8th Annual Canadian Sponsorship Landscape Study (Elisa Beselt, TrojanOne)

’Dr. Norm O’Reilly Ohio University & TrojanOne

Elisa Beselt & Adam DeGrasse TrojanOne

Canadian Sponsorship Landscape Study

8th ANNUAL

CSLS

1 CSLSAbout, History & Method

2

3

8th Annual Results Findings & Trends

Sponsorship in 2014Key Lessons from the 8th CSLS

TODAY

2


8th ANNUAL

CSLS3

1CSLSAbout, History & Method


8th ANNUAL

CSLS4

Design

Perspectives, Industry

Process

Online, Partners, Streamline

Analysis

Trend, Comparative

Origins

Industry Need, Share

HISTORY & METHOD


8th ANNUAL

CSLS5

28th AnnualFindings, Trends & What’s Next


8th ANNUAL

CSLS6

0

100

200

300

400

500

600

2006 2007 2008 2009 2010 2011 2012 2013

132

152

238

218

294

145

167

247

33

4852

73

123

65

61

86

45

7481

116142

67

109

171

Nu

mb

er

of

Re

sp

on

de

nts

SponsorsAgenciesProperties

CSLS Survey Respondents

210 Responses

45 Sponsors

132 Property

33 Agencies

About

90.5% English

9.5% French

Note: Survey is open until August 15th. Visit

www.sponsorshiplandscape.ca to enter responses.

RESPONDENTS


8th ANNUAL

CSLS7

Primary Decision Maker

14%

12%

37%

14%

23%

CEO/President/ED

VP, Marketing/Sponsorship

Director/Manager, Marketing/Sponsorship

Other

Coordinator, Marketing/

Sponsorship

46.5%

14.6%

11.5%

Head Office

RESPONDENTS


8th ANNUAL

CSLS8

Sponsors

n=45


8th ANNUAL

CSLS9

ABOUT THE SPONSORS

2014

Sponsor

Respondents

(n = 45)

Total rights fee range from

$10K to $21M

30.9%of largest sponsorships

invested in pro sport

Largest sponsorship

property:

22.9% Festivals, Fairs, Events

19.2% Olympic/Amateur

11.5% Education

$681,342average largest sponsorship of

resopndent

Investment mix:

83.3% Cash

16.7% Value In-kind

49.0% For-Profit

51.0% Not-For-Profit

Average # of Sponsorships:

84.4 (range 1 to 1,000)

Range in size from 10 staff

to 45,000 employees.

$1,442,650 average activation spend

75% of sponsorship divisions fall under Marketing &

Communications

Average of 5 staff spend

more than 25% of time on

sponsorship


8th ANNUAL

CSLS10

ABOUT THE SPONSORS

16.7%

200

6

15.5%

200

7

22.5%

200

8

15.4%

20

09

22.3%

21.9% 21.9%

20

10

29.6%

20

11 2

012

20

13

Sponsorship

Budget

Marketing

As a % of overall marketing communications budget

34.5% 44.8% 20.7%

Expected Change for 2014


8th ANNUAL

CSLS11

LARGEST INVESTMENT

Category of Largest Investment

15.5%

11.5%

22.9% 19.2%

30.9%Pro Sport

Festivals, Fairs & Annual Events

Education

Amateur Sport

In Depth

$681,342 Average Size

$2.5K to $5.8M Range

> Mix than in previous years

5 of the last 6 years pro sport has been the

most popular category for largest

sponsorship investment

Others


8th ANNUAL

CSLS12

SPONSORSHIP FOCUS

International 13.0% National 23.3% Multi-Provincial 11.8%

Local 16.3%Regional 15.6%Provincial 19.1%Note: In 2012,

International was 1.0%.


8th ANNUAL

CSLS13

Properties

n=133


8th ANNUAL

CSLS14

ABOUT THE PROPERTIES

2014

Property

Respondents

(n = 133)

Annual budgets range from

$50K to $110M

$178,078average largest sponsorship

Largest sponsorship

range from

$2K to $1.5M2.3 staff spend more than

25% of time on sponsorship

Property Reach:

15.8% International

29.8% Canada

3.5% Multi-Province

24.6% Provincial

12.3% Regional

14.0% Local


to 19,000 employees.

