AAAS Confernece - Brent Barootes Sponsorship Today …...Decrease in spending on activation – now...

Sponsorship Today: Industry Trending Update and How It Can Impact Your Agricultural Society Brent Barootes February 2, 2013

WHITE PAPER Presented by

Partnership Group – Sponsorship Specialists ™

AAAS CONFERENCE February 2 2013

SPONSORSHIP TODAY:

INDUSTRY TRENDING UPDATE AND

HOW IT CAN IMPACT YOUR AGRICULTURAL SOCIETY

Mobile Devices

Staying connected in the session

Twitter: #partnershipgrp

#sponsorship@partnershipgrp

BRENT BAROOTES President Phone: 403-255-5074

Fax: 1-888-486-3407

Toll Free: 1-888-588-9550

Email: [email protected]

SESSION OVERVIEW

ü What has happened in 2012?

ü What is going to happen in 2013

ü How you can leverage all of this for your Agricultural Society

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  Both Professional Sport and Fairs/Festivals and Events had the greatest number of largest sponsorship rights fees in the 2012 study (25% each)

Canadian Sponsorship Landscape Study (CSLS) 2012

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  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  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

ü  For in-kind sponsorships, about 18% are in-kind product and 13% are in-kind services and 69% cash


ü  The average property had 25 sponsors

ü  It is important to note that 72% of properties receive less than $100,000 in sponsorship revenue

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 6th


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


ü  20% of property sponsorship revenues come from financial institutions and 15% from crown corporations

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


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%


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


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

Consumer Sponsorship Rankings (CSR)

Consumer Sponsorship Rankings 2012

ü  This research was done by Enigma Research

ü  1000 respondents in the 2012 study, all telephone conversations from random Canadians

ü  On average 12-15 minutes with each interview (French and English)

ü  Cross section from every region of Canada

ü  The 2012 study also has four detailed supplementary studies available for subscription purchase on the financial industry, the telecoms, sport and charities


1.  Soft drink companies 2. Restaurants and fast food 3. Banks and financial

institutions 4. Telecommunication

companies 5. Breweries

Canada’s Most Supportive Industry Categories

6. Media companies 7.  Auto Manufacturers 8. Large Retail 9. High Tech companies 10. Lottery corporations

CONSUMER SPONSORSHIP RANKINGS 2012

1.  McDonalds within the restaurant sector and highest scoring among all industries

2. Coca- Cola

3. Air Canada in airlines

4. Ford – Lincoln in auto category

5. Molson for brewery

Canada’s Most Supportive Sponsors by Industry Categories


6.  TD/Canada Trust

7.  Shell for energy or petroleum company

8. CN for railway

9. Apple for technology

10. WalMart for large retailer

Canada’s Most Supportive Sponsors by Industry Categories

38% of Quebec felt BMO was the most supportive FI


1.  Carnaval du Quebec – (Winter festival) 2.  Stanley Cup Playoffs (Annual sport event) 3.  Montreal Canadiens (Sports team) 4.  Montreal Jazz Festival (Music festival) 5.  Cancer (Health causes) 6.  Terry Fox Run (Run, Walk or Bike) 7.  CNE (Exhibition or fair) 8.  Terry Fox Run (Fundraising)

Canada’s Most Important Annual Events / Properties

Getting in the Game… CSR 2012

1.  Sport ranked #2 but higher than the controversial outcomes from IPSOS Reed study released at the CSF

2. Cancer related causes rank highest amongst Canadians

3. Red Cross and Heart and Stroke seen also as very important fundraisers by Canadians

4. Hospital related causes are more important amongst higher income earners in Canada

Canada’s Most Important Annual Events / Properties


1.  92% of Canadians believe it is for people to see their brand name

2. Majority say it is to enhance their brand image as good corporate citizens

3. Canadians know it is to create brand loyalty

Others are: •  Support causes, athletes •  Sample product •  Entertain clients •  Obtain sales leads •  Differentiate themselves

Why do brands get involved in sponsorship according to Canadian consumers?


•  69% of Canadians said they would prefer to do business with a brand who supports their favorite causes

•  53% said the same for arts / cultural events

•  45% said the influence is there for sport Interesting CSR Insight: Higher income Canadians are more

likely to conduct business with sponsors of their favorite properties

Who influences brand loyalty?


