Sponsorship Landscape - Dr. Norm O’Reilly · 2020. 5. 29. · 8th Annual CSLS The Canadian...
Transcript of Sponsorship Landscape - Dr. Norm O’Reilly · 2020. 5. 29. · 8th Annual CSLS The Canadian...
1
’
r
Dr. Norm O’Reilly Ohio University & TrojanOne
Elisa Beselt & Adam DeGrasse TrojanOne
2
8TH CSLS EXECUTIVE SUMMARY
286 Responses
85.6% 14.4% English French
Sponsorship Marketing Budget
23.1%As percentage of total marketing communication budget
Amount Change
Industry Size $1.77B 12.7%
Activation Spend $1.10B -6.8%
Total Spend $2.87B 4.4%
Average Median
Sponsor Spending $2,599,220 $625,000
Property Revenue $1,791,820 $225,000
Agency Billing $1,133,650 $500,000
Activation Ratio
0.62For every dollar spent on rights fees, 62 cents is
spent on activation
Evaluation
3.0%of overall sponsorship marketing budget is spent on
sponsorship evaluation
3
REPORT
8th Annual CSLS
The Canadian Sponsorship Landscape Study
(CSLS) is an annual survey of Canadian
sponsors, properties and agencies that provides
an overview of the sponsorship industry in
Canada.
The study examines both academic and
industry resources to provide information that is
relevant for the sponsorship sector in Canada.
Data is collected anonymously and ethically
through a secure website. Over the years, the
study has engaged several partners, including
the Canadian Sponsorship Forum and the
Sponsorship Marketing Council of Canada,
where the findings are regularly presented at
annual conferences, as well as IMI International
and TrojanOne as key research partners.
In order to serve its purpose and ensure the
findings are readily available and can be applied
broadly, the survey report is publicly available.
Please note that all amounts presented in this
report are in Canadian dollars, unless indicated
otherwise.
1 BackgroundAbout, History & Purpose
2 MethodologyDesign & Sample
3 ResultsSponsors, Properties & Agencies
4 AnalysisQuantitative & Qualitative
5 Key LearningsLessons
6 ContactAuthors & Acknowledgements
4
1 BackgroundAbout, History & Purpose
5
HISTORY & PURPOSE
Background
2014 marks the eighth annual CSLS. The study
began in 2007 as a way to meet the several
needs within the Canadian sponsorship industry.
First, following the 2006 Canadian Sponsorship
Forum, many delegates, including key
sponsorship professionals, noted that the
support for sponsorship as a marketing tactic
was predominantly anecdotal and there was a
need for evidence to support and enhance
recommendations for best practices regarding
sponsorship in Canada.
Additionally, during this time there was a push
within academia to formalize the field of
research and provided academic literature on
sponsorship, especially with regards to its
professional application. Finally, anecdotal
disconnect within the industry, often between
sponsors and properties, created the need for
evidentiary support. The Canadian Sponsorship
Landscape Study was born out of all of these
needs in 2007 and and continues to meet these
demands today.
TimelineSince the study’s inception in 2007, the findings
have been presented at key industry gatherings
on an annual basis.
2007
Toronto International Film Festival, Toronto
Canadian Sponsorship Forum
2008
World Hockey Championships, Halifax
Canadian Sponsorship Forum
2009
Quebec Winter Carnival, Quebec
Canadian Sponsorship Forum
2010
Paralympics, Vancouver
Canadian Sponsorship Forum
Creating Opportunities, Toronto
Sponsorship Marketing Council of Canada
2011
Formula One, Montreal
Canadian Sponsorship Forum
Upping the Ante, Toronto
Sponsorship Marketing Council of Canada
2013
MasterCard Memorial Cup, Saskatoon
Canadian Sponsorship Forum
CSTA Sport Event Congress, Ottawa
Women & Sponsorship
Sponsorship Revolution & Western Sponsorship Congress, Toronto &
Calgary
Sponsorship Marketing Council of Canada
Infopresse RDV Commandite, Montreal
2014
RBC Bluesfest,
Ottawa
Canadian Sponsorship Forum
2012
Just for Laughs, Montreal
Canadian Sponsorship Forum
Trailblazing, Toronto
Sponsorship Marketing Council of Canada
6
ORGANIZATIONS
Partners
Since 2007, the group responsible for carrying
out the study on the sponsorship industry in
Canada has gained momentum. During the first
year, the group brought together academics from
Canadian universities. Two years later, the
Sponsorship and Marketing Council of Canada
joined the team as co-presenter of the study for
several years. In 2014, the partners of the study
are listed here.
