4 a brent barootes sponsorships in todays world
51
An Industry Update and Trending Report
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Transcript of 4 a brent barootes sponsorships in todays world
An Industry Update and Trending Report
Session Overview
Who we are and our qualifications to speak to you
Defining Sponsorship and Philanthropy
Industry Trending
Enhancing a Property’s Social Mission and Opportunity
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Session Overview
Determining ROI for brands and sponsors through measurable asset valuation and activation
Do some story telling
Making it all work together
Questions
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Defining Philanthropy
• A gift with nothing in return
• Based on the cause, the linkage, wanting to help
• Delivers a feeling of doing good
• CRA compliance
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Defining Philanthropy
You give because you care
You have Corporate Social Responsibility (CSR) strategy or policy
Have a relationship
You get nothing in return (officially by CRA) other than a tax receipt
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Defining Philanthropy
Charities get the money, stewardship required but no additional work beyond that… unlike sponsorship which is labor intensive
Gifts can be ongoing but often change with senior management changes and “charities of choice”
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Defining Sponsorship
B2B or B2C Transaction
Not Philanthropy
Looking for an ROI or ROO
Many companies confuse it with sponsorship (as do properties or charities)
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Defining Sponsorship
Our Definition:
A cash and/or in-kind fee paid to a property (typically in sports, arts, entertainment or causes) in return for the exploitable commercial potential associated with that property.
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Defining Philanthropy
Sponsorship can involve many approaches
It is a form of marketing
Integrated into a multi-faceted plan – not just a stand alone sign at an event nor a gift
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Industry Trending
Canadian Sponsorship Industry* is a:
$1.55 Billion industry (Fees and activation)
Up 8.5% from 2010 study
Up 40% from 2006 study
*(Reported by the preliminary 2011 Canadian Sponsorship Landscape Study and produced by SMCC, University of Ottawa and Canadian Sponsorship
Forum)
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Industry Trending
Canadian Sponsorship Revenue Allocation:
35% Sport (down from 2010 at 51%)
20% Causes
8.5% Arts
16% Festivals, Fairs and Annual Events
20% (Other including parks and recreation, municipalities, educational institutions, conferences)
(Reported by the preliminary 2011 Canadian Sponsorship Landscape Study and produced by SMCC, University of Ottawa and Canadian Sponsorship Forum)
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Industry Trending
23% of brands Marketing / PR / Communications budget now goes to sponsorship and event marketing /experiential marketing – 10 years ago this was less than 5%
On average sponsors have 45 properties they sponsor per year
(Reported by the preliminary 2011 Canadian Sponsorship Landscape Study and produced by SMCC, University of Ottawa and Canadian Sponsorship Forum)
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Industry Trending
Edelman Good Purpose Survey 2010 released this year looked at the relationship of causes (charities) to brands.
Some of the key findings were:
64% of Canadians will recommend a brand they have tried or heard about to friends and family when it is for a good cause they believe in. This is up from 52% in the previous year study
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Industry Trending
Edelman Good Purpose Survey 2010
67% of Canadians said they would switch brands that are comparable in quality and price if the brand supports a cause they believe to be worthy
71% of Canadians said brands should spend less money on "advertising" and more on causes. This number is up by 10% over the pervious year's study
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Industry Trending
The 2010 Canadian Fundraising & Philanthropy / Innovative Research Group Economic Pulse of the Not For Profit Sector showed:
46% of non profits and charities not presently engaging in sponsorship revenue generation are likely to undertake it in the coming year
40% expect such sponsorship revenue to increase this year
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Industry Trending
The 2010 Canadian Fundraising & Philanthropy / Innovative Research Group Economic Pulse of the Not For Profit Sector showed:
57% of those surveyed indicated sponsorship was part of their mix with Arts and culture indicating 62% and Education 64%
Another 25% indicated cause marketing was part of their revenue mix overall
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Industry Trending
IMAGINE Canada study showed:
• 56% of Canadian corporations are engaging in sponsorship that used to be philanthropy
• 26% engaging in cause marketing
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Industry Trending
2011 Canadian Consumer Sponsorship Rankings
Being released at the Western Sponsorship Congress 2011
Some preliminary findings….
