SpongeTech Soaks Up Sports Sponsorships
Who says signage can't sell? Not SpongeTech, the smarter sponge. In fact, you can't go to an MLB ballpark without seeing SpongeTech somewhere these days. In case you haven't seen our daily Deal Flow section, SpongeTech is making sports sponsorship a centerpiece to the firm's new marketing strategy. And people, a lot of people, like Keith Hernandez are taking notice.
At current tally, SpongeTech has signage presence in 28 of 30 MLB ballparks, deals with at least 6 NFL teams and 2 NHL teams, and various other partnerships including Mike Ashley Racing and the National Hot Rod Association, World Football Challenge, and the Nautica NYC Triathlon.
SpongeTech also has licensing agreements with Nickelodeon and Viacom to market SpongeBob Square Pants soap filled bath sponges.
These deals have been fueled by SpongeTech's decision to raise its annual marketing budget in fiscal year 2010 by roughly 150% (from $8mm to $20mm) this year.
That doesn't seem so shocking when you consider that in the most recent fiscal year SpongeTech reported an 888% increase ($50mm vs $5.6mm) in 2009 FY gross revenue and new orders in the first 11 weeks of FY 2010 are in the neighborhood of $55 million.
Assisting in many of SpongeTech's deals is ANC Sports, which provides integrated digital signage.
"America's cleaning company" has come a long way since early 2008 when the firm only had a handful of deals focused on the New York region including the Yankees/YES, Mets/SNY and several Price is Right product placements.
"We are dedicated to building our brand nationally through strategic marketing programs which we believe will increase sales and lead to new retail outlet partners," said Steven Moskowitz, Chief Operating Officer at SpongeTech.
In early August, SpongeTech launched its new ad campaign highlighting SpongeTech’s “easy-to-use” bath sponges for children. Commercials will run nationally on a variety of cable and satellite channels including NICK, USA, TLC, USA, TNT, LIFE, TBS and HGTV Channel.
Many of SpongeTech's deals to date have been brokered by CAA Sports, on behalf of the company.