Sport Becomes More Global: TCS and The NYC Marathon

There is no event more New York than the New York City Marathon. There is also no event in New York that annually draws a global participant base than the Marathon as well. So it should come as no surprise that the new title sponsor of the Marathon will be an Indian technology company, whose CEO is an avid runner.

What is impressive is where yet another multibillion dollar global company will go next as it enters the American sports business marketplace more formally.  Now Tata Consultancy Services, or TCS, is not a newbie in the running space. It has held a sponsorship on a lower level with the Marathon, and with the Chicago and Boston Marathons as well, developing apps for the race and engaging with the millions who have used tech to engage with friends and family around road race events.

However this move represents a bold new step for the company, one that brings added opportunity, and added attention not just in the running space but in the sports and lifestyle space for the consumer.   The $12 billion company employs 280,000 people around the world, with 50% of its business derived in the U.S. right now, and a platform like the Marathon, which will bring exposure and opportunity not just race weekend but virtually all year round with the scores of events the New York Roadrunners hold and the aggressive marketing stance the organization takes.

The running and lifestyle space is an interesting one for tech companies whose audience matches well with those who engage in participatory activities as well. It is the platform that ING Direct aggressively engaged in road running and cycling as it pushed into the crowded online banking space in the States over a decade ago, with the plan to continue to use active first adopters as their key to growth. Unfortunately the shift in the global economy along with a change in leadership wreaked havoc with that plan, and ING has gone on to focus on more traditional ad buys and sponsorship of events like Formula 1 to re-engage with high level consumers vs. those who may take time to cultivate at the grassroots though participatory sports.

So if TCS is taking the road of marathoning, will it open doors for forward-facing brands activations in the exploding endurance space, with triathlons and circuits like Tough Mudder, Muddy Buddy, Rock N Roll marathon, US Roadsports and others that are very aggressive in their growth? Cycling has also had a huge exit from brands, but it is a sport that remains key for growth amongst consumers who are active…is there a spot there for TCS as well?

Then there is the oath that other global brands have taken to engage with American consumers. Turkish Airways, Lenovo, Ethiad Airways, Emirates Airways and several others have looked to tennis, golf, even soccer and horse racing, as entry points before going into the big spend, big reward area of the professional leagues in the States. Will TCS follow those playbooks and use road running as the key way into the minds and pocketbooks of the American business consumer?

Then there is the association with a BRIC-based company and where that can go. India, like China, is a prime growth area for sports like basketball, so is there an opportunity for TCS to dance with the NBA? Maybe not in the US first but in their work in those countries as a tech partner? Also what does this mean for more established tech support companies that have been in American sports, like IBM, in the future? The scuttlebutt is that TCS spend was larger than anything else the Marathon has ever had. Does that mean that they now become a player for key events outside of running as well, like the US Open for tennis and golf, or even bowl games in college football?

At the end of the day the TCS, NYRR marriage is an interesting one for many reasons. It introduces a newer brand in American sports business, but it comes because the CEO is an engaged runner  who has sampled and enjoyed the space. It unites a solutions company with a sport that has opportunities in tech solutions, since timing and logistics in a marathon is key. It uses a b to b play that can build equity much more than a consumer play despite the impressions TCS will get. It’s not like every day someone is running out looking for a new tech solutions company, but this partnership, for those who do engage in that space, will push TCS to be more top of mind for those who run, or even the casual followers of the marathon. It also shows the continued evolution of sponsor branding for elite, high profile events. While consumer brands can use events and partnerships to directly show how their bottom line is impacted, a partnership like this will be much more of a long term fit in the overall strategy of the company, with ROI taking time to develop as people get more educated about what TCS is doing.

Regardless it’s another example of sport becoming more global, and global brands finding ways to engage with an American audience. Well times, and one worth watching for sure.