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Industry Trending
Majority of Canadians prefer to conduct business with sponsors of favourite events and causes
63% agreed that all other things being equal, they would prefer to do business with sponsors of favourite causes
By comparison, 57% agreed to same statement regarding arts/cultural events and 50% regarding sports
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Industry Trending
Approximately half of Canadians would switch brands if sponsor made meaningful contribution
Overall, 55% would likely switch brands if sponsor made meaningful contribution to favourite charity or cause
47% agreed to similar statement regarding arts/culture and 44% for sports
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Industry Trending
Millions of Canadians participate in types of activities sponsored by corporations
32% attended an arts festival or cultural event; 31% attended amateur sport; 31% attended a gala or fundraiser
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Industry Trending
Giving cash, providing volunteers or staff most appealing sponsorship methods
Canadians were asked to rate the appeal of 10 common sponsorship methods
Giving cash, providing volunteers/staff ranked highest overall; providing guest speakers and executives rated lowest
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Enhancing A Property’s Social Mission and Opportunity
Why is / should sponsorship important to a property (charity, cause, non profit)?
An alternate revenue channel
No restrictions on how you spend the cash
Opens doors for corporate employee rank and file giving once relationship is made
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Enhancing A Property’s Social Mission and Opportunity
Why is / should sponsorship important to a property (charity, cause, non profit)?
Opens the door for corporate executive giving
Ongoing if you can deliver business results
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Enhancing A Property’s Social Mission and Opportunity
How can this help the mission of the organization?
Unencumbered revenue
Opportunity to increase exposure of your organization’s mission
Partnerships work better than supplier agreements
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Enhancing A Property’s Social Mission and OpportunityDoes it restrict the organization based on sponsors?
No, you partner with whom you feel comfortable
You partner with like minded organizations
You can have multiple brands from an industry if you segregate the assets
You are selling assets you own
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Enhancing A Property’s Social Mission and Opportunity
This is revenue to apply to your mission
It needs to be a partnership though
Properties need to look differently at the sponsorship model versus the philanthropic model
A paradigm shift is necessary
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Enhancing A Property’s Social Mission and Opportunity
The paradigm shift is from:
“Please help, here is what we need and here is how it will impact our community”
To…
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Enhancing A Property’s Social Mission and Opportunity
…To
“How as a charity can I help you succeed better as brand or a corporation?”
It is all about the sponsor and not about your mission though your mission will benefit
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ROI and ROO Measurement for the Brand or Sponsor
Can success be measured?
Sponsors need to see results, can properties / charities / non profits deliver results?
What is ROI?
What is ROO?
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ROI and ROO Measurement for the Brand or Sponsor
Can success be measured?
Yes it can!
Metrics for values – industry standards
1/3 of a cent X number of unique users to your web site
Impressions / eyeballs
5 cents per sample / $5 per sample
Email blast
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ROI and ROO Measurement for the Brand or Sponsor
Can success be measured?
Before outcomes can be measured the objectives need to be determined at the front end
Like a brand asks charities for “societal impact”; properties should be asking what the brand’s goals and objectives are to deliver on them
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ROI and ROO Measurement for the Brand or SponsorSponsors need to see results, can properties / charities / non profits deliver results?
Driving traffic
Engaging / retaining employees
Recruitment
Sales
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Brand development
Share price
Camelot sales
Image / PR / IR
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ROI and ROO Measurement for the Brand or Sponsor
What is ROI?
Return on investment
What is the sponsor getting in return based on their objectives of sales, employee engagement, PR etc
Does not have to be dollars and cents… but it is always about dollars and cents
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ROI and ROO Measurement for the Brand or Sponsor
What is ROO?
Return on objectives
Return on opportunity
Social return
London Benchmarking
Sponsorium
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Story Telling
To deliver results for sponsors (brands / donors / corporations) and properties (charities and non profits) there must be true partnerships
Philanthropy is clear, the donor (company or individual) gives because they care and want to move the mission forward
Not really true for sponsors
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Story Telling
There must be a mutual win – win – win
The brands must be open and honest about what their objectives are to ensure the property can help them
The properties need to understand that sponsorship is not about them… it is about the sponsor
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Story Telling
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Story Telling
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Story Telling
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Story Telling
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Story Telling
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Story Telling
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Story Telling
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Story Telling
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Story Telling
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Story Telling
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Story Telling
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Story Telling
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Conclusion
Sponsorship today is more than hanging a banner
It is more than philanthropy
It is about results and outcomes for both parties
It is about partnerships
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