partnership with Ford, while twenty percent of properties report a partnership with Toyota. Ford has hosted in Los Angeles, Miami and Atlanta, with the final concert taking place in October in New York City and including a Ford signed two new national partnerships over the past year: The tie-in with Komen in support of breast cancer awareness month. Wanderlust yoga festivals and Billboard magazine and the Ford Front www.sponsorship.com 9 PORTFOLIOS AND ACTIVATION OVERVIEWS OF WHERE TOYOTA SPENDS MONEY (NUMBER OF DEALS) THE FIVE BIGGEST SPENDERS (CON'T) TOYOTA MOTOR SALES U.S.A., INC. Estimated 2016 Sponsorship Spend: $165M-$170M Estimated 2015 Sponsorship Spend: $195M-$200M Top Properties In Terms Of Spending:

• International Olympic Committee • Joe Gibbs Racing • NASCAR

Toyota this year signed new and/or expanded partnerships with Toyota leverages music festivals with the Toyota Music Den, an four U.S. National Governing Bodies in advance of the 2018 Winter interactive display where attendees can see intimate performances, Olympic Games in PyeongChang, South Korea, its first Olympic take Instagramable photos and check out Toyota vehicles, including Games as an International Olympic Committee sponsor. the new C-HR. The NGBs are: U.S. Figure Skating, U.S. Ski & Snowboard, US Toyota’s new activity in 2016 was offset by the shuttering of one of Speedskating and USA Hockey. its NASCAR teams, Michael Waltrip Racing, leading to the overall decline in spending from 2015. Toyota Motor Co. in 2015 signed a ten-year sponsorship with the IOC in a deal that affords designation as official mobility partner. Toyota expanded the partnership in 2016 with founding partner status of the IOC’s Olympic Channel. Other key platforms include endurance sports (Rock ‘n’ Roll Marathon Series) and music (, FYF Fest, Life is Beautiful, etc.).

www.sponsorship.com 10 PORTFOLIOS AND ACTIVATION OVERVIEWS OF WHERE GENERAL MOTORS SPENDS MONEY (NUMBER OF DEALS) THE FIVE BIGGEST SPENDERS (CON'T) GENERAL MOTORS CO. Estimated 2016 Sponsorship Spend: $145M-$150M Estimated 2015 Sponsorship Spend: $150M-$155M Top Properties In Terms Of Spending:

• Hendrick Motorsports • Major League Baseball • Walt Disney Parks and Resorts

General Motors focuses on discrete sponsorship platforms for each Dealers and test drives play a key role in the youth sports programs. of its three key brands: Chevrolet (Major League Baseball and youth More than 1,500 dealers have hosted 10,000-plus test drives since sports), Cadillac (arts and culture) and Buick (college basketball). the inception of the Chevy Youth Baseball program in 2016, while 700-plus dealers have hosted more than 4,300 test drives as part of Cadillac, for example, has doubled down on arts and culture since the Chevy Youth Soccer program. relaunching its brand and moving its headquarters to New York City in 2015. Ties include The Andy Warhol Museum, Global Citizen and Chevy in 2017 extended its partnership with the Detroit Red Wings as Republic Records. the official vehicle of Detroit’s new Little Caesars Arena. Chevrolet, meanwhile, focuses on youth sports, both baseball and soccer. The brand has donated more than 135,000 equipment kits, renovated more than 9,400 ball parks and impacted more than 6.7 million boys and girls since rolling out the Chevy Youth Baseball program in 2016.

www.sponsorship.com 11 PORTFOLIOS AND ACTIVATION OVERVIEWS OF WHERE HYUNDAI SPENDS MONEY (NUMBER OF DEALS) THE FIVE BIGGEST SPENDERS (CON'T) HYUNDAI MOTOR CO.