IMI International
As a leading market research firm, IMI
International supports the CSLS through the
provision of a secure website that allowed for
survey administration, data collection and
storage.
TrojanOne
An agency proficient in leveraging the passions of
consumers to create brand experiences. We’ve
built a reputation for developing ownable
properties and ideas that engage consumers and
bring brands to life.
CSFX
Since its inception in 2005, the Canadian
Sponsorship Forum has delivered best-in-class
sponsorship data and information while
partnering with top tier Canadian properties.
CSFX continues to present a conference format
completely unique to the industry, working
overtime to provide delegates with the total
sponsorship and experiential marketing package.
7
2 MethodologyDesign & Sample
8
DESIGN
Data Collection
In 2014, data collection was completed online,
through a secure website provided by IMI
International. An option to complete the survey
offline was also provided, where paper
responses could be mailed to the researchers.
Most respondents chose to provide their
information via the secure online site (90.2%).
Procedure
The study included three bilingual surveys: one
for each of sponsors, properties and agencies.
Although they share some common questions,
specific questions were developed for each of
the three groups of partners (sponsors,
properties and agencies).
The questions for each survey were initially
developed based on a literature review,
consultation with delegates from the initial
Canadian Sponsorship Forum and the expertise
of the researchers. They were originally
approved by the ethics board at Laurentian
University in 2007 and were approved by a
university each year of the study.
In subsequent years, questions have been
modified, adapted and added based upon the
feedback from survey respondents and other
partners.
Design
Triangulation, Industry, Canada
Recruitment
E-mail, Social Media, Database
9
SAMPLE
Sample Size
Over the eight years of the study, the CSLS has
received 3,015 responses. As such, the study
continues to strengthen and expand with the
longitudinal findings becoming more robust,
allowing for key insights.
Language
The CSLS surveys have been available in both
English and French since the inception of the
study. In 2014, the vast majority (85.6%) of the
respondents chose to answer in English.
Location
Most respondents indicated they had a head
office in Ontario (42.3%), followed by Alberta
(19.2%) and Quebec (14.9%).
0
100
200
300
400
500
600
2006 2007 2008 2009 2010 2011 2012 2013
182152
238218
294
145
167
247
404852
73
123
65
61
86
647481116
142
67
109
171
Nu
mb
er
of
Re
sp
on
de
nts
Sponsors Agencies Properties
CSLS Survey Respondents
10
3 ResultsSponsors, Properties & Agencies
11
SPONSORS
Profile
The sponsors that responded to the survey were
very diverse in size, with a few dozen up to tens
of thousands of staff, with annual sponsorship
budgets from several thousands to tens of
millions of dollars. The average total sponsorship
investment by a sponsor was $2,599,200.
On average they had just under 80 sponsorships
(almost double from 42 in 2012) with 84.1%
(increase of 10%) of sponsorship money spent
as cash, and the remainder split evenly between
value-in-kind product and service.
Sponsors made sponsorship decisions year
round, however, unlike in the previous year,
sponsors tended to make fewer decisions in the
fall - with 30.0% of sponsorship decisions made
in September and October versus 50.0% in
2012. The beginning of the year (January &
February) is becoming important for preparing
budgets as it accounted for 28% of respondents.
Sponsors structured their sponsorship divisions
so as the majority (79.0%) were in the Marketing
& Communications division compared to only
9.6% within a dedicated Corporate Partnership/
Sponsorship internal department.
2014
Sponsor
Respondents
(n = 64)
Total rights fee median
$625,000
Largest sponsorships
invested:
33.9% Pro Sport
27.9% Festivals, Fairs, Events
17.7% Olympic/Amateur
Sport
8.5% Education$715,233average largest sponsorship of
respondent
Investment mix:
84.1% Cash
15.9% Value In-kind
49.4% For-Profit
50.6% Not-For-Profit
Average # of Sponsorships:
79.8 (range 1 to 1,000)
Range in size from 10 staff
to 45,000 employees
$1,612,800average total activation spend
79.0% of sponsorship divisions fall under Marketing &
Communications
Average of 5 staff spend
more than 25% of time on
sponsorship
12
PROPERTIES
Profile
The properties that responded to the survey
were very diverse in size, where some had one
paid staff, while others had up to several
thousand staff. Their budgets were very diverse
in size, ranging from fifty thousand to hundreds
of millions of dollars.
