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Monday, 12/12/11

The rise of city-building sponsorship

BMW, TELUS and Barclay's are communicating to consumers by addressing critical urban problems. Is this a passing fad or a paradigm shift?

by Kevin Keane, Director of Business Science, MediaCom Canada

Kevin Keane

 

At the BMW Guggenheim Lab in New York's Lower East Side, visitors can play Urbanology, a life-sized board game that simulates the challenges and trade-offs faced by policymakers managing city development.

It works like this: a screen projects a series of yes or no questions that the crowd debates and votes on. The facilitator tabulates the crowd's votes on an iPad, which show up on the screen for all to see. The five-foot high pieces on the board, which represent five critical urban issues of affordability, livability, sustainability, transportation and wealth, are moved forward or backward to reflect the positive or negative impact of the vote on that issue. Where there's no impact on an issue from a vote, the piece remains in its place.

Question 7 proved the most divisive.  'Will you increase the number of security cameras in public spaces?' Visitors debated the security versus privacy merits of the proposal, siding marginally with security: "yes" votes outnumbered "no" by 13-12. The historical slant of Urbanology players appeared on screen; curiously, only 18% were in favour of this motion.

The most unanimous of decisions, on the other hand, came in the next question: 'A city park has become a meeting point for casual sexual activity after dark. Will you direct the police to apprehend anyone who frequents the park at night?' While only 36% of players had historically voted "no", 100% did in this game. After a lively exchange of reasons and rationale, the crowd burst into laughter when the old gentleman standing next to me joked in his thick eastern European accent: "Maybe I would just like to watch!"

As the pieces moved and the debates raged, a stimulating environment of meaningful civic participation emerged. Like an ancient Greek agora, visitors aired ideas and opinions respectfully; like a video game, the impacts of our decisions were simulated and witnessed instantly. It was a civics lesson for the 21st century.

According to the Guggenheim website, the goal of the "part urban think tank, part community center and public gathering space" is "the exploration of new ideas, experimentation, and ultimately the creation of forward-thinking solutions for urban life".

And according to co-curator David van der Leer, it fills a critical gap in the progress of urban livability: the ideas of everyday people.

"If you look at urban theory over the last 15 years, it exists in text, photographs and diagrams." What he termed "the collective narrative we're trying to create on the city" has lacked a certain street-level input. And although it's very much the creation of sociologists, architects, curators and urban theorists, the Lab acts more as a facilitator to the people's ideas and experience of the city.

Dr Thomas Girst, Director of Cultural Engagement for BMW Group, agrees.

"The success of the BMW Guggenheim Lab lies in tying in the neighborhood."

Over the next six years, the BMW Guggenheim Lab will visit eight more cities across the world, engaging citizens both in physical locations and more widely across web-based social communities around issues of contemporary urban living.

Yet while we might expect the Guggenheim to be actively engaged in public provocation and experimentation around issues of social concern, BMW's involvement is more curious. An auto manufacturer addressing urban livability is about as consistent as a fast food chain addressing obesity.

Dr Girst disagrees.

"Companies have a responsibility to sustainability all throughout their value chains. We're a car company that prides itself on being innovative, dynamic and grasping what's ahead. The issues of the future can only be tackled together, and these will be decided in the mega-cities of tomorrow."

And while Dr Girst characterizes the relationship "not as a sponsorship, but a partnership", he does say that a goal of BMW's involvement is "to be perceived as a good corporate citizen, a company that cares deeply not only about its core business, but the societies in which it does business."
BMW isn't the first business to use urban issues to communicate to its audiences. Earlier this year, TELUS jumped on board the issue of public transportation by sponsoring the BIXI bike hire scheme's rollout in Toronto. Public transit in Toronto is a consistent source of frustration; this scheme provides cheaper and often quicker transportation than other modes of transit for short trips downtown.

Barclay's, a UK-based bank, has gone a step further. Its £25M sponsorship of the London bike hire scheme, launched in July 2010, included the development of cycling superhighways - dedicated lanes, each up to 15km long that connect the city centre to 25 surrounding London boroughs - to encourage use and ensure the safety of the networks users (London, like Toronto, is treacherous for cyclists). According to the Transport for London (TfL) website, it rolled out two of these in 2010, two more in 2011, and is on track to introduce the remaining eight by 2015.

These examples suggest a departure from the traditional role of the private sector in city-building initiatives. Whereas in the past, involvement has largely been limited to financing roles, (with or without limited naming rights), companies are increasingly leveraging the branding opportunities these projects present. Both Barclay's and TELUS branding, for example, are all over bike stations and bicycles.

Furthermore, they differ from other sponsorships like festivals and arts exhibitions - which also contribute to urban vibrancy, and some would argue are essential city-building activities - in that they install a permanent public good, as opposed to a once-off or once-a-year creative event. The bike-hire networks in London and Toronto, for example, will be there forever.

Finally, the contributions of the private sector have also been crucial in launching and sustaining these initiatives.

"It is in large part due to the contributions of these partners that BIXI Toronto is a reality today. Each has come on board as a national sponsor and will support future growth of the system in other key metropolitan areas within Canada," said Gian-Carlo Crivello, Director of Business Development for the Public Bike System Company, the organization behind Bixi, in a Newswire article.

Public transportation isn't the only urban issue advertisers are playing in; public space is another.

Part of the legacy of the BMW Guggenheim Lab, for example, is converting the land used to host the Lab in each city into vibrant public spaces. So, instead of a "vacant, rat-infested lot" according to one Lab facilitator, the residents in New York's Lower East Side will have a dynamic public area to call their own.

Similarly, Nike invested more than five million dollars to purchase the naming rights of a decrepit green space in Tokyo's fashion district, and re-develop the park into a 24-hour public space complete with a skate park and climbing walls.

However, this 'city-building sponsorship', as we might call it, is not without its detractors. Nike faced protesters who opposed re-naming the Tokyo green space "Nike Park". The Guardian, a British newspaper, railed against the corporate branding of "Barclay's Cycle Superhighways".

But for cash-starved municipalities with demanding citizens, these partnerships are a viable option to provide much needed services to citizens.

"Where the money comes from [for city-building initiatives] is shifting," says Mr van der Leer.

Growing private sector involvement reflects recognition of the business importance of city-building sponsorship. In 2008 the UN reported that for the first time in history, more people lived in cities than not; by 2030, 60% of the world's population is projected to live in cities. Urban growth rates are fastest in emerging economies, where prospects for global economic growth are also greatest.

However, it isn't simply a market communication tactic for companies; it's also a talent recruitment play. As Richard Florida's The Rise of the Creative Class articulates, talented folk wants to live in vibrant urban centres. A recent Toronto Star article says companies are following suit, mainly to attract and retain employees. An urban presence signifies to the talent and consumer markets that a company shares their values.

"It reflects a deep internal understanding on the part of BMW of the conversations it wants to engage in," says Dr Girst.

"BMW is leading something new, and I would suggest that others do as well."

 

 


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