the washington post final edition: december 12 2003
Can Viewers Be
Bowled Over?;
Value of Game Sponsorship Questioned
On New Year's Day, highly ranked football teams from the University of Georgia and Purdue University will duel at the Capital One Bowl in Orlando, but for marketers at the McLean-based credit card giant the outcome of the game will ultimately be of little importance.
That's not to say they won't be keeping score.
Rather than touchdowns, however, Capital One Financial Corp. will be tallying how many viewers tune into the game and how many times the camera pans past the 15-yard-square Capital One Bowl logo at midfield or the smaller company logos at both 20-yard lines and the 12 corporate logos positioned behind the players' benches. And how many times did the announcers mention the name of the bowl, the Capital One Bowl?
But ultimately the firm will try to figure out whether sponsorship of the game will bring new credit card users and other borrowers to add to the 46.4 million people Capital One already counts as customers.
Bill McDonald, Capital One's executive vice president for brand marketing, said the game, which last New Year's Day drew 6.3 million viewers, the fifth-highest total for any bowl game last season, is key to the firm's efforts to remain one of the nation's biggest credit card issuers, along with Citibank, American Express Co. and Discover Financial Services.
"It gives us the look of a leader," McDonald said, "to go from 'Capital who?,' number 13 in name recognition of major credit card companies to one of the top.
"We really like college football," McDonald said. "The demographics of college football are very strong, more of an up consumer market, more highly educated. They're heavy users of credit cards and auto loans."
Capital One has run football-related advertising throughout the regular season, with a fan-oriented campaign to pick what it has dubbed the Capital One National Mascot of the Year. The winner will be named in an ad during halftime of the Georgia-Purdue game. The firm is also advertising heavily during sports-cable TV channels ESPN and ESPN2's coverage of other bowls and refers to the cable channels' overall coverage as Capital One Bowl Week.
Capital One is not alone in corporate America in trying to tie itself to the final orgy of college football this month and in the early days of the new year. But some sports marketers say the effort is of dubious value to many of the firms. The cost of playing this game typically ranges from $400,000 for the naming and television advertising rights for one of the bottom-tier games to as much as $10 million for one of the four Bowl Championship Series games at the top of the hierarchy.
Marketers with no clients in this advertising war cite what they say is a glut of college bowl games -- there are 28. That means nearly half of the 117 major football-playing colleges are participating in a bowl this year, never mind that four of them have only a .500 record. Moreover, many of the matchups generate little interest beyond the fan and alumni base, and most of the games are telecast on ESPN and ESPN2 rather than broadcast-network television.
Additionally, so much media and fan attention is focused on the four top-tier games in the Bowl Championship Series, ending with the game on Jan. 4 in the Sugar Bowl -- that would officially be the Nokia Sugar Bowl -- that the marketers say a couple of dozen other games are dwarfed by comparison.
"It's a cluttered environment," said Ardy Arani, chief executive of Championship Group in Atlanta, a sports promotion and marketing firm. "The cachet of owning a title to a bowl game has dropped in the last 10 years. The sponsorship leverage is limited because you can't use the likenesses of the players" because the NCAA, the college sports governing body, wants to maintain the amateur standing of the athletes.
Moreover, Arani said media interest in the bowls, and therefore fan interest, "is limited to a couple weeks a year. The promotional impact is going to primarily be regional and sometimes only local.
"My assessment is that it's a challenging environment for a corporation to go in and extract a measurable, reasonable return on a sponsorship investment," Arani said.
Another sports marketer, Ethan Green, vice president for the North American operations of Redmandarin, a London-based sponsorship consultancy, said, "I'm not a huge fan of bowl game entitlements. The PR value is very difficult to measure. People will not remember the sponsorship of these bowls. There's too many of them. Most are on cable TV, and there's a small audience.
"Eyeballs on logos are not going to affect purchase behavior," Green said.
