For all of us who live in the Sponsorship world....

The percentage of MLB fans who correctly identified Taco Bell as the league’s official fast food restaurant in a recent survey conducted exclusively for SportsBusiness Journal/SportsBusiness Daily nearly doubled compared with results of a similar survey fielded in 2007.

Longtime sponsor Gatorade
was linked with MLB by 45
percent of respondents in the
sports/energy drink category.

About 14 percent of the fans surveyed correctly identified Taco Bell as the league’s official QSR, but that’s a higher count than was posted for either McDonald’s or Burger King, each of which ranked ahead of Taco Bell in the 2007 polling. Taco Bell scored in the single-digit percentages among both avid and casual fans last year.

The polling asks fans to identify the company that is the league’s official sponsor in each of several categories.

The news was not as good for several other MLB sponsors, which saw rivals make gains among fans in sponsor recognition this year.

Pepsi lost its 2007 standing as the brand most identified by fans as MLB’s soft drink sponsor, falling behind rival Coca-Cola among both avid and casual fans this year. The drop, however, follows PepsiCo’s decision before the season to market primarily its bottled water brand, Aquafina, as the MLB brand of choice rather than its namesake soda.

Longtime partners Gatorade and Anheuser-Busch each maintained solid leads in their respective categories, as did relative newcomer General Motors, but each saw challengers make gains in recognition among fans.

League sponsor MasterCard, which had a comfortable lead on the field last year among fans who identified it as MLB’s official credit card, lost that position this year to Visa, a company with almost no baseball activation. Both avid and casual MLB fans recognized Visa as the league’s credit card sponsor in greater number than fans who correctly said MasterCard had that standing.

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Are you more or less likely to trust a particular product/service if that product/service is an official sponsor of MLB?
	AVID				CASUAL
	2007	2008	Change		2007	2008	Change
Much more likely	9.30%	15.30%	6		4.40%	6.10%	1.7
Somewhat more likely	23.50%	23.60%	0.1		27.20%	25.40%	-1.8
Neither likely nor unlikely	60.90%	60.20%	-0.7		57.80%	66.50%	8.7
Somewhat unlikely	2.30%	0.00%	-2.3		3.90%	1.50%	-2.4
Very unlikely	4.00%	0.90%	-3.1		6.80%	0.50%	-6.3
Are you more or less likely to consider trying a product/service if that product/service is an official sponsor of MLB?
	2007	2008	Change		2007	2008	Change
Much more likely	10.30%	17.10%	6.9		5.80%	6.10%	0.3
Somewhat more likely	28.50%	31.90%	3.5		33.00%	31.50%	-1.5
Neither more nor less likely	53.00%	48.20%	-4.8		50.00%	60.90%	10.9
Somewhat less likely	4.00%	1.90%	-2.1		1.90%	1.50%	-0.4
Much less likely	4.30%	0.90%	-3.4		9.20%	0.00%	-9.2
Are you more or less likely to regularly consume a product/service if that product/service is an official sponsor of MLB?
	2007	2008	Change		2007	2008	Change
Much more likely	9.30%	12.00%	2.8		3.90%	3.60%	-0.3
Somewhat more likely	27.20%	29.20%	2		26.70%	25.90%	-0.8
Neither more nor less likely	54.60%	56.00%	1.4		54.90%	69.00%	14.2
Somewhat less likely	3.30%	1.40%	-1.9		4.90%	1.50%	-3.3
Much less likely	5.60%	1.40%	-4.2		9.70%	0.00%	-9.7
Does purchasing a particular product/service that is an official sponsor of MLB make you feel like you are connected to MLB?
	2007	2008	Change		2007	2008	Change
Yes, definitely	9.60%	16.20%	6.6		2.90%	4.10%	1.2
Yes, somewhat	23.50%	26.90%	3.4		27.20%	28.40%	1.3
I’m not sure	8.60%	13.40%	4.8		11.70%	19.30%	7.6
No, not really	42.40%	29.60%	-12.8		37.40%	37.60%	0.2
No, not at all	15.90%	13.90%	-2		20.90%	10.70%	-10.2

How often do you seek out MLB news, scores, standings, etc.?
Several times/day	Daily
Several times/week	Weekly	Several times/month

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Methodology

For this project, Turnkey Sports & Entertainment, through its Turnkey Intelligence operation, conducted national consumer research surveys among a sample of more than 420 members of the Greenfield Online Omnibus panel who were at least 18 years old.

The first survey was conducted Aug. 7-Sept. 5, 2007. This year’s survey was conducted Oct. 10-29, a period ending with the last game of the World Series. Respondents were screened and analyzed based on their general avidity levels. Fans categorized as “avid” were those who responded “4” or “5” to the question “How big a fan are you of MLB?”, claimed to “look up scores several times a week or more often,” “watch/listen/attend at least 11 games per season” and “have a favorite team.” Fans categorized as “casual” responded “3” to the same initial question, then claimed to “look up scores several times a month or more often,” “watch/listen/attend at least 5 games per season” and “have a favorite team.”

The percentage responses listed have been rounded. The margin of error for each survey is +/- 4 percent. Ad spending totals are from Nielsen Monitor-Plus.

