Quoted post said:Originally posted by donhix1
It is really hard to quantify how effective sponsoring a team is as an advertising tool.
Actually, they are remarkably capable of tracking press placements, and converting those into GRP (Gross Ratings Points) and then to a CPP (Cost Per Point) index. It was estimated by Advertising Age magazine that the USPS sponsorship earned an estimated $45 MILLION dollars in UNPAID advertising dollars PER YEAR. This has been an overwhelming success as sponsorships go, and Lance currently sits, while seperate from USPS, as one the most equitable sports endorsements you can make. His going rate as for endorsements ranges in the 10 to 20 million dollar range. The media picture as a whole when dealing with big budget projects is very exacting and detailed.
Strategically, I am pleased to see USPS make this announcement before the Tour. If Lance were not able to win his sixt tour, and they pulled out - the reaction would be very negative indeed. It also leaves the team valuable time to find a sponsor while the entire team is in the global media spotlight. It would be my opinion that a European brand would do very well to sponsor an american team to make inroads into american culture. Lance is very mainstream with american culture, and therefore very equitable.
As far as pressure on USPS goes, every publically traded company gets enormous pressure for every decision they make, add the burden of a sponsorship, and investors freak out. For a government agency, they did a remarkable job of fending off pressure and keeping the project alive for eight years. Truly incredible and totally impossible without an enormous success rate.
Traditionally, think Motorola, once a big sponsor fades, other american brands see that sponsorship opportunity as somewhat tarnished... they tend to think of the teams in the context of the typicall mega sport "franchise", and want ulimited access and equity. Its a tough sport to land dollars for because there are sooo few guarantees.
My .02
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