Interview Summary

It’s really nice to talk to you about this because it’s an important issue and not a lot of science has been done on this over the years and you’ve contributed a lot of it. Let’s talk about the issue of sports marketing and can you tell us a little bit more about what that is broadly and what’s, what are some of the forms it takes?

You just mentioned one of the main areas of sports marketing with sports sponsorships. And so that’s where a company like Coca Cola partners with an organization like the Olympics. And really is paying for the rights to have that famous Coca Cola logo or its products to appear at sporting events or in commercials that are involving the Olympics.

In terms of how much of it there is we know, for example, the world cup is one of the most watched sporting events in the world, along with things like the Olympics. The world cup, for example, has 5 million viewers. And so that’s a lot of exposure for these brands, but it’s not Sports sponsorship partnerships like that, there’s athlete endorsements, and those dates back as far as to 1934, as one example, when baseball player Lou Gehrig first appeared on the box of Wheaties cereals.

There’s a special place that athletes have always had in our society, and I think it comes through with these sorts of partnerships. But if we fast forward to today, our lab has even seen these kinds of partnerships appear in video games. And so, Nintendo had M&M’s a race car game a few years back, and NFL Madden, which is a popular video game even has things like the Snickers player of the game appear within the video game, just like real NFL games. What this means is that these pictures of brands and products are peppered throughout kids experiences when they’re playing video games. And then finally, if, and probably for anyone who’s, been in a supermarket, when there’s a major sporting event going on, like the Super Bowl or March Madness, it appears on products too in supermarkets.

It’s peppered throughout our everyday experience in ways we might not always see or appreciate if we’re not paying attention.

Marie, I like to do sports trivia with some friends of mine, and you’ve just given me a great question about Lou Gehrig and the Wheaties box in the 1930s. So that’s a nice benefit of this podcast. So aside from that, why sports? I mean, companies could attach themselves to lots of different things, but why did they choose sports and why is that such a valuable connection for them?

One factor ties back into what we were saying about visibility. If there are millions of people watching a sport event, it means that there’s a lot of time for brands to be able to have high visibility for whatever they’re endorsing or sponsoring in that moment. On another level, I think on a deeper level, our society has a special relationship with sports and professional athletes.

Professional athletes are their own sort of unique category of celebrities that people love to follow and admire. That means that when a brand associates themselves with a sports organization like the Olympics or a professional athlete, they’re buying into a special idea of what it means to be cool, to be fun, and to feel good about to feel good about the brand because when people are watching sports, they’re excited.

If we think of other categories of life where there are maybe a high number of viewers to a specific televised event, like a presidential debate, that we don’t see a lot of sponsorships around that. And maybe it doesn’t evoke the same feelings that a sporting event does.

I’m expecting that this kind of relationship or attachments or symbolism of the sponsorship of sports might be especially powerful for children. I know if you ask kids what they want to be when they grow up, a lot of them will say they want to be a baseball player or basketball player, football player, something like that. Does that make sense?

I remember reading an article once that said, a dad was playing catch with his kid, and had spent all these hours with his kid working on pitching. And the dad made the point in the article, my kid doesn’t want to grow up and be me as a baseball player. He wants to grow up and be ARod.

And so, this idea that we can spend all the time that we want with our kids and they still hold these celebrity athletes on such a pedestal is something that I think ties into why this is valuable for companies. It’s kids who are engaged in sports or attending sporting events who are the next generation of consumers for these products. If they can get the attention and the brand loyalty of these children early on in these positive, exciting environments, it helps them secure the next generation of purchasers.

We’ll talk about how important brand loyalty is in a minute, but let’s talk about how valuable these connections are to the company. I guess one indication of that is how much a company like Coca Cola is willing to pay to be a sponsor of something like the Olympics. What kind of numbers do you know about in that context?

The companies don’t usually disclose the exact numbers, but in 2008, NPR published an article that estimated that Coca Cola spent about 70 million to sponsor the Beijing Olympics. If we think about it, that’s stunning given sponsoring an event is just one part of their massive advertising machine. More recently the Wall Street Journal estimated that Coca-Cola and a really large dairy company in China partnered and spent a combined, estimated $2 billion with a B, $2 billion for a 12-year Olympic sponsorship deal that will run through 2032. It’s really incredible to think about that as just one slice of what they’re doing, but with such a massive amount of money attached to it.

