what we do (really well)

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1 Approaches to Sponsorship Value Measurement Bernie Colterman Managing Partner CEPSM what we do (really well) Strategic Marketing Planning Sponsorship Valuations & Strategies Social Media / Digital Marketing Revenue Development Social Marketing Partnership Marketing Centre of Excellence for Public Sector Marketing 1

2 3 June 11-12, 2014 Ottawa Convention Centre 2

3 The evolution of sponsorship valuation 6 3

4 Mass Segmentation / Customization Advertising Clutter Shift to selling the brand experience Focus on customer retention / share Demographics / Psychographics The Web / Social Media Power of the Customer 7 8 4

5 the old way of doing things is not good enough anymore Improving brand perceptions (91%) Increasing brand value (84%) Increasing brand loyalty (70%) Increasing brand knowledge (70%) Cause-related element (43%) Other Factors (60%) Value alignment Increasing sales Employee engagement Product / service sampling SMCC 2009 Survey 10 5

6 Customer Sponsee x Sponsor 11 6

7 Let s just do what we ve always done 14 7

8 Number of attendees Flat fee based on covering a fixed percentage of expenses Flat fee based on the subjective value the organizer places on the property (best guess) 15 Key Considerations: Audience Composition Brand / Competitive Position Tangible Assets i.e. exposure, impressions Intangible Assets i.e. uniqueness of the opportunity, prestige, etc. Level of Activation Regional influences 16 8

9 Determining the value of your tangible assets Every property is unique What is valuable to one company, may not be to another Values can change depending on the environment Set value benchmarks on what you know 18 9

10 19 Assets are all the touch points between you and your audience that can be leveraged to a sponsor s benefit 20 10

11 21 Properties Organization Campaign Program Facility Event Conference Special Activity Benefits Print collateral Advertising Direct Mail Electronic Public Relations Sales Venues Sales Promotion Display Space Speaking Networking Other? 22 11

12 Why is it important? Identifies all opportunities Identifies gaps and/or new opportunities Allows for easy mixing and matching of benefits Encourages advance approval of benefits Makes for easier packaging A Master Inventory is Your Most Important Planning Tool

13 The greater the impact on the audience, the greater the value 25 What s considered valuable in sponsorships is changing Sponsor awareness is virtually meaningless to consumers Research consistently shows that consumers will support sponsors who support things that are important to the consumer Sergio Zyman, former Chief Marketing Officer, Coca-Cola 26 13

14 When Canadians were asked what influences you to purchase brands you normally don t, What percentage answered : Experiential Marketing? 52%

15 Logo ID on publications Banner Sign Inserts Ad in publication Direct Mail piece Article in publication Coupon with Offer Sampling / Demos Qualified Leads Direct Sales Stage of Decision Knowledge Attitude/Credibility Acceptance ACTION Level of Impact Impressions TRANSACTIONS

16 Speaking Articles Demonstrations / Sampling Exhibits Direct mail Testimonials Advertising Hard assets Opportunities to communicate brand / product attributes in a unique way 31 Description Amount Variables Logo ID in Publication $ $.05 cover vs. inside stand-alone or group logo vs. message Rarely higher than $.02 Ad in Publication rate card colour vs. b/w or $.02-$.08 location Usually worth $.06 Logo ID on Web Site $ $.05 location, link unique visitors, interactive Logo / Link usually $.005 Exhibit Space rate card or location $15 sq / $100 island vs. in-line per linear Display space $.04 Mention on Social Media $ $.01 Based on Followers 32 16

17 Description Amount Variables Sign with sponsor ID $ $.05 stand-alone vs. group length of impression Rarely higher than $.02 PA Announcements $ $.04 incidental vs. integrated Usually worth $.01 ID on Media Buy 5-10% of 10% for title ad value 5% for mentions Product Sampling / Distribution $.07 -$.15 insert vs. face-to face Use of Mailing List $.07 -$.30 audience exclusivity Usually worth $.20 Article in Newsletter $.06 - $.10 Usually worth $ Description Amount Variables Sign with sponsor ID $.02 -$.08 stand-alone vs. group, duration Show Bags / Badges $.25 - $.75 exclusivity, clutter Speaking Opportunity $5 -$25 stand-alone vs. panel, content Ad / Exhibit Space rate card location, added value Collateral Distribution $.10 - $.25 insert vs. face-toface Use of Mailing List $.35 - $1.00 audience exclusivity Logo on pub. / web site $.02 -$.06 location, link, relevance Article in Newsletter $.08 -$.25 audience exclusivity, content 34 17