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Which of the following is an official sponsor of MLB?
		AVID			CASUAL
Quick-service restaurant		2007	2008	Change	2007	2008	Change
	Taco Bell	6.10%	13.90%	7.8	8.30%	13.90%	5.6
	McDonald’s	9.80%	12.30%	2.5	11.70%	10.80%	-0.9
	Burger King	9.10%	8.40%	-0.7	8.30%	9.60%	1.3
	Subway	5.70%	9.40%	3.7	4.40%	7.70%	3.3
	Pizza Hut	4.70%	8.90%	4.2	2.90%	7.10%	4.2
	I’m not sure	57.20%	20.90%	-36.3	57.30%	31.00%	-26.3
Taco Bell wrapped up its fifth season as league sponsor with big gains: It’s the only league sponsor to show increased awareness among both avid and casual fans. The QSR received huge media exposure by giving away millions of free tacos as part of its second annual “Steal A Base, Steal A Taco” World Series promotion. Parent company Yum! Brands was MLB’s third-largest TV advertiser during the season with $6.6 million spent, most of it on Taco Bell but some going toward sister brand Pizza Hut. McDonald’s has deals with 13 clubs, including every 2008 playoff team except the Rays. A Subway spot featuring Phillies slugger Ryan Howard aired nationally throughout the season, and the sandwich maker has deals with a half-dozen teams.
Soft drink		2007	2008	Change	2007	2008	Change
	Coca-Cola	27.60%	30.60%	3	30.60%	33.50%	2.9
	Pepsi	32.00%	25.90%	-6.1	26.20%	25.40%	-0.8
	Dr Pepper	3.10%	4.20%	1.1	1.00%	2.00%	1
	Mountain Dew	1.30%	2.30%	1	1.90%	3.60%	1.7
	I’m not sure	33.30%	32.90%	-0.4	38.80%	32.00%	-6.8
PepsiCo’s decision before the start of the season to make its Aquafina brand the center of its MLB marketing efforts, replacing 10-year incumbent Pepsi, appears to have had an immediate negative impact on recognition of the company’s namesake product, especially among avid fans. The parent company did put New York Mets and Yankees players on 12- and 24-packs of Pepsi, Diet Pepsi and Pepsi Max, with an All-Star Game theme running at retailers in the Northeast. Pepsi also signed a deal to become a signature-level sponsor at the Mets’ new Citi Field, opening next year. In addition, the company leveraged its six team sponsorships with Pepsi-themed giveaways or promotions at 59 regular-season games this season. Coca-Cola sponsored half the league’s clubs, including the world champion Phillies.
Sports/energy drink		2007	2008	Change	2007	2008	Change
	Gatorade	48.20%	44.90%	-3.2	44.70%	41.60%	-3.1
	Powerade	10.10%	7.90%	-2.2	12.10%	12.70%	0.6
	Monster	0.70%	3.20%	2.6	0.70%	4.60%	3.9
	Red Bull	2.40%	3.20%	0.9	3.40%	2.00%	-1.4
	I’m not sure	36.40%	34.30%	-2.1	35.90%	36.00%	0.1
Gatorade in March extended its 18-year league sponsorship for an additional five years and continued with coolers, cups, towels and other dugout branding at MLB jewel events, along with title sponsorship of the All-Star Workout Day in July. The drop in awareness for the brand among MLB fans follows drops in similar surveys conducted this year by SBJ measuring fan loyalty in other leagues. The Gatorade Web site does not list MLB as a corporate partner, although the NHL, NBA and NFL marks are present. Derek Jeter, the only MLB player listed as a “Gatorade Pro” on the site, earlier this year filmed a commercial for the new G2 drink. PepsiCo was No. 5 among MLB’s TV ad spenders during the season, committing $6 million to Gatorade and Aquafina spots. Coca-Cola’s Powerade brand, meanwhile, aired a spot featuring Vladimir Guerrero and Ryan Howard this year. The brand is also the official sports drink of Little League baseball.
Beer		2007	2008	Change	2007	2008	Change
	Anheuser-Busch	53.20%	43.20%	-10	43.20%	43.90%	0.7
	Miller	11.50%	15.80%	4.4	13.60%	15.50%	1.9
	Coors	10.40%	13.70%	3.2	8.70%	9.60%	0.9
	Corona	0.00%	4.30%	4.3	1.50%	3.40%	1.9
	I’m not sure	22.20%	17.30%	-5	30.10%	22.60%	-7.5
Anheuser-Busch has been a league sponsor since 1996 and also sponsors 26 clubs. The company was No. 8 among TV ad spenders, at $4.7 million, approximately twice the spending of rival SABMiller. The brewer this summer also signed to become a signature partner at the Mets’ new Citi Field.
Credit card		2007	2008	Change	2007	2008	Change
	Visa	15.50%	22.70%	7.2	14.10%	26.90%	12.8
	MasterCard	23.20%	22.20%	-1	18.90%	22.30%	3.4
	American Express	15.50%	18.10%	2.6	17.50%	14.20%	-3.3
	Discover Card	4.70%	4.60%	-0.1	2.90%	3.60%	0.7
	I’m not sure	37.70%	31.90%	-5.8	44.20%	33.00%	-11.2
MasterCard has been MLB’s credit card sponsor since 1997 and also sponsors nearly half the league’s clubs, including six of this year’s playoff teams. In addition, the brand this season teamed up with MLB sponsor Bank of America (rival Visa’s largest issuer of debit cards) to offer MasterCard affinity cards for all 30 teams. MasterCard debuted a new, baseball-themed spot as part of its 11-year-old “Priceless” campaign during the season, but no credit card company appeared among the top 50 TV ad spenders for 2008. Visa sponsors only the Giants among MLB clubs.
General Motors got camera time when World Series MVP Cole Hamels received a Camaro.
Automobile		2007	2008	Change	2007	2008	Change
	General Motors	25.90%	27.80%	1.9	27.20%	23.20%	-4
	Ford	16.80%	12.80%	-4.1	11.70%	15.60%	3.9
	Chrysler	8.40%	11.70%	3.2	6.30%	13.10%	6.8
	Toyota	3.40%	6.80%	3.4	3.90%	4.60%	0.7
	I’m not sure	43.80%	33.10%	-10.7	47.50%	37.10%	-10.4
General Motors in March extended its three-year-old partnership with MLB for another three years. The automaker was MLB’s top TV advertiser during the season, spending $7.1 million promoting Chevy products. GM also continued its sponsorships of the World Series MVP and Ted Williams All-Star Game MVP awards, the All-Star Game Selection Show, All-Star Game Red Carpet Show and the Roberto Clemente Award. Ford and Chrysler each sponsors a handful of clubs, while Toyota has about a dozen teams on its roster.
Hotel chain*		2007	2008	Change	2007	2008	Change
	Holiday Inn	—	22.20%	—	—	16.80%	—
	Best Western International	—	7.40%	—	—	7.60%	—
	Hilton	—	6.90%	—	—	6.60%	—
	Marriott	—	5.60%	—	—	5.60%	—
	I’m not sure	—	49.50%	—	—	57.90%	—
More than 22 percent of avid fans identified third-year MLB sponsor Holiday Inn as the league’s official partner, matching the response total generated by 11-year sponsor MasterCard. InterContinental Hotels Group, Holiday Inn’s parent company, was No. 18 among MLB television advertisers, spending approximately $3.6 million in spots during the season.
Shipping company*		2007	2008	Change	2007	2008	Change
	UPS	—	25.00%	—	—	28.90%	—
	DHL	—	20.80%	—	—	17.30%	—
	FedEx	—	17.60%	—	—	13.70%	—
	U.S. Postal Service	—	2.80%	—	—	4.10%	—
	I’m not sure	—	33.80%	—	—	36.00%	—
Despite having four years of MLB sponsorship under its belt, DHL ranked second in awareness among avid and casual fans in its operating category. The company spent about $2 million in advertising during MLB broadcasts this season. It also was title sponsor of the All-Star FanFest for the second time and has deals with nine clubs, including one with the New York Yankees that gave it a presence in Yankee Stadium’s final year, replacing the U.S. Postal Service in the delivery category.
Wireless communications*		2007	2008	Change	2007	2008	Change
NONE	AT&T	—	18.50%	—	—	20.30%	—
	Verizon Wireless	—	19.00%	—	—	18.80%	—
	Sprint/Nextel	—	10.20%	—	—	10.70%	—
	T-Mobile	—	7.90%	—	—	4.60%	—
	Cellular One	—	4.60%	—	—	3.10%	—
	I’m not sure	—	38.00%	—	—	41.60%	—
AT&T leveraged eight of its 11 team sponsorships with giveaways or promotions at 37 regular-season games this season. It also spent $4.6 million on MLB TV broadcasts this season, ninth-most among MLB advertisers. Sprint/Nextel spent an estimated $5 million (No. 7). Verizon, meanwhile, spent $2.9 million (No. 22), partnered with approximately half the league’s clubs, and sponsored 19 team promotions during the regular season.
Airline*		2007	2008	Change	2007	2008	Change
NONE	American Airlines	—	13.40%	—	—	19.80%	—
	Southwest	—	7.40%	—	—	12.20%	—
	Delta	—	9.30%	—	—	6.10%	—
	Continental	—	7.40%	—	—	5.10%	—
	United Airlines	—	7.40%	—	—	5.10%	—
	I’m not sure	—	43.50%	—	—	46.70%	—
Nearly every team has an airline partner, with no single carrier dominating the scene. No carrier appeared among the league’s top 50 TV advertisers.
* Fans were not asked about their awareness of sponsors in this category in 2007, so comparisons are not available.

