Major Sponsors Warming Up to the Gay Games
First there was Baby Ruth. Then the Reggie Bar. And now the Gay Bar.
No, it’s not a tavern catering to gay customers, but a $2 chocolate bar aimed mostly at the thousands of gay and lesbian athletes and spectators expected in New York City next week at the Gay Games IV & Cultural Festival, a weeklong athletic competition and artistic celebration.
“It might not sell in Pacific Palisades,” said Seth Felson, the Miami Beach entrepreneur whose firm, Loring & Matthews, created the Gay Bar to be sold during the Gay Games, “but it’s bound to sell in New York.”
Beyond novelty candy bars, the Gay Games--also known as Unity ‘94--are giving marketers plenty to chew on and, for the first time since their beginning in 1982, are attracting major sponsors on a national scale. A growing contingent--from AT&T; to Miller Beer--has discovered that for a fraction of the cost of airing a single TV spot during the upcoming World Cup soccer tournament, they can link up in a big way with the Gay Games and speak to millions of consumers who have been mostly ignored by major marketers.
“Virtually every gay person in the country will be aware of who the sponsors are,” said Andrew Isen, a New York-based consultant who specializes in marketing to gays and lesbians. “There will be a positive bottom line for every sponsor.”
Among the big-name marketers paying $50,000 to $250,00 for sponsorship status are Miller Beer, Hiram Walker & Sons and Naya spring water. AT&T; and Continental Airlines also have marketing links. And some big companies, including Apple Computer and Perrier, are running ads in the program for the games, which--like the Olympics--take place every four years.
Some major New York City merchants are also warming up to the Gay Games. Bloomingdale’s is offering special discounts to the athletes and spectators. And last week, Macy’s opened a special section at its Herald Square store to sell dozens of items--from T-shirts to tote bags--featuring Gay Games and Unity ’94 logos.
“We consider it forward-thinking for a mainstream merchandiser,” a Macy’s spokeswoman said, adding that the store has never before carried merchandise targeted at gays or lesbians.
“The word is out that there is a substantial gay and lesbian market,” said Harold Levine, director of marketing for the Gay Games, which take place June 18-25. “We are probably the highest-profile gay and lesbian event.”
Of the 10,500 athletes expected to participate in the games, more than 2,000 will arrive from California--more than from any other state.
The event follows by one week the 24th annual Los Angeles Gay & Lesbian Pride Celebration, a festival and parade taking place in West Hollywood this Saturday and Sunday. And it comes at a time when an increasing number of corporations are speaking directly to gay and lesbian consumers. The Chicago-based research firm Overlooked Opinions estimates there are 18.5 million gays and lesbians in the United States who spend a combined $5.1 billion annually.
That’s why companies are paying more and more attention to the market. Earlier this year, the Ikea home furnishings chain broadcast the first network TV spot whose featured characters were two identifiably gay men. And earlier this month, AT&T;, which is also a marketing partner with the Gay Games, targeting gay consumers by mailing more than a million brochures featuring identifiably gay models.
AT&T; will set up booths to attract new customers at the Gay Games, and it will sponsor a laser light show at the closing ceremony.
“Our research tells us that these are affluent, well-educated, brand-loyal consumers who want high-quality products,” said Dick Martin, vice president of advertising at AT&T.;
Miller Beer will have signs at most Gay Games venues, and it has been running a series of print ads in gay and lesbian publications featuring participants in the athletic events.
“It simply makes good business sense to market to this segment,” said Sophia Nieves, marketing supervisor at Miller Brewing.
Naya, the spring water that was the official bottled water of the Los Angeles Marathon, has signed on as the official water of the Gay Games, said Stu Levitan, general manager of Nora Beverage USA, which distributes the brand domestically.
But some companies, such as Nike and Benetton, which might have seemed like logical sponsors, have turned thumbs down on the Gay Games.
“That’s just not the way we’re spending our grass-roots sports marketing dollar right now,” said Keith Peters, a Nike spokesman.
Although Benetton’s top public relations spokesman in the United States tried to persuade executives at the Italian-based clothing company to sponsor the games, senior executives decided against it.
“There will be plenty of others, like myself, who are disappointed they couldn’t sell their companies on being sponsors,” said Peter Fressola, director of communications.
But there is also lingering concern about consumer backlash from some conservative and religious groups, which is why many companies still want no part of the Gay Games. For that matter, some companies are publicly playing down their links to the games.
“A lot of companies want to market directly to gays, but they don’t want everyone else to know about it,” said Michael Goff, editor of Out magazine, a gay and lesbian publication that is also a sponsor of the games.
Continental Airlines, for example is the “official airline” of the Gay Games, offering discounted flights to those attending. But it is not particularly eager for publicity. “This is not a sponsorship,” insisted spokeswoman Peggy Mahoney. “It’s a convention rate, just like we’d offer to the Democratic or Republican conventions.”
Briefly . . .
Burbank-based Buena Vista Home Video, a subsidiary of Walt Disney Co., has named Venice-based Ground Zero and San Francisco-based Hal Riney & Partners to handle creative assignments. . . . Calabasas-based Lockheed Corp. is placing its $8-million account in review, now handled by McCann-Erickson/Los Angeles. . . . Toluca Lake-based Miller Group was hired by Republic Pictures Corp. to promote video distribution of the PBS program “Ghostwriter.” . . . The Santa Monica agency Kresser/Craig, which has picked up the estimated $4-million account for Kaiser Permanente, is about to lose its $4-million account at Anaheim-based Clothestime, which is looking for a new agency. . . . Ogilvy & Mather/Los Angeles is scouting for new business to replace the $50-million Microsoft Corp. account it was forced to resign late last month when its New York parent picked up IBM’s $400-million account.
