SPONSORSHIP TODAY WHAT IS SPONSORSHIP AND HOW DOES THIS AFFECT YOU AND THE CLUB? ROTARY CLUB OF CALGARY CROWCHILD URBAN SPIRITS September 2, 2014
BRENT BAROOTES President and CEO Phone: 403-255-5074 Email: brent@partnershipgroup.ca Follow me on Twitter @partnershipgrp #partnershipgrp
The Presentation Outline Defining sponsorship versus philanthropy What has changed and why? The industry trending How does this affect you and your Club Wrap up - Questions
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
Defining Sponsorship Marketing 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.
Defining Sponsorship Marketing 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
Defining Sponsorship Marketing Sponsorship links emotion with outcomes to upgrade a marketing and advertising plan - Without emotion, it is just advertising
Defining Sponsorship Marketing Canadian Sponsorship Industry is a: $1.78 Billion industry Up over 60% over last 8 years (2014 Canadian Sponsorship Landscape Study)
What has changed in the marketplace? IMAGINE Canada study: 56% of Canadian corporations are engaging in sponsorship that used to be philanthropy 26% engaging in cause marketing
What has changed in the marketplace? The corporate world has changed About ROI versus feel good The marketplace has become competitive CIBC Run for the Cure Trico Family Leisure Centre Cardel Place Genisis Centre Talisman Centre Enbridge Ride to Conquer Cancer
The Trending Canadian Sponsorship Revenue Allocation 38% Sport 13% Causes 12% Arts 27% Festivals, Fairs and Annual Events 10 % Entertainment, Attractions & Tours (Reported by the Canadian Sponsorship Landscape Study)
The Trending Where the of money comes from (Top 6): 28% 14% 10% 13% 7% 6.5% Retail Services Communications Financial Institutions Manufacturing Oil and Gas (Reported by the Canadian Sponsorship Landscape Study)
The Trending On average, companies are dedicating about 29% of their marketing budgets to sponsorship / experiential marketing 55% of companies surveyed expect this number to increase this year 2015 2014
The Trending Consumer Sponsorship Rankings 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 you can influence buyers you can help brands and get money Arts and Cultural Sponsorship Cause Sponsorship Sports Sponsorship
The Trending CBC Dragon s Den investor and First Energy s retiring CEO Brett Wilson in an interview held no punches when he remarked about his feeling on philanthropy. We ve used charity as our marketing budget since day one. He added People would say no, giving is supposed to be altruistic. But I have said bullshit from the start. There s nothing wrong with the scratched back approach to giving
Consumer Sponsorship Rankings 2013 OPINIONS ON MUNI S SPONSORSHIP SHOULD MUNI S SEEK SPONSORSHIP 6.5 OUT OF 10 43 % 87 % Companies should get preferential treatment if they are providing revenue to offset costs through a sponsorship Companies should be able to sponsor public spaces such as hockey rinks, ball parks and recreational facilities People believe municipalities, parks and secondary schools should seek corporate sponsorship as a source of revenue 50 % Companies should be able to retitle existing buildings named after prominent citizens or community benefactors
The Trending Sponsorship is about business Rotary Club of Calgary BBQs Rotary Club of Burlington Lakeshore - Ribfest Rotary Club of Calgary South Dream Home Building a brand for Rotary Rotary Centre for the Arts in Kelowna Our partnership with the Flames Foundation for Life Kamp Kiwanis
The Trending What is happening with these ones specifically
The Trending What are they doing? Inventory identification to determine what they have to sell Valuation of assets to determine what they can generate in revenue Mentoring building in house capacity to deliver long term success Training delivering short term professional development through workshops and conferences - Outsourcing sales
HOW DOES THIS AFFECT YOUR CLUB? Bringing in the revenue 1. It is a competitive game, you need to be in the game and play it right to succeed 2. Outsourcing of your sales process or following a successful process not a bunch of volunteers doing it in their spare time off the side of their desk
HOW DOES THIS AFFECT YOUR CLUB? Three Key Elements 1. Determining what you have to sell and what it is worth 2. Thinking like a business and not a charity 3. Understand the paradigm shift and difference from philanthropy
WRAP UP 1. The landscape is changing in the non for profit charitable sector 2. It is a different world today than it was 10 or 30 years ago 3. Sponsorship offers a substantial revenue channel reoccurring revenue 4. It needs to be undertaken seriously and professionally
REALITY CHECK Straight Talk About Sponsorship Marketing Hilborn Publishing http://hilborncivilsectorpress.com/ products/realitycheck #SponsorshipReality
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