by Bruno Scartozzoni and Guilherme Guimarães
Earlier this month it was announced that Itaipava, the third biggest beer company in Brazil, had become the naming rights sponsor of Arena Fonte Nova, the 2014 World Cup stadium for Salvador in north-eastern Brazil, and the first of the new generation of Brazilian sports arenas to successfully sell its naming rights sponsorship.
Despite several previous naming rights sponsorships of concert venues and movie theaters, naming rights sponsorship in sports is still rare in Brazil. Prior to the Itaipava Arena, the only other Brazilian football stadium to have a branded name was Kyocera Arena, of Atlético-Paranaense in Paraná, which was sponsored from 2005 for R$2m per year but discontinued after 2008.
The main reason for this is that Globo, the dominant Brazilian TV network, has a policy of not using brand names in its sports coverage. It’s a policy applied to almost everything it covers, and brands usually cite this as a reason why naming rights sponsorship in Brazil is a poor investment.
Just after the Itaipava announcement, for example, Visa’s Ricardo Fort tweeted
Globo is considering changing its ‘no brands’ policy, on the condition that it receives a percentage of every contract involved. If it happens, this would fuel the naming rights market in Brazil, but Itaipava had other reasons for naming the Arena Fonte Nova. Primarily, Itaipava is opening a new factory in Bahia, close to Salvador, and naming the region’s most important stadium is part of its strategy to connect with local consumers, engage staff and steal marketshare from its main rivals Ambev and Kirin Schin. But also, the deal ambushes Ambev’s FIFA World Cup sponsorship, especially if Itaipava can make the new stadium name stick with consumers and thus sidestep FIFA’s policy of de-branding sponsored stadiums which host World Cup matches.
Another interesting fact is the Itaipava Arena financial details: R$ 10 million per year over 10 years – almost 70% more than most estimates expected.
Now, there are strong rumours in the media that Itaipava and Allianz are negotiating to name Corinthians’ new stadium in São Paulo for a R$400 million investment (R$20 million per year for 20 years), with Allianz looking most likely.
So it seems the naming rights market in Brazil could be about to take off, and that companies are starting to understand that there is much more to it than brand visibility. But the big question, as we’ve said before, is can sponsors make it pay back?
Bruno and Guilherme are partners at Ativa Esporte, the Brazilian sports marketing consultancy which is Synergy’s partner in Brazil.entrar no post →
In the beginning of this year we created Business Game (Negócios em Jogo in Portuguese), a biweekly hangout in which Ativa Esporte´s partners, Guilherme Guimarães and Bruno Scartozzoni, talk and discuss about the latest news in sports marketing universe, considering both Brazilian and foreign cases. Eventually the program also hosts special guests, including advertisers, athletes and teachers.
This is part of a partnership between Ativa Esporte and Google Brasil to generate content through Google Plus and Hangouts On Air. By the way, our official page in Google Plus has more than 100.000 followers for now, and counting. Most posts are in Portuguese, sorry.
Negócios em Jogo is also in Portuguese, but we are publishing the first 7 editions here in case some of our readers understand the language, or know someone who can help.
If you want to follow the next editions, please go to this link, at our Portuguese blog. We will host some in English in the future and will keep you posted.entrar no post →
Last week FIFA and the Brazilian government were going to celebrate 500 days to go to the 2014 FIFA World Cup, with a big press conference to present their aspirations for the tournament, a lot of facts and figures related to the investment in stadia and infrastructure, and the official tournament poster. Naturally however, the event was cancelled because of the Santa Maria tragedy, where over 200 people died in a fire at a local nightclub. It shocked the country and the world, and celebrations were the last thing on any Brazilian’s mind.
Three days later, an official video with a compilation of work to date was released, together with the tournament poster (pictured above).
Brazil is now within touching distance of hosting the FIFA World Cup for the second time in the country’s history (the first being back in 1950) but interestingly, the man on the street is feeling both excited and slightly concerned at the same time. In spite of constant reassurance from the government that everything will be ready by the kick-off in 2014, the average Brazilian still has a lot of doubts.
Whilst there are some very big players working on the organization and infrastructure, corruption scandals in the past mean the people are still rather sceptical. Right now only two venues are complete, and the original budget has increased significantly.
That said, there is also some good news for the people. Mano Menezes, the former Brazil Team manager, who had the backing of neither media nor fans, has been sacked, and replaced by Luiz Felipe Scolari. ‘Big Phil’ took the Seleção to glory at the 2002 FIFA World Cup, and the Brazilian people still regard him as a winner.
What strikes us the most is that up until now almost every FIFA World Cup sponsor has been very quiet. The most active of the group is Brahma (the local AB InBev beer brand), which has launched a campaign to fight any ‘national pessimism’. The brand reminds consumers that Brazil is going to stage the biggest party in history, and that any cynicism or worries will be long forgotten. This activation featured in our list ofthe top 5 Brasilian sports marketing campaigns of 2012 back in December.
