Who Does What Wireless Service Providers Call Up New Sponsorships

September 19, 2011 800/834-4850 www.iegsr.com Who Does What Wireless Service Providers Call Up New Sponsorships Rightsholders should offer exclusive content, one-on-one demonstration opportunities and pass-through rights for handset manufacturers when pitching wireless carriers. Industry consolidation and new product rollouts continue to drive new activity on behalf of companies in the wireless services category. Recent dealmakers include AT&T Inc. ( AT&T Realigns Corporate Sponsorship Team, 7/12/10), which came on board as a new sponsor of the Sept. 11 Nation s Triathlon in Washington, D.C; Verizon Wireless ( How Verizon Wireless Views Sponsorship, Activation And ROI, 12/20/10), which recently signed a new partnership with the NFL Chicago Bears, and T-Mobile USA, Inc. which earlier this year inked a new tie with the MLB Los Angeles Angels of Anaheim. In addition, Sprint Nextel Corp. ( NASCAR Sponsorship Delivers ROI For Sprint, 3/7/11) recently signed a new twoyear partnership with the University of Notre Dame athletics to present the school s neutral-site game at FedEx Field in Washington, D.C. This year s game will be held on Nov. 12 and pit the school against the University of Maryland. Sprint also has reportedly replaced T-Mobile USA, Inc. as the official wireless sponsor of the NBA. As they have in the past, wireless providers largely use sponsorship to accomplish three primary objectives: access exclusive content to gain a point of differentiation; gain one-on-one marketing platforms to demonstrate their latest-and-greatest products; and acquire tickets and other inventory that can be used to drive retail traffic. AT&T Inc. 208 S. Akard St. Dallas, TX 75202 Jason Simpson, assistant vice president, events and sponsorships 210/821-4105 Sponsorship/Activation Strategy: Country s second largest wireless service provider in terms of number of customers uses sponsorship to accomplish one primary objective: connect with consumers around their key passion points. The telco largely focuses on three types of properties: college athletics, pro sports and the Olympics. In addition to connecting with consumers, AT&T uses sponsorship to gain one-on-one touchpoints and access exclusive content. For example, the company 1

has leveraged USA Gymnastics to gain behind-the-scenes content that highlights the experiences of Olympic contenders. AT&T posts the Behind the Team webisodes on www.uverseonline.att.net. The company s proposed acquisition of Deutsche Telekom s T-Mobile USA subsidiary is currently undergoing regulatory review. Current Deals: Title: AT&T Bricktown Ballpark, Oklahoma City, Okla.; AT&T Center, San Antonio; AT&T Championship presented by Alcatel-Lucent PGA Tour stop, San Antonio; AT&T Cotton Bowl Classic, Dallas; AT&T Field, Little Rock, Ark.; AT&T National PGA Tour stop, Newtown Square, Pa.; AT&T Park, San Francisco; AT&T Pebble Beach National Pro-Am; AT&T Red River Rivalry, Dallas; AT&T Williams F1 team. Presenting: Keith Urban tour. Cosponsor: Academy Awards; Alaska School Activities Assn.; Alaska State Fair; Allstate Sugar Bowl; American Idol; Arizona State University Athletics; Arkansas State University Athletics; Atlanta Convention & Visitor s Bureau; Atlanta Symphony Orchestra; Atlantic Coast Conference; Boston College Athletics; Boston Marathon; Brooklyn Book Festival; Brown University Athletics; Buffalo Zoo; Charlotte Symphony Orchestra; Food & Wine Magazine Classic in Aspen; MLB Atlanta Braves, Baltimore Orioles, Chicago Cubs, Colorado Rockies and Florida Marlins; Nation s Triathlon, Washington, D.C; NBA Chicago Bulls, Dallas Mavericks and Denver Nuggets; NFL Dallas Cowboys, Cincinnati Bengals and Cleveland Browns; NHL Boston Bruins, Buffalo Sabres, Chicago Blackhawks, Detroit Red Wings, Colorado Avalanche and Dallas Stars; San Jose Jazz; Travelers Championship PGA Tour event, Cromwell, Conn.; Tiger Woods Foundation; WNBA Connecticut Sun; Zurich Classic of New Orleans PGA Tour stop; USA Gymnastics; U.S. Figure Skating; U.S. Soccer; U.S. Olympic Committee; University of Washington Athletics. Additional Comments: AT&T recently hired Mark Wright away from Anheuser-Busch, Inc. where he oversaw sponsorship and sports marketing as the brewer s vice president of media, sports and entertainment. He is vice president of media services for AT&T. AT&T this month inked a new partnership with the Nation s Triathlon in Washington, D.C.; the tie affords exclusivity in the wireless category and a tie-in to the