7 Thesis from CCI how it is going to look like Bled/CCI...Launching the first European-wide Flashmob...

Session 3

Sponsorship Trends:

7 Thesis from CCI how it is going to look like

Dr. Patrick Cotting, pcotting@cci-cotting.com

Trend 1

From Price to Value:

„Not the Price of a Sponsorship Property is important,

but its Value to the Sponsor.“

Why Companies Sponsor …“9” & “10” Ratings 10 means “extremely important”

Strategic Philanthropy

Sporadic Sponsorships

Marketing Partnerships &

Cross-Promotions

Strategic Sponsorships & Partnerships

Economic Value

Social Value

low high

NOT PRICE, BUT VALUE: Sponsors maximize social and economic value

Trend 2

From one department to multiple departments:

„A NO from one department might

be a YES from another.“

Trend 2

systematic approach

Supportive Sponsorship/

Good Citizenship/ Corporate Social Responsibility/

Ownerships

Commercial Sponsorship & Marketing Partnerships

Foundation/ Board

Marketing & Media

Image relevant Sponsorship & Partnerships

Corporate Communication

NOT ONE DEPARTMENT, BUT MULTIPLE The Organization is getting more complex

Trend 3

From Exposure to Sharing

„It is not just about visibility. It‘s about content.“

THE OLD DAYS – EXPOSURE IS KING

Differentiated

Positioning Value

For Sports Property

Indifferent

Low Value for Sports Fan High

Hearing

Seeing

Watching

Experiencing

Sharing

DEVELOPMENT

THE NEW DAYS

Idea / Creative Approach from me

  Bringing the commercial spot into REALITY

  Launching the first European-wide Flashmob contest: Let people do sth together for 90 seconds

  Related to the actual Swatch campaign

  Link to an upcoming sport event (FIFA World Cup ‚06)

  Teasing the event

  Crossmedia approach

http://www.swatch.com/zz_en/shootmyride.html

Trend 4

From MEDIA as Gatekeepers to MEDIA as Partners

  Alinghi was renting a « Rendez-vous » space every Wednesday evening at prime time on Eurosport.

  156 different episodes produced and

broadcast.   Commercial ads before and after the

program for the official sponsors of Alinghi.

  Alinghi paid a flat fee to Eurosport to

get the space, the commentary, the marketing and ad rights and the distribution to 115 million households.

  Each episode was watched by an average

of almost one million consumers.

The Example Alinghi TV - Eurosport

Trend 5

From CASH to IN-KIND:

“It is much easier to find a sponsor that pays in material, services,

know-how, marketing... “

Advantages Challenges

  The Club/ Federation gets new sponsors: more B-2-B companies are getting into the sponsorship market.

  Event organizer can reduce significantly his costs in manpower, material, insurances, print costs, marketing costs etc.

  Maximizing revenues and

increasing efficiency.

  What is the value of „in-kind“ value: what shall be given in return -> rethinking the models how to sell sponsorship.

ADVANTAGES AND CHALLENGES OF IN-KIND CONTRIBUTIONS

Players Salaries

Renting Facilities/

Stadium

Advertising, Promotions, Marketing, Merchandising

Articles

Security

Equipment

Logistics ...

Who might be willing to cover these costs

in exchange for Marketing,

Communication and/or Business rights?

EXAMPLE: Expenditures of a Ice Hockey Club

Private Equity companies Staffing companies

Government

Media companies, Ad agencies, Event Management agencies Members (let them be viral)

Security companies

Technical companies

Logistics, Travel service companies

EXAMPLE: Expenditures of a Ice Hockey Club

Players Salaries

Renting Facilities/

Stadium

Advertising, Promotions, Marketing, Merchandising

Articles

Security

Equipment

Logistics ...

Example 2: Motivate Sponsors to thank the Fans...

REAMONN (Supergirl)

Quest for the Best Goodwill Balls

Fan-Tastic

Trend 6

From a Sponsorship Policy to a Revenue Policy

“Sponsorship is just one option, out of a range of potentially even more important revenue sources“

Revenue from Price

policy

Revenue from Memberships

programs

Revenue from

Investments and Capital

Revenue from Merchandising,

Shop, Restaurant,

Library, Product sales

Donations: -  Money -  in-Kind* -  Time

*can be material, know-how, products, services, media value...

Private Persons

Companies

Donations: -  Money

-  in-Kind* -  Time

Revenue from Sponsorship Activities

Service: -  Money -  in-Kind

-  Services -  Information

Direct

Indirect

Fiscal deductions

after donations

Exoneration Tax

Revenues resulting from

Marketing activities

Subsidies from

the Lottery

Donations Public Financing

THE REVENUE OPTIONS: The need to develop a Revenue Strategy

Trend 7

From Companies that invest into sport

to companies that invest into the fans...

Wrapping-UP

Old New

One department

Exchange

Gatekeeping

Exposure

Sponsorship

THE FUTURE Summarizing the Shift

Multiple departments

Relationship

Partnering

In-kind value

Community

Finance/Revenue Strategy

Contacts

Dr. Patrick Cotting

CCI COTTING CONSULTING LTD.

Zurich / Fribourg / Madrid

pcotting@cci-cotting.com / +41 79 637 04 19

www.cci-cotting.com

7 Thesis from CCI how it is going to look like Bled/CCI...Launching the first European-wide Flashmob...

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