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UKSA Case File 2: TV Sponsorship - The Ground Rules
In the second of our regular UKSA Case Files, our correspondent Andy Fry turns his attention to TV sponsorship - a highly effective tool but one that needs to be deployed judiciously, as Andy explains.
The Big Picture:
TV sponsorship was first permitted in the UK in 1990. Since then, the rules relating to the medium have been relaxed a number of times, making it increasingly attractive to big brands. At the same time, a huge expansion in the number of TV channels, combined with the growth of online, has made the medium affordable to a much wider array of brands. Today, TV sponsorship is a sizeable chunk of the UK’s £5 billion TV advertising industry – though exactly how much isn’t clear. This is because broadcasters tend not to break out sponsorship revenue figures from their overall sales figures. A rough estimate, however, would put the sector at £200-300m.
Key Rules:
The regulatory environment governing sponsorship has eased considerably since the 1990s, to the extent that advertisers can now show pack-shots of products and incorporate brand taglines within their credits. The basic line in the sand, monitored by Ofcom, is that sponsored programmes must be clearly identified as such. According to Ofcom: “The relationship between the sponsor and the sponsored programme must be transparent… Sponsorship credits must be clearly separated from programmes.” Product placement is also subject to a fairly rigorous regime in the UK. Products can be included in shows if there is “an editorial justification” for them and they don’t fall into certain proscribed categories – such as tobacco, alcohol and food/drink that is high in fat, sugar or salt. There are also genres of programming where it is prohibited, such as news, religious or children's programmes. A Product Placement logo must also be shown for three seconds at the beginning and end of the programme to warn viewers.
The Key Platforms:
There are dozens of opportunities for brands to get involved with TV sponsorship. For mass market campaigns, the obvious choice is ITV, though this also opens up the option of spreading a campaign across ITV’s niche TV channels (ITV2 etc) and ITV’s online platforms. Other options include Channel 4, Channel 5 and the portfolios of PayTV channels that belong to Sky, Discovery, Viacom and UKTV among others. Most offer a range of sponsorship opportunities from specific programmes to a genre of related content. Note: digital platforms are an option for brands that want to get closer to content than TV allows – or where they want to reach a specific audience profile. P&G-owned Fairy Non-Bio, for example, recently signed a one-year deal with Mumsnet. Or digital can be bought alongside TV. For example, Nissan is sponsoring Saturday and Sunday football matches on Sky. It is also the sponsor of Premier League previews, reviews, articles, statistics, facts and figures on the Sky Sports website.
Client Categories:
There really is no limit now thanks to the diversity of inventory available (subject to the restricted categories – check with Ofcom). Some of the earliest categories to get involved were consumer electronics, cars, FMCG and fast food, but these days there are deals involving retail, finance, mobile, the drinks industry and many more. Sponsorship purists sometimes regard TV sponsorship as little more than a glorified media buy. But there are enough case studies across categories to show that brand objectives can be achieved as effectively in TV as in more classic forms of sponsorship.
Deal Costs:
Over the years, deals have been quoted at anything from six-figures up to £10-15m. But they are actually hard to quantify. Big deal prices can be pumped up by the inclusion of spot ad airtime while small deals may not make any reference to related activation. Most deals will require some kind of additional investment to make the sponsorship work well. This might mean hiring talent or covering production costs (though both of these might be part of a broadcaster package). Sometimes brands can piggy-back investment by the broadcaster. For example, E.ON came in as sponsor of Sky Cinema at a time when the broadcaster was rebranding – thus putting itself at the heart of a lavish branding campaign.
Creative Guidelines:
UKSA partner Thinkbox does some great work around how to maximise the value of a TV sponsorship. Based on its experience/research over the years, it says the best results come about when the sponsorship bumpers successfully introduce the brand into the emotional relationship that the viewer has with their programme. Where there is an obvious link between a sponsorship bumper’s creative content and the programme content, the brand performs better across all key measures. The brand also performed better if there is a more obvious link between the brand itself and the programme. If the link between brand and programme is not as obvious, then the creative needs to work harder to establish the connection. See more here:
Sports Sponsorship Protocol:
In the context of live televised sports events, TV sponsors can appear like ambush marketers, because they sometimes drown out the event sponsors. Broadcasters try to align sports event sponsorships with TV sponsorships where possible (for example by offering the event rights holder the chance to take up the TV sponsorship). But even if this doesn’t happen, broadcasters tend not to sign up sponsors that are direct rivals to event sponsors, since this is a sure fire way of annoying the core rights holder. In some scenarios, sports rights holders will only sell the TV rights to their events if their sponsors secure broadcast packages too.
