The most valuable commodity in global capitalism is a renewable resource. Yet it’s being so intensively exploited that corporations are in danger of running out even as they pour hundreds of billions of dollars into finding it.
That commodity is your attention. This year it’s estimated global capitalism is spending nearly three-quarters of a trillion dollars trying to buy it — and closer to $800 billion if you include sports sponsorship.
In the analog era, the exploitation of attention was crude and mostly ineffective — but simple. There were only a few TV channels, a handful of radio stations and a couple of newspapers. They were the only way you could spray advertising over the whole population. You saturated everyone and hoped that the 5% of people who might actually shift brands to your product based on your ads over your competitors’ ads saw them. It was wasted on everyone else. The saying went “I know half my advertising budget is wasted but I don’t know which half.” The figure was more like 90% or more for most products.
The internet fixed that. No need to spray ads everywhere — Google, Facebook and the myriad of data brokers that fed off your online activity worked how to target advertising by demographic niches and product interest. Except, at the same time the competition for our attention exploded because the amount of information we were subjected to every day increased by orders of magnitude.
Even the most targeted ad has to compete with major social platforms, streaming services, tailored news feeds, gaming and the emergence of audiences themselves as content generators for attention. The only choice was for advertising to work its way into every possible source of competition for your attention in the hope of grabbing a fraction of your time.
That’s why life in the 21st century is existence in both a physical and virtual space where you are relentlessly bombarded with attempts to colonise your thinking with brands.
Sports sponsorship is a small subset of advertising. Like analog advertising, most of it is wasted because it’s sprayed over a wide area — what consumers will only ever see is a logo on a jersey or a commercial broadcast commentator incessantly namechecking a source of money. There’s a hilarious “analysis” from creepy global consultant McKinsey that says sports sponsorship is really effective — but only if you spend money on “activation”. That is, you have to advertise the fact that you’re sponsoring a sport. In other words, if you advertise the fact that you’re advertising, you might get some benefit from it.
What’s interesting about sponsorship is that it has long attracted industries with problematic reputations. Cigarette advertising dominated both cricket (Gideon Haigh recalls the disgusting moment cricketer Greg Matthews was fined in the ’80s for daring to question tobacco sponsorship) and rugby league for years. Beer companies were also big AFL and league sponsors — the now-forgotten mid-week league competition in the ’70s and ’80s revelled in names such as “the Tooth Cup” and “the KB Cup”. Then came fast food and soft drink sponsors; these days it’s the pernicious betting and fossil fuel industries.
To the extent that you might once have smoked while watching sport, or had a beer or six, or had a burger, or can now waste some money on a flutter while watching, such sin industries are all things vaguely related to sports viewing, whether healthy or not. Santos and Woodside, or Hancock Prospecting with its iron ore and coal interests, or fossil fuel power giant Alinta Energy, are not after sales but normalisation and reputation laundering.
That’s how it was for tobacco companies, another toxic industry that found the regulatory net closing in in the 1980s, despite the whingeing from sports bodies and commentators about who would replace such lucrative sources of money (I can still recall the sainted Richie Benaud using Channel Nine to defend Benson and Hedges against “people in Canberra” trying to limit tobacco sponsorship).
The standard tactic employed by defenders of such sponsorship — often found in the ranks of sports commentators as much as anywhere else — is that politics should be kept out of sport. Putting aside that elite sports are more business than athletic endeavour, the operation of the attention economy — the desperate attempt to colonise the last uncluttered parts of our outward-facing selves — is inherently political. Moreover, the political reaction from those whose attention sponsors crave is intrinsic to the entire exercise. Don’t go trying to buy attention and then complain when you get more than you wanted — unless you think consumers are just empty, passive vessels ready to absorb your propaganda.
Politics is exactly why Santos, Woodside, Hancock and Alinta, along with other fossil fuel sponsors, are spending their money engaging in the political act of trying to normalise themselves when it is clear to anyone not in receipt of their generous contributions (whether politician or sporting administrator) that they are a fundamental contributor to an accelerating climate disaster.
No one is pure in the attention economy. But the actions of the climate culprits, like those of big tobacco before them, are particularly dirty.
