Some big American advertisers in Europe say they have found an effective strategy for marketing to young men, one of the most elusive groups of consumers: using U.S. basketball.
Coca-Cola, Yum Brands' KFC chicken-restaurant chain, videogame maker Electronic Arts and some 20 other sponsors, most of them American companies, are funding a seven-game European tour in October by four National Basketball Association teams. (EA and Coke sponsor the NBA in the U.S. as well.) It is the second year of the exhibition-game tour, called NBA Europe Live, and an NBA spokesman said sponsorship revenue is up 25% from last year. While Coca-Cola and Yum declined to say how much they are spending on the tour, several sponsors say marketing linked to the tour increased sales of their products last year, so they have raised spending this year.
An influx of European players on NBA teams in recent years has sparked increased interest in the sport in Europe. German Dirk Nowitzki was named the league's most valuable player this year, and Italian Andrea Bargnani was the first draft pick in 2006. The 2006-07 NBA season was broadcast on 71 television channels in 46 European countries.
With a close-to-mature U.S. market, the NBA's own best bets for rapid growth are in Europe, Asia and South America. The league has sent armies of name players and coaches overseas for clinics, charity appearances and exhibition games like Europe Live. The Cleveland Cavaliers and their star forward, LeBron James, will face the Orlando Magic in preseason games in China this fall.
The NBA's appeal to male teens -- who watch less TV, listen to less radio and read fewer magazines than most groups -- is particularly valuable to advertisers. "It's probably never been harder to reach young men," says Dominic Fawcett, a managing partner at MindShare Worldwide, a media buyer owned by WPP Group. "Young people don't use media in the same way people over 30 do."
Lead sponsor Electronic Arts sees the tour as essentially one long ad for its basketball videogame "NBA Live '08," set for release in Europe at about the time of the first game there on Oct. 6. EA, of Redwood Shores, Calif., declines to say how much it is spending on the sponsorship. But Jordan Edelstein, director of product marketing at EA Sports, says "there is really nothing about the tour that doesn't help us" promote the game.
Last year's tour buoyed sales of an Electronic Arts basketball game for the Xbox 360 console, Mr. Edelstein says, though the game wasn't received enthusiastically by all reviewers.
EA plans to show clips from the videogame during the exhibition games. A clip including forward Kevin Garnett, who joined the Boston Celtics this month, will demonstrate to fans that the game is up to date, Mr. Edelstein says. TV ads made by Portland, Ore., agency Weiden+Kennedy, will run during NBA tour game broadcasts.
The tour games will be held in basketball hotbeds such as Istanbul, Rome, Madrid and Malaga, Spain. London was chosen for its large population of eight million. The four North American teams -- the Minnesota Timberwolves, Boston Celtics, Toronto Raptors and Memphis Grizzlies -- will play each other and five European teams, Real Madrid; MMT Estudiantes, also of Madrid; Unicaja Málaga; Lottomatica Virtus Roma; and Efes Pilsen Istanbul. An NBA spokesman says a total of about 100,000 people are expected to attend the exhibition games, and more than 35 million are forecast to watch on TV.
Other sponsors are adding marketing stunts. Coca-Cola says it is negotiating with the NBA to place its sports drink, Powerade, on the players' benches. It is offering the chance to win tickets to the games to people who buy Powerade and is setting up stalls in supermarket aisles to advertise its sponsorship.
"You have to be very careful to identify the right media" to target teenagers, says Powerade's European marketing manager, Manos Zakinthinakis.
Next month, KFC is introducing a sandwich, the BoxMaster, in France, Spain, Italy and Turkey. Pictures of NBA players will adorn the packaging. During last year's tour, when the BoxMaster was sold only in French stores, 20% to 25% of customers bought it, says Christophe LeCureuil, a spokesman for Yum Restaurants International. All KFC customers during the tour with get a code they can send by cellphone, giving them a chance to win basketballs and other NBA-themed merchandise.
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