And Omnicom will host thought leadership and “curated experiences” at its cabana, according to its website. Omnicom declined to comment for this story.
But as competitors scale back, Stagwell sees white space to break through. “A lot of companies are scaling down. We’re scaling up. That’s the advantage of being a challenger,” Penn said.
Worth the investment?
Sport Beach has grabbed attention, but has it moved the needle for Stagwell’s business?
Between five and ten new business deals originated or closed at last year’s event, including Super Bowl spots, league sponsorships, and national campaigns involving athletes, according to a spokesperson.
Declining to share specifics, they said Sport Beach is a “very successful activation in driving brand recognition for Stagwell and [its] agencies—and that includes financial opportunities.”
Clients have also given Stagwell positive feedback, describing Sport Beach as “the biggest, buzziest stage in Cannes—including the Palais,” and saying it has “empowered athletes to talk directly with brands.”
Stagwell is confident enough in Sport Beach’s impact that has expanded beyond Cannes, bringing the event to this year’s CES, Davos, and Super Bowl.
“We’ll be in more places after Cannes,” Sidhu said. “Anywhere athletes and brand marketers aren’t well-served in connecting with each other, we see opportunity.”
“I’m a very strong believer, when something’s successful, you’ve got to keep going with it,” Penn added. “Sport Beach is now becoming a brand in and of itself.”
While cautious not to confirm any formal spin-off plans, he added: “Let’s get through chapter three. Will it become a standalone brand? Maybe. But you don’t walk away from a successful platform.”