AFP:
Advertiser Funded Programming or Branded Content is a step beyond TV sponsorship and usually refers to situations where the client is involved in the production or financing of a show. AFPs have to abide by the same rules as sponsored programmes but can offer some benefits. Channel 4 cites four main benefits: the ability to completely “own” a programme, series or format allowing the client to create a sustainable point of difference from competitors; the opportunity to create a deeper brand experience throughout the very editorial fabric of the programme; the ability to plan off-screen activity in line with the production of the programme; and the ability to exploit content across clients own platforms and media platforms. To this could also be added that the client owns the format – and can sell it around the world. If there’s a downside to AFPs, it is that clients are not always the best judges of editorial excellence. For more on the potential of AFPs go here:
https://www.4sales.com/advertising/partnerships/ad-funded-programming/
Application/Activation
Immediate Impact: One of the beauties of TV sponsorship is the immediate impact it can have on a brand. With very few exceptions, audiences find it easy to detach themselves from previous show sponsorships – especially if the new creative work is good. For example, Aunt Bessie’s sponsored ITV’s I’m a Celebrity Get Me Out Of Here for the first time last year and achieved great result sponsorships. Activated across numerous platforms and channels using an amusing creative approach, it delivered improved brand image and a significant uplift in sales.
High Frequency Exposure:
Brands are increasingly attracted to the idea of sponsoring large volumes of content. Carpetright, for example, did a deal (July 2016) to sponsor UKTV’s quality entertainment and real transformations programming for a year (deal brokered between 4Sales and MediaCom, spots created by Everything Different). Typical of sponsorship, the campaign is running alongside other media. Another interesting element of this campaign was the use of Homes Under The Hammer presenter Lucy Alexander as brand ambassador for Carpetright – underlining the importance of engagement through endorsement. This was linked to Point Of Sale activity with a ‘Lucy Loves’ campaign running in store at Carpetright.
Innovations/Integrated Activations:
The winner of the TV sponsorship category at the 2016 UK Sponsorship Awards was Domino’s Pizza for its partnership with Channel 4’s Hollyoaks. A big part of the appeal of this campaign was the clever integration between brand and show. For example, sponsorship idents were shot on the Hollyoaks set while social media was used to show the cast eating Domino’s Pizza. Over three quarters of those who recalled the sponsorship said they were likely to purchase a Domino’s product, with Domino’s able to attribute a large spike in sales to the sponsorship.
Partnership Longevity:
TV sponsorships can run for a long time for a couple of reasons. Firstly, because there is flexibility to keep refreshing the creative work and the activation strategy. Secondly, because a lot of major properties only run for part of the year – meaning the risk of over-exposure is reduced. Talk Talk, for example, recently renewed its partnership with ITV’s The X Factor for the tenth year. Created by CHI & Partners, one of the most interesting things about this sponsorship is that fans at home can feature in the idents by uploading performances via TalkTalk’s FX Star app (ie UGC content).
Opportunism:
Because of the high turnover of TV programming – as well as shifts in the schedule – TV sponsorship is constantly throwing up exciting new opportunities. There are several examples of brands that have built their profile almost overnight by backing the right entertainment or drama series – so it pays to keep an eye on the upcoming schedule. Bet365 also did a good deal recently when it agreed to sponsor Sky Sports live Premier League games on Monday and Friday evenings, taking advantage of the fact that this season is the first time the PL has had regular Friday evening fixtures.
Niche Targeting:
As indicated above, channel fragmentation means TV sponsorship can now be used to target niche audiences. A good example at UKSA 2016 was Lambrini’s TV Sponsorship. Entered by Discovery Communications, this campaign took advantage of the strong fit between the brand and TV channel TLC’s female audience. Similarly, One Day Acuvue Define contact lenses sponsored content on E!, thus raising awareness of among a discerning female audience.
Seasonality:
In many ways, sponsorship is as flexible as advertising, which means it can be used to back a seasonal strategy. Several brands have, over the years, sponsored Christmas programming, the most recent being Furniture Village on ITV. Summer sponsorships are also an option as are launches pegged to specific events in the calendar. Sega - Football Manager, for example, worked with Sky Media’s Transfer Window coverage last autumn. The result was that it shifted 110,000 units in its first week on sale in the UK.
Key Challenges:
TV sponsorship has transformed beyond recognition since it launched in the UK. It is still a highly effective tool but needs to be deployed judiciously. Creativity is a key issue as explained above. Other challenges include the fact that the market is now awash with sponsorships, which means their value purely in terms of exposure is limited. To be truly effective they need to be part of a 360 degree integrated campaign – since this is what ensures engagement. The rules around TV sponsorship and product placement can also be a burden. So sometimes it makes sense to pursue a digitally-led strategy instead (though the two can run side by side).