Great ads!

Universal Studios Hollywood launched a cool set of posters promoting its annual Halloween Horror Nights. This year, for the first time, Freddy Krueger was let loose to chase guests throughout the back lot. In small type, the top headline reads: "Live the nightmare. This Halloween, Freddie Krueger is loose in the park." Embroidered pillows placed neatly on beds reveals sayings not often found on cutesy pillows. "Mother is half of what you'll scream when he's chasing you," reads one pillow, but my personal favorite is "Friends are good to have. Especially those who run slow." See the posters here, here and here, created by David&Goliath.

More Product Placement at the Movies

Beverly Hills Chihuahua has been relegated to the dog house by this week's new number one movie at the US box office, Max Payne. This dark, Gothic film tells the story of former DEA agent Max Payne's (played by Mark Wahlberg) maximum pain, as he seeks to avenge the murder of his wife and baby in the shadowy, snowy environs of New York City. The plot reveals how an unscrupulous pharmaceutical company with dubious connections to the local police and the US military can cause a good man to descend into a hallucinatory hell of betrayal, whizzing bullets and winged shadows with talons.

Few brands appear in this dark netherworld adapted from the popular video game, yet the brands that do appear enjoy prominent exposure, such as this Cadillac, which, in one shot, has its logo nearly fill the entire movie screen. Apple also makes a notable brandcameo in the form of a Mac, and beer brands Bass and Budweiser receive fleeting screen time as signs in a bar scene. Also, no movie set in New York City is complete without an NYPD cruiser, so once again Ford enjoys the obligatory brandcameo that comes with transporting the city's finest.

