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South African sports endorsement lags
Celebrity endorsements have become an integral part of global marketing campaigns. Whether it is Madonna for Louis Vuitton, Tiger Woods for Tag Heuer or Scarlett Johanssen for Moët & Chandon, the world’s most coveted brands align themselves with the globe’s most desirable actors, singers and socialites. However, recent years have seen a worldwide surge in endorsements for sporting personalities, as the likes of Lewis Hamilton, Thierry Henry and David Beckham punt watches, razors and men’s underwear, writes Craig Livingstone, global managing director for rugby and cricket at the international sports management and recruitment agency, Prosport International.
South African sports endorsement remains in relative infancy, with only a handful of players contracted to represent local brands. The question is: What opportunities exist for local brands within sports endorsement, and why would a commercial brand choose to align with a soccer, cricket or rugby professional?
Sports marketing is a $100-billion (R1.005bn) global industry as top sportspersons supplement their contract and performance fees with a host of lucrative brand endorsements from traditional sporting brands (think Nike, Adidas and Puma) and other contemporary, commercial brands (Gillette and Visa to name two).
Consider that in the 2007/8 period, the top 15 highest paid athletes in the United States collectively earned just over $255 million (R2.562m) in salaries, yet over $340m (R3.417m) was paid in endorsements – a telling sign that South African athletes are on the verge of becoming the hottest new marketing opportunity around.
It seems surprising that in a developing country where sport unites communities and athletes are heroes for young and old, South African brands are yet to tap into this market. Other third-world nations such as India are already maximising sports endorsements and utilising their top sportspersons to promote everything from televisions to toothpaste (Sachin Tendulkar boasts 12 national endorsements with companies including Adidas, Pepsi, Colgate, Philips and Fiat).
But, it seems South Africa is starting to make inroads into the sports endorsement field, as more local athletes sign lucrative contracts with leading brands. This year already saw local sportspersons such as Schalk Burger, Tendai "The Beast" Mtawarira take on contracts with the likes of OUTsurance and BIC respectively. Proteas captain Graeme Smith also signed with Sahara, Lexus and SuperSport.
This bodes well for the sports endorsement market, as athlete sponsorship starts to take hold in South African marketing circles and local sports agencies are well placed to take advantage of the world-class sportspersons on their books.
The South African public, in general, is fanatical about sport and its support of our national teams and athletes which, at times, borders on hysteria. With this in mind, there is no doubt that the brand endorsement of sporting heroes, both current and past, is set to reach new levels in the short term, closing the substantial gap between South Africa and comparable emerging markets throughout the world.
The last few years bear witness to the danger associated with international celebrity endorsements as private scandals have tainted key brand affiliations. On charges of allegedly assaulting his then girlfriend Rihanna, Chris Brown was dropped by leading American gum brand, Wrigley’s; and who can forget the multiple Olympic gold medal winner Michael Phelps’ marijuana stint, causing cereal giant Kellogg’s to withdraw its sponsorship?
Kate Moss was also dropped by partners H&M, Burberry, Rimmel and Chanel after incriminating images of her appeared in the tabloids; and when Sharon Stone denounced China for its treatment of Tibet, brand partner Dior pulled all ads in Asia featuring the actress.
These negative endorsement affiliations could possibly have been prevented, had the brands looked for a celebrity with the same brand personality and intrinsic values. We believe that the next step in both commercial and sporting endorsements is around brand-athlete matching and providing synergies between sports personalities and sponsors. This could only benefit both parties, as brands are able to handpick athletes with matching values, and athletes will be encouraged to align with brands they respect.
The next few years should see a huge shift in commercial endorsements, as athletes provide a welcome ‘wholesome’ alternative to singers and actors. Since athletes are – in most cases – responsible, down-to-earth individuals, brands will be able to take advantage of their ability to inspire the public and to provide reams of positive publicity.