It really sort of begs the question what they are get out of it and what do they see as the value. I know there are branding opportunities, and again, we’ll come back to that in a minute, but there’s also sort of this goodwill part of it, isn’t there. The Olympics are a great thing. No reason to question that. The fact that a company like Coca Cola would sponsor a good thing probably gives them a good company glow, doesn’t it?

My colleague Bridget Kelly in Australia did a study on this topic of sort of the glow that sponsorship produces. In her study, she showed that about 68 percent of kids in the sample could remember the sports sponsor and thought the sponsors were cool and generous. And they wanted to sort of pay back the favor by purchasing the products of that sponsor. There is something really special to to that relationship in the minds of kids.

Wow. That’s an impressive finding. So, speaking of findings, you’ve done some research on these sports sponsorships yourself. Can you tell us a little bit about what you’ve done and what you found?

Some of our work in this area has documented how food and beverage companies associate themselves with sports on the sponsorship side. Athletes and supermarkets with product partnerships. And in one of our studies that tied into sports sponsorships, we looked at the 10 major sports organizations that had a lot of viewers. So, things like the NFL, the NBA, and then we wanted to categorize what kinds of groupings, the sponsors belonged to an automotive brand. Ford motors was one of the largest categories. But food wasn’t very far behind. We saw about 19 percent of sponsors were associated with food and beverage brands, and it was for mostly unhealthy items.

In the sports sponsorships, we’re not. Seeing a lot of water being featured. It’s a lot of sugary beverages you know, chips and things like that. We’re not seeing much fresh fruit. And then when we did the same thing with athlete endorsements, one of the things that stood out about that study, which looked at a hundred athletes to get a sense of what are they endorsing and how healthy is this stuff and how much are people seeing it. The most striking finding for me from that study was that 93 percent of the beverages that were endorsed by professional athletes were sugary drinks. And we know that athletes need to drink a lot of water to sort of fuel themselves. And maybe sometimes they do need some sort of sports drinks for long workout days, but we saw a lot of sodas in the mix too and the other thing is that most kids don’t need lots of sports drinks in their diet, but that’s what is sort of being promoted through these through these endorsements, and so that really stood out to me about that study.

We also in a couple of these studies found that young people are often seeing more ads for this than adults. It’s not even though it may be sort of targeting general audiences. A lot of times young people are really seeing a lot of these, including the forms of ads that pop up on YouTube because we know kids are really into social media. It’s really across the board of all of our research. We find mostly unhealthy products being promoted through these partnerships with sports.

I remember back over the years that this issue comes up in the press occasionally and athletes get called out, specific athletes will sometimes get called out for promoting these kinds of foods. And, and I remember there being a couple of cases, although I don’t remember the names of the athletes involved, where they’ve refused to do this kind of thing and they’ve made public statements about that. What’s your recollection about that?

We were really excited one time with our athlete endorsement study that came out a couple of years later. Brita water filters issued a press release and I remember getting a lot of messages about it telling me to go and look at what was posted online. Brita had cited our study that most beverages promoted by athletes are sugary beverages.

And that’s why we’re so excited to partner with Steph Curry to promote Brita water filters. I framed that press release and shared it with all our team members who worked on those projects because it was an example of choosing a healthy beverage over some of these sugary drinks that are so commonly promoted.

So maybe there will come a day when LeBron James or athletes like that start advertising cucumbers or radishes or something.

And I wish cucumber producers had the same budgets as these sugary drink brands because it’s really hard for some of the healthy stuff to compete with some of these major fast food and sugary drink companies.