DC Cup, an award given to the fastest male and female finishers from Washington, D.C. Sprint Nextel Corp. 6200 Sprint Parkway Overland Park, KS 66251 913-624-6000 Steve Gaffney, vice president of media and sponsorship 913/624-6000 Sponsorship/Activation Strategy: Country s third largest wireless carrier this year reportedly inked a new partnership with the NBA, adding to a portfolio that includes NASCAR, the NFL and skiing. Sprint uses sponsorship to build visibility, increase consideration and drive incremental sales. Like other carriers, Sprint also uses sponsorship to access content. Case in point: The company activates its NASCAR partnership with Sprint Cup Mobile, a mobile phone app that offers access to driver communication, lap times and other content. The company sponsors USSA and ski resorts to reach affluent consumers that rely on mobile communication. Current Deals: Title: Lakeland Pro Rodeo Classic, Fla.; NASCAR Sprint Cup Series; Sprint Center, Kansas City. Cosponsor: Academy Awards; Atlanta Motor Speedway; Beaver Creek ski resort; BET Awards; Breckenridge Ski Resort; Brigham Young University; Bristol Motor Speedway; Canyons Ski Resort; Charlotte Motor Speedway; Chicagoland Speedway; Colorado National Speedway; Bite of Seattle brought to you by Comcast; CONCACAF Gold Cup; Darlington Raceway; Daytona Int l Speedway; Dover Int l Speedway; Florida Film Festival; Georgetown University Athletics; Homestead-Miami Speedway; Infineon Raceway; Int l Speedway Corp.; Iowa State Fair; Kansas Speedway; Keystone Ski Resort; Las Vegas Motor Speedway; Lebanon Valley Speedway; Louisiana Technical University Athletics; Maaco Bowl Las Vegas; Martinsville Speedway; Michigan Int l Speedway; MLB Kansas City Royals; MLS Sporting Kansas City; NBA; New Hampshire Motor Speedway; NFL Kansas City Chiefs, Miami Dolphins, Pittsburgh Steelers, San Diego Chargers, San Francisco 49ers, Tampa Bay Buccaneers and Washington Redskins; Phoenix Int l Raceway; Pocono Raceway; Richmond Int l Raceway; Snowshow Mountain Resort; Squaw Valley USA; Steamboat ski resort; Talladega Superspeedway; Texas Motor Speedway; U.S. Ski & Snowboard Assn.; University of Notre Dame Athletics; Vail Resorts; Watkins Glen Int l Raceway. 2

Additional Comments: Tim Considine, director of marketing and sports sponsorship, manages Sprint s NASCAR and pro sports ties. Dropped NFL league deal at the end of the 2009/2010 season. Owns prepaid wireless brands Boost Mobile ( Don t Call Them Sponsorships: The Strategy Behind Sprint Prepaid s Brand Pillars, 10/25/10 and Virgin Mobile, both of which are active sponsors. Sprint is a majority shareholder of 4G wireless provider Clearwire Communications, LLC ( Introductions of 4G Mobile Networks Spur New Sponsorships, 1/11/10), a company that also has increased its use of sponsorship over the past several years. T-Mobile USA, Inc. 12920 SE 38th St. Bellevue, WA 98006 Mike Belcher, vice president, sponsorships and promotions 425/378-4000 Sponsorship/Activation Strategy: Subsidiary of Germany-based Deutsche Telekom has trimmed its national sponsorship portfolio in advance of its proposed sale to AT&T Inc. Case in point: T-Mobile has reportedly opted out of its long-running tie to the NBA, the centerpiece of its sponsorship portfolio. Despite the opt-out, the country s fourth-largest carrier still remains active on the local level. For example, T-Mobile this year inked a new partnership with the MLB Los Angeles Angels of Anaheim, a tie it activates with a tablet rental program in Angel Stadium of Anaheim. Frequently leverages ties to drive store traffic: The telco this year activated its partnership with Chip Ganassi Racing by hosting autograph sessions with driver Dario Franchitti at stores in race markets. The company also uses the tie to educate consumers about the dangers of distracted driving. Current Deals: Air Force Marathon, Dayton, Ohio; Best Buddies Int l; Campbell University Athletics; City Year; CONCACAF Champions League; Dorney Park & Wildwater Kingdom, Pa.; Experience Music Project, Seattle; Hersheypark Amusement Park, Pa.; MLB Los Angeles Angels of Anaheim; NBA Boston Celtics, Houston Rockets, Miami Heat, Orlando Magic and Utah Jazz; Target Chip Ganassi Racing Izod IndyCar Series team; Taste of Atlanta; Under Armour Baltimore Running Festival; Zazzle Bay to Breaker 12K, San Francisco. Additional Comments: Meredith Starkey, senior manager of sponsorships, supports Belcher. Wasserman Media Group helps develop strategy, vet proposals and execute ties. Sponsors Air Force Marathon on