TELECOM A SPONSORSHIP CATEGORY UPDATE
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1 TELECOM A SPONSORSHIP CATEGORY UPDATE 1
2 TELECOMMUNICATIONS OVERLAPPING WITH MEDIA COMPANIES IN DELIVERING CONTENT TO CONSUMERS, AND WITH BUSINESS TECHNOLOGY PARTNERS IN PROVIDING BIG DATA AND OTHER HIGH-TECH SOLUTIONS TO SPONSORED PROPERTIES, PLAYERS IN THE TELECOMMUNICATIONS CATEGORY ARE IMPACTING THE RELATIONSHIP BETWEEN SPONSORS, RIGHTSHOLDERS, FANS AND OTHER STAKEHOLDERS IN NEW AND UNEXPECTED WAYS. The primary objectives of wireless service providers: showcasing technological expertise and driving data consumption by providing unique content and enhanced on-site mobile connectivity. Playing a crucial role in the in-venue vs. at-home experience, telecommunications companies are enhancing live events by installing Distributed Antenna Systems and other technology solutions in sports and entertainment venues. AT&T, for example, has improved cellular capacity in AT&T Stadium by more than 50 percent, while it and other service providers use Cells on Light Trucks (COLTS) and Cells on Wheels (COWS) to support mobile connectivity at music festivals, tailgating events and other activities that take place in open spaces. Sponsorship hot buttons in the category include: Showcase technology solutions Drive data usage through property content Increase network connectivity Gain business from properties and cosponsors Promote product attributes of speed and reliability Drive retail traffic 2
3 TELECOMMUNICATIONS TELECOMMUNICATIONS COMPANIES SPONSORSHIP SPENDING* COMPANY SPENDING $165M-$170M $130M-$135M $75M-$80M $45M-$50M *2013 U.S. sponsorship spending TELECOMMUNICATIONS SPONSORSHIP ACTIVITY TELECOMMUNICATIONS COMPANIES SPONSORSHIP SHARE* *Forty-four percent of properties with a sponsor in the wireless telecommunications category report AT&T as a IEG, LLC. All right reserved. 3
4 WIRELESS COMPANIES NEED CONTENT; SHOWCASE TECHNOLOGY CAPABILITIES USING CONTENT TO GAIN A POINT OF DIFFERENTIATION AT&T, Verizon, Sprint and T-Mobile all use sponsorship to gain a competitive advantage by offering unique content to customers and prospects. The goal: drive sales of premium data packages. In the category s largest deal, Verizon in 2011 gained mobile streaming rights to every regular season and playoff game as part of its $1 billon extension with the NFL. AT&T U-Verse (SEC Network), T-Mobile (MLB) and Sprint (NASCAR and the NBA) also use sponsorship to access content and enhance their offerings. 4
5 DEMONSTRATING CRITICAL ROLE IN IMPROVING PARTNER PERFORMANCE Sprint activates its long-running partnership with the U.S. Ski and Snowboard Assn. by providing wireless connectivity for the NGB s Athlete Management Platform, a sports-science coaching tool developed by USSA performance staff. USSA uses Sprint-enabled smartphones and tablets to support real-time connections between athletes and support staff. Coaches and trainers use AMP to monitor fitness results, training analytics and other data to improve performance. USSA credits the technology with playing a key role in the NGB s 17 medals including a record eight gold medals at the 2014 Sochi Winter Olympics. 5
6 ENHANCING THE IN-STADIUM EXPERIENCE Wireless service providers are using the latest technology to enhance the on-site experience beyond simply improving network capacity for calls and data. Verizon this year has rolled out and/or is testing the following technologies at NFL stadiums as part of its NFL partnership: Stadium navigation Queue monitoring Mobile concession ordering Venue mapping Mobile payment Charging stations AT&T this year retrofitted AT&T Stadium with new technology, including a 130-foot fan experience board with 40 rotating louvers that can showcase fan-supplied images and other content, and immersive video columns that fans can use to access information on Dallas Cowboys players and cheerleaders. The communications company has improved network capacity in AT&T Stadium by more than 50 percent and launched an app that fans can use to show their team support by flashing cell phone lights in unison at designated times. 6
7 U.S. TELECOMMUNICATIONS COMPANIES PORTFOLIO AND ACTIVATION OVERVIEWS 7
8 WHILE ITS THREE MAJOR COMPETITORS HAVE ADOPTED A LESS IS MORE STRATEGY, AT&T GOES BROAD WITH ITS SPONSORSHIP PORTFOLIO TO ENGAGE CONSUMERS WHEREVER THEY ARE. TOP DEALS NCAA AT&T Stadium, Dallas AT&T Pebble Beach National Pro-Am Dallas Cowboys New York Yankees Major League Soccer SPONSORSHIP SPEND 2013 $175M-$180M 2012 $175M-$180M 2011 $175M-$180M The category s biggest spender uses sponsorship to demonstrate technology and enhance the fan experience through mobile first activations. AT&T supports those objectives by installing DAS systems and Wi-Fi hotspots in venues, offering exclusive content to customers and using technology to create new experiences. AT&T improved data connectivity at Disney parks and resorts by deploying more than 25 DAS systems and 40 repeaters at Disneyland Resort, Walt Disney World Resort and other Disney properties. The enhancements have reportedly resulted in a ten-fold increase in voice and data traffic on the AT&T network. The company this year expanded its presence in golf via an endorsement deal with Jordan Spieth one of the PGA Tour s rising stars and in 2015 will replace Hewlett-Packard Co. as title sponsor of the Bryon Nelson Championship. AT&T also is on the verge of playing a larger role in pro football, but as a media partner, not a sponsor. AT&T s pending acquisition of DirecTV and the NFL Sunday Ticket sports package would place it in similar territory to Verizon, the NFL s official wireless telecommunications sponsor. AT&T in March acquired Leap Wireless International, Inc., a prepaid provider that operates under the Cricket IEG, LLC. All right reserved. 8
