Tag Archives: sponsorship marketing

LA Tech Firm Belkin Hopes to Rejuvenate Pro Cycling with Sponsorship

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Professional cycling is getting a much-needed boost heading into the 100th rendition of its major annual event, the Tour de France.  Los Angeles based tech company Belkin has announced a deal to sponsor the artists formerly known as the Rabobank Pro Cycling team through 2015.  The Dutch lending firm is just one of the many team sponsors to remove themselves from the sport in the wake of all-time cycling great Lance Armstong’s fall from grace.

Rabobank asserted, “the trust in the cycling world has gone,” upon its withdrawal of its $20 million annual sponsorship.  Nissan has also dissociated from another cycling team featuring at least one member with ties to Armstrong’s serial use of performance enhancing drugs.  In addition, The HTC-Highroad team was forced out of commission because of potential sponsors’ hesitation to associate with a sport whose history is rooted in corruption.

Belkin has an incredible opportunity to expand its brand globally this weekend.  The Tour de France is one of the only truly global sporting events.  The three week long ride provides ample advertising opportunity, especially if the Belkin Pro Cycling team competes near the front of the pack. Riding as Team Blanco, Belkin’s new squad has already amassed 19 victories this year. The team is comprised of 29 different cyclists of five different nationalities.  Belkin currently sells products to more than 100 countries, and will look to amplify its presence in the global market with this move.

Belkin has pledged to uphold a no-nonsense policy on doping, a plan that their newest sponsees should have no problem respecting.  The team made the decision to ride as Team Blanco after being dropped by Rabobank to signify a fresh start for its members and the sport in general.  They will remain a member of the Movement for Credible Cycling (MPCC) as they ride under the Belkin umbrella.  The MPCC is an assembly of teams devoted to cleaning up the sport, holding themselves to even stricter anti-doping measures than those established by the World Anti-Doping Agency.

This sponsorship represents a huge investment for the California consumer technology firm.  In fact, CEO Chet Pipkin says it is the largest Belkin has ever made in the marketing arena.  Pipkin will not be the only person eager for this marriage to work.  From prospective sponsors to the most casual of fans, the world will be monitoring the success of this relationship closely.  The tech savvy and faithful cycling fan base already in place fits well with the Belkin brand.  Pipkin hopes this association with a well-established pro team will introduce Belkin to a new pool of consumers and stimulate the reemergence of cycling on the world scale.

Lance Armstrong was once one of the most revered athletes in the world, but the truth behind his success has pushed many potential followers in the other direction.  Fans of a sport in need of a savior should be optimistic about the combination of an enthusiastic sponsor and a team devoted to competing with honesty and integrity.  Belkin’s pledge bodes well for professional cycling, but the question remains: How will the sport recover from the fall of its prodigal son?

A good showing by the Belkin Pro Cycling squad in France will go a long way in accomplishing just that.

Catch coverage of the 100th annual Tour de France throughout July on NBC Sports Network.

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Army Pulls Out of NASCAR Sponsorship

The US Army, a presence in the NASCAR experience for nearly a decade, recently announced that it will no longer sponsor a NASCAR team as part of its branding and recruitment efforts. At one point the Army was a primary sponsor of NASCAR. They moved to Stewart-Haas Racing to sponsor Ryan Newmann in 2009. In exiting their sponsorship of SHR, the Army is effectively cutting its sponsor relationship with the motorsport indefinitely.

It’s big news made bigger by the fact that the move comes just days before the House takes up an annual spending bill that includes language intended to prohibit military sponsorship of sports.

The language in that bill is a result of an ongoing effort on the part of Reps. Betty McCollum (D-Minn) and Jack Kingston (R-Ga) to ban the spending of defense dollars on sponsorships (they’ve targeted NASCAR sponsorship in particular). We’ve been following this political initiative with our Sponsor Eye since Rep. McCollum took up the issue in 2010, and subsequently lost a House vote to keep the military out of sport sponsorships in 2011. You can see some of our tweets about it here and here, with links to Wall Street Journal and USA Today pieces.

While we can’t be certain that the bill is the whole reason the Army made its decision to pull out of NASCAR, we have a hunch it played a not-so-insignificant role. In any case, it’s an issue worth our two cents.

Let’s look at the Reps.’ argument: they assert that the approximately $136 million sliver of the defense budget spent on sport sponsorship is wasteful, as it doesn’t garner enough return in recruitment numbers.

Before moving forward, can we take a step back and look at some math?

The 2012 Department of Defense spending budget is around $707 billion (that’s billion with a B). At $136 million allocated for sport sponsorship spending, Reps. McCollum and Kingston are making a big fuss about a %.02 savings. And at only $8.4 million going towards NASCAR sponsorship specifically, it’s an even smaller margin. With government spending at an all-time high, going to battle over such teeny savings seems pretty petty.

Decimal points aside, who are two politicians with absolutely zero background in sponsorship effectiveness to say that military sponsorship of sport — in particular, NASCAR — is ineffective on the grounds that the recruitment numbers aren’t there? The Army has exceeded its recruitment goals every year since it started its relationship with Stewart-Haas Racing. But that’s almost beside the point.

Having been on the inside of researching military sponsorships, we have seen enormous opportunities and in some cases, very strong return on objectives —but maybe the Reps aren’t focusing on the objectives that really matter.

The goal of a sponsorship is never about sales, or recruits, or numbers alone. Putting a  logo on the side of a race car isn’t going to suddenly bring a spike in sales or enlistees. Humans are more complex than that. Sponsorship is more complex than that. The Army’s relationship with NASCAR is — or at least, should be — about building national awareness and an emotional connection with fans, and not necessarily only those fans who are in their target recruit demographic of 17-24 year old males. There are older and younger siblings, parents, teachers, and coaches who love NASCAR, and who influence the life and career decisions of those they’re close to. When the Army builds an emotional connection with NASCAR fans, they’re not only reaching the people who show up at the event. We’d be interested to see if the sponsorship effectiveness report that influenced the Army’s decision took the more emotional side of the partnership into account, and looked at the Return on Relationship that NASCAR sponsorship is best at.

When government officials recently questioned the value of so-called “junk food” sponsors involved with the Olympics we were left thinking the same thing: politicians should stick to legislation, and stay out of making calls on sponsorship.

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