behalf of T-Mobile Government Solutions. Dropped partnership with NBA Detroit Pistons after the 2008/2009 season. U.S. Cellular Corp. 8410 West Bryn Mawr, Suite 700 Chicago, IL 60631 Alan Ferber, executive vice president & chief strategy and brand officer 773/399-8900 Sponsorship/Activation Strategy: Regional carrier largely uses sponsorship to engage customers and prospects outside the retail environment. The company which provides service in the Mid-Central, Northeast, Southeast and West typically looks for title or presenting status. U.S. Cellular also looks for proprietary areas that provide ownership status. For example, the telco titles a pavilion area in Busch Stadium and the main gate at Wisconsin State Fair Park. Activates with on-site product display, text-to-win promotions and other consumer engagement programs. Inked three-year partnership in 2011 with the NBA Oklahoma City Thunder; the sponsorship affords title of a premium seating section in Oklahoma City Arena. 3

Current Deals: Title: U.S. Cellular Arena, Milwaukee; U.S. Cellular Center, Cedar Rapids, Iowa; U.S. Cellular Coliseum, Bloomington, Ill.; U.S. Cellular Field, Chicago; U.S. Cellular 250 presented by Enlist Weed Control System NASCAR Nationwide Series race, Newton, Iowa; World Food Festival, Des Moines. Co-title: Meadowbrook U.S. Cellular Pavilion, Gilford, N.H. Presenting: Festa Italiana, Milwaukee; Wisconsin State Fair. Cosponsor: Illinois State Fair; Iowa Speedway; Iowa State University Athletics; Kansas State Fair; Knoxville Zoological Gardens; MLB Chicago White Sox, Milwaukee Brewers and St. Louis Cardinals; NBA Oklahoma City Thunder; NFL St. Louis Rams; Summerfest, Milwaukee; Sundown in the City presented by Regal Entertainment Group, Knoxville, Tenn.; University of Maine Athletics; Virginia Tech Athletics. Additional Comments: Activates MLB team deals with athlete text chats and photo ops next to player cutouts. The company this year renewed six-year-old presenting tie to Wisconsin State Fair with a new three year contract. Accepts sponsorship inquiries through USCellular.com. Verizon Wireless 1 Verizon Way Basking Ridge, NJ 07920 John Harrobin, vice president, marketing and advertising 908/559-7000 Sponsorship/Activation Strategy: The largest U.S. wireless service provider has expanded its sponsorship portfolio over the past several years including new ties with the NFL and the Izod IndyCar Series. The company also has changed its sponsorship strategy by moving away from signage, tickets and other basic benefits in favor of consumer engagement and 360-degree marketing platforms. Verizon frequently activates with exclusive content deals: For example, the company activates the NFL by providing team updates and other news through the NFL RedZone Channel. Similarly, activates NHL with the NHL GameCenter app that offers live games and statistics. Also activates with on-site product demos and by providing fans the opportunity to experience its 4G wireless service. Inked new sponsorship this year with the NFL Chicago Bears; the partnership affords title of concourse at Soldier Field and the right to develop a team-themed smartphone app. Current Deals: Title: Verizon Arena, Little Rock, Ark.; Verizon Wireless Amphitheaters in Alpharetta, Ga., Birmingham, Ala., Charlotte, Los Angeles and St. Louis; Verizon Wireless Arena, Manchester, N.H.; Verizon Wireless Center, Mankato, Minn., Verizon Wireless Music Center, Noblesville, Ind.; Verizon Wireless Theater, Houston. Presenting: Country Stampede music festival, Manhattan, Kansas; How Sweet the Sound gospel music tour. Cosponsor: American Diabetes Assn.; Aragon Ballroom, Chicago; Arizona Interscholastic Assn.; Auburn University Athletics; Big East Conference; Big Ten Conference; Boise State University Athletics; Coconut Grove Arts Festival, Fla.; Cornell University Athletics; Delaware State Fair; Dick s Sporting Goods Pittsburgh Marathon; Florida State Fair; Georgia National Fair; Hersheypark, Hershey, Pa.; Houston Livestock Show & Rodeo; MLB Boston Red Sox, Cleveland Indians, New York Mets; Seattle Mariners and Texas Rangers; MLS D.C. United and San Jose Earthquakes; NBA Chicago Bulls, Cleveland Cavaliers, Detroit Pistons; Golden State Warriors, Indiana Pacers, Los Angeles Clippers, Los Angeles Lakers, Phoenix Suns and Sacramento Kings; New England Aquarium; NFL; NFL Arizona Cardinals, Atlanta Falcons, Baltimore Ravens, Buffalo Bills; Carolina Panthers, Chicago Bears, Denver Broncos; Green Bay Packers, Houston Texans, Minnesota Vikings, New Orleans Saints, New