The average sponsorship revenue per property
was nearly $1.8 million. Interesting to note that
9.1% of sponsorship revenue was received from
a not-for-profit sponsor.
Fifty-seven percent of property respondents
expect rights fees revenue to increase an
average of $165,225. This is compared to the
36% of properties who expect a decrease of an
average of $155,750.
Properties tended to have an evenly distributed
reach, with 50% having a local to provincial
reach and 46% an international or national
reach.
2014
Property
Respondents
(n = 182)
Annual budgets average
$15,230,072
$191,542average largest sponsorship
investment
$45,000 Median largest sponsorship
investment
2.4 staff spend more than
25% of time on sponsorship
Property Reach:
16.2% International
30.2% Canada
2.9% Multi-Province
26.1% Provincial
13.2% Regional
11.3% Local
Range in size from 1 staff
to 19,000 total employees.
$52,500
average activation spend per property
Believe sponsors on average are
3.61
sastified with sponsorship marketing programs (on a
scale of 1 to 5)
Average # of Sponsors:
34.5 (range 1 to 750)
$1,780,311average sponsorship revenue
for 2013
13
AGENCIES
2014
Agency
Respondents
(n = 40)
Number of Sponsorship Staff:
8.8 (range 1 to 90)
Agency Types:
54.0% Sponsorship
19.6% Event Management
10.8% PR Agency
10.3% Various other
5.2% Promotion Agencies24.1
average # of sponsorships worked on in 2013
Agency Reach:
12.0% International
69.3% Canada
6.5% Provincial
6.5% Regional
5.9% Local
$46,980average billing per sponsorship
client
$1,133,650average annual total billings for
sponsorship-related work
63.2% of total agency billings
from sponsorship
Sponsorship billings:
Sponsors
36.0%
Properties
59.5%Largest Sponsorship Client:
50% Sponsor
50% Property
Profile
Respondents were asked to identify what type
of agency best described them and the work
that they do. Over half (54.0%) considered
themselves sponsorship agencies, with the
remainder made up of research, event
management, advertising and other.
Among this sample, 63.2% of agency billings
came from sponsorship. Average billings per
client were just under $50,000. Agencies
worked on an average of 24.1 sponsorships.
There was an even 50/50 split of sponsor
versus property clients being their largest
sponsorship client. The largest sponsor client
accounted for an average of $385,250 in
billings. This was actually lower than the largest
property client, which comparatively brought in
an average of $450,011 in billings.
Of overall sponsorship billings, the majority of
billings came from properties (59.5%) over
sponsor clients (36%).
14
4 AnalysisQuantitative & Qualitative
15
QuantitativeResults
16
SPONSORS
Findings
Sponsors were asked to describe their single
biggest sponsorship investment in 2013. Half of
these were in sport (professional or amateur/
Olympic sport) and 27% were in festivals, fairs
and annual events.
The average size of the single largest
sponsorship was just over $700,000 which was
a large decline from 2012 when the average size
was over $1 million.
Overall, the categories of arts, naming rights, or
municipality did not have a single largest
sponsorship investment.
Category of Largest Investment
In Depth
$715,233 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 investmentPro Sport
Festivals, Fairs & Annual Events
Education
Amateur Sport
Others
8.5%
27.9%
17.7%
33.9%
12.0%
17
0%
16.7%
33.3%
50.0%
2006 2007 2008 2009 2010 2011 2012 2013
Per
cent
of L
arge
st S
pons
orsh
ips
Historical Largest Sponsorship Investment Areas
SPONSORS
2006 2007 2008 2009 2010 2011 2012 2013
Average Size of Large
InvestmentN/A $125,173 $1,200,000 $666,217 $575,010 $1,262,020 $1,055,000 $715,233
Pro Sport Am Sport Festivals Education
Breakdown
Over the past several years, the average single
largest sponsorship investment by sponsors was
around $1,000,000.
Also, over the years, the largest sponsorships in
pro or amateur sport has remained steady or
declined, while the largest sponsorships in
festivals, fairs and annual events and education
has grown slightly.
18
12.3% Finance
9.7% Oil & Gas
22.1% Retail Trade
11.5% Manufacturing 6.5% Communications
12.9% Services
Note: These six categories are also the six most popular sponsor categories for the largest single sponsorship.