Featured Brands: Apple, Bass, Budweiser, Ford, Pepsi

Analyze This! Branded Candidates

Analyze This! Branded Candidates

According to the 2008 Presidential ImagePower Survey by Landor Associates and Penn, Schoen & Berland, James Bond and Jack Bauer (TV 24) would be heading into the final stretch of the U.S. presidential campaigns this month. The poll of likely voters sheds light, says the study, on various aspects of the nominees' identities by associating them with familiar brands across categories. For example, in the eyes of the public, Obama is associated with BMW, Target, and Google, while McCain is aligned with Ford, Walmart, and AOL.

Brand Association (Consumer Perception of Brand & Candidate Similarity)
Brand	Candidate
	Obama	Biden	McCain	Palin
Coffee	Starbucks	Starbucks	Starbucks	Starbucks
Car	BMW	Ford	Ford	Ford
Computer platform	Mac/PC	PC	PC	PC
Retailer	Target	Target	Walmart	Walmart
Search engine	google	AOL	AOL	Google
Fast Food	McDonalds	McDonalds	McDonalds	Wendy's
Magazine	People	BusinessWeek	BusinessWeek	People
Fictional character	James Bond	Bond/Bauer	Jack Bauer	James Bond
Source: Landor Associates/Penn, Schoen & Bertland, October 2008

According to the survey, voters' perceptions of candidate attributes finds Obama as charming, approachable, compassionate, intelligent and unifying, while McCain is seen as strong, reliable and respected. On the vice presidential side, Biden was identified as respected, strong, and reliable, while Palin'sattributes include trustworthy, "shares my values," and approachable, as well as unifying and credible -two qualities she shares with Obama.

Mary Ellen Dugan, executive director at Landor Associates, says "The study suggests that both campaigns have effectively co-branded to broaden and balance their appeal. Obama and Palin... (are associated) with similar positive key attributes, despite the strong surface distinctions between the two candidates... Likewise, Biden and McCain are both aligned with similar brands despite their deep policy disagreements."

The survey suggests that Obama and Palin have a lot in common, as do McCain and Biden, demonstrating that the VP candidates compensate for Obama and McCain's perceived weaknesses, at least brand-wise.

Scott Siff, executive vice president at Penn, Schoen & Berland, notes that "...Three of the key brands that McCain and Obama are both associated with... won their reputation as game-changers in their respective categories... This similarity in the candidates' brand strategies also indicates that whichever candidate best achieves the positioning they are both trying to claim may well be the winner on November 4."

Sampling..Product Placement......Buzz Marketing at its best.

G N' R delivered the rock, now Dr Pepper has to deliver the pop.

Earlier this year, Dr Pepper promised to give one can of soda to every American if Guns N' Roses delivered its latest album, "Chinese Democracy." It seemed a safe bet to observers at the time. The album had been so long in the making (17 years) that it was more a punch line than a realistic expectation.

Now, it's official. The album will be released at the end of November, meaning Dr Pepper's promise is coming due. The event is already garnering plenty of buzz for both the band and the soda.

Then again, from a business point of view, the deal raises as many questions as it answers. The album is being released exclusively at Best Buy on Nov. 23. Dr Pepper just happens to have 23 magical flavors. Further, PR shop Ketchum also represents both Best Buy and Dr Pepper.

Numerous calls to Dr Pepper were unreturned. Ketchum directed calls to its client.

Time to honor pledge
"We never thought this day would come," Tony Jacobs, VP-marketing at Dr Pepper, said in a statement. "But now that it's here all we can say is: The Dr Pepper's on us."

Dr Pepper plans to give out the soda through a couponing strategy. Consumers will need to register at the brand's website for a coupon that can then be redeemed at any retailer that sells Dr Pepper. The coupons, which are limited to one per person, will only be available for 24 hours beginning after midnight on Nov. 23. A back-of-the-napkin equation would put 300 million cans of soda (which wholesales in the range of 55 cents a pop) at about $165 million.

But most figure the soda company hasn't taken a huge risk as it's unlikely the overwhelming majority of Americans will be logging on during the 24-hour time window. "To be honest, when I saw it, I thought it was a safe bet," said Patrick West, VP-experiential marketing at Zoom Media & Marketing, explaining that he didn't think the album would actually come out. "I expect they will get a healthy return, in terms of total numbers redeemed. This stunt has a lot of legs behind it. But it's really risky, if only because of the cost of your goods. Obviously that's a bet Dr Pepper is willing to make."

Couponing and sampling experts said that the company could eventually shell out several million dollars in free soda, given the press the challenge has attracted. But Dr Pepper has fewer opportunities for incremental purchases. Similar stunts, such as Taco Bell's free-taco offer tied to the World Series, most often lead to additional purchases, such as a high-margin fountain soda, for example. Last year it was estimated that the fast-food chain spent $5.6 million advertising the promotion, while the giveaway itself cost under $1 million and generated priceless publicity. The stunt was successful enough that Taco Bell is repeating it this year.

Will freebies inspire loyalty?
"The publicity is worth a lot, no doubt about it. You have to measure it against the value of the PR," said Bob Goldin, executive-VP at Technomic. "Will it do anything to build loyalty, you've got to wonder. Those things generally don't, in my opinion. Consumers will feel good about the company for the time it takes them to drink the soda."

Wes Brown, a partner at consumer-research consulting firm Iceology, thinks the promotion will lead to some sort of loyalty among consumers, however. "Dr Pepper could ultimately build some loyalty and some brand consideration out of this," he said. "Because consumers will look at this as a brand that went out on a ledge and is sticking to their guns no matter what it ends up costing them [dollar wise]."

