IEG SPONSORSHIP REPORT · The live stream featured immersive angles of the Olympic torch parade, ... 49ers with a virtual reality experience in which tailgaters could watch 49ers

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IEG SPONSORSHIP REPORT

ACTIVATION

2016: THE YEAR OF VIRTUAL REALITY VR provides numerous benefits across the sales, activation and servicing continuum.

From nearly every perspective, 2016 is shaping up as the year of virtual reality.

Following a torrent of buzz at South by Southwest, CES and other confabs, marketers of nearly every stripe are using and/or exploring virtual reality as a platform to take sports and entertainment into the next dimension.

Virtual reality offers numerous benefits for both sponsors and properties. For sponsors, the technology provides one key benefit: a new way to engage consumers and enhance the event experience.

The technology offers sponsorship sellers three primary benefits:• A new sales tool• A new category to pitch• A new platform for sponsor servicing

Despite the small number of devices currently in the market, virtual reality is quickly going mainstream. Sixteen percent of male U.S. consumers have tried a VR headset, while 47 percent express interest in owning a device, according to a recent survey by Horizon Media.

Interest is expected to grow even more as new products enter the market, including this week’s much-anticipated release of the Oculus Rift. Other headsets launching this year include the HTC Vive and PlayStation VR.

Products currently on the market include Samsung Gear VR powered by Oculus and Google Cardboard, both of which are used with smartphones.

The virtual technology market is expected to reach $15.8 billion by 2020 with an annual compound growth rate of 63.2 percent between 2015 and 2020, according to Markets and Markets, a market research firm.

Despite its growing popularity, some industry insiders believe VR could lose interest as more consumers experience the technology.

“To me, virtual reality is eye candy. I’m not sure if it will be as popular in three years once the novelty wears off,” said Lesley Pinckney, GMR Marketing senior vice president of digital strategy.

“It’s more of a tactic than a strategy—it’s a different way to tell stories.”

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MARCH 28, 2016



IS VIRTUAL REALITY THE NEXT BIG THING?American’s views on virtual reality devices

Using Virtual Reality To Secure Real-World DealsSome sponsorship sellers use virtual reality to showcase opportunities, including inventory that does not yet exist.

The NBA Sacramento Kings used VR to promote its new arena to prospective sponsors and premium suite holders. Prospects who donned a VR headset could take a 3-D tour of the venue’s plaza, concourse and arena bowl.

The team subsequently sold naming rights to Golden 1 Credit Union.

“The new arena will be a global benchmark for innovation, sustainability and technology. Utilizing virtual reality helps bring the Golden 1 Center to life in a way that we couldn’t have done with any other technology,” Chris Granger, Sacramento Kings president and chief operator officer, told IEG SR in 2015.

The NBA Portland Trail Blazers use VR to enhance sponsor recaps.

The Trail Blazers used the technology to capture footage of the Toyota Half-Court Shot for a post-season meeting with the Portland Metro Toyota Dealers Assn, with the goal of giving a feel for what it’s like to view a half-court shot from the floor of the Moda Center.

Sponsorship sellers also are leveraging VR as a new sponsorship category.

Six Flags Entertainment Corp. this month announced a multiyear partnership with Samsung Electronics America, Inc. The electronics giant is using the sponsorship to promote Samsung Gear VR powered by Oculus headsets as part of its designation as the theme park’s official technology partner.

The sponsorship affords nine “Virtual Reality Roller Coasters,” around which attendees can enhance the physical ride with a synchronized virtual experience. Six New Revolution virtual reality coasters will transport riders to a futuristic battle to save the planet from an alien invasion, while three Superman VR coasters will take riders soaring next to Superman as he battles Lex Luthor.

Samsung also is using the Six Flags content outside of the theme parks. That includes a coaster-themed VR experience around its sponsorship of this month’s South by Southwest conference and its 837 flagship store in New York City.

Samsung also is using VR to activate the International Olympic Committee. The company last month delivered “the world’s first-ever virtual reality live streaming of Olympic Games” with content from the Lillehammer 2016 Winter Youth Olympic Games opening ceremony. The live stream featured immersive angles of the Olympic torch parade, Parade of Nations and other opening ceremony events.



Fans in the Samsung Galaxy Studios in Lillehammer, the Samsung Experience Store in Oslo and other locations around the world could access the content on Olympics.org using Samsung Galaxy smartphones and Gear VR.

Sources Samsung Electronics America, Inc., Tel: 201/229-4000 Sacramento Kings, Tel: 916/928-000 GMR Marketing, Tel: 800/447-8560



SIDEBAR

THREE TIPS ON USING VIRTUAL REALITY Below, Lesley Pinckney, GMR Marketing senior vice president of digital strategy, shares three tips for creating a successful virtual program. Be mindful of throughput. Companies need to consider the goals of the program including who they want to reach and how long they plan to engage them for. That requires balancing the needs of making sure enough people experience the technology with making sure they have time to enjoy it. “Are we doing this for massive amounts of people, or is it a more premium experience where people can take more time?” Consider surround-around sound. Sound plays a critical role in making VR a success, said Pinckney, noting that audio cues can be used to encourage people to fully explore content. “Oftentimes people don’t look up, down or behind. You can use sound very cleverly to get people to explore the whole thing.” Don’t underestimate the impact of immersive experiences. Virtual reality can be a powerful experience, especially with content that can put people on edge. Roughly 10 to 15 percent of people who experienced “Can You Walk the Walk” VR experience for Sony Pictures’ The Walk reportedly felt fear when making the simulated 140-foot tightrope walk between the twin towers of the World Trade Center. “There is a potential for risk with really intensive experiences. They can bring up feelings that people aren’t used to having.”

