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Are Student-Athletes Ideal for Brand Ambassadorships?
Over two years since a Supreme Court ruling paved the way for college and high school athletes to profit off their name, image, and likeness (NIL), retailers continue to slowly experiment with amateur-athlete sponsorships.
In the grocery space, Hy-Vee just released Caitlin’s Crunch Time frosted flakes cereal in a partnership with Iowa Hawkeyes women’s basketball star Caitlin Clark at select stores in Iowa. All proceeds support the Caitlin Clark Foundation, a nonprofit she founded focused on education, nutrition, and sports for youth.
“Caitlin’s impact on and off the court is truly remarkable, making her a positive role model not only for youth but also the community,” said Matt Nickell, VP of sports marketing for Hy-Vee.
Last fall, Amazon — which has signed several players to NIL deals — featured Angel Reese and Flau’jae Johnson, stars of LSU’s championship women’s basketball team, in its “Dormz” back-to-school commercial showing off their dorm rooms.
In December, Express signed Ethan Grunkemeyer, a star quarterback at Olentangy High School in Lewis Center, Ohio, near its headquarters in Columbus, to an endorsement deal. The signing of Grunkemeyer, who will join Penn State this fall, followed deals reached by the fashion chain with two Ohio State football stars in 2022 and five men’s college basketball players earlier last year.
Sara Tervo, EVP and chief marketing officer at Express, said, “We are thrilled to welcome Ethan Grunkemeyer into the Express Styling Community, expanding on our successful collegiate athlete style ambassador program with a local, talented athlete beginning his college football career.”
The NIL market is worth an estimated $1 billion annually, according to NIL company Opendorse. Opendorse found that about 80% of NIL earnings come from collectives, or controversial donor groups that have been accused of recruiting violations.
Only 20% of earnings are estimated to be coming from brand deals. However, a study by influencer marketing company Captiv8 showed that student-athletes outperform the engagement benchmarks of standard influencers on social media.
While few star athletes are able to earn over $1 million a year from NIL deals and support national campaigns, many are well-positioned to participate in regional and hyper-local efforts to support the trend toward micro-influencers. According to Business Insider, most players end “up working with local businesses like restaurants or participating in one-off marketing campaigns with bigger brands, and receiving free products, gift cards, or smaller cash payments, rather than big paydays, for their NIL promotions.”
Amateur athletes are seen as relatable, with social posts documenting their day-to-day lives on campus, while also being aspirational as they pursue their athletic and scholastic pursuits.”
There is a unique, visceral connection to college athletics,” Chase Griffin, a quarterback at UCLA and the two-time winner of the NIL Male Athlete of the Year award, told Morning Consult. “Student-athletes, often in a very televised way, embody the overcoming of physical, mental and emotional struggle. It’s hard to watch us and not be inspired.”
Discussion Questions
How would you rate the pros and cons of using student-athletes in branding or social media campaigns?
How should brands and retailers approach making such deals?
Poll
Loading …BrainTrust
Gene Detroyer
Professor, International Business, Guizhou University of Finance & Economics and University of Sanya, China.
John Hennessy
Retail and Brand Technology Tailor
The level of fit depends on the brand. However, for many brands this is a great way to showcase upcoming talent and connect with younger consumers who follow these athletes. Of course, there is a real opportunity for regional brands and firms to form partnerships based on the college location.
We are finally getting to the types of compensation levels college athletes deserve. After years of hypocrisy in college athletics, athletes can monetize their abilities and popularity.
This is a good development for local companies to enter the endorsement game. And why not? The athletic life span of an athlete is relatively short. They should utilize their accomplishments to the value they deserve.
The biggest negative is what young people do with their newfound riches. A good head is critical to appropriately utilizing what is now a windfall and, in the future, will be the norm. One has to be impressed with Caitlin Clark.
Advertisers have been burned in the past with the behavior of their signees. The same caution must be taken with now college (and high school) athletes. Inexperienced local advertisers may be open to making mistakes.
Why not? Especially on a regional level…I am in North Carolina and I would almost guarantee that some UNC Chapel Hill athlete endorsement would “move the needle”. And how about Caitlyn Clark? She would definitely increase sales. This is a great idea and brands should embrace it!
As a university professor for over 40 years, I have long believed that the two major sports without a significant minor league alternative, namely, football & basketball, should consider paying their athletes. NIL does some of this, however, there is significant inequality of payments. It is difficult to be a student-athlete in today’s competitive environment.
Having shared my bias, I have no problem with the noted endorsements. Endorsements of any kind (athletic or otherwise) need to fit the needs of the target market, period.
I was a little disappointed when the Olympics abandoned the amateur standing of the participants. And now this development feels a little awkward. But if I believe in an open, competitive market for goods and services, then it is a perfectly natural evolutionary step. And of course this was inevitable in the world of social media. But however nostalgic I may get for the good old days, when I see Caitlin Clark handle her talent and notoriety so beautifully, it all seems to make sense.
This use of NIL is becoming too prevalent already with no boundaries being set and no specific enforcer of these boundaries to protect PR campaigns which may take advantage of poorly informed athletes and their parents. This should be limited to adults age 18 and older, who are participating at the college level.
NIL could be a boon for both retailers and young athletes, or just as easily a bust, a waste of time and resources.
Caitlin Clark and HyVee is a best case example of ideal fit, having a solid strategy around product and marketing.
Fun and excitement aside, smaller retailers will want to plan carefully, to use hard-earned resources wisely, and ensure there is upside in these partnerships.
Pro is that it is more affordable than professional atheletes and also can appeal to regional interests. The con is like any celebrity endorsement, you brand is tied to the behavior of the athletes and when they are young, they maybe inexperienced in handling the funds or the media responsibilities that come with it. No one is perfect, it is simply a case of risk management versus rewards
The best thing for both student athletes and advertisers would be an education and certification program for student athletes to qualify for NIL. Part one is how NIL dollars are about not only athletic but education and civic excellence. This reduces advertiser risk and will serve the student athletes well. There should also be a component on basic finance. What are assets and liabilities. How to allocate their funds for growth. Yes, reward yourself, but develop a long-term plan so you gain larger rewards as your NIL dollars work for you while you work on your game.
This is America! So, why not! If someone has a skill or talent, and others want to use it to promote their products, that “someone” deserves to be compensated. It doesn’t matter if it’s grade school, high school, college, or anytime before or after, using someone’s likeness and personality is a great way to make money and/or fund a charity.
Student-athletes can be excellent brand ambassadors in communities where college sports do not compete with professional sports. Athletes’ rapidly changing images are always subject to some risk.
If the ambassadorship will be nationwide, the student athlete needs to be elite. Examples are Caitlin Clark, Spencer Rattler, Shareef O’Neal, and Bryce Young.
If the student athlete is an unknown outside the local market, it’s not the right strategy, unless he or she has a unique story to be told. – Db