Others say that the association with Axl Rose, especially when Dr Pepper is increasingly relying on music to market its brand, could prove invaluable.

"If you play it right, you could end up building even more PR," Mr. Brown said. "You can make fun of it and say, 'We got them to do in six months what has taken them 15 years to do' or that 'All music fans should be thanking us.' And ultimately, as long as Guns N' Roses doesn't get too upset, you could make a little campaign out of it that will continue to keep the brand in the forefront."

After all, chances are slim Dr Pepper would have been able to ink any sort of formal deal with Axl Rose.

"The brand association with Guns N' Roses and Axl Rose might be something that they would have had to pay infinitely more for than they ever could have afforded," said Mr. West.

Band with a long past
Then again, others might point out that Guns N' Roses, which hasn't been heard from since last century, comes with plenty of baggage, including its frontman. Axl Rose, after all, hasn't exactly aged as gracefully as Mick Jagger.

Ultimately, the promotion will work double-time for them, pointed out Dean Crutchfield, a brand consultant. He said that it is a good way for the company to re-engage with an older audience, maintain its core fans and introduce the brand to new consumers. "What I like about this, at the end of the day, is they are riding two horses at one time, and that's what's important and unique here for Dr Pepper," he said. "In branding, they say you're looking for more users, new users or new uses. Clearly they are not going to get new uses, but they are certainly aiming for new users. This is a smart deal that will get them a lot of publicity, depending on the amount of publicity that Guns N' Roses will get. That will be the acid test."

Product Placement, Sampling, and Word-of-Mouth Collectively Influence Consumer Purchases

Product Placement, Sampling, and Word-of-Mouth Collectively Influence Consumer Purchases

Product Placement, Sampling, and Word-of-Mouth Collectively Influence Consumer Purchases

According to BIGresearch's Simultaneous Media Survey (SIMM12), the effectiveness of product placements varies by product category and consumer group. Consumers indicate product placements have the most influence on their grocery purchases with 14.8% saying so, up from 13.0% one year ago. Electronics and apparel round out the top three categories most influenced by product placements.

As marketers search for ways to increase marketing ROI, product placements are a viable option, says the report, particularly when targeting specific ethnic groups. African American, Hispanic and Asian consumers are more likely to be influenced to buy electronics, grocery and apparel from product placements.??

Influence of Product Placement On Purchases by Product Category & Ethnic Group (% of Respondents)??
	All	White / Caucasian	African American	Asian	Hispanic?
Grocery	14.8%	14.6%	16.9%	15.3%	16.7%
Electronics	13.2%	11.5%	20.2%	18.0%	18.3%?
Apparel	11.5%	10.4%	15.0%	17.0%	16.9%?
Home Improvement	7.9%	7.1%	11.2%	10.2%	9.9%?
Eating Out	7.6%	6.8%	10.3%	10.0%	10.3%??
Source: BIGresearch, October 2008

Gary Drenik, President & CEO of BIGreserch, concludes "Though the use of product placements is growing... today's savvy consumers... recognize when advertisers are trying to manipulate them... when executed effectively, product placements can... create highly influential word of mouth among specific consumer groups."?

45.8% of Caucasian, and 44.0% of Asian consumers, indicate their purchases are influenced by word of mouth. 41.1% of African American consumers say the same when it comes to grocery. Dining out purchases appear to be most affected by word of mouth.

Influence of Word of Mouth On Purchases by Product Category & Ethnic Group (% of Respondents)?
	All	White /Caucasian	African American	Asian	Hispanic?
Eating Out	52.9%	56.2%	45.8%	43.5%	44.1%
Electronics	44.4%	45.8%	42.2%	44.0%	40.6%?
Grocery	40.7%	41.5%	41.1%	37.0%	39.1%?
Home Improvement	35.2%	37.2%	29.3%	31.8%	31.6%?
Apparel	34.3%	33.3%	38.6%	37.2%	37.5%?
Source: BIGresearch SIMM12, October 2008

And, while placement and word of mouth impact future purchases, sampling can create an almost immediate impulse purchase. According to the Product Sampling Study by Arbitron, sampling successfully reaches 70 million consumers every quarter, and one-third of customers who try a sample will buy the sampled product in the same shopping trip, and 58% of those surveyed reported that they would buy the product again.

In the study, consumers were grouped into three categories:

• "Acquisitions" are those who were new to the sampled product
• "Conversions" are those who had heard of the product but had never bought it
• "Retentions" are those who had previously purchased the product

While 85% of the Retentions and 60% of the Conversions said they would purchase the sampled product in the future, sampled products encouraged 47% of the Acquisitions, those who had never heard of the product before, to purchase the product again.

Carol Edwards, Senior Vice President, Sales, Out-of-Home Media, says "... this study enforced that the sampling approach is both effective in making new customers aware of products, while also establishing a firmer identity with those consumers who have considered the product before."

Highlights of the study:

• 28% of those surveyed reported that they have been offered product samples within the past three months
• 64% of those surveyed claimed they had accepted product samples. 66% of the customers characterized as Acquisitions accepted samples, as well as 63% of the Conversions, and 63% of the Retentions
• 35% of those surveyed claimed they purchased the sampled product on the same day. 26% of the Acquisitions bought the product right away, as well as 19% of the Conversions, and 31% of the Retentions
• 24% of those surveyed claimed that a sampled product had specifically replaced an item that they had planned on buying. 20% of the Acquisitions were planning to make the switch, as well as 33% of the Conversions, and 18% of the Retentions.

Why Get Leads If Nobody's Buying?