Itaú, the country’s biggest private bank, also began their World Cup 2014 campaign last year, but have, so far, failed to create the same kind of buzz generated by Brahma.
With the FIFA Confederations Cup approaching fast, and a new ticket sales record just set, it is clear that there’s palpable excitement amongst Brazilians about the upcoming events. We might like to criticize our country, but that’s just a cultural thing: most importantly, we are also very proud of hosting these global events. So, for brands there’s plenty of scope to take advantage of this warmth.
For most Brazilians hosting the World Cup is a dream, and 500 days from now the dream will come true!entrar no post →
This post was originally published on Mundo do Marketing in portuguese and was adapted from our partner Tim Crow´s article “Why There Are Now Six Golden Rules Of Naming Rights Sponsorship For Brands“.
Very recently some Brazilian football clubs announced that their arena´s naming rights were on sale. In Brazil this kind of sponsorship is very common in movie theatres and music venues, but it´s taking the first steps in the sports world.
Atlético Paranaense was a pioneer in 2005, when they sold their arena´s name to Kyocera. But, three years later, the contract was not renewed and, since then, the club wasn’t able to sell this property to any other sponsor. So, what´s the reason why brands in Brazil do not seem to be interested in sports arenas’ naming rights?
Some time ago our friend Tim Crow, Synergy Sponsorship´s CEO, wrote a nice post with his 6 golden rules of naming rights. The post was focused in the European market, and we “tropicalized” these rules, adapting to the Brazilian reality. That´s why we have seven rules instead of six.
1. The stadium should have a short name only. If it has two names, one of them being the sponsor brand, guess which the media and fans will cut. Good examples are The Reebok Stadium, Bolton Wanderes´ home, and The Emirates, Arsenal´s home. These two work well. On the other side you will find SportsDirect.com@St Jame´s Park, Newcastle´s home. What’s the chance of somebody pronouncing the entire name?
2. It´s clever to avoid renaming a traditional stadium. If you do the media and fans will probably cut your name. In other words, it´s a lot easier to start with a new stadium. This rule explains the reason why Brazilian brands appear to avoid naming some local stadiums. On the other side, it is a good opportunity for the new stadiums being built for the World Cup 2014.
3. The exception to rule 2 is when a stadium doesn´t have appeal with the fans or is declining for some reason and, as a result, needs to be re-launched. In England, the Millennium Dome, an exhibition venue that never conquered consumers’ hearts, was recently re-launched as “The O2″. In the same way, Corinthians, the Brazilian football club, could upgrade its traditional “Fazendinha” (Tiny Farm), and a new name could do well.
4. The sponsor should pay enough for the naming right, and the main problem of not doing so is that the media and the fans can interpret this as bad faith. In England there was a case when the sponsor paid only £ 150,000 per year to guarantee naming an arena, a very small amount of money in comparison to the expensive TV campaigns produced by the company. Fans didn´t like it. In Brazil, the average fan wouldn’t probably acknowledge such a detail, but they are starting to be picky with which brands they want to see associated with their club.
5. The brand should bet on long term due to two reasons: it demonstrates a commitment to the club and the ROI will be a lot bigger. Besides that, the media and the fans need some time to get used to the new name.
6. It´s not clever to rename a stadium that already has a nickname. Ideally, the nickname should be part of the naming strategy. Recently, Corinthians announced its new stadium for the 2014 World Cup, at it was automatically named “Itaquerão” (from the neighborhood where it is located). The nickname has been adopted by media and fans, even before the stadium is ready, and the club is having a hard time finding a naming partner.
7. After following rules 1 to 6, then the hard work really begins – earning respect and admiration from the fans and media, what is only possible with activation and creativity.entrar no post →
Some time ago wrote a post about mascots, an interesting property that clubs and sponsors often overlook. and we think this is wasted potential.
Recently we found out a very interesting piece of news from the Brooklyn Nets (the NBA team) who invited Marvel Comics to develop its new mascot.
The result is Brooklyn Knight, the first super hero NBA mascot. You can see him in the arena…
…and also as a 32 page comic book distributed to fans.
The opportunities around this are huge:
- Marvel Comics could create a new business in the future: mascots design.
- Mascots usually come from traditions. Brooklyn Nets is a new club, therefore, without much tradition. Professional help is interesting in these cases.
- Mascots usually are static icons. Brooklyn Knight is the opposite, as we can consider him a moving character. It´s the difference between a picture and a movie.
- Brooklyn Knight can became a new Marvel Comics regular title, sold at comic shops.
- What if Spiderman or the Avengers meets with Brooklyn Knight?
- What if Brooklyn Knight get a sponsor inside the story? It could be the company that offer him technology, helping crime combat.
via Mkt Esportivoentrar no post →