PROPERTIES
Revenue from
Sponsors
Properties were asked what category their
largest sponsor was from. In 2014, properties
who had a sponsor in the Retail Trade industry,
received an average off 22.1% of the
sponsorship revenue from them. This is followed
by sponsors in the Services, Finance and
Manufacturing sector.
19
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
Cash VIK
Cash vs. VIK Sponsorship Revenue
PROPERTIES
Sponsorship
Revenue
Not all sponsorship revenue is in the form of
cash payments. Properties often receive value-
in-kind (VIK) from sponsors. Whether this in-kind
sponsorship is from goods or services, they still
contribute to the sponsorship revenue of a
property.
Though the Cash vs. VIK question has been
asked every year since the study began; this is
the first time it was decided to compare the
data.
The data set shows a fairly consistent trend over
the last eight years, with VIK revenue accounting
for 30%-39% of sponsor revenue. The
exception appears to be from the most recent
data available, as VIK fell to 23.6%. It is positive
to note that as a whole, sponsorship revenue for
properties is mainly received through cash rights
fees.
20
AGENCIES
Findings
Agencies were asked to report what type of
work they did for their clients and what percent
of the overall billings did this work account for.
The percentages reported here represent the
average percentage of total billings by all
agencies in that area of work.
For example, 24.1% of total billings were in the
area of activation programs.
3.0%
11.0%
19.0%
27.0%
2010 2011 2012
8.7%9.1%
3.5%3.8%
14.8%
6.7%
7.6%
21.1%
17.0%
20.5% 20.3%
26.0%
17.9%
20.7%
24.1%
Agency Billings
Per
cent
of B
illing
s
Activation ProgramsSponsorship SalesSponsorship EvaluationSponsorship ResearchContracts/Negotiation
21
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
AGENCIES
Findings
In 2014, the CSLS asked agencies how much
of their sponsorship billings accounted for their
agencies total billings. Given the nature of the
study, the sponsorships billings for the agencies
responding accounted for a large portion of their
total income for the year. It is noteworthy to
examine the growing amount that sponsorship
billings is as percentage of total billings for
agencies over the last 8 years.
Expectations
The majority of agency respondents (68.5%)
expected that billings would remain the same in
2014. However, more respondents did expect
an increase (21.5%) over a decrease (10%).
The average increase expected was $118,125.
22
INVESTMENT GEOGRAPHY
International 13.5% National 23.8% Multi-Provincial 10.7%
Local 14.3%Regional 18.5%Provincial 19.2%
Findings
Sponsors were asked what percentage of their
overall sponsorship budgets gets designated to
each of the following areas.
Overall, sponsors were focused on markets
across all the set geographical areas. The single
largest was national sponsorship campaigns
(23.8%), but over 50% of budgets were targeted
to provincial, regional and local markets
suggesting that geographically close properties
are also important for sponsors.
23
INVESTMENT GEOGRAPHY
0%
10%
20%
30%
40%
2006 2007 2008 2009 2010 2011 2012 2013
Per
cent
Inve
stm
ent
Historical Trends of Property Geographical Focus
National
Multi-ProvincialInternational
Local
Regional
Provincial
Findings
Sponsors have historically spent their
sponsorship money on properties that have a
national focus. Properties with a local, regional
or even provincial focus are also common areas
of spend for sponsors. The lowest investment
by sponsors is in international or multi-provincial
sponsors.
24
ACTIVATION
Findings
The activation ratio was determined by dividing
the average amount spent on leveraging a
sponsorship and comparing it to the average
total rights fees paid per sponsorship.
Sponsorship activation grew quite significantly in
2012 and was at the highest level in three years.
However, there was once again a dip in
activation with roughly a 17% decrease.
In keeping with historical international trends,
the activation ratio in Canada is considerably
lower than in the US.
2010
622008
71
2006
432007
46
2012
75
2013
62
2009
76
2011
57
40¢
50¢
60¢
70¢
80¢
$1.70 $1.90 $1.50 $1.40 $1.40United States (IEG):
$1.60
2006 2007 2008 2009 2010 2011$1.70
2012$1.70
2013
25
0%
10.0%
20.0%
30.0%
2011 2012 2013
Historical Activation Preferences
Act
ivat
ion
Tact
ics
Use
d
ACTIVATION
Findings
Here, the type of activation tactics (some for
sponsors, some for properties) are outlined. Note
that this is not the percentage breakdown of
spend (e.g, $ amount), but whether their
leveraging and activation dollars were used in any
of these areas.