9 THE CATEGORY S SECOND LARGEST SPONSORSHIP SPENDER FOCUSES ON TWO NATIONAL PLATFORMS: THE NFL AND THE VERIZON INDYCAR SERIES, A NEW TIE FOR TOP DEALS National Football League Verizon IndyCar Series Metlife Stadium, East Rutherford, New Jersey Penske Racing SPONSORSHIP SPEND 2013 $110M-$115M 2012 $105M-$110M 2011 $105M-$110M Verizon uses IndyCar to promote its technological expertise by incorporating products and services into the race experience. The company in May demonstrated its LTE Multicast technology over a commercial LTE network for the first time in the U.S. at the Indianapolis Motor Speedway. The company enhances wireless communication at tracks via DAS and XLTE with Advanced Wireless Services technology. It also uses Cells on Light Trucks and Cells on Wheels to support camping and tailgating activities. Verizon also activates IndyCar with a mobile app, mobile ticket scanning and other fan enhancements. Verizon activates the NFL with live game video, audio and other content for smartphone customers. The company this year teamed with OtterBox to create NFL Defender, an officially licensed smart phone case that features team logos. Verizon dropped its NHL partnership following the 2013/2014 IEG, LLC. All right reserved. 9
10 SPRINT USES THE NASCAR SPRINT CUP SERIES AND NBA TO GAIN A COMPETITIVE ADVANTAGE BY OFFERING CONTENT VIA NASCAR MOBILE AND NBA GAME TIME. TOP DEALS NASCAR Sprint Cup Series National Basketball Assn. Sprint Center, Kansas City, Mo. SPONSORSHIP SPEND 2013 $75M-$80M 2012 $75M-$80M 2011 $80M-$85M The country s third-largest wireless services provider activates NASCAR with the Sprint Experience, an on-site interactive display where attendees can learn about Sprint products and services. More than four million consumers have visited the display since the program s inception. Sprint also has a sizeable presence in skiing, a platform it uses to engage affluent consumers. The company originally partnered with the U.S. Ski and Snowboard Assn. in 1997 as a B2B play to install cell phone towers at ski resorts. In August, Marcelo Claure replaced Dan Hesse as Sprint CEO, raising questions over the status of Sprint s sponsorship portfolio. Claure has a long history in soccer, including ownership of Club Bolivar, a soccer team in Bolivia. Sprint also owns the Boost Mobile and Virgin Mobile USA IEG, LLC. All right reserved. 10
11 TOP DEALS Major League Baseball SFX Entertainment SPONSORSHIP SPEND 2013 $35M-$40M 2012 $15M 2011 $10M FUELED BY ITS MULTIMILLION-DOLLAR PARTNERSHIP WITH MAJOR LEAGUE BASEBALL, THE U.S. SUBSIDIARY OF GERMANY-BASED DEUTSCHE TELEKOM MORE THAN DOUBLED ITS SPONSORSHIP BUDGET FROM $15 MILLION IN 2012 TO $35 MILLION IN To demonstrate its technology in action through MLB, T-Mobile provides a wireless voice system that connects managers in the dugout to coaches in the bullpen. T-Mobile also offers customers free access to At Bat, MLB s official app and platform for mobile viewing of live game broadcasts. The wireless services provider this year expanded its league partnership with the T-Mobile MLB Game Changer Award, a program in which fans can vote on game-changing moments throughout the season. T-Mobile also signed new deals this year with the Miami Marlins and Tampa Bay Rays, adding to a portfolio that includes the Minnesota Twins, Pittsburgh Pirates, Seattle Mariners and Washington Nationals. T-Mobile continues to expand its portfolio with properties that reach millennial consumers. The company in 2014 signed a partnership with three electronic dance music festivals owned by SFX Entertainment: TomorrowWorld, Electric Zoo and Mysteryland. T-Mobile is further expanding its presence in the EDM space with Ultimate DJ, an online show created in conjunction with SFX and Syco Entertainment. The show will feature live DJ competitions at SFX venues. Deutsche Telekom in 2013 merged T-Mobile with MetroPCS Communications, IEG, LLC. All right reserved. 11
12 WHO DOES WHAT: TELECOMMUNICATIONS AND MAJOR U.S. SPORTS Recreated PMS TOP U.S. SPORTS PROPERTIES WITHOUT A TELECOMMUNICATIONS SPONSOR 12
13 ABOUT IEG AND ESP PROPERTIES IEG has shaped and defined sponsorship over three decades. It is the globally recognized source for industry insights, trends, training and events via sponsorship.com, its annual conference, online publications, trend reports, surveys and webinars. IEG is part of ESP Properties, a WPP company. As a commercial and creative advisor for rightsholders, ESP Properties helps organizations unlock greater value from their audiences and brand partnerships. Our consulting team assesses and advises how to grow the value of rightsholders commercial programs. We do this through a full range of services across data, digital and content development to better understand audiences and create more relevant ways to engage with them. This provides brand partners with new ways to connect with communities of fans and followers, growing the potential value of commercial partnerships. Our sales team provides partnership strategy and sales representation to the world s most active sponsors, within and beyond the WPP network of brand clients. Through WPP we have extensive contacts and deep insights into what it takes to create successful partnerships. For more information about the value of sponsorships and partnerships, IEG and ESP Properties, please visit or call Dan Kowitz at 312/ DAN KOWITZ Senior Vice President, Business Development, ESP Properties 2014 IEG, LLC. All Rights Reserved. 13
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