ABOUT
Sports marketing is big business globally. And easy pickings for brand hijackers, ambush marketers, ticket scalpers, online phishers and merchandise knock-off artists. More than 50 percent of consumers say they are sports fans (Gallup). Major sports events such as the Summer and Winter Olympics, FIFA World Cup, Super Bowl, NCAA Basketball Finals, World Series, NBA Finals, NASCAR, Formula 1 Racing, Wimbledon, PGA Tour, Rugby Union World Cup and the Tour de France attract millions of viewers. The Super Bowl is perennially the most-watched television broadcast, as well as the top at-home party event of the year, surpassing New Year's Eve.
According to Sports Business Journal, advertisers spend more than $15 billion on sports advertising annually and an additional $16.4 billion is spent on arena/stadium signage and promotions. With growing migration to Internet engagement of fans and followers, online advertising at sports web sites should top $1 billion by 2011 from $859 million in 2009 (eMarketer).
According to IEG Sponsorship Report (www.sponsorship.com), sports sponsorship spending exceeds $10 billion and sports licensing is a $13.7 billion revenue stream (The Licensing Letter) for leagues, clubs, athletes and event organizers. Top licensors, like Major League Baseball, National Football League, National Basketball Association and NASCAR generate billions in licensee revenues for all manner of goods, services and entertainment products. Star athletes, also, are brand franchises unto themselves. Tiger Woods, alone, generates $100 million in endorsement income as the most highly compensated golfer in the world.
Its no wonder business is booming for online scammers, brand name hijackers and property rights pirates. Sports marketers and sponsors trying to protect their trademarks and brand names say they're facing a proliferation of digital hijacking online while on the ground, increasingly global and better organized international counterfeiting rings are flooding the market with more sports merchandise and apparel knock-offs than ever before.
Doing Away With Foul Play in Sports Marketing will follow the CMO Council's previously successful Protection from Brand Infection and Secure the Trust of Your Brand initiatives. There will be a special focus on sports sponsors in the apparel, footwear, auto, consumer electronics, CPG, financial services, food/beverage, travel and hospitality, high technology, sporting goods, media/entertainment, and communications sectors. Leading international sports bodies, sports industry publications, retail trade groups, property rights holders, media networks, and sports sponsorship firms will be invited to affiliate and contribute content, analysis and experience as affiliate partners.
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FACTS & STATS
- According to the EIG spending on sport sponsorship in both league and team sponsorship was $2.07 billion dollars
- Spending on sport sponsorship increased 15% in 2007
- Sports is ranked as the top leisure activity for consumers with 54% of the population stating that they are fans
- $16.4 billion dollars is spent on stadium/arena sinage and promotions
- Advertisers spent $13.5 billion on sports advertising in 2006(most recent data)
- Motorsports recieves the highest annual sponsorship earning $3.2 billion (2007), followed by the NFL, College Sports, MLB, NBA, and NHL
- Network TV earns the highest dollar amounts of sport advertisment followed by cable tv, other tv, national magazines, internet, and radio
- In 2009 80% of counterfeit goods seize came from China
- Shoes such as knock off Nike shoes were the biggest category seized, making up 38% of merchandise seized
- Counterfeiting is a multi-billion dollar industry
- Annual turnover in licensed sport merchandise sales runs into the several billion dollar range
- Sports Business Simulation (SBS) reports that the size of the sports business industry overall reaches an estimated value of $213 billion—that's twice the size of the U.S. auto industry and seven times the size of the movie industry
- The NFL leads revenue values with an annual income in excess of $2.5 billion. The Super Bowl is one of the biggest annual sporting events in North America, with a global audience that generates hundreds of millions of dollars in spinoff sales and promotions
- The NFL is followed by MLB, with revenues of $2.3 billion. NASCAR, the NBA, the NHL and other leagues, teams and sports together generate $5.6 billion. All have lucrative official merchandising programs protected by hologram-based security tagging systems.
- 1-Businesses worldwide lose an estimated $600 – 700 billion annually due to counterfeiting.
- Since 1993, the NHL – through its membership in the Coalition to Advance the Protection of Sports logos (CAPS) – has been involved in the seizure of more than nine million pieces of counterfeit merchandise featuring the names and logos of various professional sports leagues and teams, colleges and universities, and other brand owners – valued at more than $334 million.
- Vancouver 2010 Olympic committee expects to earn $500 million from olympic branded merchandise
- In 2008 counterfeiting accounted for 2% of all global trade
- In 2010 the average consumer is expected to spend $52.63 on Super Bowl related merchandise, totaling $8.868 billion worldwide
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