A Look Ahead | 7th Annual Canadian

Sponsorship Landscape Study

Norm O’Reilly & Elisa Beselt | 2013 Sport Events Congress, Ottawa

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TODAY’S OUTLINE

1 History | Sport, Events, Festivals | WomenCSLS

2 Sponsorship & Women in CanadaCase Studies

3 Sport Event MarketersKey Takeaways

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1History & Summary of Findings

CSLS

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Unique Downloads (2011-12)

1,002 Respondents (2006-12)

2,456

STUDY GROWTH

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www.sponsorshiplandscape.cawww.sondagecommandite.ca

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PARTNERS

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HISTORY2007 2008 2009 2010 2011 2012

Toronto International Film Festival,

TorontoCanadian

Sponsorship Forum

Creating Opportunities,

TorontoSponsorship

Marketing Council of Canada

World Hockey Championships,

HalifaxCanadian

Sponsorship Forum

Quebec Winter Carnival, QuebecCanadian

Sponsorship Forum

Paralympics, VancouverCanadian

Sponsorship Forum

Formula One, MontrealCanadian

Sponsorship Forum

Just for Laughs, MontrealCanadian

Sponsorship Forum

Upping the Ante, Toronto

Sponsorship Marketing Council

of Canada

Trailblazing, Toronto

Sponsorship Marketing Council

of Canada

2010 2011 2012

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0

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012

Sponsors AgenciesSponsees Total

504

337277

559

407371

CSLS Survey Respondents (2007-12)

RESPONDENTS

0

1

2

$1.11$1.22

$1.39 $1.43$1.55 $1.59

2006 2007 2008 2009 2010 2011

Year

8

Sponsorship Industry Size (CDN$B)

INDUSTRY SIZE

0%

7%

14%

21%

28%

35%

16.7%15.5%

22.5%

15.4%

22.3%

29.6%

2006 2007 2008 2009 2010 2011

Year

9

Sponsorship as % of Marketing Communications Budget

MARCOM BUDGET

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CONCERNS

Demonstrating ROI23.7%

Competition18.5%

HR & Expertise18.3%

Meeting Goals & Targets16.9%

Budget10.7%

Appearance & Reputation8.0%

Up At Night

2011

572010

62

2009

76

2008

71

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2006

432007

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ACTIVATION SPENDIEG (US)IEG (US)

2008 $1.502009 $1.402010 $1.402011 $1.602012 $1.70

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TACTICS 2011 Change (2010)

Hosting/hospitality 13.80% 17.90%

Advertising 13.20% -2.90%

Creating branded content/events 11.60% 12.40%

Public relations 10.60% 40.00%

Social media 10.10% 61.20%

Co-promotions 7.40% 20.40%

Sales/consumer promotions 6.40% 44.90%

Product sampling 4.20% -66.50%

Ancillary events 4.20% 76.40%

Athlete 2.10% 52.70%

ACTIVATION SPEND

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2006

7.8 %

2007

4.5 %2008

6.0 %

2009

4.1 %

2010

2.6 %

2011

2.3%

EVALUATION

Pre-evaluation (2011)0.56%

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VARIABLE IMPORTANCE PROVIDED DIFFERENCE

Resources for activation program 4.09 (1) 2.59 1.50*Concluding report/audit 3.94 (2) 3.03 0.91*Sponsor recall stats 3.88 (3) 2.52 1.36*Audience loyalty stats 3.55 (4) 2.74 0.81*Information on purchase behaviour of target group

3.50 (5)2.27 1.23*

Protection from ambush marketers 3.48 (6) 2.76 0.72*Protection of sponsorship rights/exclusivity

3.24 (7)3.70 -0.46

Partnering on sponsorship activation and activities with other sponsors

3.06 (8)2.62 0.44

Partnering on sponsorship activation and activities with the property

3.06 (8)2.56 0.50

VALUE OF SERVICES

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1Sport, Events, Festivals

CSLS

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LARGEST INVESTMENT

of sponsors’ single largest investment is in pro sport or festivals

Over half

Pro sport26%

Festivals, fairs, annual events

26%

Amateur sport17%

Entertainment, toursand attractions

11%

Arts6%

Education 3%

Naming rights6%

Conferences6%

in history of CSLS that pro sport was not alone at #1

First time

0%

10.0%

20.0%

30.0%

2006 2007 2008 2009 2010 2011

% o

f Spe

nd

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“FESTIVALIZATION”

Professional sport

Amateur/Olympic sport

Festivals, fairs, annual events

Cause marketing

Arts

Entertainment, tours, attractions

Sponsor Investment Areas (2006-11)

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WHY?

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GREY CUP FESTIVAL

Attendance300,000

Days11

Event Areas Downtown4

Ticketed Events11

Free Events7

Corporate Sponsorship$3 million

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EXTREME RUNS

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LACROSSE FESTIVAL

Launched2004

Days10

Teams550

Athletes11,000

Attendance55,000

Sponsors7

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EVENTS MATTER

Of pro sport sponsorship spending is in events

One quarter

Teams40%

Leagues12%

Unions/associations 3%

Athletes 6%

Events24%

Media12%

Other 3%

Misalignment, expensive, crowded, poor service, tough to activate

Why not sport?

