Morning Brew - ☕ Newbie

NIL’s impact on rookie athlete brand deals.
June 01, 2023

Marketing Brew

Vimeo

Happy Thursday. Welcome to June. We hope your work days will now be filled with long walks and your Fridays abbreviated.

In today’s edition:

—Alyssa Meyers, Ryan Barwick

SPORTS

Rookie move

Aliyah Boston Sarah Stier/Getty Images

By definition, rookies are the newbies on their teams. But thanks to the NIL policy of 2021—which lets student athletes make money off of their name, image, and likeness—some of them aren’t so new to at least one aspect of pro sports: brand deals.

While deals between rookies and major brands have been standard for years (just watch Air), some newbie players are coming into their first pro year with prior endorsement experience, an unprecedented dynamic that marketers said could serve brands in the long run.

“Both sides are getting experience with the other party in advance in a lower-stakes environment,” Ray Katz, co-founder and COO of Collegiate Sports Management Group and a former marketing director for the NFL, told Marketing Brew. “I think there are going to be more win-win deals because, in college, the legitimate NIL deals give both parties a chance to date before they get engaged in marriage.”

While NIL opens up opportunities for brands to build longer relationships and stories with athletes, sports managers and marketers said, earlier exposure to brand deals could also create some complications.

Read the full story here.—AM

     

TOGETHER WITH VIMEO

Impart an impact

Vimeo

Campaigns come and go, but a few impactful ones make big waves in the deep, wide sea we call marketing. And before we get too philosophical (too late?), you should know that Vimeo is chatting with Semrush about how their latest campaign made an unforgettable splash.

Vimeo hosted Semrush’s Andrew Warden, CMO, and Olga Andrienko, VP of Brand Marketing, to discuss all the details behind the timeline, development, and distribution of their hit campaign video series: My Life, My Terms—The Future of Work.

Learn the risks and rewards of using real customers vs. actors, how B2B campaigns can leverage B2C tactics, the value of remaining ~real~, and what the future holds for this successful series.

Watch their chat for all the insights.

ADVERTISING

Trim the forecasts

red arrows pointing down Jayk7/Getty Images

It could be a chillier summer than expected for advertisers—Dentsu has trimmed its global ad-spending forecast, citing “macroeconomic factors.”

The numbers: Dentsu’s global advertising spend is expected to grow 3.3% this year to reach $728 billion, according to a report released on May 31. In December, the company predicted 2023 growth of 3.8%. (Dentsu spokesperson Brittany Hescheles said this initial prediction was ultimately adjusted to 3.5% due to “hyperinflation in a couple of markets.”)

  • The growth Dentsu is expecting to see this year is attributable to “media price inflation,” per the report, not an increase in advertising. Not great, Bob. Without the impact of inflation, Dentsu said ad spend would actually fall 0.6% year over year in 2023.
  • Next year, Dentsu expects advertising spend to grow 4.7% to nearly $763 billion. You know, if there aren’t any more adjustments. It credited the uptick to tentpole moments like the US presidential election and the UEFA Euro Championship.

Synced up: In March, IPG-owned Magna cut its 2023 global ad spending forecast from 4.8% to 3.4%.

Going steady: Digital advertising will account for nearly $3 in every $5 spent on advertising for the next three years, or about 58% this year, according to Dentsu. However, in 2023, it’s only expected to rise 7.8%, a single-digit increase that’s only happened twice in the last two decades—during the 2009 financial crisis and in 2020, when the pandemic first hit.

“It’s clear we are now starting to reach a point of digital maturation within the campaign mix alongside more traditional channels,” Peter Huijboom, global CEO of Dentsu’s media international markets, said in a press release.—RB

     

RESEARCH

Sports marketing digital media

a basketball going into a net, but the net looks like a phone with a podcast on it Francis Scialabba

Attending sporting events IRL has come back in a big way since the pandemic, but stadium and broadcast advertising aren’t the only ways for brands to get some skin in the sports marketing game.

Many fans livestream games via digital platforms, which means that “brands now have an unprecedented opportunity to reach and engage new audiences by embracing digital media,” Bob Lynch, founder and CEO of SponsorUnited, said in a statement.

The sports and entertainment intelligence platform released a report exploring the digital media landscape as it relates to sports, pointing out some popular and potentially untapped options for advertisers.

Women’s sports: SponsorUnited found that 61% of brand partnerships with women’s leagues feature some form of digital media, a trend led by the NWSL, LPGA, and WTA. Those leagues each activate at least half of their sponsorships with digital media.

  • By comparison, 44% of partnerships with men’s leagues involve digital media.
  • The discrepancy “presents a prime opportunity for brands to further connect with a more digitally engaged women’s sports audience,” according to the report. “By embracing digital media channels, brands can reach a broader range of potential customers—driving higher engagement and delivering larger returns on their investment.”

YouTube: The platform ranks second in terms of daily active users across social platforms, per the report, but less than half of pro teams use it.

  • Some leagues are taking more advantage of the platform than others. For instance, 60% of NFL teams have an integrated sponsor on YouTube, compared to 23% of MLB teams.
  • Of all major pro sports teams, 40% have an integrated YouTube sponsor.

Grand slam: Both men and women pro tennis players have “above-average engagement rates” on social media, at 5.6% and 4%, respectively. Tennis players have fewer brand deals than NFL and NBA players, though, leaving “untapped potential” for advertisers.—AM

     

FRENCH PRESS

French Press

There are a lot of bad marketing tips out there. These aren’t those.

Sound on: Sonic branding agency amp released an AI tool called Sonic Hub to help brands manage their audio assets.

Price you pay: Influencer marketing platform Aspire surveyed 1,000 creators on the topic of pricing.

Proud of you: TikTok released a slate of programming that highlights LGBTQ+ creators for Pride Month.

We need to talk: No, we aren’t breaking up. We just want to keep making content you love. Will you take our survey? If you do, you might win a $250 AmEx gift card.*

*This is sponsored advertising content.

DIGITAL ADVERTISING

Attention! live virtual summit

Attention! live virtual summit

Join eMarketer on June 2 to explore how digital hubs like streaming TV, search engines, and social media are changing as user habits evolve. Plus, get your questions about ChatGPT and generative AI answered by our live analyst panel. Hear from brands like Wendy’s, M&T Bank, Albertsons Media Collective, MNTN, and more.

Register for free now.

WHAT ELSE IS BREWING

  • Amazon’s not having a great week: Hundreds of workers walked out over a “lack of trust” in leadership on Wednesday, and the company agreed to pay the FTC “more than $30 million to settle allegations of privacy lapses in its Alexa and Ring division.”
  • Meta is threatening “to pull news links from Facebook and Instagram in California” over a state bill that would tax the company for news content.
  • DDB New York is merging with adam&eveNYC to make adam&eveDDB. DDB Chicago, meanwhile, has a new CEO in Emma Montgomery, formerly CEO of Leo Burnett Australia.
  • Heinz has debuted its first global campaign.

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Written by Alyssa Meyers and Ryan Barwick

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