AMERICANS ARE IN THE MIDST of a slow-motion economic panic as banks, insurance companies and jobs disappear before our eyes. The numbers show how consumer spending continues to decline as confidence wanes. And marketing budgets are being slashed. What works in this ugly climate?

In past recessions, marketing spending usually moved from image advertising to "below the line" sales promotion. The thinking assumed that it was better to take a short-term pricing hit and live to fight another day. In recent downturns, many incorporated direct marketing in additional to promotion, because it asked for the order in a quantifiable way.

Now we face a shrinking economy already knowing that online direct marketing - lead gen in particular - has become a marketer's most efficient tool. But many marketers are asking how they are going to get a return on their online ad investment if the demand side is drying up. At first impression, that looks like a reasonable fear. Consumers are already cutting their discretionary spending and avoiding new credit card purchases. And businesses are following suit.

But let's look at why online lead gen may make more sense than ever amidst today's turmoil, and how smart marketers can best take advantage:

Customers are out there, but they are harder to reach: If there are fewer potential customers, it makes sense to pay only for the best prospects, the ones who are really interested. Online cost-per-lead programs make that happen. Traditional CPM-based advertising is nowhere near as effective.

Build a relationship with future customers: Yes, your selling cycle will be longer during the recession. But getting an expression of interest now means beginning a relationship with the potential buyer. Build trust with ongoing communications -- maybe an email newsletter. When that reluctant customer gets ready to buy, he or she will think of you first. Follow-up has always been key to cost-effective conversion. It is absolutely vital now.

Don't assume your old targeting will work as well: Survival now and thriving in the next upturn may well mean finding a new customer base. At least, you'll have to supplement your current list with fresh blood. Attitudes are shifting quickly. Some consumers that loved your product may be turned off now. Others will find your story more attractive than before. Better find out who they are and what they want.

Test how to trigger faster purchase: Marketers who understand lead-gen see the optimization potential. Find out which offers work now and which copy direction to take. In normal times, education might be the best motivation. Today, price or added benefits might do better. It is easy to set up a testing matrix and see what leads to short-term and longer-term sales. Our clients often say that effective online lead gen is an excellent marketing laboratory.

Be real: Don't think business as usual. Let the prospect know you're very much aware of today's economic realities. And it doesn't matter if you're selling products or services that are suddenly out of favor, like investments or luxury goods. Change your copy and your offer to appeal to price/value or demonstrate long-term benefits.

Sponsorship "Jargon" Defined

Activation
Defined by IEG as the marketing activities a company conducts to promote its sponsorship. Money spent on activation is over and above the rights fee paid to the sponsored property. Also known as leverage.

Ambush Marketing
A promotional strategy whereby a non-sponsor attempts to capitalize on the popularity/prestige of a property by giving the false impression that it is a sponsor. Often employed by the competitors of a property’s official sponsors.

Arts Marketing
Promotional strategy linking a company to the visual or performing arts (sponsorship of a symphony concert series, museum exhibit, etc.). See: Sponsorship

Audio Mention
The verbal mention of a sponsor on-site or during a TV or radio broadcast or Web cast.

Brand Name
Name used to distinguish one product from its competitors. It can apply to a single product, an entire product line, or even a company.

Business-to-Business Sponsorship
Programs intended to influence corporate purchase/awareness, as opposed to individual consumers.

Category Exclusivity
The right of a sponsor to be the only company within its product or service category associated with the sponsored property.

Cause Marketing
Promotional strategy that links a company’s sales campaign directly to a nonprofit organization. Generally includes an offer by the sponsor to make a donation to the cause with purchase of its product or service. Unlike philanthropy, money spent on cause marketing is a business expense, not a donation, and is expected to show a return on investment. See: Sponsorship

Co-Op
The sharing of advertising costs between a manufacturer and distributor or dealer.

Core Sponsor
Concept developed by IEG to describe companies whose sponsorships are aligned with internal practices. Rather than using sponsorship as a marketing ploy, Core Sponsors gain loyal customers by living their values. What they sponsor reflects the DNA of their brand. Core Sponsors include Ben & Jerry’s, Harley-Davidson, Patagonia, Timberland, Vans, Virgin and Yoplait.

Core Sports
Term developed by Vans to refer to youth sports that feature individual, rather than team, competition, including: skateboarding, snowboarding, surfing, wakeboarding, BMX, supercross, and freestyle motocross.

Cosponsors
Sponsors of the same property.

Cost/Benefit Ratio
This is the ratio that IEG has developed based on market pricing to determine the amount of value a sponsor expects for each dollar invested in rights fees.

CPM and CPP
Advertisers use CPM (cost per thousand impressions) and CPP (cost per rating point) to compare media costs.

Cross-Promotions
A joint marketing effort conducted by two or more cosponsors using the sponsored property as the central theme.

Customer Loyalty
The new imperative of marketing. As the marketplace approaches a super-saturation of products–as the power in the marketing equation shifts from product to consumer–brand loyalty disappears. To survive, companies will have to create loyalty relationships with their customers, one customer at a time, according to IEG.

Dealer Tie-in
A manufacturer’s announcement that lists local dealers; not the same as “co-op.”

Demographic Information
Based on the age, gender, life-cycle stage and occupation of consumers, as defined by Amsterdam-based European Society for Opinion and Marketing Research.

Editorial Coverage
Exposure that is generated by media coverage of the sponsored property that includes mention of the sponsor.

Emblem
A graphic symbol unique to a property. See: Mark

Escalator
An annual percentage increase built into the sponsorship fee for multi-year contracts. Escalators are typically tied to inflation.

