By Adrian New, Senior Vice-President, Group Sales & Marketing
Consumer and corporate confidence is at an all-time low, as the world braces itself against one of the worst-ever economic crisis since the Great Depression. Although recent forecasts for a global recovery are hardly encouraging, Asia looks to be the region most likely to bounce back ahead of Europe and the USA.
According to the US Sponsorship Information company IEG, Asia-Pacific is also the region that is expected to experience the greatest sponsorship growth in the world this year at 7.4 percent. Corporations and brands seeking to maintain or grow their market share during the downturn will find sports sponsorship a more effective marketing strategy than any other marketing channel, particularly when cost considerations and return on investment (ROI) are such a priority.
Last December, nearly 600,000 football fans flocked to stadiums in Jakarta, Phnom Penh, Phuket, and Singapore to watch the AFF Suzuki Cup. Further, nearly half a billion TV viewers across Southeast Asia watched over 670 hours of live action, reaffirming the AFF Suzuki Cup's position as the ratings leader in the region.
This wide and passionate following provided title sponsor Suzuki, along with the tournament's other official sponsors including Caltex, Emirates Airline, ING, Nike, Samsung and Toshiba, the unique opportunity to associate their brands with the most popular sport in the world and the top football event in Southeast Asia. Each match was broadcast across satellite and terrestrial networks giving these sponsors the active attention of millions of fans throughout the region. Research has shown that to achieve this level of brand exposure through above-the-line marketing would cost significantly more, and yet generate a much lower return on investment (ROI).
Additionally, through sports sponsorship, companies have the opportunity to build strong brand awareness and loyalty which will ultimately impact their market share. A successful sponsorship links the brand with the passions of its target consumers. For example, Barclays is the title sponsor of the Singapore Open because it has identified golf as the sport which is most closely aligned with its brand values and the interests of its clients who are typically from the high-net worth sector.
Sports sponsorship can deliver above-the-line awareness together with below-the-line activation, it can touch hearts as well as minds, and when times are hard the offer of a free ticket can be an even more powerful incentive to action. Also, the beauty of sponsorship is that the brand is at the heart of the action rather than in a commercial break that is ever more likely to be skipped, or inside the back cover of a lifestyle magazine that is ever less likely to be purchased. Sport helps marketers to strengthen their relationship capital with their consumers - customer loyalty that is built through an emotional bond that can last a lifetime and which is not vulnerable to the vagaries of the economic cycle.
For example, DHL, the World's Leading Express Delivery and Logistics Company recently became an official partner of the AFC Champions League - the region's top club competition. The pan Asian presence of the competition matches that of DHL's, and all 117 matches in the competition are broadcast region-wide with the DHL logo at the centre of the action as part of the timing graphic. Tickets to the matches give DHL a fantastic way to reward customers and staff, or to incentivise new clients. On-line highlights on websites across Asia will further reinforce DHL's top of mind presence in the office as well as at home.
History has shown that during economic hardship, consumer habits tend to shift towards core interests and passions that centre on affordable family, entertainment and recreational activities. Research agency Zenith Optimedia recently forecast that advertisers, in response to these lifestyle changes, will allocate more expenditure towards television since TV viewership, and cinema attendance - both of which represent a lower cost per hour to consumers, tends to rise during periods of recession. Here is where the demand for quality sports programming for television and broadband becomes the defining factor for growth, particularly in Asia, and even more so during an economic crisis.
Coverage of this season's AFC Champions League - the region's top club competition - has increased by 60 percent from the previous year as a result of the rise in demand for quality sports content by broadcasters and audiences everywhere.
With two-thirds of the world's consumers residing in Asia, now more than ever, the region is becoming the major focus of multinational corporations and brands because this is where their future growth will come from. Those who are seeking to grow or maintain their market share will find that sports can deliver true value.
This article was published in Singapore Marketer's April 2009 issue.