York Giants, Philadelphia Eagles; NHL, NHL Chicago Blackhawks, Columbus Blue Jackets, Los Angeles Kings, New Jersey Devils, New York Islanders, Pittsburgh Penguins, Philadelphia Fliers; San Jose Sharks, St. Louis Blues and Washington Capitals; Pacific 10 Conference; Sasquatch! music festival presented by Esurance; Sunfest, West Palm Beach, Fla.; Western Athletic Conference; WNBA Chicago Sky, Minnesota Lynx and Phoenix Mercury; X Games. Additional Comments: Frequently sponsors local and regional events in conjunction with retailers. Suzy Deering, executive director of media, engagements & integration, left the company this summer for a senior marketing position at The Home Depot, Inc. Dallas-based Genesco Sports Enterprises helps activate NFL program; Zionsville, Ind.-based Just Marketing Int l helps activate motorsports involvement. 4

September 19, 2011 800/834-4850 www.iegsr.com In Depth Best Practices: Helping Sponsors Measure Rightsholders can increase odds for renewal by taking a vested interest in helping sponsors succeed. With a growing number of sponsors trying to get their arms around return on investment, the need for properties to take an active role in the measurement process has never been greater. While that effort often requires a significant investment in time and money, it can go a long way in the renewal process. Companies that achieve ROI are much more likely to renew a deal than those that do not. Renewals may come more easily if you provide solid proof points of a sponsor s success, said Casey Cortese, vice president of sponsorships & communications with Janus Capital Group Inc. ( Janus Portfolio: Ironman Out, Life Time Triathlons In, 5/9/11) But what can properties do to help sponsors measure success? Where is there room for improvement? IEG SR posed those questions to some of the industry s most active sponsors ranging from Coca-Cola North America ( Coca-Cola s Motorsports Guru On New Plans, Goals and Measurement, 2/7/11) to General Motors Co. ( Inside GM s New Sponsorship Strategy 5/7/10) and Nationwide Mutual Insurance Co. ( Nationwide Moves To The Local Side: New Deals Reflect Change in Strategy, 11/15/10). Below, sponsorship decision-makers from those and other companies provide tips on helping sponsors succeed. Provide the necessary assets. Helping sponsors achieve success begins prior to closing a deal. Properties need to provide tailored packages that will help a sponsor accomplish their specific marketing objectives. Don t load up a deal with meaningless assets. Properties need to provide inventory that will help a sponsor achieve the best results possible, said Steve Tihanyi, GM s general director of marketing alliances, services and branded entertainment. Define measurement metrics upfront. To ensure a sponsor obtains their marketing objectives, properties need to have a firm understanding of how each partner measures success. That often entails having a candid discussion at the very beginning of a relationship. I often see properties project their vision of success onto a sponsor, which is an unproductive use of time. There must be a dialogue on the front end to achieve a mutual acknowledgment of all success metrics, said John Vaughn, manager of 5

sponsorships and events at Advance Auto Parts, Inc. ( Advance Auto Parts Moves The Needle Through One-Property Strategy, 6/10/11) To be sure, sponsors must also step up to the plate by clearly articulating their objectives and measurement metrics. Partnerships are about working together, and as a corporate sponsor we recognize that it is our job to bring in our partners in an open and transparent way, be clear about our plans and how we intend to measure success. Understanding the vision and success measurements is critical to a relationship, said Sharon Byers, group vice president of marketing assets with Coca-Cola North America. Identify who is responsible for collecting data. Once properties and sponsors agree on key performance indicators, they then need to determine who is responsible for collecting the information. Who is responsible for collecting data? Is it the property or the sponsor? You need to have that discussion upfront, said Mark Robinson, corporate sponsorship manager with T. Rowe Price. Establish benchmarks to gauge success. Properties and sponsors need to develop benchmarks to ensure objectives are obtainable. Use benchmarks to make sure your objectives are realistic given the context within which you re activating programs. The last thing you want to do is be forced to make