As can be seen here, hosting/hospitality and
advertising for both sponsors and properties were
widely utilized.
Hosting/Hospitality (Prop.)
Ad (Prop.)
Ad (Sp.)
Hosting/Hospitality (Sp.)
Branded Content (Sp.)Social Media (Sp.)
Product Sampling (Sp.)
26
EVALUATION
Findings
Sponsorship evaluation has declined since the
study began in 2006. In 2013, there was a very
slight increase in evaluation spend as a
percentage of marketing budget.
Contributing to the low evaluation numbers is
the fact that approximately 50% of respondents
spend $0 on any evaluation.
It is encouraging to note that among those that
do evaluate, 80% invest in pre-evaluation.
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
3.0%
27
PRE-SPONSORSHIP EVAL.
Findings
Pre-sponsorship evaluation has fluctuated over
the years, based on the sample. Pre-
sponsorship evaluation spending is critical to
creating a robust sponsorship evaluation plan as
it is important to establish benchmarks.
0%
5%
10%
15%
2009
13.1%
2010
3.1%
2011
0.6%
2012
14.9%
2013
9.9%
28
QualitativeResults
29
CONCERNS
Findings
Respondents were asked what keeps them up
at night about sponsorship, which provided
insight into what they considered to be the
current concerns facing sponsorship.
The ability to demonstrate ROI and concerns
about HR and expertise remained top of mind
for many respondents.
One main theme derived from the analysis in
2012 was related to getting sponsorship (e.g.,
sales) but, as seen in the graph, this was less of
an issue in 2013.
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
ratin
g
RO
I
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
30
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
Sponsorship in the Next 3 Years
Technology
Specific T
ypes
New
Pro
perties/
Industri
es
Activatio
n
Relatio
nships
/Partn
ership
s
Measure
ment
Com
munity
Knowle
dge/
Education
Oth
er
OUTLOOK
Major Opportunities
Respondents were asked to identify what the
biggest opportunities in the sponsorship
industry were in the next three years. The
question was left open-ended and the chart
outlines the answers combined by theme.
Technology (18.3%) and Specific Types (16.9%)
were the most prevalent answer themes across
all respondents.
The most common “Specific Types” were:
Sports (6.1%), Cause Marketing (4.3%),
Festivals/Fairs/Events (4.2%), Environment
(1.4%), Music (1.0%)
31
5 Key LearningsLessons
32
1 Keep Up With ChangeBudget, Mix
2
3
Fulfillment FundamentalsActivation, Servicing & Evaluation
Growing IndustryGlobal, Canada
KEY LEARNINGS
What We Learned
The data collected and analysis provided us
with several key learnings for current
sponsorship activities in the form of key
learnings to be applied and general information
for the sponsorship industry.
The information was summarized into three key
learnings found on the following slides.
16.7%
15.5%
22.5%
15.4%
22.3%
223.1%1.9%
29.6%
20
13
20
122
011
20
10
20
09
20
08
20
07
20
06
Sponsorship
Budget
Marketing
As a % of overall marketingcommunications budget
33
KEEP UP WITH CHANGE
Findings
One of the key measures of the value of
sponsorship is to examine the overall ratio of
spending on sponsorship as a percentage of
sponsors’ overall marketing communications
budgets. In 2013, sponsorship accounted for
over one in five marketing communications
dollars.
This percentage fluctuated over the seven years
of the study (the percentage is calculated on a
combination of actual data, ranges and tiers of
data, so some error exists), however what has
remained consistent is that sponsorship
continues to be a critical tool in the marketing
communications mix.
Expectations
Most (45.6%) sponsors expected that this
percentage will stay the same in 2014. 21.9%
felt there would be a decrease versus the 35.0%
of sponsors who expected an increase.
Expected Change for 2014
34.5% 44.8% 20.7%
34
KEEP UP WITH CHANGE
Sponsorship Mix
Since the study began eight years ago, the
percentage of sponsorship spending by area of
investment (i.e., property type) has undergone
appreciable change. While sport sponsorships
(both professional and amateur) have remained
fairly steady, festivals, fairs and annual events
have been growing, while other categories like
arts and cause marketing have witnessed ebbs
and flows.
For exact historical percentages and the dollar
amount per investment area, please refer to
Appendix A.
Note: Prior to 2009, sport was not differentiated
by professional or amateur/Olympic, so an even
split is assumed for those years.