For sure. Let’s talk about the issue of branding, why a company like Coca Cola wants its brand image, that famous Coke logo out there in front of as many eyes as possible. Give me just a minute if you will. And I’d like to describe something that I’ve heard. Sort of observed over the years. It’s my anecdotal impression that if you ask random people, are you a Coke or a Pepsi person? You’ll get an immediate and definitive response. People know whether they’re a Coke or a Pepsi person. But if you do research, you find that people can’t very often tell the difference between Coke and Pepsi. And, going back as, as long as 1949, there are scientists who have done these kinds of studies on whether consumers can distinguish those two beverages, doing blind taste tests. A typical finding is that people aren’t any more accurate than chance. And there was a fascinating brain scan study done much more recently, of course. When Coke and Pepsi were given to people and they didn’t know which they were receiving, the brain scan showed similar brain activity for the two beverages, again, suggesting that people can’t distinguish the difference. But when people knew they were drinking either Coke or Pepsi, there was a brain activity advantage. For Coca Cola, which of course is all about more marketing, bigger company, that kind of thing, I’m assuming. So based on this, it looked like Coke hadn’t won the taste war, but the branding war. So why in the heck would people feel so strongly that they can tell the difference between these beverages when they probably can’t?

Now my own two-bit theory on this is that no one wants to feel like they’re a pawn of marketing. So, it’d be hard to admit that they favor one brand over another because then they would feel manipulated. They must believe in their own minds there’s an objective difference. My theorizing aside, tell us about the power of a brand as opposed to a product and how the Olympics is such a golden opportunity for the Coca Cola brand.

When we think about a brand, it’s really a combination of feelings, ideas, and the emotions that we tie into what it means to be part of that brand. And as people, and especially as young people, for let’s say teenagers, they’re in an identity development stage where it’s important for them to be adopting brands that are important to them, in part to distinguish themselves from their parents, to fit in with peers, and to start to have a sense of who they are as a person.

And one of the ways to do that is to associate with what you like for music, but another piece is brand. So, are you a Coca Cola or a Pepsi person? A Nike or Adidas person. That comes with all sorts of adjectives about what it means to be on one side or the other. When we think about Coca Cola as a brand linking up with the Olympics, it’s an opportunity to potentially borrow, not only get their brand out there, but potentially borrow from the brand of the Olympics as well.

In our field, there’s something called brand image transfer. This is the idea that when two companies or organizations partner together, the brand feelings we have about one might bleed over into the other and vice versa. It’s one of the things that’s always fascinated me about this topic, and I’d love to hear your thoughts on it too, is this idea that the sports may have a sort of health piece to their brand identity. So, the Olympics have people at the peak of their, their sport. And my question has always been, what does that do to the way people feel about Coke in terms of its healthfulness? And is there some brand image transfer that’s happening back and forth that’s particularly beneficial for Coca Cola because of the health component?

You reminded me of something. Tell me if you think this is an interesting parallel. When I was a boy in public high school growing up in Indiana, I don’t think there were any soft drink machines in my school, maybe one in the teacher’s lounge or something that I never saw, of course, but there wasn’t much. And then when my son, many decades later, was a student in a school, public high school in Connecticut, he and I walked around the school and counted the number of soft drink machines, and he was of course embarrassed to be walking around the school with his dad. But aside from that, I think we found something like 13 or 14 or 15 machines. I don’t remember the exact number, but it was striking. And I’ve heard people speculate that the companies don’t care that much about what’s being sold in those machines because. It’s not a huge profit center for them and they must split the profits with the school somehow, but it’s all about the branding. And even the students who aren’t buying anything from the machines walk past them probably many times a day. So, what’s getting imprinted doesn’t have much to do potentially with. A specific type of product, but it’s just that company’s main image. Does that make sense? And why those school sponsorships have been so important?

It does, and it’s really, there’s really an emphasis on wanting a sort of 360 level of involvement in young people’s lives because if a brand can get themselves in front of kids at school, at a sporting event, in a movie, in a video game, on social media, they’re immersing themselves in a way that allows the brand to keep itself top of mind.

And that’s what starts to get people to be aware of it, build brand loyalty, reach for the product because it’s, they, with so many ads, the ads are all competing for attention but being immersed in schools is just one aspect of that idea of having involvement in as many areas of kids’ lives as possible.

I think in addition to all the machines, there were tables outside that had. Coca Cola umbrellas, and then the football stadium had a scoreboard that had Coca Cola that featured prominently on it. It was like complete corporate capture. It was amazing how many exposures the typical student in that high school in Brantford, Connecticut would have had. And that’s just in school. I mean, think about all the other things added to that. That’s amazing, isn’t it?

