Sports key to Asian market penetration: Chime CEO Chris Satterthwaite

Chime is a small name in Asia. Is this region important to you?
We aim to have 50 per cent of our income come from overseas offices within the next three years. The figure is at 15 per cent now and by the end of the year we expect it to be at 25 per cent. But we’re not strong in Asia yet. Our expansion will be primarily led by sports. Fast Track is our strongest presence. We’re looking to build in mainland China and Singapore. India is something of a focus for Chime, which is working towards building a solid business there. With Fast Track, which works on HSBC rugby, one stop of the HSBC Asian 7 Series is held in Mumbai. We believe sports marketing can give us a really strong position [in Asia].

The reasons are that Western brands use sponsorship as a way of penetrating growing Asian markets. Chevrolet, for example, is a Manchester United sponsor—but is not for sale in the UK or Europe. Likewise, Asian brands wanting to penetrate Western markets will use sport as a [means of] rapid strong access. Chime only started in sports marketing five or six years ago, but the market is being consolidated by the likes of us.

How real is the potential for continued growth in sports marketing in Asia, and do you believe that there is enough innovation in the sector?
The reality is that the top 10 sports of the world by value were developed in the West, but audience growth is accelerating by far the fastest in the East. Innovation I think will come with more digital exploitation by sponsors in its broadest form—content creation. By 2015, 75 per cent of the world will be able to watch sport on handheld devices as well as TV. HSBC [a Fast Track client] has quite a comprehensive engagement programme around the Hong Kong Rugby Sevens that includes internal engagement and a community award. In London, O2 offers privileged access to the Dome to its customers, in effect sponsorship as part of a retention strategy. It’s unusual, but a growing strategy for sponsorship.

What do you see as the crucial factors for effective sponsorship in Asia?
As with anywhere, a brand must have a clear strategy as to why it is involved in a sponsorship. Is it for [customer] acquisition, or for [customer] retention? It must have global salience, but also local market salience. You have to realise that as a sponsor you are very rarely in a solo position. You have to have a clear sense of what uniquely you can contribute to what you’re sponsoring, and communicate that in a different way to other sponsors.

Is sponsorship around a major sporting event really worthwhile anymore?
The whole advertising market place is so competitive that I don’t think sporting events are any worse than other mediums. The key thing again is having a clearly defined role in why you’re sponsoring. As long as that’s clearly flagged, it shouldn’t register [with audiences] if other brands are trying to steal involvement.

But do most brands actually have a clearly defined purpose?
I think it’s about fifty-fifty. As a global marketplace, sports sponsorship has only really developed a level of sophistication in the past 10 years. The good thing is that it gives us an opportunity to work with the 50 per cent that are not currently making the most of what they’re doing.

Can a brand sponsor too much? Do sponsorships in too many categories ultimately risk diluting the impact?
Technically yes, but I haven’t seen too many examples. [A senior representative] from Guinness once pointed to two raindrops running down a window and said, “See those? We would sponsor them both”. Emirates is involved with many different sports, but is selective by market place. It is unusual for someone to ‘over-sponsor’. Duration has no magic ‘optimum’, but sponsorship helps build relationships and if you want those to be long term, continuity is obviously recognised and appreciated.

What is the next big thing in terms of sponsorship?
I would define it as stretching the boundaries of the stadium and being seen on TV. Sponsors will increasingly think of ways of engaging with fans and enthusiasts using apps and social campaigns. It’s rich territory and creative territory.