Event Marketing
Promotional strategy linking a company to an event (sponsorship of a sports competition, festival, etc.). Often used as a synonym for “sponsorship.” The latter term is preferable, however, because not all sponsorships involve an event, per se. See: Sponsorship

Fulfillment
The delivery of benefits promised to the sponsor in the contract.

Gross Rating Point
One percentage point of a specified target audience. Total GRPs for a campaign can be calculated by the formula ‘Reach times average frequency’. This is a measure of the advertising weight delivered by a medium or media within a given time period. A given total of gross rating points may be arrived at by adding together ratings from many different spots. GRPs may, thus, sum to more than 100% of the total target audience.

Hospitality
Hosting key customers, clients, government officials, employees and other VIPs at an event. Usually involves tickets, parking, dining and other amenities, often in a specially designated area, and may include pro-am spots, backstage tours, etc. Synonym: Client Entertainment

Incremental Value Added
A measurement technique IEG uses with corporate clients which compares the return a company earns from sponsorship above and beyond what it would expect from equal investment in other media. For example, if a credit card company is going to conduct a direct mail campaign, its expectation might be to break even. So if the company spent $100,000 to buy lists and print the pieces and pay for the postage and the campaign brought in $100,000 worth of new accounts, the effort would have been considered a success. If it’s $100,000 sponsorship generated $150,000 in new accounts, IVA would be 50 percent. The sponsorship is thus adding incremental economic value.

In-Focus Coverage
Amount of time sponsor identification is visible to TV viewing audience during event broadcast.

In-Kind Sponsorship
Payment (full or partial) of sponsorship fee in goods or services rather than cash.

Licensed Merchandise
Goods produced by a manufacturer (the licensee) who has obtained a license to produce and distribute the official Marks on products such as clothing and souvenirs.

Licensee
Manufacturer which has obtained a license to produce and distribute Licensed Merchandise.

Licensing
Right to use a property’s logos and terminology on products for retail sale. Note: While a sponsor will typically receive the right to include a property’s marks on its packaging and advertising, sponsors are not automatically licensees.

Make-Goods
Free time or space provided to advertisers to make up for a program’s lower than expected ratings or an advertisement insertion that has been missed or has been incorrectly printed or broadcast.

Mark
Any official visual representation of a property, including emblems and mascots.

Marketing Surplus
A theory developed by McKinsey’s David Court, which holds that success is determined not by market share, but by which one of the entities in any transaction–from raw-goods supplier through manufacturer, retailer, and consumer–holds the greatest amount of the surplus or profit made at each step of the process. As the market reaches saturation, marketing surplus moves to the consumer.

Mascot
A graphic illustration of a character, usually a cartoon figure, used to promote the identity of a property.


Media Equivalencies
Measuring the exposure value of a sponsorship by adding up all the coverage it generated and calculating what it would have cost to buy a like amount of ad time or space in those outlets based on media rate cards.

Media Sponsor
Broadcast, online, print, out-of-home and outdoor media that provide either cash, or more frequently advertising time or space, to a property in exchange for official designation, according to IEG.

Minimum Guarantee
A sponsor agrees to pay a specific minimum sum, regardless of the actual result of the program. In cause-related marketing–which raises funds for nonprofits by donating a percent of each sale during the promotional period to the nonprofit–a minimum guarantee means if sales do not trigger the sum anticipated, the company makes up the difference. When the minimum guarantee is also the total sum that will be given to the nonprofit–even if sales would justify more–it should be explained as a “capped minimum guarantee,” according to IEG.

Municipal Marketing
Term coined by IEG to refer to promotional strategy linking a company to community services and activities (sponsorship of parks and recreation programs, libraries, etc.).

Option to Renew
Contractual right to renew a sponsorship on specified terms. See: Right of First Refusal

Pass-Through Rights
Benefits that the property allows a sponsor to transfer to another company. For example, a retail sponsor of a marathon could negotiate pass-through rights to involve vendors in pre-approved categories—e.g., ones that do not compete with marathon sponsors—in its marathon promotions and sponsorship even though the vendors are not sponsors of the marathon. Rights passed-through typically include sampling, hospitality and signage. Almost any sponsor will benefit from having pass-through rights. They can be used to incent on- and off-premise accounts, e.g., exchange sponsorship benefits for more shelf space and a bigger order. Pass-through rights can also be transferred from a sponsor to a property. For example, a media sponsor could allow a property to include advertising in its sponsorship package in pre-approved categories. IEG advises clients to carefully define the companies and categories to which the partner is able to give pass-through rights.

Perimeter Advertising
Stationary advertising around the perimeter of an arena or event site, often reserved for sponsors.

Philanthropy
Support for a nonprofit property where no commercial advantage is expected. Synonym: Patronage

Premiums
Souvenir merchandise, produced to promote a sponsor’s involvement with a property (customized with the names/logos of the sponsor and the property).

Presenting Sponsor
The sponsor that has its name presented just above or below that of the sponsored property, e.g., “The Kroger Senior Classic presented by Fifth Third Bank,” or “The Music of Andrew Lloyd Webber presented by Lexus” or “AT&T presents Cirque du Soleil.” In presenting arrangements, the Event name and the Sponsor name are not fully integrated since the word(s) “presents” or “presented by” always come between them.

Price Adjusters
Market factors identified by IEG that increase or decrease the value of a sponsorship. These can include the value of a sponsor’s promotional commitment, the number of saleable categories purchased and the length of the contract.