One of the things that interested me about this work was because when I played soccer and ran cross country and track as a kid, everything. There were so many instances where everything was sponsored. There were so many instances where unhealthy food products were linked with sport. So, we were the Snicker state champions of the state of Florida for soccer. I was a Wendy’s high school nominee, not a winner. Let’s be clear. And every brand. I have so many patches at home with fast food or sugary drink logos on them, right alongside.

And then probably not coincidentally, I remember when I was a young kid, and we were painting a piece of wood in the backyard. And I drew the Coca Cola logo with a soccer ball and a basketball next to it. Looking back, first, what an odd kid I must have been to draw Coca Cola’s logo, but to your point, I was really immersed in it and Coke was top of mind.

The kind of sports sponsorships that you talked about being exposed to when you were young. That kind of thing’s happening outside the U.S. a lot too, isn’t it?

It is. So, the sports sponsorship outside the U.S. – one of the big ones that comes to mind if McDonald’s sponsorship of the World Cup. We see a lot of international presence with brands, whether it’s through social media, and the way they sort of take local culture and tailor it to sports marketing. I remember being on a trip to Trinidad with my family. My mom’s family is from Trinidad. And there was a Coca Cola bottling plant, I think it was. And alongside the perimeter was a painted fence and it had the Coca Cola logo and the Trinny flag and then a painting of a soccer ball and steel drums. So, there was this infusion of the culture alongside the Coca Cola logo. And that really, I think, accelerated my interest in understanding how these brands are capitalizing on the good feelings that people have towards their own culture.

It can be challenging to do anything about this and challenging, especially you regulate advertising in the U.S. because of protections provided for commercial speech through the first amendment. What can be done about the ads promoted through these unhealthy sports sponsorships?

One of the things I think we need more research on is the extent to which these kinds of ads might be contributing to a sort of misunderstanding about the health profiles of products. And so, I think that would help us better understand for kids, do they start to really think that some of these sugary drink products are healthier than water, for example.

That’s just a random example but I think that will help us understand what’s at stake when it comes to the impression that it’s making on young people. And there’s a little bit of work in this area, but more is needed. And then I think too about how as a society, there’s policy regulations to it too, but that’s very hard to do because of commercial speech protections. I will say one of our colleagues Nick Freudenberg has talked about how we should have an open mind with whether there’s a possibility to move the needle on commercial speech protections. And so that’s something I’d love to keep exploring with people on what that could look like it, and if it was possible to any extent.

And then the other thing that’s always been on my mind is the idea that for some products being associated with and became a public relations liability. If we think about the way professional athletes used to endorse tobacco products and would be standing in their uniform with a cigarette in their mouth. Then that sort of became uncool. Not good for their brand. Not good for their look, and they moved away from it.

Will the same thing happen to sugary drinks and junk food partnerships. And I think sometimes we see glimmers of that. There was the famous video, years ago after a soccer game, when one of the world’s most famous soccer players pushed away a sugary beverage and said agua in response. And it affected the market shares at that moment. I think there are instances like that, that we can think about in terms of getting some momentum behind the way athletes themselves identify with these products.

In that context, do you think parents could be an important advocacy voice? Let’s just say that parents rose up and said to the local high school, we don’t want Coca Cola stuff blasted all over our school. And they’re pushing that. Coca Cola retains the right, because of the First Amendment to market its products, but local schools would have the right not to sign contracts and therefore deprive the company of those kind of marketing opportunities. Do you think parents might ever feel mobilized enough incensed enough to do something like that?

I think parents are a key factor in this issue of sports marketing to kids because companies care a lot about what parents think. Even though kids have a ton of pester power, where they nag their parents to purchase things, parents are also in many cases, especially for young kids, the gatekeepers of all these purchases. Companies know not to make parents too angry about something because of the risk of not purchasing their products. I think if parents got vocal about it, whether it’s on social media or by getting involved in petitions that might be going around that’s one way to get companies to start paying attention to these things because I think it getting them out of schools, for example, seems to me to be a common sense start to it and but many parents might not be thinking of this in the way, that how deeply it might be affecting their diet, their kids diets.