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ACTIVATION PLATFORM

Advertising26.0%

Hosting/Hospitality20.8%

Publicity19.0%

Public Relations9.6%

Advertising41.0%

Hosting/Hospitality34.6%

Publicity34.6%

Public Relations32.1%

Areas Utilized Spending

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0%

10.0%

20.0%

30.0%

40.0%

50.0%

35.5%

5.0%1.8%

5.8%

42.6%

10.6%8.1%6.3%8.1%

27.5%

% o

f Age

ncy

Billi

ngs

English French

Sport FestivalsEntertainmentCause Arts

FRENCH AGENCIESPercent of Agency Sponsorship Billings

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17.2%9.9%

7.7%

7.3%

6.4%6.0%

4.3%41.2%

Digital/Mobile/TV Content

Sports

Unique Content/Activations

Grassroots

Events/Stadiums

Cause

EducationOther

GROWTH POTENTIALIdentified Areas of Growth

‣ aboriginal‣ immigrant‣ health‣ natural resources‣ arts and music‣ automobile‣ international events‣ collaborations‣ financial‣ military‣ naming rights‣ measurement‣ government and not-for-profits‣ medium size business‣ human resources‣ corporate social responsibility‣ pouring rights‣ professional development and training events

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PROVIDE SOLUTIONS

Budget Concerns22.7%

Break Through Clutter21.8%

Showing ROI19.3%

Planning Strategically14.2%

Future Challenges for Sponsors

Other8.2%

Social Media7.1%

Activating Sponsorship6.8%

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PROVIDE SOLUTIONS

Expected ROI for Festivals

26.3%Expected ROI for Pro Sport

39.0%Expected ROI for Amateur Sport

15.8%

Actual ROI for Festivals

28.9%Actual ROI for Pro Sport

26.2%Actual ROI for Amateur Sport

18.4%

Return on Investment

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CAPTURE PASSION

1 Access and provide unique experiences.

How to activate on consumer passions?

3 Create awareness of the connection.

4 Create (relevant and interesting) content.

2 Use detailed consumer research.

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1Early Results from the 7th Annual Study

CSLS

Theme Example

Managing expectations and ensuring satisfaction “Not meeting our sponsors’ expectations and not delivering”

Competition “Increased competition for sponsorships”

Finding and maintaining sponsorships “Ensuring sponsors continue to renew, which is vital to our organizations’s sustainability”

Government, ethical and social issues “Exploitation of women and children in other countries”

Human resources and expertise “Finding quality employees”

Limited financial resources “Dwindling dollars”

Activation and servicing “Coming up with sponsorship activation ideas on behalf of my sponsors”

Economy “Fluctuating currency that can dramatically affect Canada”

Demonstrating ROI “Proving the value of sponsorship through measurement”

Too much to do, too little time “Lack of time to complete all funding requests”

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PAST CSLSWhat did we learn about women and sponsorship? Almost nothing.

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Responses to Date

83 Total

19 Sponsors

42 20 Sponsees Agencies

61 English

22 French

55% For-Profit

Not-For Profit45%

EARLY RESULTS - 7TH

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Early ThemesFrom Sponsors

Increased CompetitionToo Many Events

EvaluationShowing ROI

Budget Cuts

Economy Down

EARLY RESULTS - 7TH

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Marketing CommunicationsSponsors (n=19)

28.5%of Marketing

Communications Budget

25.0%forecast “it will decrease a lot”

EARLY RESULTS - 7TH

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Women in SponsorshipOrganizational Capacity

Percentage female paid staff: 51.5%All Organization

55.4%In Sponsorship

vs.

Percentage of volunteers female: 30.8%All Organization

46.8%In Sponsorship

vs.

Percentage of part-time agency staff female: 83.4%

Primary decision maker on sponsorship in organization: 14.7%

EARLY RESULTS - 7TH

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Women in SponsorshipCSLS Questions

19.6%Of sponsorships invested

where women are the primary target market

40% highest individual respondent

63% reported 0% investment

27.8%Of overall sponsorship

marketing budget invested in sponsorships that

primarily targeted women

44.0%Of respondents expected

investment in sponsorship that primarily target women to increase

56% stated it would stay the same

0% said it would decrease

EARLY RESULTS - 7TH

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Women in SponsorshipSponsees (n=42) 47% sport, 16% festival, fair, annual event; 11% municipality

7.7%Of total sponsorships targeted

at women (73 out of 952)

3.6%Of sponsorship revenue was received from a sponsor who was primarily targeting female

consumers

20% highest individual respondent

57% reported 0% investment

EARLY RESULTS - 7TH

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Marketing CommunicationsAgencies (n=20)

EARLY RESULTS - 7TH

43.6%Of sponsorship billings to

sponsorship whose main target was women

85% highest individual respondent

6.9%Of sponsorship budget was spent through an

agency in 2011

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2 Sponsorship & Women in Canada

Cases

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CASESScotties Tournament of Hearts

\\

Attendance in 201365,286

Sponsorship Began1982

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CASES

Attendance200,000

Official Charity PartnerD.I.F.D

Jerseys & AuctionLivestrong

IIHF 2013 Women’s World Hockey Championship

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CASES

Raised in 2012$30 million

Participants170,000

National Sponsors8

CIBC Run for the Cure

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CASES

Participants2,500

Sponsors20

Toronto Women’s Run Series

Pediatric Oncology Group of Ontario

Exclusive Charity

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CASESTim Hortons Canadian Ringette Championships

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CASESBell Let’s Talk & Clara Hughes

Raised in 2013$4.8 million

Tweets & retweets1.5 million

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3For Sport Event Marketers

Key Takeaways

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KEY TAKEAWAYS

1 Festivalization

2 Events Matter

3 Activation & Events

4 Service Gap

5 Evaluate

6 Opportunity: Women

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Dr. Norm O’ReillyFaculty of Health SciencesUniversity of Ottawa

norman.oreilly@uottawa.ca

Elisa BeseltSenior Analyst, Consulting GroupTrojanOne

elisa.beselt@trojanone.com

CONTACT

www.sponsorshiplandscape.cawww.sondagecommandite.ca