WHITE PAPER Presented by Partnership Group Sponsorship Specialists - PowerPoint PPT Presentation

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

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

Mobile Devices Staying connected in the session Twitter: #partnershipgrp #sponsorship@partnershipgrp

BRENT BAROOTES President and CEO Phone: 403-255-5074 Fax: 888-486-3407 Toll Free: 888-588-9550 Email: brent@partnershipgroup.ca

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

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

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

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

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”

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

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

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

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

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

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

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%

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

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

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

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

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

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

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

Consumer Sponsorship Rankings (CSR) 2011

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

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

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!)

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

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

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