I get that there may be someone on a board somewhere who picks a sport or charity because they have a soft spot for that particular activity and direct funding because it’s how they can use their position to promote it. But really it’s hard to think of sponsorship as anything other than sportswashing – using the halo effect to have some of the goodwill of the sport rub off into perceptions of the sponsor.
Of course it’s political, and it would be naive to think of it any other way. Throwing around that amount of money with no thought for reputation or positive outcomes would be a wasted use of power.
If they are purely philanthropic – there there should be no need for the logo to be shown. It could be an anonymous donation.
Yeah, there’s always that, but in the real world that’s never gonna happen. But within the bounds of what is acceptable behaviour there are degrees of action between self-serving and a desire to do good. It’s in that area that I’m alluding to.
It’s the difference between a sponsorship that’s all about who will see it and how it will help the company versus a sponsorship that’s about seeing a particular outcome in the world. I can think of a sponsorship of a particular ACT footy team that’s about getting the logo on front of the eyes of the politicians as on one end of the spectrum, while a sponsorship of a charity the CEO cares about on the other – even if it still has the bonus of being a tax write off.
This sponsorship debate is a bit behind the times, like a few things in Australian sport. Elsewhere the big controversy is about private ownership of teams and clubs, very common in Europe, Asia and the Americas. This has also caused angst among fans and media but has moved to another level now that some teams have effectively been purchased by governments, particularly those in the Gulf. The issues involved here are much tougher that a bit of push-back re fossil fuels and gambling. We don’t have enough moneybags individuals or companies here for private ownership to be very common and most of our sports are too parochial to interest foreigners; being a sporting backwater has its points.
So don’t put us down by saying our superior system is “behind the times!”
O tempora, O mores!
Or, to be more up-to-date, oh tempura, oh miso.
Didn’t Russell Crowe own the Rabbitohs at one stage?
A few commenters here have pointed out that it is often the particular sports interest of the CEO or Chairman dictating sponsorship decisions. I’ve worked with some of these companies and I can confirm that there is something in this. One mobile telephone company in particular flip-flopped from one sport to another – as far apart from International Rugby Union to extreme sports and then back to cricket – based pretty much on the foible of the individual in charge at the time.
Others have pointed out that it is access to junkets for entertaining customers or other stakeholders . This is always the case.
What has been glossed over is the brand exposure that is to be had from the televising of the events that is always a key consideration. There are companies that have spawned in the advertising ecosystem purely to quantify this sort of thing. And yes, by ‘quantify’, I mean 9 times out of 10 it’s a post-rationalisation based on a flaky methodology.
If you watch any televised sport, you will see that not only is every centimetre of the visual real estate commercialised, but just in case you’ve managed to filter it out, some Bozo on the commentary team will attempt to recapture you with multiple references to ‘the VB hard earned award’, the KFC video referee result, the Harvey Norman replay, and so on ad nauseum. Then there’s the gambling apps and services that are increasingly woven into the coverage of course.
The ‘Go woke, Go broke’ shills and cretins conveniently platformed by the major media companies would like you to park your brain and your conscience in order that they may continue with the business of making money off sport (and particularly in the case of News Corp, gambling). It’s good to see that a new generation of athletes and fans aren’t buying into this and they deserve our support. Yes, even if for cultural or religious reasons a footy team loses players for a match or two over a progressive gesture on a guernsey, at least the commercialisation of sport is increasingly being resisted by participants on a conscience basis. This has to be a good thing.
Well said. G Rundle has written a couple of times about your last point – it’s a bit vulgar to encourage decision making on the basis of conscience, but cry foul when the decision is not to your tastes.
I think St Gina of Roy Hill should be thanked for her recent tantrum – by her own actions she clearly demonstrated how her ‘sponsorship’ is just a straight forward commercial transaction: $$$ in return for a halo (or halos), with the added benefit of people being forced to treat you like a Lady of the Manor, with forelock tugging and grovelling. Contracts apparently worthless, capriciousness the order of the day. And its not only sport but all manner of cultural activities, and its not only St Gina.
Much sports sponsorship is about freebies for sports loving managers of the companies putting up the money, and has little to do with the public, influencing customers or benefiting shareholders.