On Dec. 19, even before this year's Axa Liberty Bowl is played on New Year's Eve, the game's title sponsor, Axa Financial Inc., a New York financial services firm, announced it was ending its seven-year sponsorship, with AutoZone Inc., a car parts retailer, assuming it next year.
"Our business strategy did not allow us to create a long-term sponsorship," said Axa spokesman Jeff Tolvin.
Likewise, Nathan Christian, a regional president for Wells Fargo & Co., said his institution is dumping its sponsorship of the Sun Bowl in El Paso after eight years.
"We did it in the first place [initially as the Norwest Sun Bowl before Wells bought Norwest], primarily as community support, at a time when the bowl was on the lip of the grave" and without a corporate sponsor, said Christian, who lived in El Paso for 22 years before moving to Southern California.
"We've had a very good experience with our title sponsorship," Christian said. "But a sponsorship has a life cycle. This has pretty much run its natural life cycle, like all advertising campaigns."
Osram Sylvania Inc., the Danvers, Mass., lighting company, reached that conclusion after a run as sponsor of the Alamo Bowl in San Antonio from 1999 to 2001.
"When you got off the plane, there was no question it was the Sylvania Alamo Bowl, with signs everywhere," said Michael Colotti, the firm's vice president for brand management.
The problem, he said, was that Sylvania couldn't get enough people, especially decision-making executives, to fly to San Antonio for the game and related events. "One of the problems was the date," Colotti said. "It was always between Christmas and New Year's. That presented a marketing challenge [to get commitments from the executives to fly to San Antonio]. That's a family time."
As a result, Sylvania decided to spend most of its sports marketing dollars sponsoring the NASCAR racing team of driver Kevin Harvick and the Sylvania 300 race in Loudon, N.H., in September.
One of the problems corporate sponsors face in adding their names to a bowl game is that many fans and most newspapers still refer to them by the generic name, such as the Gator Bowl or Orange Bowl, rather than as the Toyota Gator Bowl or the FedEx Orange Bowl. The television networks, tied heavily to the advertising revenue their bowl coverage puts in their coffers, are the exception and routinely state the full names of the bowls.
Capital One was faced with just that problem when it joined the bowl sponsorship derby.
Capital One's sponsorship in 2001 and 2002 was known awkwardly as the Capital One Florida Citrus Bowl, and many fans just called it the Citrus Bowl. But a year ago, the state's citrus department ended its sponsorship, and Capital One took over as sole sponsor, dumping the citrus reference. The firm declined to disclose its annual naming rights cost, but some people in the sports marketing industry say it may be $5.6 million or more.
As a result, anyone who wants to refer to the game, including sportswriters covering it, must now refer to the Capital One Bowl.
"We think that is a pretty strategic move," Capital One's McDonald said. "It's a clear advantage. We would prefer not to have a shorthand nickname. We like that shorthand being Capital One."
Sports marketer Green said of the Capital One naming deal, "I'd have to give them a B, but that's much higher than three-fourths of the others."
At the other extreme of the corporate bowl-naming game is the New Year's Eve game in Nashville called the Gaylord Hotels Music City Bowl Presented by Bridgestone, an eight-word title sponsored by two Nashville companies, the owner of the Opryland resort and a tire company.
Gaylord paid $1.6 million for its naming rights, according to Scott Ramsey, the bowl's executive director, and Bridgestone an undisclosed, but much smaller amount for secondary sponsorship of the game. As a result, the hotel company and Bridgestone get their names in the logo at midfield, but only Gaylord is on the 20-yard-line logos. There are other similar splits with other advertising at the game.
Chris Karbowiak, a Bridgestone spokeswoman, said the firm was pleased to help sponsor the game and hopes to reach the upscale fans watching the Auburn-Wisconsin game. Green, however, was very skeptical of the tire company's deal.
"There's no way that Bridgestone is going to be remembered by that
sponsorship," he said.
©Washington Post 2003