excuses after the fact for underperforming against unrealistic expectations, said Mark Rooks, senior director of Pepsi Sports with PepsiCo Americas Beverages (Pepsi Uses New Technology To Take MLB Activation To the Max 4/25/11) Take ownership of sponsor success. After learning about a sponsor s marketing objectives, rightsholders should commit to enabling success at the very beginning of the relationship. For example, representatives from Feld Motor Sports host a weekly conference call with Advance Auto Parts to discuss any outstanding issues around the company s title sponsorship of the Monster Jam truck series. Topics include digital measurement, merchandise and activation. Monster Jam owns the process with us and clearly understands our success is ultimately their success, said Vaughn, noting that the weekly conference call is held on top of random emails and calls throughout the week. Once a property understands a sponsor s marketing objectives, Vaughn recommends they put a measurement strategy in writing and develop a scorecard to track each metric. Sponsors are impressed when a property takes the time to really think about their business. Very few properties take the time to make this a formal process. Have realistic expectations. While helping sponsors measure ROI sounds easy in theory, it can be a challenge executing the task. The textbook answer on helping sponsors measure is something like understand your partner s business objectives and measure against those. The reality is more complex, said Kelly Feilke, director of partnership marketing with RadioShack Corp. ( RadioShack Tunes In New Sponsorship Campaign, 5/23/11). As a former senior director of marketing at USA Gymnastics, Feilke points to several challenges in helping sponsors measure. That includes finding a budget to pay for third-party research that measure shifts in brand consideration, incremental sales and other common sponsorship objectives. 6

To make matters worse, sponsors can often be vague when describing their objectives or, worse yet, change objectives midstream, he said. To overcome those obstacles, Feilke encourages properties to focus on what they can realistically measure. That includes TV viewership, website traffic, social media buzz, event attendance and earned media. Those should be available at little or no cost to a property, he said. To get around budget issues, Feilke recommends that properties take photos of a sponsor s on-site presence and ancillary activation programs. Pictures provide balance to measurement metrics and are completely understandable, he said. You can tell a partner they had two field level signs on the soccer pitch, or you could show them a broadcast screen shot of the sign surrounded by screaming fans and players in action. While sponsors and their agencies are usually responsible for taking photos of on-site activation, properties should be as proactive as possible, he added. Properties need to take control of telling the story. Great pictures make life easier for your partner and help with future sales efforts. Provide relevant data. Because every company has their own marketing objectives, rightsholders need to make sure measurement data is tailored to the needs of each sponsor. Generic measurements might not be the type of data that proves a sponsor has achieved their stated goals. Properties should provide measurement plans based on the primary objective of each sponsor, said Cortese. That sentiment is echoed by other sponsors. Properties need to measure their performance accurately and be able to express that in terms that are relative to the sponsor, said Tihanyi, noting that GM places importance on reaching consumers who live in the local market, not visitors from other locations. Providing relevant data also applies to taking photos of a sponsor s on-site presence. Properties should try to capture images of the sponsor s primary target, said Feilke. You don t have to stage photos, but if given the choice between teenagers RadioShack s demographic and one with 50-year-old men, the choice should be obvious. Properties should provide data in a succinct way that allows sponsors to share the information internally, added Cortese. Include sponsor questions in audience research. Where possible, properties should gain sponsor feedback prior to conducting audience research and give them an opportunity to ask questions in the surveys. Give sponsors an opportunity to provide feedback and input, as well as the chance to ask one or two sponsor-specific questions, said Cortese, noting that the opportunity should be reserved for top-tier sponsors. It can t be done for every sponsor, but it s a great benefit to offer a property s larger partners. 7