0%
10.0%
20.0%
30.0%
2006 2007 2008 2009 2010 2011 2012 2013
Per
cent
Inve
stm
ent
Historical Sponsorship Investment Areas
Pro Sport Am Sport Festivals Art
Cause Media Entertainment, Tours, Attractions
35
FULFILLMENT FUNDAMENTALS
Activation Spend
Sponsors have been increasingly spending their
dollars on advertising. We also see a dramatic
increase in product sampling.
As discussed previously, spending on social
media and PR has declined - this may simply be
a matter of more efficiency. It may also be that
sponsors have been reclassifying “social media
spend” as “digital advertising” as the industry
has become more sophisticated.
0%
6.7%
13.3%
20.0%
2010 2011 2012 2013
Per
cent
Inve
stm
ent
Social media
Hosting/hospitality
PR
Advertising
Branded content
Product sampling
Internal marketing
Historical Sponsor Activation Tactic Spend
36
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
FULFILLMENT FUNDAMENTALS
Activation Spend
In contrast to sponsors, properties see a much
greater spend on hosting and hospitality.
Hosting and hospitality has been a continuous
component of properties’ activation spends over
the years. It is important for both sponsors and
properties alike to consider the important role
the spend plays in fulfilling sponsorship
activities.
Advertising has continued to remain a
substantial activation spend for properties.
37
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
Recall stats
Loyalty stats
Target profile
Ambush protection
Activation w/ sponsors
Activation resourcesExclusivity protectionActivation w/ propertiesConcluding report
2012
0 1 2 3 4 5
3.90
4.01
4.09
4.11
3.01
3.66
3.46
3.46
3.26
3.69
3.49
3.95
3.40
2.59
3.21
2.11
2.16
2.14
Likert Scale
Provided Importance
Recall stats
Loyalty stats
Target profile
Ambush protectionActivation w/ sponsors
Activation resources
Exclusivity protection
Activation w/ properties
2013
FULFILLMENT FUNDAMENTALS
Sponsorship
(Dis)Service
Sponsors were asked to describe the value of
services they received in a sponsorship on a
five-point Likert scale, where 5 was very
valuable and 1 was not at all valuable. They
were also asked to indicate how often those
same services were provided to them on a five-
point Likert scale, where 5 was always provided
and 1 was never provided. The difference was
then calculated and provided insight into the
disconnect that exists between the services that
sponsors value and the services that properties
and agencies provide to them.
Based on the data collected, properties
consistently under-service their sponsors. There
are large statistical gaps across the board for
what sponsors deem important versus what is
provided to them.
For a historical overview of the value of services
to sponsors, please refer to Appendix B.
Concluding report
Findings
Conservative estimates indicate that the
sponsorship industry in Canada in 2013 was
$1.77 B. This was the largest increase over the
previous year since 2008. Overall, the industry
rights fees have increased by roughly 60% since
we began the study in 2007.
Expectations
Despite high recent growth, Canadian
sponsorship industry professionals have a
modest outlook for next year, with several
expecting a modest increase, even more
expecting a decrease and just under half
expecting the industry size to remain relatively
the same.
38
GROWING INDUSTRY
Expected Change for 2014
20.1% 42.9% 35.7%
Industry Size
2006 $1.11B
2007 $1.22B
2008 $1.39B
2009 $1.43B
2010 $1.55B
2011 $1.59B
2012 $1.57B
2013 $1.77B
INDUSTRYSPENDING
$$
+60%
39
GROWING INDUSTRY*
Findings
The global sponsorship industry continues to
grow especially across the continents of North
America, Europe and Asia. According to
projections done by IEG, the global sponsorship
industry is valued at $53.1 billion. In North
America, while makes up a small fraction of the
total $19.8 billion industry with the U.S
dominating the spending.
Expectations
Globally, the sponsorship industry is projected
to grow in 2014 by 4.1%. This is slightly behind
the 5.6% projected growth in Asia and the 4.3%
growth expected in North America. European
sponsorship spending is expecting only a
modest growth of 2.1%.
* Note: Industry results noted on this page are
from IEG.