Source GMR Marketing, Tel: 800/447-8560

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MARCH 28, 2016



SIDEBAR

THREE EXAMPLES OF VIRTUAL REALITY ACTIVATION While the verdict is still out regarding the sustainability of virtual reality as a sponsorship activation platform, there is no question the technology is gaining steam. Below, three examples of how sponsors and properties are leveraging VR to create unique, one-of-a-kind experiences. MasterCard and the Arnold Palmer Invitational. MasterCard leveraged last week’s Arnold Palmer Invitational presented by MasterCard PGA Tour event with a virtual tour of the iconic 17th hole at TPC Sawgrass’s Stadium Course. The tour was hosted by Graeme McDowell, a MasterCard golf ambassador. In addition to giving customers a new type of “priceless” experience, MasterCard used the program to promote new payment technology. Participants could purchase golf shirts and other items without leaving the virtual world. MasterCard created the program in conjunction with Wearality, an Orlando-based startup that designs virtual reality glasses and wearables. “Giving consumers the opportunity to immerse themselves virtually into experiences you can only get with MasterCard is a great way to showcase the exclusive offerings and access we’re delivering through our Priceless platforms,” said Raja Rajamannar, MasterCard chief marketing officer, in a statement. Bacardi and music festivals. Looking to draw more 21-to-24-year-old male rum drinkers into the Bacardi family, GMR in 2016 created the Bacardi Untamable Tour, a marketing campaign that included sponsorship of Governors Ball, Tomorrowland and other music festivals across the country. Bacardi leveraged the program with a VR experience that offered legal-age drinkers the opportunity to experience concert footage in a 360-degree environment. The company also used augmented reality to bring life-size “Bacardi festival girls” to bar takeovers across the country. SAP and the San Francisco 49ers. Among other technology-driven activations, SAP leveraged the San Francisco 49ers with a virtual reality experience in which tailgaters could watch 49ers action on oversized chairs and the “Quarterback Challenge,” a game in which visitors could experience the thrills of being a quarterback. SAP also distributed virtual reality headsets in the SAP Suite to give guests a new way to experience 49ers stats. Dublin-based vStream Digital Media helped create the VR program.

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MARCH 28, 2016



SPONSOR PROFILE

INSIDE RUST-OLEUM’S SPONSORSHIP STRATEGYProduct integration plays a key role in Rust-Oleum’s sponsorship push

While do-it-yourself products represent a key segment of its product offering, Rust-Oleum Corp. does not approach sponsorship as a hobby. The maker of Rust-Oleum, Dap, Zinsser and other home repair and industrial products has expanded its sponsorship portfolio over the past several years, including a new tie to the NBA Cleveland Cavaliers in the 2015-2016 season. The sponsorship builds on a portfolio that includes the Web.com Tour Rust-Oleum Championship, the all-volunteer Zizzo Racing NHRA team and Rust-Oleum Field, one of the first high school stadium naming rights deals in Illinois. Product integration plays a key role in company’s sponsorship strategy. Rust-Oleum leverages the Cleveland Cavaliers with a message board made with chalk board paint in the Quicken Loans Arena, around which fans are encouraged to leave inspirational messages for the team and local community. “They have the power to change how the team plays and how Cleveland looks by restoring the city with different Rust-Oleum products,” said Lisa Bialecki, Rust-Oleum Corp. senior director of integrated communications. In addition to the chalk board wall, Rust-Oleum leverages the Cavaliers with team-themed DIY projects (Christmas decorations, etc.) on the team’s Pinterest site. The Cavs promote the projects via Instagram and Facebook. Rust-Oleum last year activated Zizzo Racing by applying a line of peel coat rubber paint on the team’s top-fuel dragster, around which it ran a social media promotion offering fans the chance to vote on the color of the paint. “We try to correlate products that are relevant,” said Bialecki, noting that driver TJ Zizzo tests Rust-Oleum products and promotes the company in community outreach efforts. Rust-Oleum leveraged the Rust-Oleum Championship by providing caddies rain apparel coated with NeverWet liquid repellant. The tournament this year will move to Ivanhoe, Ill., near the location of Rust-Oleum’s corporate headquarters in Vernon Hills. The tournament will be played the week of June 6-12. The Rust-Oleum Championship was previously hosted at the Lakewood County Club in Cleveland, near the corporate headquarters of RPM International, Inc., Rust-Oleum Corp.’s corporate parent.

Source Rust-Oleum Corp., Tel: 847/367-7700

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MARCH 28, 2016



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 IEG and the sponsorshp industry, please visit www.sponsorship.com, www.espglobal.com, or call +1 312 944 1727.

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IEG SPONSORSHIP REPORT · The live stream featured immersive angles of the Olympic torch parade, ... 49ers with a virtual reality experience in which tailgaters could watch 49ers

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