Word of Wisdom Tonight: “Luck? Of course. But that only comes with long practice and the ability to think under pressure.” — Babe Didrikson Zacharias
It is my ongoing mission to find the next big new funding in sponsorship.
Regulation in pharmaceuticals is beyond Byzantine and changes with alarming frequency, while the exploding diabetes/weight loss Rx category is thought to be the next “IT” category of sponsorship. Masu.
Peter Stern of Strategic Agency, who has worked on sports campaigns for Rx manufacturers such as Merck, Novartis and GlaxoSmithKline, said: “Creativity and compliance in pharmaceutical marketing have always been and continue to be the biggest challenges.” Ta. “It's hard to see this category making it to the Super Bowl. You would think something as broad as weight loss would have to be incorporated into the sport.”
I asked about new sponsors on MLB RSN this season, and most sponsors I spoke to mentioned additional ad buys from this category, specifically Novo Nordisk's blockbuster products Ozempic and Wegoby. These two top sellers have blown up Novo Nordisk's financials, including a record-high stock price and a market capitalization of over $600 billion, putting the company among the top 15 most valuable companies in the world.
This brings me down the rabbit hole of marketing spend (unhighlighted). According to MediaRadar data, Rx companies spent more than $1 billion advertising RX for weight loss and diabetes in 2023, an increase of 51% from 2022. You've probably seen TV ads for Ozempic and Wegovy, as well as Rybelsus (Novo Nordisk) and Jardiance. (Boehringer Ingelheim) and Munjaoro (Eli Lilly).
Was sports sponsorship part of that big business? The only American example marketing data firm SponsorUnited could find was Todd Gilliland's recent paint job on his No. 38 NASCAR Cup Series car using the diabetes drug Faxiga. Other than that, the only sign Sponsored United has found is north of the border, which may say something about differences in drug regulations between the two countries.
That seems to be common in Canada. Almost all of his NHL arenas have some Rx branding, including Ozempic signage at Blue Jays and Raptors games. In the United States, league and FDA regulations generally allow “sound platform” advertising and marketing that promotes the parent company rather than the drug. In America, right now, it's all about TV spending.
Still, if the Cialis and Viagra erectile dysfunction drug sponsorships of the early part of this century have taught us anything, it's that rules and regulations change quickly when large amounts of cash appear. There are already predictions that the weight loss/diabetes Rx category will soon become the most prescribed drug in America. Combine this with the CDC's estimate that 42% of American adults are obese, and it's as certain that weight loss drugs will emerge to embrace sports marketing as not being able to resist a second donut. It seems like there is.
“So far, their strategy has been to build awareness without paying rights fees,” said Lou Kovacs, Octagon's president of marketing and events. Octagon made the first Viagra deals in sports more than 20 years ago, and more recently designed Moderna's anti-coronavirus campaign. vaccine. “The problem is that rights holders can be cautious about pharmaceuticals because of risk and liability concerns. In the case of a drug like Viagra, those concerns have disappeared as the drug has become more popular. However, it could certainly be the same with Ozempic etc. Pharmaceutical company regulation is always challenging; [short-term] Start-up budgets for pharmaceutical companies may be at odds with the general trend of facilities aiming for multi-year contracts. [sponsorship] promise. You may also see deals with teams that have diets or weight loss programs that may be contradictory. ”
Faciga's NASCAR race deal was a rare recent example of drug sponsorship in the US
The UFC has acquired three new corporate clients as it prepares for Saturday's UFC 300, its biggest event of the year.
The event comes just two days before the federal tax filing deadline, with Intuit's TurboTax brand joining as the presenting sponsor of the event at T-Mobile Arena in Las Vegas. Its location includes logo insertion into the octagon (primary “12 o'clock” branding), broadcast features, “preparation point” signage following the octagon, match round card branding, social and digital inventory, and signage. It is included. in the form of a wrap around his two-story building at UFC headquarters in Las Vegas.
TurboTax, an NFL corporate sponsor that has advertised at every Super Bowl since 2014, has also been a sponsor of WWE, the UFC's sister brand, for some time. UFC/WWE sponsorship chief Grant Norris-Jones said this is a somewhat elusive mainstream brand addition to the major MMA circuit.
Another clearly not endemic company for Revlon has signed a new sponsorship deal to support the company's mass-distribution brand, Curve for Men, which the company says has a “striking note and bold attitude.” ) is the UFC's first sponsorship contract. Official fragrance.
So, is the UFC considering expanding its appeal to women?
“In recent pilot contracts, [Sheertex] Norris-Jones said: “Last month we started selling women's tights and now we want to expand our relationship with Revlon. We are great about equality for women with equal pay in sports. I have a story.” We are in talks with women-focused brands, so we feel like we can do a lot more. ”
When it comes to mainstream consumer brands, it looks like UFC's growing popularity has finally allowed it to land a sell deal. Well, it's actually a “cell phone” deal.
Cellular Performance Institute, which bills itself as “the world's most advanced stem cell and regenerative medicine company,” currently has a rights agreement with the UFC under which it will be able to create branding elements, custom content, and the circuit's first official Obtained designation as a global stem cell therapy sponsor. His SoCal-based CPI will also receive in-arena activations and sweepstakes to increase brand awareness.
Intuit's TurboTax is one of the brands participating ahead of UFC 300
Megan Hughes Allison is a managing director of the Underdog Venture team, one of several marketing agencies co-owned by Dan Mannix's Underdog & Company and private equity firm NewSpring Holdings. He was promoted from managing director to president.
A 2019 SBJ Game Changers honoree, Allison will continue to be based in Charlotte and lead a team of 25 employees with clients including Verizon, MLB, Mastercard, TelevisaUnivision, and SailGP. Become.
Allison replaces Nicole Jeter West, who left the company in November.
Charlotte-based Megan Hughes Allison becomes president of Underdog.
- In what is considered the first “official ramp” in sports marketing, professional bull riders are asking manufacturers of home ramps (including pet ramps) and commercial ramps to brand their assets and bull riding. Signed EZ-Access to sponsorship grants association with. series.
- With just over 100 days until the start of the Paris Games, NBCUniversal is on track to break the record of $1.25 billion in advertising sales set at the Tokyo Games, SBJ's Rachel Axon reports.
- Brands earned $482 million in sponsorship exposure from the 2024 NCAA men's and women's tournaments, according to SBJ's David Broughton, data from Hive, an AI company that measures the presence of branding embedded in media. Reporting.
- The WNBA and Opill, the first over-the-counter contraceptive available without a prescription, have teamed up in a multi-year partnership that includes becoming an associate sponsor of next week's WNBA Draft, notes SBJ's Molly Cahillane.