$19.8BNorth American
Sponsorship Spending
4.3% Projected Growth in 2014
$14.5BEuropean
Sponsorship Spending
2.1% Projected Growth in 2014
$12.6BAsia Pacific
Sponsorship Spending
5.6% Projected Growth in 2014
$53.1BGlobal Sponsorship Spending
4.1% Projected Growth in 2014
40
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$2.87
Historical Total Spend Trends ($B)
Rights Fees
Activation Spend
Total Industry Spend
Findings
↑ Rights Fees
↑ Activation Ratio
↓ Total Spend
2013 Activation
$1.77B Rights Fees
0.62 Activation Ratio
$2.87B Total
GROWING INDUSTRY
Increasing
Investment
Contrary to 2012 when sponsorship rights fees
declined, but the activation ratio grew to
ultimately net out a growth in total spend on
sponsorship, in 2013 the rights fees increased
and the activation ratio decreased.
Nevertheless, the industry continues to grow.
At $2.87 billion in total sponsorship spend, 2013
marked the highest year in the history of the
study in regards to the total spent in the
sponsorship industry.
41
6 ContactsAuthors
Dr. Norm O’Reilly, Lead Researcher
Holder of the Richard P. & Joan S. Professor of Business at Ohio University, Dr. O’Reilly is a Full
Professor and Chair of the world-ranked Department of Sports Administration in the College of
Business. Dr. O’Reilly was recognized in 2013 as one of the “Five to Watch” in sport business in
Canada by the Globe and Mail and is a lifetime Research Fellow of the North American Society
for Sport Management. In 2011, he was the recipient of the University of Ottawa’s Media
Excellence Award (for media coverage of his research).
Dr. O’Reilly is an accomplished scholar and active business professional. He is an active consultant and expert legal
witness, working closely with North American industry. As a consultant, he is minority owner and Senior Advisor with
the Consulting Group of Toronto-based marketing agency, TrojanOne, where he has worked for clients including Nike,
UFC, the Canadian Paralympic Committee, BMO, and many more. Since first teaching at the university level in 2000,
Dr. O’Reilly has taught more than 5,000 students. Prior to coming to Ohio, he has taught at the University of Ottawa,
the David Falk Center for Sport Management at Syracuse University, the Graduate School of Business at Stanford
University, the School of Sports Administration at Laurentian University, and the Ted Rogers School of Management at
Ryerson University. He has previously held positions as School Director, Vice-Dean and Director of a Research Centre.
Dr. O’Reilly is an active researcher and he has authored or co-authored 5 books, more than 80 articles in refereed
management journals and more than 150 conference presentations in the areas of sport management, sponsorship,
tourism marketing, marketing, risk management, sport finance, and social marketing. At conferences, he has won 11
Best Paper awards. Dr. O’Reilly is the lead researcher on the Canadian Sponsorship Landscape Study, a highlight of
the annual Canadian Sponsorship Forum since 2007, currently in its 8th edition. Dr. O’Reilly holds a PhD in
Management from the Sprott School of Business at Carleton University, a MBA from the Telfer School of Management
at the University of Ottawa, a MA in Sports Administration from the University of Ottawa, and a B.Sc. (Kinesiology) from
the University of Waterloo. Dr. O’Reilly also holds the CGA/CPA Accounting Designation.
Prior to joining academia, Dr. O’Reilly had involvement as an administrator, including Senior Policy Officer at Sport
Canada, Team Manager & Office Manager at Triathlon Canada, and Event Manager for the 2008 Toronto Olympic Bid.
He has been a member of the 2004, 2008 and 2010 Mission Staff for the Canadian Olympic Committee at the Olympic
Games, and attended the 2012 Olympic Games in a research capacity.
42
AUTHORSElisa Beselt, Researcher
Elisa brings strengths in research, analysis and strategy development to the Consulting Group
at TrojanOne. With a passion for sport and cause, Elisa enjoys finding ways for organizations
to optimize their potential.
Elisa has been a researcher and co-author of the annual Canadian Sponsorship Landscape
Study for four years. Additionally, she has been the lead consultant on some of the Consulting
team's largest projects, including the development of a revenue generation and sponsorship
strategy for the National Capital Commission, sponsorship strategy and support for the
Canadian Association of Fire Chiefs, and the development of a revitalized sponsorship strategy for Esso.
Adam DeGrasse, Researcher
A graduate of Queen's University, Adam has a passion for learning, research and creative
thinking. Having grown up playing competitive team sports established a foundation of
collaborative teamwork and the drive towards reaching an end goal - qualities that Adam
brings to life with his colleague and clients every day. Now he instills these same principles in
Toronto youth as a community football coach alongside Mark Harrison, TrojanOne’s president
and CEO.
