WHITE PAPER Presented by Partnership Group Sponsorship Specialists

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1 What Can You Expect From A Sponsorship With A Charity? Brent Barootes September 19, 2012 WHITE PAPER Presented by Partnership Group Sponsorship Specialists

2 WHAT CAN YOU EXPECT FROM A SPONSORSHIP WITH A CHARITY? CALGARY LEGAL MARKETING GROUP September 19, 2012

3 Mobile Devices Staying connected in the session Twitter: #partnershipgrp

4 BRENT BAROOTES President and CEO Phone: Fax: Toll Free:

5 QUALIFICATIONS FOR PRESENTING ü 24 years in the sponsorship industry buying, selling and consulting ü Over 35 speaking engagements annually Partnership Group Sponsorship Specialists Over a decade serving the Canadian industry Serve properties and brands

6 QUALIFICATIONS FOR PRESENTING Partnership Group Sponsorship Specialists Sponsorship Marketing Council of Canada SMCC The Voice of Sponsorship in Canada Official Training Partner for SMCC and an agency partner Worked with EnCana, geologic, Toshiba, Cooper Tires, CIBC, AMEX, Potash Corp, Saskatchewan Credit Unions

7 THE EVER CHANGING WORLD OF SPONSORSHIP The plan for this session ü Discuss recent trends and updates in the industry ü Discuss national sponsorship surveys and the analysis of that information ü How all these affect community investment undertakings with charities ü Overview of how you can measure ROI

8 Canadian Sponsorship Landscape Study 2012 Thanks to: ü Norm O Reilly and Benoit Seguin ü University of Ottawa ü Sponsorship Marketing Council of Canada ü TrojanOne ü Canadian Sponsorship Forum ü IMI International

9 Canadian Sponsorship Landscape Study (CSLS) 2012 Since the CSLS was undertaken in 2006 the industry has grown 43% ü Again the industry grew by over 2% since last year now $1.59 billion ü Brands were investing almost 75% of their sponsorship investment dollars within Canada ü Almost 22% of spends are on local sponsorships ü About 35% of that spend was with for profit properties and 65% with non profits and charities

10 Canadian Sponsorship Landscape Study 2012 ü Diversity in sponsorship mix on average over 100 properties per sponsor (In a range of 0 to 1100!) ü Decrease in spending on activation now at $0.57 / dollar) (2011 was $0.62/dollar and at 75 cents per dollar in 2010) ü Both Professional Sport and Fairs/Festivals and Events had the greatest number of largest sponsorship rights fees in the 2012 study (25% each) ü Naming rights accounted for only 6% of the sponsorships in Canada last year

11 Canadian Sponsorship Landscape Study 2012 ü 30% of brands marketing budgets last year were spent in sponsorship and experiential marketing up by almost 1/3 over the 2011 study and up over 75% over the last 7 years ü Cause marketing and professional and amateur sport sponsorships have seen a declining trend over the past several years ü Greatest continuous growth has been with fairs, festivals and annual events ü Entertainment-Tours Attractions and the Arts have also continued to see growth trending

12 Canadian Sponsorship Landscape Study 2012 ü For in-kind sponsorships, about 18% are in-kind product and 13% are in-kind services and 69% cash ü Average sponsorship rights fee investment in Canada for 2012 was $4M (ranged from $0 to $25M for total brand investments ü Sponsors when evaluating ROI the top three areas to measure were: 1. Brand perception 2. Brand value 3. Brand Knowledge / profile ü Revenue ranked 6 th

13 Canadian Sponsorship Landscape Study 2012 ü The 2012 report showed clearly that properties still are failing to provide resources for activation programs and this is a major issue for sponsors ü The report also showed that sponsors are not receiving a comprehensive wrap up report and this is critical for them ü Also sponsors noted that properties need to be better at providing sponsor recall statistics as well as audience loyalty statistics