Primary Sponsor
Refers to sponsor paying the largest fee and receiving largest package of benefits when property has no title or presenting sponsor, according to IEG.

Property
A unique, commercially exploitable entity, (typically in sports, arts, events, entertainment or causes). Synonyms: Property, Rightsholder, Seller

Psychographics
Quantified psychological profiles of individuals, based on their attitudes and behavior, as defined by the Amsterdam-based European Society for Opinion Marketing and Research.

Right of First Refusal
Contractual right granting a sponsor the right to match any offer the property receives during a specific period of time in the sponsor’s product category.

Sales Rights
When sponsor is granted preferred supplier right to sell its product or service to the property or its attendees or members.

Signage
Banners, billboards, electronic messages, decals, etc., displayed on-site and containing Sponsor ID.

Sole Sponsor
A company that has paid to be the only sponsor of a property.

Sponsee
A property available for sponsorship.

Sponsor
An entity that pays a property for the right to promote itself and its products or services in association with the property, according to IEG.

Sponsor ID
Visual and audio recognitions of sponsor, e.g., sponsor name/logo on participant clothing, equipment, etc.; in property’s publications and advertising; public-address and on-air broadcast mentions.

Sponsorship
Defined by IEG in 1982 as: A cash and/or in-kind fee paid to a property (typically sports, entertainment, non-profit event or organization) in return for access to the exploitable
commercial potential associated with that property.

Sponsorship Agency
A firm which specializes in advising on, managing, brokering or organizing sponsored properties. The agency may be employed by either the sponsor or property.

Sponsorship Fee
Payment made by a sponsor to a property.

Sports Marketing
Promotional strategy linking a company to sports (sponsorship of competitions, teams, leagues, etc.). See: Sponsorship

Supplier
Official provider of goods or services in exchange for designated recognition. This level is below official sponsor, and the benefits provided are limited accordingly.

Time Buy
When an event or event sponsor buys time from the broadcaster and is responsible for selling the advertising.

Title Sponsor
The sponsor that has its name incorporated into the name of the sponsored property, e.g., the Allstate Sugar Bowl.

Tribal Marketing
Term coined by First Matter to refer to the creation of affinity groups for commercial ends. Perhaps the most notable and successful contemporary example is Harley-Davidson, which has coupled the sale of motorcycles and peripherals to the creation of weekend motorcycle clubs and an entire way of life built around Harley-Davidson products. Tribal marketing works best when it is constantly reinforced with icons.

Venue Marketing
Promotional strategy linking a sponsor to a physical site (sponsorship of stadiums, arenas, auditoriums, amphitheaters, racetracks, fairgrounds, etc.).

Virtual Signage
The insertion of signage electronically during a TV broadcast that is not actually present at the event.

Web Sponsorship
The purchase (in cash or trade) of the right to exploit the commercial potential associated with a site on the World Wide Web, including integrated relationship building and branding.

My boys are back!

My boys are back..and on Sports Center!!

ESPN has tapped some unconventional spokespeople for its flagship SportsCenter program and its fantasy football offerings: Geico's cavemen.
The insurance-shilling Neanderthals will be spotted frequently across the cable-sports behemoth's media properties over the next year as part of a novel integration deal between Geico and ESPN that casts the cavemen as fantasy-football salesmen, as well as stars of a series of vignettes promoting the network's flagship "SportsCenter" program.

"ESPN is basically using an advertiser's icon to drive viewers to its shows," said Bill Koenigsberg, CEO of Horizon Media, Geico's longtime media agency, which crafted the deal. "It's very unusual, but for these two brands we think it's a perfect fit."

The cavemen will appear on ESPN's TV, print, digital and radio channels, functioning as a "carnival barker" to draw people to its fantasy-football offering and to "SportsCenter," said Ed Erhardt, ESPN president for customer marketing and sales.

ESPN's online fantasy-football application went free three years ago and has since become the No. 2 fantasy-football website, trailing only Yahoo Sports.

Doing the usual shtick
Mr. Erhardt said the cavemen will be doing their usual, inferiority-complex-driven shtick in their appearances for ESPN. Typically, they've taken offense at Geico's claims that signing up for a policy on it website is "so easy a caveman can do it" but as they are deployed in a number of sporting scenarios, they'll apparently find new, non-Geico sources for offense.

Geico's brand will make some appearances in the creative, which is a product of a collaboration between Arnold Worldwide, ESPN's shop, and Martin Agency, Geico's agency.

Mr. Erhardt noted that the cavemen, like ESPN, tend to use self-disparaging humor in their ads. "We both take sports seriously and ourselves not so seriously," he said.

The terms of the deal were not disclosed, but Geico Chief Marketing Officer Ted Ward said the cost of the yearlong deal was "significant."

Latest integration play
This is the latest -- and potentially most extensive -- integration play for the cavemen. In the past, they've been seen playing a Super Bowl Sunday round of golf with CBS commentator Phil Simms and, of course, they starred in their own failed ABC sitcom.

While he wouldn't provide details, Horizon's Mr. Koenigsberg hinted that Geico might be pursuing similar integration deals on other cable networks with its other mascot, the Geico gecko. Mr. Ward wouldn't comment on that, but conceded "the lizard is always hard at work trying to drum up another deal."

Those possibilities, Mr. Ward noted, are the result of an enormous investment by the Berkshire Hathaway-owned insurer in creating personas for its icons. Geico spent a category-leading $558 million in measured media last year, according to TNS Media Intelligence.

"We're in a unique position to leverage these characters we have," said Mr. Ward. "Not many brands can do that."