Adam has experience working with a number of not-for-profit organizations and sponsorship projects. Recently,
Adam has been an integral part of sponsorship consulting projects for clients such as Esso, OLG, National Capital
Commission, Dairy Farmers of Canada, Kids Help Phone and Heart & Stroke Foundation. Additionally, he has
provided strategy and sponsorship consulting to the Canadian Sponsorship Forum, Nike High School Grand Prix
and Ottawa Duathlon, TrojanOne’s intellectual properties. In years past, Adam has been a key contributor to the
Canadian Sponsorship Landscape Study and the Most Valuable Property (MVP) Study, done in partnership with
Ipsos Reid.
Contact Information
We thank you for reading the 2014 Canadian Sponsorship Landscape Study. If you have any questions regarding the data or information found in this report, please do not hesitate to reach out to any of the authors. We encourage you to share the CSLS with your networks and complete the survey as it is made available each year.
‣ Dr. Norm O’Reilly: [email protected]
‣ Elisa Beselt: [email protected]
‣ Adam DeGrasse: [email protected]
43
THANK YOU!
44
APPENDIX A1
Historical Sponsorship Investment Areas (%)
Sponsor Spend by
Type (%)
This table outlines the percentage of
sponsorship investment by area by year.
2006 2007 2008 2009 2010 2011 2012 2013
Professional sport
27.0% 26.1% 24.3% 28.3% 21.9% 19.3% 27.2% 25.9%
Amateur/Olympic sport
27.0% 26.1% 24.3% 22.5% 14.9% 18.7% 22.2% 15.2%
Cause marketing
16.9% 8.3% 12.5% 14.7% 12.1% 5.1% 9.9% 11.4%
Festivals, fairs, annual events
5.6% 14.5% 21.7% 12.6% 18.1% 24.3% 18.1% 27.1%
Arts 10.9% 8.3% 10.7% 4.9% 9.2% 12.0% 10.5% 4.1%
Entertainment, tours,
attractions12.6% 6.0% 6.5% 1.9% 6.9% 7.9% 1.0% 3.2%
Media - - - 4.2% 5.3% 0.1% 5.9% 0.6%
2006 2007 2008 2009 2010 2011 2012 2013
Professional sport
$300 $318 $338 $405 $339 $307 $427 $458
Amateur/Olympic sport
$300 $318 $338 $322 $231 $297 $349 $269
Cause marketing
$188 $101 $174 $210 $188 $82 $155 $201
Festivals, fairs, annual events
$62 $177 $302 $180 $280 $387 $284 $479
Arts $121 $101 $149 $70 $143 $190 $167 $73
Entertainment, tours,
attractions$140 $73 $90 $27 $107 $126 $16 $57
Media - - - $60 $82 $2 $93 $11
45
APPENDIX A2
Historical Sponsorship Investment Areas ($ Millions)
Sponsor Spend by
Type ($ Millions)
This table outlines the amount of sponsorship
investment by area by year.
46
APPENDIX B
Importance and Provision of Services to Sponsors
Historical Value of
Services to
Sponsors
This table outlines the importance and provision
of services provided to sponsors since 2009
based on a five-point Likert scale.
*Note: In 2009 and 2010, the type of partnership (e.g., with sponsors or properties) was not specified.
VariableImportanceImportanceImportance ProvidedProvidedProvided
Variable2013 2012 2011 2010 2009 2013 2012 2011 2010 2009
Resources for activation program
4.17 4.33 4.09 3.90 4.03 3.13 2.82 2.59 2.84 3.03
Sponsor recall stats
4.24 3.63 3.88 4.20 4.24 2.64 2.58 2.52 2.49 3.23
Concluding report/audit
4.38 3.61 3.94 4.22 - 3.45 2.98 3.03 3.02 3.34
Audience loyalty stats
3.86 3.59 3.55 4.00 4.09 2.45 2.74 2.74 2.52 3.09
Information on purchase
behaviour of target group
4.09 3.48 3.50 3.51 3.91 2.70 2.26 2.27 2.64 3.11
Protection from ambush
marketers4.24 3.26 3.48 3.76 - 2.89 2.70 2.76 2.86 -
Protection of rights/
exclusivity4.79 3.24 3.24 4.02 4.33 3.75 3.91 3.70 3.21 3.69
Partnering on activation with other sponsors
3.68 2.99 3.06 4.32* 4.03* 2.54 2.67 2.62 3.09* 3.09*
Partnering on activation with
other properties4.05 2.85 3.06 - - 3.08 2.55 - - -