14 Canadian Sponsorship Landscape Study 2012 ü Almost 55% of properties have operating budgets of less than $1M ü The average property had 25 sponsors ü On average properties received about $740,000 in sponsorship revenue ü It is important to note that 72% of properties receive less than $100,000 in sponsorship revenue and 92% receive less than $1M

15 Canadian Sponsorship Landscape Study 2012 ü 35% of property sponsorship revenues come from financial institutions (20%) and crown corporations (15%) ü Food and Beverage sponsors account for 12.5% and oil and gas accounts for 9.5% ü Provincial lotteries account for about 8% ü The balance (35%) comes from auto, professionals organizations like law firms, communications, retail, travel, agriculture

16 Canadian Sponsorship Landscape Study 2012 Sponsorship Investment Allocation: 1. Professional sport 19% 2. Amateur sport 19% 3. Cause Marketing 5% 4. Fairs, Festivals and Annual Events 24% 5. Arts 12% 6. Education 8% 7. Attractions, Entertainment, Tours 8% 8. Other 5%

17 Canadian Sponsorship Landscape Study 2012 ü 40% of organizations that used an agency to assist them in sponsorship used specifically a sponsorship agency ü There continues to be a six year downward slide on post evaluation of sponsorships now only 2.3% of total sponsorship budgets are spent on evaluation of outcomes ü 41% of sponsors invested in pre-sponsorship evaluation

18 Canadian Sponsorship Landscape Study 2012 ü The biggest growth areas for activation in the 2012 study are: ü Ancillary events ü Internal marketing (employees) ü Social media ü The biggest losers in activation dollars were: ü Product sampling ü Trade allowances distribution incentives ü Advertising

19 Canadian Sponsorship Landscape Study 2012 ü On average properties spent an additional 16% of their sponsorship fee on sponsorship activation ü About 10% spent an additional 50% of their sponsorship fee on sponsorship activation ü Based on those in the industry, hockey and cancer drove the most passion for experiential opportunities

20 Canadian Sponsorship Landscape Study 2012 ü The brands that epitomized sponsorship passion from an industry perspective were: ü Tim Horton s ü Loto Quebec (1/3 of study responses from Quebec) ü Kraft ü CIBC ü TELUS

21 Canadian Sponsorship Landscape Study 2012 ü The industries that best epitomize sponsorship as selected by industry people are: ü Financial Institutions ü Restaurants ü Consumer Packaged Goods ü Sports Apparel ü Alcohol / Lotteries

22 Canadian Sponsorship Landscape Study 2012 ü Average small sponsor / brand: ü spent about $23,000 on sponsorship ü No ROI measurement ü About $1000 on activation ü Largest sponsorship was about $14,000 ü Allocated to 4 properties and 3 were NFPs

23 Canadian Sponsorship Landscape Study 2012 ü Most influential consumer trends were (almost 75% of areas of influential trends) ü Technology ü Consumers shift to healthier lifestyles and the environment ü Cause based marketing issues ü The top areas of concern for sponsors and properties going forward are: ü Showing ROI ü Budget concerns ü Activating

24 Consumer Sponsorship Rankings (CSR) 2011

25 Consumer Sponsorship Rankings 2011 ü Canada's first Consumer Sponsorship Ranking revealed some amazing results ü Over 500 (1000 in 2012) respondents, all telephone conversations from random Canadians ü On average 8-10 minutes with each interview (French and English) ü Cross section from every region of Canada

26 Consumer Sponsorship Rankings 2011 ü Coca-Cola and Molson were seen as the most active sponsors in all of Canada ü These were followed by Labatt, GM, McDonald s and then Tim Horton s ü Interesting that no FI ranked in top 6 of Canadians minds though they are the #1 most active category in Canada

27 Consumer Sponsorship Rankings 2011 ü Breweries ranked as most supportive industry for sport, culture and causes ü Almost 50% of Canadians noted that Air Canada was the most supportive travel company followed by WestJet and then AirTransat ü RBC was ranked #1 for financial institutions followed by BMO, TD, then CIBC and ScotiaBank ü Wal-Mart was recognized as the leading sponsor in large retail outlets followed by HBC, Home Depot, Sears, Canadian Tire and Home Hardware (no RONA in top 6!)