$51,570

average activation spend per property

Believe sponsors on average are

3.57

sastified with sponsorship marketing programs

Average # of Sponsorship

Categories:

33.2 (range 1 to 750)


8th ANNUAL

CSLS15

SPONSORSHIP REVENUE

0%

13.3%

26.7%

40.0%

2006 2007 2008 2009 2010 2011 2012 2013

1.6% 1.1%2.6%

1.2%

35.4%

14.0%

19.3%

28.8%

Per

cent

Inve

stm

ent

Historical Sponsorship as Percentage of Budget


8th ANNUAL

CSLS16

REVENUE TYPE

0%

20%

40%

60%

80%

100%

2006 2007 2008 2009 2010 2011 2012 2013

23.6%30.8%33.6%32.3%34.8%33.0%39.0%30.0%

76.4%

69.2%66.4%67.7%

65.2%67.0%

61.0%

70.0%

Pe

rce

nt

of

Re

sp

on

de

nts

CashVIK

Cash vs. VIK Sponsorship Revenue


8th ANNUAL

CSLS17

REVENUE FROM SPONSORS

12.9% Finance

6.4% Oil & Gas

27.8% Retail Trade

7.2% Manufacturing8.9% Communications

13.8% Services

Note: These six categories are also the six most popular

sponsor categories for the largest single sponsorship.


8th ANNUAL

CSLS18

Agencies

n=33


8th ANNUAL

CSLS19

ABOUT THE AGENCIES

2014

Agency

Respondents

(n = 33)

Number of Sponsorship Staff:

9.3 (range 1 to 80)

Agency Types:

52.9% Sponsorship

17.6% Event Management

11.8% PR Agency

11.8% Various Other

5.9% Promotion Agencies23.9

average # of sponsorships worked on in 2013

Agency Reach:

12.5% International

68.8% Canada

6.3% Provincial

6.3% Regional

6.3% Local

$45,369average billing per sponsorship

client


to 60 employees.

62.3% of total agency billings

from sponsorship

Sponsorship billings:

Sponsors

35.3%

Properties

59.2% Largest sponsorship client:

50% Sponsor

50% Property


8th ANNUAL

CSLS20

AGENCY BILLINGS

0%

20.0%

40.0%

60.0%

80.0%

2006 2007 2008 2009 2010 2011 2012 2013

45.8% 47.1%

55.9%52.5% 52.8% 54.2%

68.8%

62.3%

Per

cent

Inve

stm

ent

Historical Sponsorship Billings as Percentage of Total Billings


8th ANNUAL

CSLS21

AGENCY BILLINGS

Area 2012 2013 Change

Activation Programs 20.7% 23.4% 2.7%

Sponsorship Sales 20.3% 24.8% 4.5%

Sponsorship Evaluation 21.1% 16.9% -4.2%

Sponsorship Research 14.8% 6.6% -8.2%

Contracts/Negotiation 9.1% 3.7% -5.4%

Areas of Sponsorship Billing


8th ANNUAL

CSLS22

AGENCIES FOR ALL

Balanced

Billings are split evenly between profits and

not-for profits.

Everyone

Average sponsorship billing by client

was $45,369.

Growing

See a growth in sponsorship billings by

agencies in Canada.