ü  35% of Canadians said they pay more for brands that supported their arts and cultural organization, 57% said the same when the sponsorship is related to a cause and only 32% would do so in regards to sports

ü  Interesting CSR Insight: More than 2/3 of higher income Canadians would pay more if a favorite cause is supported

Arts and Cultural Sponsorship Cause Sponsorship Sports Sponsorship

Who influences brand loyalty?


•  2/3 of consumers felt donating prizes to a cause or sport was an appealing or very appealing approach

•  Giving cash actually ranked second! •  Providing volunteers and staff was also important as was

handing out samples and marketing of the event Interesting CSR Insight: Signage at events ranked in bottom

of top ten and “naming of an event” ranked last overall!

Consumers thoughts on sponsorship methods


•  76% frequently or occasionally watched sports on TV

•  Almost 50% of Canadians attended alive amateur sport event in the last year

•  36% participated in a walk or run •  50% of Western Canadians attended fairs or

agricultural events

How active are the consumers?

Trending and Impact

•  Shift in percent of what sport “owns” – margin used to 50% of all revenues – it is falling

•  We are seeing other sectors get better at the game – inevitable

•  Municipalities are really growing and getting in the game

Trending and Impact

•  Other major growth area according to CSLS is entertainment – more an more trade shows, concerts and festivals are understanding sponsorship and beginning to do it right

•  Fairs and exhibitions and related festivals are growing – we are seeing Ag Societies / Fairs and Exhibitions

Trending and Impact

•  Continued shift of corporate philanthropic dollars to corporate sponsorship

•  Ongoing shift and growth (as illustrated by the CSLS) of sponsorship marketing dollars in brand budgets from traditional marketing

THE TRENDING AND HOW YOU CAN LEVERAGE THIS

ü We have seen a huge increase in professional development both on the brand/sponsor side and the property side

–  Those investing wisely in their busy organization are making time for professional development like this conference

–  These are the successful organizations


ü More individuals are moving towards our this industry and to this side of fundraising than have in the past

–  Shift from corporate and philanthropy into sponsorship

–  More hands make the day less busy


ü Municipalities, post secondary educational institutions and agricultural societies are the properties that are seeking their piece of the pie and more

ü  The financial institutions, telecoms and big retailers continue to dominate the landscape from a brand side


ü  Seeing more small and medium sized businesses, local and regional getting their piece of the pie and doing it right

ü  Though the CSLS shows that activation investment is down, we are seeing brands (both as direct clients of ours as well as sponsors of our property clients) are spending more in activation and again doing it right


ü  The digital world and social media are slowly playing a part in the sponsorship world, but it is slow to catch on

–  Too much time on this is killing organizations

–  You need to be there, do it right but don’t get lost in it

–  It can make your day so unproductive


ü Many think they are doing it, but really they are not – they have a FaceBook page and call it “a social media platform”

–  What are you really doing on FaceBook? –  Is it a friend raiser, fundraiser, brand

builder or what? –  Why are you there? –  How is it helping your sponsors… getting

you money?


ü  The mobile world is the next integration key – some are doing it

ü  But do it right or your day will be busier than ever!


ü  We are seeing better negotiation on both the brand and property sides

ü  Properties that are successful and moving forward and not running a cluttered day are those ones doing it right and negotiating better

ü  Today we are seeing brands understand that even these are business opportunities and not “charity”


ü  Properties are understanding it is no longer smiling and putting a sick kid up front for negotiation, but that it is a business scenario today

ü  Properties are also understanding the sales process better – brands will no longer accept stock proposals – they must be custom designed and the right info needs to be there


ü  Successful properties have great sales people in-house or engage outside agencies to sell for them

ü We are seeing more and more properties getting the selling process right and doing it internally and building capacity


ü  Sales is the ultimate factor of success or not – be it in house capacity or external brokerage selling – the sponsors want a professional approach

ü This is not an ask – it is a solution providing business agreement

Questions?

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Thank You

AAAS Confernece - Brent Barootes Sponsorship Today …...Decrease in spending on activation – now...

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