The basic human need for music and sharing - managing and monetising fans; a 3-way case study Mark Ashelford, Lee & Thompson #m4pt5Event partners #socialmusic Music 4.5 is organised by
The Icon, the Pop Star and the TourThree Case Studies of Social Media in Sponsorship Deals Presented by Mark Ashelford @LeeAndThompson
Sponsorship 1.0• Endorsement period of 1 to 3 years;• Limited by territory;• Annual fee (no royalty);• Fixed number of ‘service days’ per year for PR events and creating visual assets;• Exclusivity by product category – limited to public activities;• Benefit of the endorsement arrangement is intangible.
Sponsorship 2.0• Additional social media undertakings – not part of service days?;• Social Media Rights are “worldwide”;• Assets include products of social media activities;• Social Media Activities are public activities (cf. exclusivity);• Possible to measure increase in social media activity.
The Icon - Profile• Internationally famous, instantly recognisable;• Does not depend on ‘unit sales’ for his business;• Generally does not tweet;• Hugely busy.
The Icon – The Deal• £1M per year sponsorship fee;• 2 to 3 commitment days (roughly valued @ £250k);• Agreed to accept a social media ‘day’ in lieu of one PR event: o Facebook likes to direct people to webchat event; o Webchat interview @ home; o Post chat on Facebook; o Brand gets to use the interview as an asset.
The Pop Star – Profile• International pop act – the hot new act;• Massive twitter following, very specific demographic;• Signed to a Major Record Label;• Has own merchandise;• Zero free time.
The Pop Star – The Deal• 1 year term;• Band to tweet about new product range;• No commitment days;• Specific Social Media Commitment: o Tweets per month o Facebook likes o Instagram posts• Royalty per unit sold equivalent to a signature product;• Exclusivity specific about no competing products referenced through social media (but allowed to create own merchandise).
The Rock Tour – Profile• International rock band;• Millions of records sold over several decades;• Regularly touring – massive fanbase;• About to undertake another world tour.
The Rock Tour – The Deal• Tour Sponsorship c. £2M;• Sponsorship Fee allocated to tour branding and attendees;• Brand want to create a social media campaign: o request campaign to fanbase; o redirects to a new campaign portal; o band ‘feedback’ through twitter; o the assets to be used during the tour.• Additional social media fee c. £500K
In summarySocial Media Activities in sponsorship deals can haveequivalence to:• Service Days;• Additional Rights;• Branding on Product.And should be valued accordingly!
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