28 Consumer Sponsorship Rankings 2011 ü Stanley Cup Playoffs were ranked #1 annual sport event and the Montreal Canadians the #1 sports team ü The Canadian Cancer Society were recognized by Canadians as the most active sponsor property in the charity and cause sectors

29 Consumer Sponsorship Rankings 2011 ü In regards to the top ranked fairs and exhibitions, the Calgary Stampede and Canadian National Exhibition (CNE) tied for #1 spot

30 Consumer Sponsorship Rankings 2011 ü The #1 ranked arts and cultural event in Canada according to Canadians was a tie between the Canadian Tulip Festival and Festival du Voyageur (followed by Carnaval de Quebec, ScotiaBank Caribana, Edmonton Fringe Festival and again the Stampede

31 Consumer Sponsorship Rankings 2011 ü Some surprising results such as TIFF and Montreal Jazz Festival just barely made the top 10 festivals or cultural events in Canada ü Canada Cup Curling Ranked #2 annual sporting event and Tim Horton Brier barely made the top 10

32 Consumer Sponsorship Rankings 2011 ü Looking at annual sporting events, Grey Cup ranked third while the Edmonton Indy ranked and the Toronto Indy did not, but three auto racing events ranked in the top 10

33 Consumer Sponsorship Rankings 2011 ü 47% of Canadians said they would likely switch brands based on sponsorship of an arts and cultural organization, 55% said the same when the sponsorship is related to a cause and only 44% would do so in regards to sports Arts and Cultural Sponsorship Cause Sponsorship Sports Sponsorship

34 THE EVER CHANGING WORLD OF SPONSORSHIP ü Municipalities, post secondary educational institutions and agricultural societies are the property sectors growing exponentially ü The ad agencies, media and PR-GR agencies are starting to understand the difference between a media buy and sponsorship but still not there

35 THE EVER CHANGING WORLD OF SPONSORSHIP ü IMAGINE Canada study shows 56% of Canadian corporations switched from philanthropy to corporate sponsorship in the preceding year

36 Measuring Overview ü There are several approaches to determining ROI ü The industry is too fragmented for one system to work alone some consulting agencies think one system fits all we disagree ü What works for Good Earth Cafes may not work for Norton Rose 36

37 ü Like traditional media measurement, TV needs to be measured different from outdoor and from radio and from internet ü The measurement systems evolve ü For our clients we measure based on objectives and custom design the system to meet their needs and objectives ü This is different measurement from outcomes for the charity this is about you! 37

38 You need to know your outcomes first what are you trying to achieve? ü Increased billable hours ü Increased brand recognition ü Employee retention ü Employee acquisition ü Community recognition and appreciation ü Crisis management issues 38

39 ü Most fail to set the objectives for sponsorship prior to investing little alone measuring success ü Sponsorship success can be measured accurately from investment value to ROI 39

40 Measuring Tools ü Measuring value at outset at time of investment ü Each asset you buy can have a tangible value assigned companies to provide this 3 rd party integrity to properties and for sponsors to ensure the work is accurate if in house not available ü Logo on web site, sign at event, sampling 40

41 Industry happenings that should not have happened ü KFC blundered in 2010 with their double down fat chicken burger at the same time as the breast cancer launch for pink buckets of chicken In 2011 they did it again with Mega Jug of Pepsi for just $2.99 with $1 of that going to Juvenile Diabetes (800 calories and 56 spoonfuls of sugar)

42 Five Essentials in every measurement: 1. Know what you are trying to achieve more clients? 2. Determine the growth or objective - %age 3. Know pre-sponsorship numbers 4. Survey / track for post sponsorship numbers 5. Determine success can be set in a ratio 42

43 THE EVER CHANGING WORLD OF SPONSORSHIP QUESTIONS?

44 Please visit our website for more information Thank You

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