The Ins-N-Outs Of Sports Sponsorship
Sign up below to stay up to date on the sports stories changing our industry:
Innovation in Action
Localization & Brand Recognition: Part 2
In this two-part series, we are analyzing how local sponsors resonate with their fan base and how they can penetrate new markets. While a local company can still be a national brand (e.g: Coors Field in Denver), every market is different and should be treated as such.
Last week, we discussed some reasons a company would sponsor a team or event, especially when its headquarters are in the same area. These reasons include growing its local footprint, building brand awareness, and rewarding its employees, as sponsors get benefits and access that traditional fans may not be privy to. Sponsorship can also be leveraged to break into a new market. A company may sponsor a team outside of its normal customer base to get the new community familiar with the brand and prove why it should be considered as a new, local option.
Looking into our metaphorical crystal ball, there could be a great example of this forming before our eyes. Two weeks ago, In-N-Out announced it is opening a corporate office and restaurants in Tennessee by 2026. This will be the Quick Service Restaurant (QSR) restaurant’s first location east of Texas, showcasing signs of growth in a crowded market.
Nashville is a strategic choice. Leveraging our purchasing dataset, we believe about 5% of Tennessee residents have spent with In-N-Out at least once since 2016, indicating there are signals of entry-level brand awareness. On top of that, Nashville is expecting 14.4 million tourists this year, exceeding pre-pandemic levels. Already a tourist hotspot, this west coast transplant could be a testing ground for how In-N-Out moves across the country, picking up fans as they go.
*Our data comes from a random panel of 20 million credit & debit card holders in the United States from January 1, 2016 - January 22, 2023.
So, how can teams and partnering brands/channels leverage this information? Fast Casual and QSRs are very popular in-venue sponsorship groups, with examples such as Shake Shack in Citi Field and Chick-fil-A in Mercedes-Benz Stadium (even though their primary tenant plays on Sundays, it is still a local staple). In-N-Out aligning themselves with a Nashville team could be an interesting route to connect with local consumers. This could prove difficult for the west coast chain, as teams typically opt towards local, regional, and national brands as their sponsors (like the two examples above), not necessarily a brand from another region.
Sports Business Journal released survey results from MKTG last year, stating that fan engagement and fan sentiment with sponsors has improved between 2017 - 2022. This was especially true among younger fans, as 18-34 year olds in the U.S. are “more likely to purchase products or services from companies that sponsor [their] favorite sports and entertainment events.”
The only major professional sports league where Distanced fans make up more than local fans is in the NFL, with 40% showing a willingness to travel and spend on their favorite teams. This tells us that local sponsorship, like our focus last week, is still a strong brand building strategy, but it also tells us that the right sponsorship activations for brands who are moving away from home can find success with the right traveling fan communities.
We often see tourism companies sponsor the local team, especially to attract fans towards a more appealing climate. But a restaurant breaking into a new market could be a viable route, especially when that market is a mix of local and tourist populations. To learn more about the data behind the power of fan intelligence, visit sportsilab.com.
What’s Hot In Women’s Sports: Henderson Has A “Grand” Start To The LPGA Season
The Hilton Grand Vacations Tournament Of Champions is a women’s professional golf tournament that took place this past weekend from January 19th - 22nd. The tournament took place on the Lake Nona Golf Course located in Orlando, Florida. This event was the season opener for one of our favorite clients, The Ladies Professional Golf Association (LPGA). The winner of the tournament was Brooke M. Henderson from Canada, who came in 2nd place at last year's tournament. This is Henderson’s 13th LPGA Tour victory. She ended the tournament with a final score of 272, which included 19 birdies. Henderson is off to a great start for this upcoming season. Trailing closely behind her this weekend was Maja Stark from Sweden and Charley Hull from England. They tied and secured second place with a final score of 276.
The next big tournament is the Honda LPGA Thailand, which will be held from February 23rd - 26th. This tournament is based at the Siam Country Club Pattaya Golf Course in Chonburi. Watch to see if Nanna Koerstz Madsen can defend her title or if other rising stars claim the throne.
What's On Deck:
Don't forget that National Girls & Women in Sports Day is Wednesday, February 1st! We'll be covering all this and more in next week's newsletter...
If you're ready to create breakthrough fan experiences and connect with the Fluid Fan through technology, visit our website sportsilab.com or email info@sportsilab.com! Sign up for our Most Innovative Membership by emailing membersonly@sportsilab.com or visiting mostinnovative.com!