8th ANNUAL

CSLS23

Activation

Results


8th ANNUAL

CSLS

ACTIVATION RATIO

24

2010

622008

71

2006

432007

46

2012

75

2013

60

2009

76

2011

57

40¢

50¢

60¢

70¢

80¢

$1.70 $1.90 $1.50 $1.40 $1.40United States (IEG): $1.602006 2007 2008 2009 2010 2011

$1.702012

$1.702013


8th ANNUAL

CSLS

ACTIVATION TACTICS

25

Tactic Sponsor Property Agency

Advertising 20.0% 19.0% 14.2%

Hosting/hospitality 12.9% 22.1% 8.4%

Branded content 11.0% 10.0% 12.1%

Product sampling 12.0% 12.0% 14.2%

Social media 6.9% 6.9% 6.2%

Spend by Activation Tactic (Top 5)


8th ANNUAL

CSLS26

Evaluation

Results


8th ANNUAL

CSLS

EVALUATION

27

0.0%

2.0%

4.0%

6.0%

8.0%

2006

7.8%

2007

4.5%

2008

6.0%

2009

4.1%

2010

2.6%

2011

2.3%2012

2.7%

2013

2.7%

Pre-Sponsorship Evaluation: 7.03% in 2013

Of those who evaluate, 80% invest in pre-evaluation

Note: 50% of respondents spend $0 on any evaluation


8th ANNUAL

CSLS28

Qualitative

Results


8th ANNUAL

CSLS

SLEEPLESS NIGHTS

29

0%

7%

14%

21%

28%

35%

10.8%

6.6%

8.8%

11.0%

18.0%

20.4%

24.5%

9.0%

6.0%

12.4%

9.5%

27.9%

13.4%

21.4%

8.0%

3.8%

10.7%

18.6%16.9%

18.3%

23.7%

Pe

rce

nt

of

Re

sp

on

de

nts

Dem

onst

rat-

ing R

OI

Bud

get

Concern

s

Activ

ation

HR &

Exp

ertise

Com

petit

ion

Historical Sponsorship Concerns Facing the Industry

2011 2012 2013

Securin

g &

Targ

ets Oth

er


8th ANNUAL

CSLS

Forecast

80% expect sponsorship revenues to

increase in 2014.

MUSIC INSIGHT

30

Hosting/Hospitality

Over 50% of activation spend on hosting/hospitality.

Largest Sponsors

Largest sponsors are from a mix of industries,

including agriculture and retail trade.

Value-in-Kind

40% receive more than half of their

sponsorship revenue from VIK.VIK


8th ANNUAL

CSLS31

3Sponsorship in 2014Key Lessons from 8th CSLS


8th ANNUAL

CSLS

1 Keep Up With ChangeMix, Technology

2

3

Fulfillment FundamentalsActivation, Servicing & Evaluation

Growing IndustryGlobal, Canada

KEY LESSONS

32


8th ANNUAL

CSLS33

Keep Up With

Change


8th ANNUAL

CSLS

SPONSORSHIP MIX

34

0%

10.0%

20.0%

30.0%

2006 2007 2008 2009 2010 2011 2012 2013

Per

cent

Inve

stm

ent

Historical Sponsorship Investment Areas


8th ANNUAL

CSLS

BIGGEST OPPORTUNITIES

35

0%

5%

10%

15%

20%

10.0%

4.6%

6.1%

9.7%10.4%

11.5%12.6%

16.9%18.3%

Pe

rce

nt

of

Re

sp

on

de

nts

Technology

Sponsorship in the Next 3 Years

Specific

TypesN

ew

Properti

es/

Industri

es

Activatio

n

Relatio

nships

/Partn

ership

s

Measure

ment

Com

munity

Knowle

dge/

Education

Oth

er

Specific Types: Sports (6.1%), Cause Marketing (4.3%), Festivals/Fairs/

Events (4.2%), Environment (1.4%), Music (1.0%)


8th ANNUAL

CSLS

BIGGEST OPPORTUNITIES

36

“Upcoming major events in our country (e.g., Pan

American Games & Women’s World Cup).”

“Getting the jump on each successive trend. With the impact of social media, when

something goes big, it goes big fast, complete with corresponding consumer

spending...Sponsorship needs to stay ahead of the curve.”