Consider third-party research. Properties can use data from Scarborough Research and other third-party research firms to track changes in brand perception, earned media and other metrics. For example, The Ohio State University, the NHL Columbus Blue Jackets and other properties use third-party data to help Nationwide Mutual Insurance Co. measure success. It helps us directionally see how we re doing with their fan base, said Jim McCoy, Nationwide s director of strategic sponsorships. Provide post-event fulfillment reports. Rightsholders should provide a short post-event report as quickly as possible after an event, said Feilke. A property has momentum with a partner following a successful event or activation, and you want to capitalize on that. Getting a video or results to a partner within a week or ten days is key. Rightsholders should follow up the mini-recap with a more formal, detailed report within several months after the event, added Feilke, noting that quick recap reports can often be more impactful than full-blown reports. A well done three-minute video that is generated quickly can have more impact than a thick recap that takes three months to produce. Sources Advance Auto Parts, Inc., Tel: 540/362-4911 Coca-Cola North America, Tel: 404/676-2121 General Motors Co., Tel: 313/556-5000 Janus Capital Group Inc., Tel: 303/333-3863 Nationwide Mutual Insurance Co., Tel: 614/249-7111 RadioShack Corp., Tel: 817/415-3011 Pepsico Americas Beverages, Tel: 914/767-6000 T. Rowe Price Group, Inc., 410/345-2000 8

Category Update September 19, 2011 800/834-4850 www.iegsr.com Activation Schwab Activates PGA Tour With New Online Documentary Series Financial services firm leverages sponsorship to help investors stay the course amid market volatility. Looking to tout the importance of professional investment advice in today s volatile market, The Charles Schwab Corp. this week will roll out a new activation program around its long-running PGA Tour sponsorship. The online episodic Mentor Project pairs PGA Tour legends with up-and-coming stars to reveal how advice and guidance affects the careers of young players. The videos provide a behind-the-scenes look at a series of casual conversations between PGA Tour and Champions Tour players including Tom Lehman and Kevin Streelman, Corey Pavin and Jeff Overton and Jay and Bill Haas. The Mentor Project web site www.schwabfilms.com also contains tips from golf instructor Hank Haney and conversations between Haney and Schwab professionals discussing common principals between golf and investing. Schwab designed the program to play up the importance of sound financial advice and guidance in today s turbulent market, said Derek Benbow, the company s director of corporate sponsorship. The Mentor Project is based on two key consumer insights: Golfers have an insatiable appetite for expert golf instruction, and sports fans like to digest content that brings them closer to their favorite sport. Consumers that visit the site also can schedule a complimentary golf lesson at more than 140 GolfTEC locations. The program supports an existing partnership between Schwab and the golf instruction provider. Schwab this week will begin promoting the Mentor Project on ads during PGA Tour TV broadcasts, in Golf Magazine and digital content on www.pgatour.com and the company s social media outlets. Schwab partnered with the PGA Tour and Champions Tour in 1997 as a platform to reach recreational and professional golfers. The tie affords title of the Charles Schwab Cup Championship, the final event on the Champions Tour. There is a natural synergy between the golf target and the investor target, so the partnership makes all the sense in the world, said Benbow. The brokerage firm leverages the tie by providing brokerage service and 401K account management to the PGA Tour and individual players. It also uses the sponsorship to host roughly 12,000 customers and independent advisors a year. 9

Like the PGA Tour, Schwab also takes a long-term approach to its two other major partnerships: A 14-year-old tie with the U.S. Ski & Snowboard Assn. and a 11-year-old relationship with the MLB San Francisco Giants. The company sponsors the USSA to reach affluent skiers, while it uses the Giants as a community relations play in its San Francisco hometown. Source The Charles Schwab Corp., Tel: 415/636-7000 10