18 Description Variable Value Sign with Sponsor ID Entrance stand-alone $.04 Range:$ $.05 Entrance multiple logos $.02 Entrance stand-alone w tagline $.05 Walkway stand-alone $.02 Walkway multiple logos $.005 Stage stand-alone $.05 Stage multiple logos $.03 PA Announcements General PA $.005 Range:$ $.05 Before performance $.04 After performance $ Media Distribution / Reach Ad Medium Price Cost / Exposure Kitchener Post 60,000 Full Page, B/W Ad ½ Page, B/W Ad $3,690 $2,029 $.06 $.03 London Free Press (London) 73,961 73,961 73,961 Full Page, Colour Ad ½ ColourAd $13,184 $6,637 $3,343 $0.075 $0.041 $0.021 Canada Post Per Item Unaddressed AdMail(50 g) $50.00 / 1,000 $0.15 Valpak 50,000 81/2 x 31/2 Coupon, 4- Colour $480/10,000 $2,400 $0.048 Outdoor Billboard (Pattison) 600,000 Billboard Ad Ottawa ON $2,950 $0.005 Arena Advertising (Kingston) 105,000 Arena Board (2) $7,000 $

19 Keyword Search Average Cost Per Click (for Southern Ontario) Hockey Equipment $.03 Exercise Machines $.09 Fitness Centres $.56 Training Equipment $.14 Home Insurance $4.59 Pet Insurance $1.55 Car Insurance Quote $13.63 Landscape Ideas $.38 Garden Tools $.05 Appliance Stores $.31 Appliance Repairs $ To increase the value of the sponsorship: Increase event audience numbers Increase Total Exposure to target audience (e.g. print, web, newsletters) Provide higher level benefits Assign Flat Values to Benefits Level of Impact Types of Benefits Flat Value Low logos, links, signs $50.00 Medium ads, inserts $ High mailings, articles, speaking, $ sampling, demos 38 19

20 Qualitative elements that influence the value of your assets A Key Consideration: A Sponsorship Program without a strong associative element, is similar to advertising

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22 43 Positioning is the act of designing the organizational image and value offer so that customers understand and appreciate what the organization stands for in relation to its competitors

23 Good customer service Quality of organization / program Our reputation Knowledgeable staff Good results Dedication of staff Consistent management Responsiveness Innovation Trust 45 What is our brand and USP? Who is our competition? How are we different from the competition? 46 23

24 Attribute Value Range Audience Desirability 25% - 50% Uniqueness of Opportunity 25% - 50% Exclusive Opportunity 25% - 50% Ability to Impact Sales 30% -50% Prestige / Recognition 10% - 30% Track Record 10% -30% Worthwhile Cause 10% - 30% Networking Opportunities 10% - 30% Geographical Coverage 10% - 30% Media Potential 10% - 30% Ability to Impact / Engage 10% -30% Ease of Activation 10% -30% 47 Example: Total Value of Tangible Assets: $10,000 Add Intangible Values: Exclusive to industry sector (25%) $ 2,500 Prestigious event (15%) $ 1,500 High quality audience (30%) $ 3,000 Total Assessed Value $17,

25 Greater reach Greater frequency Higher impact benefits Less clutter Enhanced brand image Creative Activation 49 Cadbury (UK) 200 Easter Trails Coca Cola (US) Funding of 12 park Discovery Centres Sylvania (US) Lighting for Thomas Jefferson Memorial HBC (CA) Olympic uniforms, in-store merchandizing CIBC (CA) Employee involvement Run for the Cure Olympus (US) Share the Experience Photo Contest Hi -Tee (SA) Sponsor of trail guide foot ware Home Depot (Canada) NHL Coaches Sessions M&M s (CA) Retail-based fundraising Breast Cancer IKEA (CA) Retail-based fundraising Tree Canada 50 25

26 Value is not necessarily the same as Pricing Subject to Supply and Demand Value can fluctuate Look to provide at least $1.50 in value for every $1.00 received 51 What would it cost to do it on their own? Example: Conduct a targeted mailing Research leads Develop database Design / print collateral Envelope Mail merge Mailing cost Cost of Program or Service How much sales revenue could it generate? 5% 40% commission on sales 52 26

27 Why fit is so important in realizing the true value of your assets Potential Fit Criteria Audience Time of Year Nature of Event Brand / Value Alignment Cause Alignment 54 27

28 High Value and Brand Alignment LowAudience and Product Alignment Medium Sales Cycle Shortest Sales Cycle Optimal Value HighAudience and Product Alignment Longest Sales Cycle Least Value Medium Sales Cycle Low Value and Brand Alignment

29 Contact Info: Bernie Colterman: Blog: Tel: ext.224 Websites: CEPSM.ca 57 29