8th ANNUAL

CSLS

SOCIAL MEDIA CHANGES

37

In-Depth

6.9% Spend for Properties

6.2% Spend for Agencies

72.2% Agencies Using

Social Media

0%

5%

10%

15%

20%

Ac

tiv

atio

n S

pe

nd

Social Media Activation Tactic Spend for Sponsors

16.1%2012

3.9%2009

10.1%2011

6.9%2013

5.0%2010


8th ANNUAL

CSLS38

Fulfillment

Fundamentals


8th ANNUAL

CSLS

ACTIVATION SPEND

39

0%

6.7%

13.3%

20.0%

2010 2011 2012 2013

Per

cent

Inve

stm

ent

Social media

Hosting/hospitality

PR

Advertising

Branded contentProduct sampling

Internal marketing

Historical Sponsor Activation Tactic Spend


8th ANNUAL

CSLS

ACTIVATION SPEND

40

0%

10.0%

20.0%

30.0%

2010 2011 2012 2013

Per

cent

Inve

stm

ent

Co-promotions

Hosting/hospitality

PR

Advertising

Other

Product sampling

Internal marketing

Historical Property Activation Tactic Spend


8th ANNUAL

CSLS

SPONSORSHIP (DIS)SERVICE

41

0 1 2 3 4 5

4.38

4.05

4.79

4.17

3.68

4.24

4.09

3.86

4.24

3.45

3.08

3.75

3.13

2.54

2.89

2.70

2.45

2.64

Likert Scale

ProvidedImportance

0 1 2 3 4 5

3.61

2.85

3.24

4.33

2.99

3.26

3.48

3.59

3.63

2.98

2.55

3.91

2.82

2.67

2.70

2.26

2.74

2.58

Likert Scale

Services for Sponsors

2012

Recall stats

Loyalty stats

Target profile

Ambush protection

Activation w/ sponsors

Activation resourcesExclusivity protection

Activation w/ propertiesConcluding report

2013

Note: All differences are statistically significant (*)

Recall stats

Loyalty stats

Target profile

Ambush protection

Activation w/ sponsors

Activation resourcesExclusivity protection

Activation w/ propertiesConcluding report


8th ANNUAL

CSLS42

EVALUATION STORY

Budgets

Average of 2.70% of budget set aside for

evaluation.

No Evaluation

Many sponsors (50%) spend nothing on

evaluation.

There is Hope!

Among those that do evaluate, 80% invest in pre-

sponsorship evaluation.


8th ANNUAL

CSLS43

Growing

Industry


8th ANNUAL

CSLS

GLOBAL SPONSORSHIP INDUSTRY

44

$19.8BNorth American

Sponsorship Spending

4.3% Projected Growth in 2014

$14.5BEuropean



$12.6BAsia Pacific



Source: IEG

$53.1BGlobal Sponsorship Spending



8th ANNUAL

CSLS

INDUSTRY SIZE IN CANADA

45

Industry Size

2006 $1.11B

2007 $1.22B

2008 $1.39B

2009 $1.43B

2010 $1.55B

2011 $1.59B

2012 $1.57B

2013 $1.78B

INDUSTRY SPENDING

+60%

$$ 21.4% 42.9% 35.7%

Expected Change for 2014


8th ANNUAL

CSLS

INCREASING INVESTMENT

46

0

1.0

2.0

3.0

2006 2007 2008 2009 2010 2011 2012 2013

$1.59$1.78

$2.38$2.52 $2.51 $2.50

$2.75$2.85

Historical Total Spend Trends ($B)

Findings

↑ Rights Fees

↓ Activation Ratio

↑ Total Spend

2013 Activation

$1.78B Rights Fees

0.60 Activation Ratio

$2.85B Total

Rights Fees

Activation Spend

Total Industry Spend


8th ANNUAL

CSLS

SUMMARY

47

Keep Up With

Change

Fulfillment Growing

Fundamentals Industry


8th ANNUAL

CSLS48

ThankDr. Norm O’Reilly

‣ [email protected]

Elisa Beselt


Adam DeGrasse


Survey is open until August 15th. Visit

www.sponsorshiplandscape.ca to enter responses.Note:

you!

8th Annual Canadian Sponsorship Landscape Study (Elisa Beselt, TrojanOne)

Marketing

Transcript of 8th Annual Canadian Sponsorship Landscape Study (Elisa Beselt, TrojanOne)