Estimated 2016 Sponsorship Spend: $85M-$90M Estimated 2015 Sponsorship Spend: $80M-$85M Top Properties In Terms Of Spending:

• National Football League • 24 NCAA colleges • Genesis Open

Hyundai focuses on the NFL, college football and professional golf as Hyundai in 2016 signed title of the former Northern Trust Open PGA its three primary sponsorship platforms. Tour stop in Los Angeles to promote the spinoff of its Genesis luxury brand. Genesis also served as the official vehicle of the 2017 Super In an op-ed piece in Automotive News, Dean Evans, Hyundai Bowl and presenting sponsor of the NFL Experience. CMO, credits the NFL sponsorship with driving increased opinion, consideration and purc hase intent. • Thirty-four percent awareness of the sponsorship among NFL fans (higher than any other auto company) • Sixty-seven percent of fans who are aware of the sponsorship consider Hyundai for purchase • Seventy-seven percent of consumers who visited a Hyundai NFL activation said they would consider buying a Hyundai as their next vehicle.

www.sponsorship.com 12 PORTFOLIOS AND ACTIVATION OVERVIEWS OF WHERE MERCEDES-BENZ SPENDS MONEY (NUMBER OF DEALS) THE FIVE BIGGEST SPENDERS (CON'T) MERCEDES-BENZ USA, LLC

Estimated 2016 Sponsorship Spend: $55M-$60M Estimated 2015 Sponsorship Spend: $55M-$60M Top Properties In Terms Of Spending:

• Mercedes-Benz Stadium/Atlanta Falcons • USTA US Open • Mercedes-Benz Superdome/New Orleans Saints

Mercedes-Benz sponsors tennis (US Open, Roger Federer, Mercedes-Benz plans to leverage the recently-opened Mercedes- Mercedes-Benz Dealer Championships) and golf (The Masters, Benz Stadium with vehicle displays, complimentary customer parking, The PGA of America) to promote its positioning as a performance- AMG GT racing simulators and VR experiences that will let attendees oriented vehicle brand. virtually test drive a new Mercedes-Benz. The automaker activated the 2017 US Open with vehicle display Mercedes-Benz USA moved its headquarters to Atlanta earlier this (including its purpose-built AMG vehicles) and complimentary year. parking for customers.

www.sponsorship.com 13 AUTO SPONSORS

COMPANIES SPENDING BETWEEN $20 MILLION AND $45 MILLION

AMERICAN HONDA MOTOR CO. KIA MOTORS AMERICA, INC.

Estimated 2016 Sponsorship Spend: $40M-$45M Estimated 2016 Sponsorship Spend: $35M-$40M Estimated 2015 Sponsorship Spend: $40M-$45M Estimated 2015 Sponsorship Spend: $35M-$40M Top Properties In Terms Of Spending: Top Properties In Terms Of Spending:

• The Honda Classic golf tournament • National Basketball Association • Honda Center/Anaheim Ducks • New York Knicks • National Hockey League • New York Rangers

WHERE HONDA SPENDS MONEY (NUMBER OF DEALS) WHERE KIA SPENDS MONEY (NUMBER OF DEALS)

www.sponsorship.com 14 NISSAN MOTOR CO. BMW OF NORTH AMERICA, LLC

Estimated 2016 Sponsorship Spend: $35M-$40M Estimated 2016 Sponsorship Spend: $25M-$30M Estimated 2015 Sponsorship Spend: $25M-$30M Estimated 2015 Sponsorship Spend: $25M-$30M Top Properties In Terms Of Spending: Top Properties In Terms Of Spending:

• Nissan Stadium/Tennessee Titans • BMW Championship • NCAA • America’s Cup • 100 NCAA Colleges • U.S. Olympic Committee

WHERE NISSAN SPENDS MONEY (NUMBER OF DEALS) WHERE BMW SPENDS MONEY (NUMBER OF DEALS)

www.sponsorship.com 15 FCA US LLC VOLKSWAGEN AG

Estimated 2016 Sponsorship Spend: $20M-$25M Estimated 2016 Sponsorship Spend: $20M-$25M Estimated 2015 Sponsorship Spend: $25M-$30M Estimated 2015 Sponsorship Spend: $20M-$25M Top Properties In Terms Of Spending: Top Properties In Terms Of Spending:

• Pro Rodeo Cowboys Assn. • Major League Soccer • Winter X Games • New York Mets • Churchill Downs • Chicago Cubs

WHERE FIAT CHRYSLER SPENDS MONEY (NUMBER OF DEALS) WHERE VOLKSWAGEN SPENDS MONEY (NUMBER OF DEALS)

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